karan makhjia-project report

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MARKET RESEARCH & BUSINESS DEVELOPMENT IN LATIN AMERICA, APAC REGION FOR BLANK OPTICAL MEDIA A Summer Project Proposal For Post – Graduate Diploma in International Business By Karan Makhija Under the guidance of Mr. Ritesh Bhalla Dr. Suresh Ghai Deputy Manager Director

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Page 1: Karan Makhjia-Project Report

MARKET RESEARCH & BUSINESS

DEVELOPMENT IN LATIN AMERICA, APAC

REGION FOR BLANK OPTICAL MEDIA

A Summer Project Proposal For

Post – Graduate Diploma in International Business

By

Karan Makhija

Under the guidance of

Mr. Ritesh Bhalla Dr. Suresh Ghai

Deputy Manager Director

Moser Baer, Delhi SIMSR

K J Somaiya Institute of Management Studies & Research

07th July, 2009

Page 2: Karan Makhjia-Project Report

MARKET RESEARCH & BUSINESS

DEVELOPMENT IN LATIN AMERICA, APAC

REGION FOR BLANK OPTICAL MEDIA

By

Karan Makhija

K J Somaiya Institute of Management Studies & Research

July, 2009

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MARKET RESEARCH & BUSINESS

DEVELOPMENT IN LATIN AMERICA, APAC

REGION FOR BLANK OPTICAL MEDIA

By

Karan Makhija

Under the guidance of

Mr. Ritesh Bhalla Dr. Suresh Ghai

Deputy Manager Director

Moser Baer, Delhi SIMSR

K J Somaiya Institute of Management Studies & Research

July, 2009

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Certificate of Approval

We approve this Summer Project Report titled "Market Research & Business

Development in Latin America & APAC Region” as a certified study in

management carried out and presented in a manner satisfactory to warrant its

acceptance as a prerequisite for the award of Post-Graduate Diploma in Business

Administration/ Post Graduate Program in International Business for which it has

been submitted. It is understood that by this approval we do not necessarily endorse or

approve any statement made, opinion expressed or conclusion drawn therein but

approve the Summer Project Report only for the purpose it is submitted.

Summer Project Report Examination Committee for evaluation of Summer Project

Report

Name Signature

1. Faculty Examiner

2. PG Summer Project Co-coordinator

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Certificate from Summer Project Guides

This is to certify that Mr. Karan Makhija, a student of the Post Graduate Program in

International Business, has worked under our guidance and supervision. This Summer

Project Report has the requisite standard and to the best of our knowledge no part of it

has been reproduced from any other summer project, monograph, report or book.

Faculty Guide:

Designation:

SIMSR

Date:

Organizational Guide 1: Mr. Ritesh Bhalla

Designation: Deputy Manager – Intl Business

Organization: MBI International Services Pvt Ltd.

Address: 43B, Okhla Industrial Estate, New Delhi - 110020

Date: 30th June, 2009

Organizational Guide 2: Mr. Amit Sharma

Designation: Deputy Manager – Intl Business

Organization: MBI International Services Pvt Ltd.

Address: 43B, Okhla Industrial Estate, New Delhi - 110020

Date: 30th June, 2009

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ACKNOWLEDGEMENT

“For learning to take place with any kind of efficiency students must be motivated. To be motivated, they must become interested. And they become interested when

they are actively working on projects which they can relate to their values and goals in life”

I earnestly acknowledge the opportunity provided by Moser Baer. I would like to

acknowledge constant support and guidance of my project guide Mr. Ritesh

Bhalla (Deputy Manager – International Business) and Mr. Amit Sharma

(Deputy Manager - International Business), who has been instrumental in

successful completion of the project.

I also thank Dr. Suresh Ghai and Prof. C.P. Joshi, K.J. Somaiya Institute of

Management Studies & Research, for their guidance which facilitated my best

performance in the project.

Finally, I thank all those people whose silent presence gave me the right insights

to complete the project.

Karan Makhija

PGDM-IB, Roll No 28

K.J. Somaiya Institute of Management Studies & Research

Mumbai

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Abstract

MARKET RESEARCH & BUSINESS

DEVELOPMENT IN LATIN AMERICA, APAC

REGION FOR BLANK OPTICAL MEDIA

ByKaran Makhija

In the blank optical media business, Moser Baer has made its mark in more than 80

countries. Company’s business model is divided into two different segments. One model

is Original Equipment Manufacturer (OEM), wherein company manufactures blank

media like CD, DVD for all major global OEM brands. Under this segment company

produce CD/DVD, their packaging and every other aesthetic aspect of it as per client

requirement. The other segment is Non-OEM, under which comparatively small

distributor, reseller, whole seller, importer works. This segment includes private label

business. Company also sells media under its own brand name.

In Non-OEM segment, Moser Baer has its presence in only three Latin American

countries a:

1. Argentina

2. Brazil

3. Venezuela

Now, Company is eyeing on other countries of Latin America region for its blank optical

media business expansion, which are as:

1. Bolivia

2. Chile

3. Colombia

4. Ecuador

5. Peru

6. Paraguay

7. Suriname

8. Uruguay

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Moser Baer plans to expand into the following regions this

year :

1. China

2. Indonesia

3. Malaysia

4. Philippines

5. Singapore

6. Thailand

As per my project, I did market analysis of optical media

market for above mentioned countries and regions. In my

research I acquired information about all possible current

optical media market, companies, importers, distributors,

retailers who deal in optical media business. Information on

major brands operating in these regions were look upon. The

sources used to gather information are:

Indian Embassies at Latin America and APAC

countries

Foreign Embassies at India

Confederation of Indian Industry (CII)

Federation of Indian Chambers of Commerce and

Industry (FICCI)

Indian Trade Promotion Organisation (ITPO)

Online Business Directories

Search Engines as Google

For some above mentioned sources I contacted their offices

by visiting them or through mails and phone calls. On the

basis of information from all sources, I contacted prospective

companies to know about their current and future

requirement for Optical media. Then as per requirement of

the prospect, the offer was sent to them. All discussions and

offers send to prospects were done keeping in mind host

country’s legal and economic policy, trade laws and market

structure and scenario as country like Argentina, there is safe

guard measures on CD-R’s.

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As per feedbacks from prospects, they are currently getting

cheap media products from Asian countries like China and

Taiwan. So, there is fierce price competition in these

countries.

