Singer’s portable machine products to expand with changing trends
Manufacturer and assembler of sewing machines in Sri Lanka, Singer Industries (Ceylon) PLC said it would expand its portable machine product line in response to a shift in the sewing machine market towards portable machines.
“Singer Industries proposes to convert the evergreen 974 zigzag model as a portable option to widen the mid range offer. We need to find a counter to contend with the rise of the artisan market to protect our order book,” Singer Industries Chairman, Hemaka Amarasuriyasaid.
He further stated that the advent of reasonably priced imported high speed artisan machines, also retailed by the company’s associate, Singer (Sri Lanka) PLC, is intruding into the home market, causing pressure on traditional models and the need is to innovate to meet such competition.
“With electrification reaching 93 percent of households (2012), the market is following the power lines towards portables. This trend is further encouraged by apartment living in urban neigh- bourhoods,”Amarasuriyanoted.
Another emerging trend is the growing cottage industry, particularly in reawakening territories of the North and East, where women, including war widows eke out their living out of sewing orders.
The chairman also pointed out that moving with trends, the company added more portable electric models to its lineup. “Portables now consist 10 percent of themodelmixandisgrowing,”hesaid.
Meanwhile Singer Industries Chief Executive Officer (CEO), Asoka Pieris stated that the production and sales of sewing machine heads, cabinets and stands declined in terms of units and value due to the challenging business environment.
Singer Industries revenue decreased 21 percent year-on-year (YoY) to Rs.588 million while profit for the year was Rs.13.4 million, which was a decrease of 59percentYoY.
Pieris explained that the decline in profitability was due to absence of gains on change in fair value of investment property both for the company and its associate as well as due to lower other income
“However gross profit increased due to favourable exchange rate at the time of purchaseof products,”theCEOsaid.
He also noted that the business environment continued to be difficult and challenging in 2013, a continuing trend from second half of 2012, with low demand by the customers and difficulty in collections.
“As a result the sales of sewing machines by Singer Industries too were affected,” Pieris added.