Kathmandu. In Nepal’s domestic small appliances market, the competition between three well-known brands, Balaji NP (Baltra), CG Impex (CG) and Triveni Trading Company (Yasuda), seems to be intensifying in recent times. There has been a huge difference in the recent business, profitability and ability of the three big players to repay their debts.
CG Electronics has been able to maintain the highest profit margins with a steady growth rate in the field. Although Baltra has grown its business in recent years, profit margins have been very thin. Yasuda Home Appliances, a subsidiary of Triveni Group, has shrunk its business by 75 per cent as it has not been able to deviate from the traditional style of marketing.
Hima Electronics of the Golchha Group was not included in the comparative study. The company, which has been importing and selling Samsung mobile phones and home appliances, also imports, installs and sells small home appliances under the Him Star brand. Last fiscal year 2081. In 1982, its business was over Rs 8.76 billion. While it may seem big in terms of business, small home appliance sales accounted for only 14 percent of this revenue.
Earnings and Growth Rate
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Baltra’s business has grown exponentially in the last two years. The company is in the financial year 2080. In 2081, the company did business worth Rs 1.71 billion, which is an increase of 32 percent compared to the previous year. CG’s annual turnover is estimated to be over Rs 7 billion, four times more than that. With such a large annual turnover, CG Electronics has become the largest player in the market. However, CG small home appliances account for only 27 percent of its total revenue.
Previous fiscal year 2080. In 2018, Yasuda had a turnover of Rs 3.43 billion. Its business has been steadily shrinking for the last three years. Compared to the three years of trading, income fell by 16 percent.
Debt Repayment Capacity
CG’s debt repayment capacity is stronger than the other two competitors. The company can easily repay the loan from its income. Baltra’s condition is deteriorating, it has to pay off a lot of debt with little income. Yasuda’s condition is even weaker, and according to old reports, it is difficult for the company to pay interest.
Market Share:
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CG has the largest share in the small home appliance market in Nepal. It sells international brands such as CG, LG, Black & Decker, among others.
Yasuda and Balaji NP (Baltra) hold a small share. Yasuda has a 15 percent share in the heater market.
Profit {
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CG is also at the forefront in terms of profit before tax, interest and depreciation. It maintained a profit margin of 12 percent. Yasuda’s profit margin was the lowest at 7.8 percent and Baltra’s profit margin was limited to 7.5 percent.
CG is one of the strongest and most stable companies in Nepal. Yasuda and Baltra are trying to capture the market on the basis of cheaper prices and different products. There is also the risk that Baltra could go bankrupt financially due to shrinking profits.