INDEX

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Acknowledgement………………………………………………………..…………… 6

Abstract……………………………………………………………………………………. .7

About Company ………….…………………………………….………………………..12

History…………………………………………………….…………………………………14

Major Milestones………………………………………………………………….…….16

Major Achievements…………………………………………………………………..18

Products & Services……………………………………………………………………20

Industry Profile………………………………………………………………………….26

CD R/RW Market Trends……………………………………………………...........35

Future Technologies………………………………………………………….……….38

Project Introduction……………………………………………………………….…..39

Results of discussion with Foreign Embassies at India…….……………41

Results of discussion with Indian Embassies……………………..………….42

Results of discussion with Trade Associations…………………...………….44

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Facts about Argentina Optical Media Market………………………..............45

Facts about Brazil Optical Media Market……………………..........................48

Facts about Venezuela Optical Media Market…………………….................50

Findings……………………………………………………………………………………..52

Conclusion…...............................................................................................................55

Recommendations ……………………………………………………………………..56

Glossary……………………………………………………………………………………..58

References …………………………………………………….…………………………..59

LIST OF FIGURES

No. Details Page No

1. Graphical Representation of Market Share for Branded

CD-R (In millions)… …..28

2. Graphical Representation of Market Share for Branded

CD-RW (In millions)…..30

3. Graphical Representation of Market Share for Branded

DVD-R (In millions).…..32

4. Graphical Representation of Market Share for Branded

DVD-RW (In millions)..34

5. Graphical Global sales for the

formats………………………………..……………………….…37

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6. Argentina OEM Market

Share……………………………………………………………………….

46

7. Argentina Private Label Market

Share…………………………………………………..………47

8. Brazil Local brand market

Share…………………………………………………………………..48

9. Venezuela Manufacturers Market

Share………………………………………………………..50

LIST OF TABLES

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Table No Details

Page No

1. CD-R Global Sales

Data………………………………………………………27

2. Global CD-R Media Company Market

Shares………………………27

3. CD-RW Global Sales

Data…………………………………………………..29

4. Global CD-RW Media Company Market

Shares…………………...29

5. DVD-R Global Sales Data.

…………………………………………………..31

6. Global DVD-R Media Company Market

Shares……………………31

7. DVD-RW Global Sales

Data………………………………………………..33

8. Global DVD-RW Media Company Market

Shares…………………33

9. Remarks of consultation with Foreign Embassies at

India…..41

10. Remarks of consultation with Indian

Embassies………………...42

11. Remarks of consultation with Trade

Associations……………...44

12. Argentina DVDR Sales

Data……………………………………………….45

13. Argentina Private Label business Break-

Up…………………….....46

14. Argentina Local CD-R production

data………………………………47

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15. Brazil local brands market

share……………………………….………48

16. Brazil major OEM brands market

share…………………………......48

17. Brazil Local Manufactures sales data…….

…………………………...49

18. Venezuela Manufacturers Market

Share…………………………….50

19. Venezuela market price for CD-R & DVD-

R……………………......51

20. Findings………………………………………………………………

…………..52

ABOUT COMPANY

Moser Baer, headquartered in New Delhi, is one of

India's leading technology companies. Established in

1983, the company successfully developed cutting edge

technologies to become the world's second largest

manufacturer of Optical Storage media like CDs and

DVDs. The company also emerged as the first to market

the next-generation of storage formats like Blu-ray Discs

and HD DVD. Recently, the company has transformed

itself from a single business into a multi-technology

organisation, diversifying into exciting areas of Solar

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Energy, Home Entertainment and IT Peripherals &

Consumer Electronics.

Moser Baer has a presence in over 86 countries,

serviced through six marketing offices in India, the US,

Europe and Japan, and has strong tie-ups with all major

global technology players.

Moser Baer has the distinction of being preferred

supplier to all top global OEM brands. The company

stands committed to supplying highest quality fully

licensed media to its customers.

Moser Baer's products are manufactured at its three

state-of-the-art manufacturing facilities. It has over

6,000 full-time employees and multiple manufacturing

facilities in the suburbs of New Delhi.

Deepak Puri Managing director

Ratul Puri Executive Director

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HISTORY

Moser Baer India was founded in New Delhi in 1983 as

a Time Recorder unit in technical collaboration with

Maruzen Corporation, Japan and Moser Baer

Sumiswald, Switzerland.

In 1988, Moser Baer India moved into the data storage

industry by commencing manufacturing of 5.25-inch

Floppy Diskettes. By 1993, it graduated to

manufacturing 3.5-inch Micro Floppy Diskettes (MFD).

In 1999, Moser Baer India set up a 150-million unit

capacity plant to manufacture Recordable Compact

Disks (CD-R’s) and Recordable Digital Versatile Disks

(DVD-R’s). The strategy for the optical media project

was identical to what had successfully been

implemented in the diskette business - creating a facility

that matched global standards in terms of size,

technology, quality, product flexibility and process

integration. The company is today the only large Indian

manufacturer of magnetic and optical media data

storage products, exporting approximately 85 percent of

its production.

Since inception, Moser Baer has always endeavored to

create its space in the international market. Aiding the

company in its efforts has been a carefully-planned and

sustainable business model - low costs, high margins,

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high profits, reinvestment and capacity growth. Along

the way, deep relationships have been forged with

leading OEMs, with the result that today there are hardly

any global technology brands in the optical media

segment that Moser Baer is not associated with.

In 2006, the company announced its foray into the

Photovoltaic and Home Entertainment businesses. In

2007, the IT Peripherals and Consumer Electronics

division was formed.

MAJOR ACHIEVEMENTS

Second largest manufacturer in the world for blank

optical media

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Entered the highly exciting and emerging global

technology space of photovoltaic in mid-2005

Foray into the fast growing Home Entertainment

Business in 2006.

In-house developed and patented technology has

been considered as one of the four standard media

to be included in the Blu-ray Disk Association

The first storage media company in the world to ship

HD DVDs using a special disc structure using

common materials.

Lowest-cost manufacturer of optical media in the

world

Highly R&D-focused company

OEM supplier to all the 12 leading storage media

brands in the world

MOSER BAER LOCATIONS

Corporate Headquarters: New Delhi, India

Indian Offices: Mumbai, Kolkata, Chennai and

Bangalore

Worldwide Offices: The Netherlands, USA (New

York and California), Japan, Middle-East

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EMPLOYEE STRENGTH

Company has employee strength over 7,500

NUMBER OF PLANTS

Company has 4 plants located in India. Three plants at

Noida and one at Chennai

EXCHANGE LISTING

National Stock Exchange (NSE), the Stock Exchange,

Mumbai (BSE)

FINANCIALS SUMMARY

For the financial year ending March 31, 2008

Net Sales: Rs. 18,997.9 Million

Net Turnover: Rs. 208.7 Million

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PRODUCTS & SERVICES

IT & Consumer Electronics:-

1. DVD Players

2. LCD’s

3. Media Players

4. Digital photo frames

5. Multimedia speakers

6. PC Peripherals

MOSER BAER

IT & CONSUMER ELEC. STORAGE MEDIA PHOTO-VOLTAICHOME

ENTERTAINMENT

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Storage Media:-

1. DVD+R

2. DVD-R

3. DVD+RW

4. DVD-RW

5. DVD + R DL

6. Mini CD-R/DVDR

7. CD-R/RW

8. Blu-ray Disc

Photovoltaic:-

1. Crystalline Silicon Cells and Modules

2. High Concentrator and Thin Film Modules

Home Entertainment:-

1. Distribution of movies

2. Film production

3. Theatrical distribution

STORAGE MEDIA

Moser Baer India, the second largest manufacturers of

optical media in the world, is a technology company

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focused on the preferred OEM for all 12 of the world's

optical media manufacturers and commands a 16%

development, manufacture and supply of optical media

across the globe. The company is a global market

share. With a strong R&D thrust, the company has been

able to lead the technology curve in the optical media

business. In the process, it is among the very few Indian

companies to have contributed to the establishment of

new global technology standards. As a result of this

single-minded drive and commitment, Moser Baer

became the first storage media company in the world to

ship HD DVDs.

