MLP-14168303-Appendix 1-Company Background

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Marketing Leadership and Planning- Jun 2014 CIM Reg.

no 14168303

Appendix 1

www.samsonint.com

www.dsi.lk

Company Background- Samson International PLC

25 Years in Rubber Products Industry

As one of the major Rubber Products manufacturers and exporters in Sri Lanka, Samson International Ltd
(SIL), strives to provide products of the highest quality. Company was founded in 1988 as sister company of
the renowned DSI Samson Group and converted as Public Quoted with Limited Liability Company in
1992. SIL pride themselves on high standards and a professional service with almost 25 years experience in
the manufacturing industry, maintaining experienced and remarkably efficient management team consisting of
over 300 employees. It records annual sales turn over above LKR 950 Million. DSI Samson Group records
approximately LKR 25 billion turn over and LKR 13 billion assets value, while providing about 15,000
direct employee opportunities.

Vision - “To be a leading Polymer Products Manufacturer in the region”

Mission -“To become a versatile manufacturer of diversified polymer products in the global market by
modern technology while providing optimum return to stake holders”

SIL has bagged numerous recognition awards


1000
and it’s major products, Rubber Hot Water 900
Export Sales
Bottle, have been granted the Kite Mark 800 Local Sales
700 526
Value LKR (Mn)

License from British Standard Institute. In 657


600 613
addition to this, some products are complied with 500 441
FSC Certification, catering Fair Trading focus 400 392
customers. SIL products are in accordance with 300
200 430
European Standard, controlled by ISO 268 318 333
100 196
9001:2000 Quality Management System 0
ensuring that customers receive beyond their 2009/10 2010/11 2011/12 2012/13 2013/14
Figure B1-SIL Turnover of the Last 5 Finacial Years
expectations
Source: Sales Reports
1000
Export Sales
800 Local Sales
526
Value LKR (Mn)

600 657
441 rubber products need
SIL are capable enough and targets to cater for wide range of moulded and extruded
400 424 392
for many industries such as Footwear, Construction, Automotive, Manufacturing, Food Processing,
Household, Healthcare, Marine, Irrigation, Agriculture and so
200on. 430
268 318
And SIL is proud supplying their products to world reputed super 196markets 196 such as Boots, Aldi, K Mart,
0
Supper Drugs, Sanger, Rossmann, M&S, Coles & Woolworth so on. Footwear Accessories, Garden Hose,
2008/09 2009/10 2010/11 2011/12 2012/13
Mats, Beadings & Industrial rings are the major product ranges cater forB1-SIL
Figure domestic (Sri
Turnover Lanka)
of the market
Last 5 Finacial demand.
Years

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Marketing Leadership and Planning- Jun 2014 CIM Reg. no 14168303

Figure B2-SIL Product Portfolio


FY 2011/12 Value in LKR Million
(Sources : SIL Sales Report)
Footwear
Jar Sealing Accessories Bottle Caps,
Rings, 246.4, 256.9 9.7, 1%
27% Rubber
26%
Hoses, 15.0,
2%
Shoe Soles,
Hot Water
15.4, 2%
Bottles,
164.7, 17%
Rubber
Mats, Beadings,
132.3, Rubber
Others, 72.2, 21.0, 2%
14% Bands, 23.1,
7%
2%

Figure B3- SIL CUSTOMER BASE- Now the customers highly concern the
GEOGRAPHICAL DISTRIBUTION, BASED ON
TURNOVER IN FY 2011/12 safety of the products what they purchase. So SIL
(Sources : SIL Sales Report) products are made using the REACH complied
AUS/NEW
materials and whenever need, FDA certification is
ZEALAND N/S supplied for food grade products.
SRI LANKA AMERICA
45% 12%
2%
Mainly European customer pays their
attention towards environmental friendly
products which comes through fair deal practices.
SOUTH So, SIL is proud of supplying some products for
SOUTH EUROPE
JAPAN
AFRICA
3% MIDDLE ASIA 33% this growing market segment, having FSC
1%
EAST
2% certification assuring the Fair Trade practice too
2% which benefit tappers where rubber comes from.

Main raw material needs for the production, Natural Rubber (Pale Crepe and RSS) is sourced from Sri
Lanka, where accredited for the highest quality rubber in the world. SIL annually consumes about 3,000 MT
of Natural Rubber and required chemicals and pigments import from the UK, Germany, Korea and China.

Figure B4 In addition to the domestic


manufacturers, Arpico, SRPL, Poly Mats,
Elastomerics, Ceytra etc, major competition
for SIL products comes from China and
Indian Rubber Products manufacturers who
make cheap quality and cost effective
products. Chinese manufactures are
penetrating to the market with cost focus
strategy.

So, SIL RND continues efforts are


being paid to reduce the cost of production
while maintain the expected quality norms.

To win the market against competitors, SIL practices maintain the required quality of the respective
products, compromising the minimum orders quantities, customized designs, in time delivery, flexible
payment terms, guarantee for the products and professional service. Hence SIL serve for the B2B markets,
such practices assist to have the comparative advantages.
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