Singer in Sri Lanka
The Singer Sri Lanka group of companies (the "Sri Lanka Group") includes four public companies; Singer (Sri Lanka), Regnis (Lanka) PLC ("Regnis"), Singer Industries (Ceylon) PLC ("Industries") and Singer Finance (Lanka) PLC ("Singer Finance").
Singer Asia currently owns 86.1% of the shares of Singer Sri Lanka; the principal company in the Sri Lanka Group and the marketing arm. Singer Asia also owns controlling stakes (58.3% and 83.6%, respectively) in Regnis, a manufacturer of refrigerators, washing machines and related products, and in Industries, a manufacturer of sewing cabinets and stands and an assembler of sewing machines. A division of Singer Sri Lanka manufactures agricultural and domestic water pumps, furniture and paddy threshers, and assembles motorcycles. Singer Sri Lanka, in turn, owns 80.4% of the equity of Singer Finance, a finance company subsidiary with a deposit taking license. The four companies in Sri Lanka have a total of 1,876 employees. Singer Asia has operated in Sri Lanka since 1877.
2012 revenue in local currency increased by 15.4% as compared to prior year.
Revenue in 2010 and 2011 was boosted by more buoyant economic conditions following the end of the civil war and the liberalization of government economic policies. Business conditions were less favourable in 2012 as interest rates and inflation increased and the currency devalued.
The Sri Lanka Group's strategy is to continue to boost revenue in 2013 and later years, while maintaining profit margins and the Sri Lanka Group's strong balance sheet. Singer Sri Lanka intends to increase the number of sales locations, especially in rural areas and in the recently integrated northern and eastern regions of the country, to broaden and extend the product range, and to increase the financial services product offering and coverage. The Sri Lanka Group has approximately $36.5 million of unutilized, confirmed credit facilities available to help fund expansion.
At the end of 2012 Singer Sri Lanka operated:
In addition, Singer Sri Lanka has 662 independent dealers.
- 304 "Singer Plus" retail stores;
- 14 Singer "Mega" stores, a larger format store offering a wider range of consumer durable brands and products including furniture. One of the Singer Mega stores is the largest consumer durables, department store in the country;
- 49 "Sisil World" retail stores, offering a somewhat different product and brand mix, under the Sri Lanka heritage brand Sisil; and
- 14 "Singer Homes" furniture showrooms, offering a variety of modern and traditional bedroom, dining room and occasional furniture and accessories.
Singer Sri Lanka is the largest retailer in Sri Lanka of durables for the home with an approximate 36% overall market share and very significant market shares across several product categories including a 55% market share in refrigerators, a 37% market share in washing machines, a 35% market share in televisions, as well as an 80% market share in consumer sewing machines.
Products traditionally have been sold by Singer in Sri Lanka using the Singer brand, recognized again in 2012 as one of Sri Lanka's "Superbrands", and by an A.C. Nielsen countrywide poll, as the "Most Popular Brand in Sri Lanka" for the seventh consecutive year. Singer Sri Lanka over the past several years has introduced additional brands, often under exclusive brand distribution arrangements. Singer Sri Lanka is currently the exclusive distributor or co-distributor in Sri Lanka for Beko, Godrej, Grundig, Hitachi, Huawei, Onida, Philips, Samsung, Skyworth, TCL and Whirlpool, among others.
At the end of 2012, Singer Sri Lanka and Singer Finance had 342,380 active consumer accounts with a total instalment accounts receivable, net of unearned finance charges and allowances, of $82.6 million. Singer Sri Lanka operates an active call center and has an extensive customer loyalty program.
Singer Sri Lanka has over the last several years substantially broadened its financial services offering. Customers can now pay utility and credit card bills, purchase extended warranty and consumer protection plans, purchase mobile phone uploads, receive remittances from overseas, purchase insurance or make deposits at selected Singer Sri Lanka and Singer Finance locations. During 2012, approximately 2.2 million transactions were executed involving these new financial services products, in addition to 4.5 million traditional credit transactions.
For additional information regarding Singer Asia in Sri Lanka, see the Singer Sri Lanka website: www.singersl.com and the public company annual reports of Singer Sri Lanka, Regnis, Singer Industries and Singer Finance.