In the Indian market, Moser Baer made its foray into the

burgeoning domestic optical storage market with the

launch of the `Moser Baer label in 2003. The company

has blazed a new trail by introducing technologically

innovative and truly world-class product in the Indian

market. Moser Baer's new range of Gold and Platinum

CD-R’s have been developed keeping native conditions

in mind in terms of enhanced durability and resistance

to both environmental and human-induced hazards. In a

market estimated at US$ 350 million in 2005-06 - Moser

Baer is already the leader with a share of over 40%.

The company manufactures the entire spectrum of

optical storage media products including Recordable

Compact Discs (CD-R), Rewritable Compact Discs (CD-

RW), Recordable Digital Versatile Discs (DVD-R),

Rewritable Digital Versatile Discs (DVD-RW) and blue

laser discs (HD-DVD and Blue-ray).

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Moser Baer's products are manufactured at its three

state-of-the-art manufacturing facilities that adhere to

the most stringent process and quality standards. The

company employs over 7,500 people and has an annual

production capacity of over 3 billion units.

PHOTOVOLTAIC

Moser Baer Photovoltaic aims to distinguish itself as a

significant player in the global photovoltaic market by

leveraging its high-volume manufacturing expertise and

planned investments of nearly US$ 3.2 billion in

research, development and manufacturing of products

dedicated to generating solar power.

MBPV realizes that PV markets have different needs

and emerging technologies have to be developed today

to realize the world's future energy needs. It has already

announced investments in a mix of currently available

and emerging technologies as follows:

A first of its kind 80 MW, state-of-the-art, fully

automated in-line crystalline silicon cell

manufacturing facility - 40 MW already in

productions - this will be scaled up to 240 MW

A 40 MW module manufacturing facility with

expansion plans to scale it up to 200 MW

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A 200 MW thin film module plant, capable of

producing the world's largest non-flexible thin film

modules, is under construction. Module shipments

are anticipated around mid 2008

A high concentrator photovoltaic (CPV) module

manufacturing facility and multi-million dollar

investments in a US-based company - Sol focus,

the developer of the CPV technology in partnership

with the world renowned Palo Alto Research Center

(PARC), California. The technology is based on

gallium arsenide cells, originally developed for

harsh extra-terrestrial solar applications and

environments

A significant equity stake in Solaria, a US-based

technology company that has developed a unique

form of low-concentration solar PV technology. It is

capable of producing power equivalent to two to

three times the power produced by conventional PV

modules, using the same amount of silicon material

A significant minority stake in Stion Corporation, a

nanostructures development company based in the

Silicon Valley, California, for producing extremely

low-cost solar power generating surfaces

Acquisition of 40% equity stake in Solarvaiue,

Proizvodnja d.d, a solar grade silicon production

facility in Slovenia, to provide access and

assurance of supply to low-cost solar grade silicon

An R&D centre dedicated for the improvement and

rapid commercialization of solar technology

products

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In addition to the above, Moser Baer Photovoltaic has

invested in strategic partnerships involving the entire

value chain, particularly for strategic sources such as

silicon ingots and wafers, glass, etc. through short-term

and long-term supply agreements.

ENTERTAINMENT

Moser Baer Entertainment offers home video titles in

various Indian languages at unmatched prices and is

also engaged in media content creation.

The company is the first to offer home videos in every

popular language of India and it is today India's largest

Home Entertainment Company. It currently offers home

video titles in Hindi, English, Tamil, Telugu, Malayalam,

Kannada, Marathi, Gujarati, and Bengali and non-film

categories. Moser Baer Entertainment has acquired the

rights for close to 10,000 titles in all the popular

languages and has already released close to 3,000 of

them in the market.

Headquarters in Mumbai, the company is establishing a

strong presence across the country in all major metros

as well as in smaller towns through an active and well-

organized multi-tiered channel. This move will take

advantage of the established Moser Baer production

capability and a well developed distribution network.

The company has released video content in DVD and

Video CD formats using Moser Baer's proprietary and

patented technology that ensures the highest quality

standards and significantly reduces cost. The movie

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titles come with world-class packaging. In short, Moser

Baer Entertainment is working towards providing

unprecedented value by offering high quality products at

a price that delights consumers.

IT PERIPHERALS & COMSUMER ELECTRONICS

Moser Baer has entered into IT Peripherals and

Consumer Electronics. In IT Peripherals the product

range comprises of USB drives, Memory Cards, DVD

writers, PC Peripherals, TFT Monitors, UPS and

External Hard Drives. In the Consumer Electronics

arena, the company has come up with a product range

with medium to hi-end positioning comprising of Ultra

Advanced LCD TVs, DVD Players, Portable DVD

Players, Digital Photo Frames, Media Players and

Multimedia Speakers.

INDUSTRY

PROFILE

CD-R/RW is a significant part of the recordable optical

storage industry, with overall dollar sales of $1.19 billion

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in 2008. Media unit sales changed by -4%, but price

degradation continued with revenue changing -38%.

DVD recordable technology registered sales of $8.34

billion in calendar-year 2008. This figure is up from$7.68

million of revenue in 2007. Disc media sales grew by

12%, to 4.956 billion units. In the DVD disc media

business, revenues totaled $1.18 billion in 2008. This

report reviews five DVD disc formats: DVD-R, DVD-RW,

DVD+R, DVD+RW, and DVD-RAM. DVD-R was the

most significant recordable DVD format in 2008, with

65% of DVD recordable disc sales, followed by DVD+R,

31%; DVD+RW, 2%; DVD-RW, 2%; and DVD-RAM,

less than 1%.

Disc media continued to decline, with the market

representing 4997.240 billion units in 2008. CD-R disc

sales continue to exceed volume of DVD discs but are

not likely to hold this position much longer. Revenues

were influenced more by declining volume with average

unit pricing stabilizing,

DVD disc media is produced primarily in Asia, with

Japan and Taiwan maintaining a large share of this

business. Ritek, CMC, Optodisc, and Prodisc, all

based in Taiwan, are acting as subcontractors for a

number of international brands; Taiyo Yuden has

manufacturing in Japan; and MCC/Verbatim continues

to manufacture DVD discs, with production in

Singapore. Moser Baer maintains a significant

manufacturing presence for DVD recordable media in its

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India facilities. There are smaller regional players that

have a minor influence on this market.

Entertainment levies in Europe had a major influence on

geographic sales of disc media. High levy countries

such as France, Italy, Sweden, Denmark, Austria,

Spain, and Hungary saw their official markets decline

because of this trend. Countries with low levies like

Germany, the United Kingdom, Slovakia, Monaco, San

Marino, Andorra, and Luxembourg benefited from this

trend, with traders shipping discs to high-levy markets.

CD-R:-

Sales Data 2007 2008 2009

GLOBAL SALES (MM UNITS) 6742.412 6041.387 4997.24

% CHANGE IN SALES N.A. -10.90% -17.28%

(Source: SCCG Year

End Report – 2009)

Table 1 – Global Sales Data

GLOBAL CD R MEDIA COMPANY MARKET SHARES

BRAND

2007 2008 2009

Market

Share

Units in

million

Market

Share

Units in

million

Market

Share

Units in

million

IMATION 9.70% 654.01396 8.60% 519.5593 7.40% 369.7958

MEMOREX 11% 741.66532 11.40% 688.7181 10.80% 539.7019

TDK 10.70% 721.43808

4

11.70% 706.8423 9.70% 484.7323

SONY 11% 741.66532 11.30% 682.6767 12.50% 624.655

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MCC/

VERBATIM

15.50% 1045.0738

6

15.60% 942.4564 16.80% 839.5363

MAXELL 9.80% 660.75637

6

11.10% 670.594 11.10% 554.6936

HP 2.50% 168.5603 2.20% 132.9105 3% 149.9172

PHILIPS 3% 202.27236 3.00% 181.2416 2.50% 124.931

RITEK 2.70% 182.04512

4

2.00% 120.8277 2.70% 134.9255

TAIYO YUDEN 2.70% 182.04512

4

2.50% 151.0347 2.70% 134.9255

OTHERS 10.80% 728.18049

6

13.00% 785.3803 9.90% 494.7268

(Source: SCCG Year

End Report – 2009)

Table 2 – Tabular format for Branded CD-R

(Source: SCCG Year

End Report – 2009)

0

200

400

600

800

1000

1200

IMATION 654.01396 519.5593 369.7958

MEMOREX 741.66532 688.7181 539.7019

TDK 721.438084 706.8423 484.7323

SONY 741.66532 682.6767 624.655

MCC/VERBATIM 1045.07386 942.4564 839.5363

MAXELL 660.756376 670.594 554.6936

2007 2008 2009

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Fig 1 – Graphical Representation of Market Share for

Branded CD-R (In millions)

Observations:

The overall market for the CD-R kept on decreasing

Verbatim had the highest and increasing share

The shares for Verbatim increased due to decrease in

the overall sales

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CD RW:-

Sales Data 2007 2008 2009

GLOBAL SLAES(MM UNITS) 237.54 177.834 130.705

% CHANGE IN SALES N.A. -25.13% -26.50%

(Source: SCCG Year

End Report – 2009)

Table 3 – Global Sales Data

GLOBAL CD-RW MEDIA COMPANY MARKET

SHARES

BRAND

2007 2008 2009

Market

Share

Units in

million

Market

Share

Units in

million

Market

Share

Units in

million

TDK 13.10% 31.11774 12.20% 21.69575 10.60% 13.85473

IMATION 17.80% 42.28212 11.60% 20.62874 13% 16.99165

MEMOREX 15.90% 37.76886 19.30% 34.32196 15.50% 20.25928

MAXELL 12.30% 29.21742 12.40% 22.05142 16.10% 21.04351

SONY 10.40% 24.70416 11.80% 20.98441 12.70% 16.59954

PHILIPS 2.90% 6.88866 3% 5.33502 1.80% 2.35269

MCC/

VERBATIM

19.20% 45.60768 20.50% 36.45597 22.10% 28.88581

FUJI 0.80% 1.90032 2.70% 4.801518 1.50% 1.960575

OTHERS 5% 11.877 6.40% 11.38138 6.80% 8.88794

(Source: SCCG Year

End Report – 2009)

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Table 4 - Tabular format for Branded CD-RW

(Source: SCCG Year

End Report – 2009)

Fig 2 - Graphical Representation of Market Share for

Branded CD-RW (In Millions)

Observations:

The overall market for CD-RW declined

MCC/Verbatim had the highest market share

Verbatim increased its share in the declining

market

0

5

10

15

20

25

30

35

40

45

50

TDK 31.11774 21.69575 13.85473

IMATION 42.28212 20.62874 16.99165

MEMOREX 37.76886 34.32196 20.25928

MAXELL 29.21742 22.05142 21.04351

SONY 24.70416 20.98441 16.59954

PHILIPS 6.88866 5.33502 2.35269

MCC/VERBATIM 45.60768 36.45597 28.88581

2007 2008 2009

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The shares increased due to the decline in the

overall sales world wide

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DVD R:-

Sales Data 2007 2008 2009

GLOBAL SALES(MM UNITS) 4035.461 4433.613 4729.385

% CHANGE IN SLAES N.A 9.80% 6.67%

(Source: SCCG Year

End Report – 2009)

Table 5 – Global Sales Data

GLOBAL DVD R SHARES

BRAND

2007 2008 2009

Market

Share

Units in

million

Market

Share

Market

Share

Units in

million

IMATION 5.80% 234.05673

8

5.50% 243.8487 4.90% 231.7399

MEMOREX 9% 363.19149 10.10% 447.7949 9.80% 463.4797

TDK 13.30% 536.71631

3

13.80% 611.8386 13.80% 652.6551

MAXELL 8.20% 330.90780

2

9.40% 416.7596 8.60% 406.7271

MCC/VERBATIM 21.70% 875.69503

7

23.80% 1055.2 22.80% 1078.3

SONY 10.60% 427.75886

6

11.20% 496.5647 12.10% 572.2556

PHILIPS 3.20% 129.13475

2

3.20% 141.8756 2% 94.5877

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HP 2.90% 117.02836

9

2% 88.67226 2.60% 122.964

RITEK 2.50% 100.88652

5

2.10% 93.10587 1.90% 89.85832

FUJI 3.60% 145.27659

6

2.50% 110.8403 2% 94.5877

OTHERS 19.20% 774.80851

2

16.40% 727.1125 19.40% 917.5007

(Source: SCCG Year

End Report – 2009)

Table 6 - Tabular format for Branded DVD-R

(Source: SCCG Year

End Report – 2009)

Fig 3 - Graphical Representation of Market Share for

Branded DVD – R (In Millions)

0

200

400

600

800

1000

1200

IMATION 234.056738 243.8487 231.7399

MEMOREX 363.19149 447.7949 463.4797

TDK 536.716313 611.8386 652.6551

MAXELL 330.907802 416.7596 406.7271

MCC/VERBATIM 875.695037 1055.2 1078.3

SONY 427.758866 496.5647 572.2556

PHILIPS 129.134752 141.8756 94.5877

2007 2008 2009

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Observations:

The global market for DVD R increased with

Verbatim being the market leader with an

approximate share of 22%

DVD RW:-

Sales Data 2007 2008 2009

GLOBAL SALES(MM UNITS) 295.755 304.397 226.473

%CHANGE IN SALES N.A 2.90% -25.50%

(Source: SCCG Year

End Report – 2009s)

Table 7 – Global Sales Data

GLOBAL DVD RW SHARES

BRAND 2007 2008 2009

Market Units in Market Units in Market Units in

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Share million Share million Share million

IMATION 7.30% 21.590115 6.40% 19.48141 6.30% 14.2678

TDK 16.10% 47.616555 13.50% 41.0936 12.90% 29.21502

MEMOREX 4.90% 14.491995 8.40% 25.56935 7.80% 17.66489

MAXELL 20% 59.151 19.90% 60.575 21.40% 48.46522

MCC/VERBATIM 15.60% 46.13778 16.10% 49.00792 17.70% 40.08572

SONY 13.60% 40.22268 14.90% 45.35515 15.20% 34.4239

PHILIPS 6.80% 20.11134 5.90% 17.95942 5.50% 12.45602

FUJI 2.30% 6.802365 4.70% 14.30666 3.30% 7.473609

MATSUSHITA 6.30% 18.632565 4.80% 14.61106 4.80% 10.8707

OTHERS 7% 20.70285 5.40% 16.43744 4.90% 11.09718

(Source: SCCG Year

End Report – 2009)

Table 8 - Tabular format for Branded DVD-RW

(Source: SCCG Year

End Report – 2009)

0

10

20

30

40

50

60

70

IMATION 21.590115 19.48141 14.2678

TDK 47.616555 41.0936 29.21502

MEMOREX 14.491995 25.56935 17.66489

MAXELL 59.151 60.575 48.46522

MCC/VERBATIM 46.13778 49.00792 40.08572

SONY 40.22268 45.35515 34.4239

PHILIPS 20.11134 17.95942 12.45602

2007 2008 2009

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Fig 4 - Graphical Representation of Market Share for

Branded DVD – RW (In millions)

CD R/RW MARKET TRENDS

It is now estimated that there is 28% more supply than

demand for CD-R discs. This appears to be a relatively

good supply/demand balance; the market has seen

pricing stabilize as it has approached cost. For

manufacturers paying royalties to Philips and other

companies, profits are limited at best. It is expected that

manufacturers will decrease CD-R capacity in 2009,

hoping that pricing will improve to allow profitability.

Taiwan dominates manufacturing for CD-R discs, now

representing 62% of global capacity. India is an

important participant, with Moser Baer maintaining an

additional 19%.

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CD-recordable technology revenue changed by -13%, to

$257 million in Q4. Media Revenues showed a

significant decrease as writer and media sales declined.

Quarterly CD Writer unit sales changed by -50%, with

declines in all channels. Writer revenue growth changed

by -32%; higher unit pricing in combo drives and a

growing share of this product category in the writer

segment compensated for some of the declines in the

half-high format, but the shift to DVD writers was driving

this trend. Media dominated sales, representing 82% of

revenue.

Global CD recordable disc sales changed by -4% from

1252.846 million units to 1205.198 million units on a

quarter-to-quarter basis. This decline was primarily due

to the gradual market shift towards DVD media and

alternate storage being used for applications like music.

CD-R discs represented 1179.320 million units of this

volume and prices showed a modest decline during the

quarter. CD-RW media sales continued to be limited,

representing 2.15% of total unit sales. Disc

manufacturers are retiring CD-R capacity and in some

cases converting production lines to DVD recordable

capacity. Several companies are further reducing

manufacturing capacity by stopping less-productive

lines. There is adequate CD-R capacity to support

industry needs for the future.

CD-R/RW:

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CD-R/RW represented the significant part of the

recordable media, although the overall sales for the CD-

R/ RW decreased. Disc media sales continued to

decline with the market representing 6742.412 million

units in 2007, 6041.387 million units in 2007 and

4997.240 million units in the year 2008. Considering the

change in the previous three years i.e. from 2006-2008,

the supply demand gap has increased from 2% in 2006

to 28% in 2008. This is because the markets mature

and application for copying CD became saturated.

Some of this decline is influenced by the acceptance of

the high storage capacity products like DVD in the

market. In the addition alternate technologies such as

flash (MP3 players) and online (music and video

distribution, photo storage) also influenced the trend.

Disc manufacturers are retiring CD-R

capacity and in some cases converting production lines

to DVD recordable capacity. Several companies are

further reducing manufacturing capacity by stopping

less-productive lines. There is adequate CD-R capacity

to support industry needs for the future.

CD-RW does not form the significant part of the CD

recordable media. The sales for CD-RW decreased, it

decreased by 25.13% (177.834) in 2007 from 237.54

mn in 2006. In 2008 it came down to 130.705 mn

(26.50%).

DVD-R/RW:

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The sales for DVD-R increased in the year 2007 by

9.80% from the previous year and 6.67% in the year

2008. The sales for DVD R which comes in two formats

(DVD-R/+R) increased due to high compatibility of either

versions with DVD players, the prime playback medium

for this product. DVD R media consumption was initially

driven by the transfer of camcorder tapes. There is a

huge installed base of camcorder tapes. This might

suggest an opportunity to quickly convert this quantity to

DVD. In actual practice, the conversion will be fairly

gradual, and will relate to a user’s need to convert from

magnetic media, which is perceived as deteriorating, to

DVD. Some of this activity will be influenced by media

cost, which initially will be quite high.

DVD RW which also comes in two formats

(DVD-RW/+RW) has lower levels of compatibility with

the DVD players. Global sales for DVD RW increased

by 2.90% in 2008 but decreased by 25.50% in 2009.

Global sales for the formats are as shown below:

0

2000

4000

6000

8000

CD-R 6742.412 6041.387 4997.24

CD-RW 237.54 177.834 130.705

DVD-R 4035.461 4433.613 4729.385

DVD-RW 295.755 304.397 226.473

2007 2008 2009

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(Source: SCCG Year End Report – 2009)

Fig 5 - Graphical Global sales for the formats

FUTURE TECHNOLOGIES

Blu-ray was announced in late 2002. This technology is

supported by a group of nine companies (the “Blu-ray

Founders”) working on standards. With capacity of 25

gigabytes (50 GB on a double-sided disc), the main

application appears to be supporting high-definition

broadcast copying. Considering the development cycle

and limited need for storing high definition broadcast

content (which is only a factor in Japan), this market

might mature some years in the future.

In September 2002, Sony announced a “DVR-Blue”

prototype consumer recorder with capacities of 23.3 GB,

25 GB, and 27 GB. Sony did not specify when these

devices would be available on a commercial basis, but

small volumes started to ship in Japan in 2007.

The recorder has capabilities such as

receiving/recording programs of digital satellite

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broadcasting and recording the current ground-based

TV broadcasting.

Toshiba introduced the HD DVD (previously known as

AOD), which also featured blue laser technology. This

technology was capable of storing 15 GB (30 GB on a

double-sided disc). The HD DVD format was

discontinued in early 2008.

The Blu-ray drive manufacturers have come out with a

ROM version and are actively working with movie

studios and software vendors to gain acceptance in

these markets. (SCCG published a report titled Blu-ray

and HD DVD Disc Technologies: Pursuit of a New

Standard, which provides more detail on this market.)

PROJECT INTRODUCTION

The project is based on analysis of current optical media

market and prospecting of companies in Latin America

and APAC region in the sphere of optical media

business.

OBJECTIVE:

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Market analysis and assessment about blank

optical media business in Latin America and

APAC region

Prospecting companies which are importers or

reseller or duplicators of optical media in Latin

America and APAC region

Preparing marketing plan for prospective and

interested companies as per country legal and

economic framework

RESEARCH METHODOLOGY:

The research methodology used is primary and

secondary research. All the information and data

represented in the project have been collected from

various sources as:

Questionnaire and depth- Interviews

Indian Embassies at Latin America and APAC

countries

Foreign Embassies at India

Confederation of Indian Industry (CII)

Federation of Indian Chambers of Commerce

and Industry (FICCI)

Indian Trade Promotion Organisation (ITPO)

Online Business Directories such as Alibaba,

Tradekey etc.

Online search engine

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The market taken for the study is the Latin America and

APAC region.

Under Latin America following countries have been

covered:

1. Argentina

2. Bolivia

3. Brazil

4. Chile

5. Colombia

6. Ecuador

7. Peru

8. Paraguay

9. Suriname

10. Uruguay

11. Venezuela

Under APAC region following countries have been

covered:

1. China

2. Thailand

3. Malaysia

4. Singapore

5. Indonesia

6. Philippines

This research project has helped the company in

establishing the market size, existing players,

opportunities and prospects in order to expand business

in these markets/segments and what all is needed to

have an initial breakthrough.

It also gives a complete understanding on the

movement of goods and competitor performance in

these specific regions based on discussions with

prospective clients.

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Also it has helped in analyzing performance of different

brands like Imation/Verbatim/TDK vis-à-vis smaller

brands like Princo, Multilaser, Elgin etc in specific

regions.

Results of discussion with Foreign Embassies

at India:

S. No

Embassy Of

Person Remarks

1 URUGUAY

- No information received from embassy

2 PERU - Information received from embassy

3 ECUADOR

Ms. Leticia No information received from embassy

4 VENEZUELA

- No information received from embassy

5 ARGENTINA

- No information received from embassy

6 BRAZIL - Information received from embassy

7 SURINAME

Ms. Vyanti Mala Ram Ratan Srivastav

No information received from embassy

8 KENYA - No information received from embassy

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Table 9 – Remarks of consultation with Foreign

Embassies at India

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Results of discussion with Indian Embassies at

Latin America & APAC region:

S. NO EMBASSY AT PERSON CALL REMARKS1 Ecuador - Not able to contact embassy

2 Argentina Mr. Sanjeev Kumar Babu

No information received from embassy

3 Brazil Ms. Leticia Information received from Embassy about certain prospects and other information sources

4 Chile - Embassy people have contacted our agent based in Chile

5 Indonesia Ms. Pratibha

Information received from embassy

6 Paraguay - Not able to contact embassy

7 Peru - Information received from embassy

8 Singapore - Information received from Embassy about certain prospects and other information sources

9 Thailand Mr. Purshottam

Information received from Embassy about certain prospects and other information sources

10 Venezuela - Not able to contact embassy

11 Colombia - No information received from embassy

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12 Kuala Lumpur - Information received from Embassy about certain prospects and other information sources

13 China Mr. Amit ( 65321856)

Information received from Embassy about certain prospects and other information sources

14 BoliviaHonorary Consulate General Of India, La Paz

- Not able to contact embassy

15 Suriname - Not able to contact embassy

Table 10 – Remarks of consultation with Indian

Embassies

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Results of discussion with Trade Associations:

S. No

Association

Remarks

1 ITPO Visited ITPO. No information received.

2 NASSCOM

No information received from NASSCOM

3 CII Visited CII. No information received.

4 FICCI No information received from FICCI

Table 11 – Remarks of consultation with Trade

Associations

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Facts about Argentina Optical Media Market

1. Market Size: 12mn DVD-R/ month and 13 mn CD-

R/month

2. OEM Brands represent 70% & Local Private Labels

have 30% market share

3. There are safeguard measures against India on CD-

R

4. Major OEM Brands with DVD-R Market share are as

follows:

Sales (1st Jul' 07 - 31st Jul' 08)

BrandsDVDRs

(mn pcs)Mkt Share Distributors

Verbatim 52.774 52% Econ Office - GTC, Imtermaco, Elit, Stenfar, Etertin, Districomp

Imation 14.641 14% Util- of, Stylus, Casa Sermiento

Memorex 15.68 15% Audioptica, Util-Of, Stylus, Aircomputers

TDK 2.348 2% Cura Y, Audioptica

Sony 7.875 8% Intcomex, Visuar SRL, Gasei SA. Util - Of, American Importadora

Pleomax 1.119 1% GTC Ribbon

BenQ 0.596 1% Simon and Arrington, Air Computers

Melody 0.378 0% Anadolu

Philips 6.291 6% Diatricomp, Simon and Arrington

Total 101.702 100%

Table 12 – Argentina OEM - DVDR Sales Data

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OEM Mkt Share

Verbatim, 52%

Imation, 14%

Memorex, 15%

TDK, 2%

Sony, 8%

Pleomax, 1%

Philips, 6%

BenQ, 1%

Melody, 0%

Fig6 – Argentina OEM Market Share

4. Major Private Labels with DVD-R Market share are

as follows:

Sales (1st Jul' 07 - 31st Jul' 08)

BrandsDVDRs

(mn pcs)Mkt

ShareDistributors

Akira 2.865 14% Impact Argentina

Teltron 6.414 32% Teltron SA

Cromax 2.956 15% Elit

Conception 7.032 35% Super CD Virgen

Storax 1.086 5% Districomp

Total 20.353 100%

Table 13 – Argentina Non-OEM Private Label business

Break-Up

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Pvt Label - Mkt Share

Akira , 14%

Teltron , 32%

Cromax , 15%

Conception, 35%

Storax, 5%

Fig 7 – Argentina Private Label Market Share

5. Local Production

CDR Capa (mn pcs/a)

Teltron 50

Laser Disc 36

Table 14 – Argentina Local CD-R production data

6. Market Segments

Duplicators

(Piracy) is 70%

Retail

Customers is

30%

7. Distribution

Small Retailers:

90%

Retail Chains:

2%

IT Shops: 5%

Office

Stationery

Shops: 3%

Open Street -

Sell Pirated

Movies & music

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8. Political Situation and Economy of Argentina is

not stable. Companies want to wait for Political

stabilization. Also they wait for Exchange Rate

stabilization. Inflation is around 24% per year.

Government is regulating all the industries and

trying to minimize imports. At this point of time

companies are hesitant to start a new business.

Facts about Brazil Optical Media Market

1. Total Brazilian Optical Media Market size is 100-

120mn pieces/month with CD-R share of 40% and

DVD-R share of 60%

2. Piracy is the biggest problem for Government and

brands

3. Local Brands represent 60-70% of the total market

and OEMs Brands represent 30-40%.

4. Major Local Brands with market share are as

follows:

Videolar 25-30%Elgin 7%Multilaser 8%Printlife 8%Maxprint 7%Others (S-Mac, CIS etc.) 5-10%

Table 15 – Brazil local brands market share

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Mkt Share - Local Brands

Videolar , 30%

Elgin, 7%Multilaser, 8%

Printlife, 8%

Maxprint, 7%

Others, 10%

Fig 8 – Brazil Local brand market share

5. Major OEM Brands with Market Share are as follows:

Sony 10%Maxell 8%Imation 8%Others (TDK, Samsung, Ridata,Kodak, LG, etc.) 4%

Table 16 – Brazil major OEM brands market share

Sony, Imation and Maxell are doing business with the

help of their Distributors. Sony has become very serious

for Brazilian market by giving volume targets to their

distributors and reducing the price difference between

Sony branded media and other brands.

6. Local Manufacturers

Capa (mn pcs/m)

Videolar 38

Infosmart 6

Novodisc 1.5

Cooperdisc 1

Table 17 – Brazil Local Manufactures sales data

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Videolar is the biggest manufacturer in Brazil. They are

also producing CD-R for SONY in Brazil. Their DVD-R

quality has not been approved by SONY.

7. Market Segments:

Duplication: 60% Sales through

Distributors/Wholesalers/Retailers Retail/Corporate

Customers: 40% Sales through small Retailers and

Big Retail Chains

Facts about Venezuela Optical Media Market

1. Total Media Market size is expected to be 50-70mn

pieces/month

2. CD-R market share is around 30% and DVDD-R

share is around 70%

3. Biggest market segment (around 70-80%) is Piracy.

Government has not taken any strict measures to curb

this problem. Pirated content sells on streets.

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4. Manufacturer's/OEM Brands and Local Brands are

present in the ratio of 50:50 approx. There are around

40 Local Brands e.g. BBB, Banana, Huskee, Global

Data etc...

5. Within Manufacturer's and OEM Brands, Market

Share is as follows:

Princo 40%Gigastorage 20%Ridata 10%Smartbuy 10%Others 20%

Table 18 – Venezuela Manufacturers Market Share

Mkt Share - OEM Brands

Princo40%

Gigastorage

20%

Ridata10%

Smartbuy10%

Others20%

Fig 9 – Venezuela Manufacturers Market Share

7. Local Manufacturers

Global Data - Capacity around 6mn

pieces/month

Cendis - (Owned by Government)

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8. Market Segments

Duplication: 70-80% Sales through

Distributors/Wholesalers/Retailers)

Retail/Corporate Customers: 20-30% Sales

through small Retailers and Big Retail Chains

9. 10. Sales Channels: The traditional sales channel

of Distributors --> Resellers --> End Customer is

also there along with direct dealing between

manufacturer and retailer

10. Important Cities for Media Business are Caracas,

Mara cay, Valencia, Maraca Ibo, Barquisimento.

40% of the media business happens in Caracas - the

Capital of Venezuela

11. Import Duty on media is 29% on CIF Value

12. Free Trade Zones: Margarita Island, Puerto Fijo

Findings:

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As per primary level prospecting, 32 companies are sorted

out which are interested in dealing with Moser Baer for

optical media business. These companies are listed below:

Company

ContactCountry

Source

Remarks

Cabot Col Sa

Ramiro Velasquez Norena

Colombia

Embassy

Introductory mail sent

Didactica-Recursos Educativos Ltda

Jaramillo Isabel Aguirrezabal De

Colombia

Embassy

Introductory mail sent

Favaltec Ltda

Valderrama Morales Fabio

Colombia

Embassy

Introductory mail sent

Ledakon S A

Akerman Lederman Larry

Colombia

Embassy

Introductory mail sent

Memoria Digital S A

Jaime Hernandez

Colombia

Embassy

Introductory mail sent

Sepulveda Ursula Piedad Cecilia Y/O Sumimagen

Ursula Piedad Cecilia Sepulveda

Colombia

Embassy

Introductory mail sent

Aires Sa Aerovias De Integracion Regional S A

Erika Sarante Bahamon

Colombia

Embassy

Introductory mail sent

Asinal Ltda

Acevedo Diaz Belisario

Colombia

Embassy

Introductory mail sent

Avon Colombia Ltda

Sigilfredo Torres Velez

Colombia

Embassy

Introductory mail faxed on 005743567947

Brigthstar Colombia Ltda

Alvaro Rojas Bocherith

Colombia

Embassy

Introductory mail sent

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Franchise System De Col Ltda Y Cia Sca Fsc Ltda

Ricardo Sanchez Gil

Colombia

Embassy

Introductory mail sent

Gonzalez Garcia S A-890925810

Jorge Ivan Gonzalez

Colombia

Embassy

Introductory mail sent

Insitel Ltda Ingenieria De Sistemas Telematicos Ltda

Julian Alberto Clavijo Gonzalez

Colombia

Embassy

Introductory mail sent

Invs Ajoveco S A-860010268

Palacios Verswyvel Juan Manuel

Colombia

Embassy

Introductory mail sent

Labs Baxter S A-890300292

Victor Pedroza / Eduardo Jose Yalde

Colombia

Embassy

Introductory mail sent

Lanzetta Rengifo Y Cia Ltda

Rengifo Naranjo Maria Victoria

Colombia

Embassy

Introductory mail sent

Nexsys De Colombia S A

Gilbert Isaac Chalem Choueka

Colombia

Embassy

Introductory mail sent

Suministros Indls De Col Ltda Sumincol

Parsons Garcia Jairo Samuel

Colombia

Embassy

Introductory mail sent

Impresistem

- Colombia

Alibaba

Introductory mail sent

Vs Data Carlos Santos

Brazil Authorized Dealer

Given contact details to Mr. Ritesh

Redosul Brindes

Mr. Murilo Salustiano (Manager)

Brazil Alibaba

Given contact details to Mr. Ritesh

Rama Global Trading

Mr. Joelson Souza

Brazil Alibaba

Given contact details to Mr. Ritesh

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Premium Materiais Para Escritório Ltda.

Mr. Mauro Brazil Embassy

Given contact details to Mr. Ritesh

Tech Data Peru

Gustavo Guillen

Peru Alibaba

Concerned person not available

Hyh Servicios Integrales S.R.L

Mr. Hector Huertas (General Manager)

Peru Alibaba

Introductory mail sent

Sml Imports Solutions

Mr. Rafael Salinas

Peru Alibaba

Introductory mail sent

Grupo Venesys

Jonathan De Martinez

Venezuela

Authorized Dealer

Got country manager number: 0058 42433202010 but not able to contact on this number

Hj Ltda. - Chile Authorized Dealer

Introductory mail sent

W Y F Mr. Andres Poblete

Chile Alibaba

Given contact details to Mr. Ritesh

Pendrives.Cl

Mr. Jorge Frugone

Chile Alibaba

Given contact details to Mr. Ritesh

Libreria Brasil

Mr. Jorge Kasaneva

Chile Trade Key

Not interested

Table 20 - Findings

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Conclusion:

• In and around Latin America there is less number

of manufacturing units. To name few: Teltron and

Laser Disc at Argentina; Videolar, Infosmart,

Novodisc at Brazil and Cendis at Venezuela

• OEM brands have their warehouses and

distribution channels existent in these countries.

To name few, Verbatim has its warehouse in

many countries of Latin America, HP has its

warehouse in Brazil

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• Other than international brands, there are some

private labels such as Multi Laser, Elgin, Maxlife

etc. in Brazil ; Akira, Teltron , Cromax etc. in

Argentina also existent in the market and capture

a substantial market share

• Many Latin American countries such as

Argentina. Chile, Uruguay etc. is slow to adapt to

the latest in optical media, and not a highly

quality conscious market. Where as Brazilian

market has demand of all sort of media

• APAC market is mid level market, with all sorts of

media in demand

• Negligible Moser Baer Optical Media presence in

APAC region due to cheap media manufacturing

units in and around China & Taiwan. Also freight

cost is much higher in comparison to cost

occurring on purchasing media from APAC based

manufacturing countries

• In Latin American countries such as Argentina,

Brazil etc. lot of trading of optical media is done

in illegal way such as smuggling it from North

American countries. As in Argentina there is

safeguard measures on CDR’s, so CDR’s are

imported in the country through illegal means

Recommendations:

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Latin American market is mainly Spanish based,

so language is one of the barriers. Moser Baer

can overcome this barrier in certain ways by

hiring person who is proficient in speaking

Spanish and have good selling skills. Also, this

gap can be fulfilled by appointing agents in Latin

America who are into either same or relevant line

of business. It would serve three main purposes,

which are as:

o These agents would act as interface

between Moser Baer and buyer

o Local person will be much aware of local

legal & economic framework and would

also know better way of reaching

prospects. Agent would have better know-

how of the market, buyers status etc.

o With the local presence in these areas,

buyers can contact Moser Baer for media

themselves and they would have local

point of contact for correspondence

Moser Baer can manufacture low cost media for

these regions as these regions are highly price

sensitive. So, company should focus on low cost

differentiation as these regions have huge

demand for media such as Brazil have 100-

120million pieces per month etc. These markets

are price driven markets.

Moser Baer should focus on catering to the

private label business, which would in turn yield

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higher volumes. For countries like Brazil with 60

– 70% private label business.

Moser Baer can introduce its own brand in

Brazilian market. As per 2008 data, 60-70%

media sales in Brazil is represented by Private

Labels and rest is from OEM players. This shows

that there is scope for new brands or non-famous

brands. So, with aggressive marketing

techniques i.e. focus on pricing, creating brand

awareness and positioning it as a mid segment

brand which offers value for money, Moser Baer

can gain a foothold in this low priced and

competitive market. Once established in the

market our brand will surely command a premium

Moser Baer should try to tie up with local

manufactures supplying to Private Labels of that

country and having less production capacity of

media. Company can help ride through marketing

and distribution channel of such company by

manufacturing and supplying product for them.

As that company will already be settled in the

country, will also have all the resources in place

and know – how of the market. So,

manufacturing for them will be comparatively an

easy ride than to develop own distribution

network

Moser Baer should try to participate in fairs,

conclaves or business sessions, organized in

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these regions through various trade associations

like CII, FICCI etc.

Glossary:

1. CD-R: A CD-R (Compact Disc-Recordable)

is a variation of the Compact Disc invented

by Philips and Sony. CD-R is a Write Once

Read Many (WORM) optical medium,

though the whole disk does not have to be

entirely written in the same session

2. CD-RW: Compact Disc Rewritable (CD-

RW) is a rewritable optical disc format.

Known as CD-Erasable (CD-E) during its

development, CD-RW was introduced in

1997, and was preceded by the never

officially released CD-MO in 1988

3. DVD-R: DVD-R is a  Digital Versatile Disc

recordable format. A DVD-R typically has

a storage capacity of 4.71 GB (or 4.38GiB),

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although the capacity of the original

standard developed by Pioneer was 3.95

GB (3.68 GiB). 

4. DVD-RW: A DVD-RW disc is a Digital

Versatile Disc rewritable optical disc with

equal storage capacity to a DVD-R,

typically 4.7 GB.[1]The format was

developed by Pioneer in November 1999

and has been approved by the DVD Forum.

Unlike DVD-RAM, it is playable in about

75% of conventional DVD players

5. BDR: It is known as Blu-Ray Disc. Blu-ray

Disc (also known as Blu-ray or BD) is

an optical disc storage medium

designed/created by Sony to supersede

the standard DVD format. Its main uses are

for storing Play station 3 games, high-

definition video and data storage with

50GB per disc. The disc has the same

physical dimensions as

standard DVDs and CDs

6. Mini DVD: Mini DVD is an 80 mm

diameter DVD disc. In normal recording

(standard DVD quality), it holds 30 minutes

of video or 1.4 GB of data

References:

Websites

1. http://www.moserbaer.com

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2. http://www.equitymaster.com

3. www.alibaba.com

4. www.tradekey.com

5. www.kompass.com

Report

1. SCCG – 2008

2. International Intellectual Property Alliance 2008

Special 301 Report

Organizations

1. Indian Embassies at Latin America and APAC

countries

2. Foreign Embassies of Latin America and APAC

countries at India

3. Confederation of Indian Industry (CII)

4. Federation of Indian Chambers of Commerce

and Industry (FICCI)

5. Indian Trade Promotion Organization (ITPO)

Reports

1. SCCG – 2008

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