Post on 01-May-2018
Jotun Middle East, India and Africa (MEIA)
V
Jotun in Iran
Jotun Middle East, India and Africa (MEIA)
1
Jotun Middle East, India and Africa (MEIA)
Jotun Protects Property
Loyalty Care Respect Boldness
Jotun in Iran – Peder Bohlin
Jotun Middle East, India and Africa (MEIA)
Jotun worldwide
• NOK 20 billion in sales
• 10 000 employees • HQ in Sandefjord
• Family controlled
• Offices in 90 countries
Jotun in Iran – Peder Bohlin
Jotun Middle East, India and Africa (MEIA) Jotun Middle East, India and Africa (MEIA)
Eiffel Tower, Paris Metro station, Dubai
Canton TV tower, China
Marina Bay Sands, Singapore
Oasis of the seas Burj Khalifa, Dubai
Jotun Middle East, India and Africa (MEIA)
• Largest Paints and Coating manufacturer in the Region
• 13 manufacturing units including India and Pakistan
• No of employees 2,645
• NOK 5 billion turnover
• Contributing to 25% of the Group turnover and 40% of the Group
profit
JOTUN MIDDLE EAST, INDIA AND AFRICA (MEIA)
Jotun in Iran – Peder Bohlin
Jotun Middle East, India and Africa (MEIA)
The MEIA Region – Growth cradle of the world
13 factories
63 countries 2600
Employees
27 offices
Jotun in Iran – Peder Bohlin
Jotun Middle East, India and Africa (MEIA)
Jotun MEIA sales History – a growth story
MEIA is highly growing Region with good future potential
Jotun in Iran – Peder Bohlin
Jotun Middle East, India and Africa (MEIA)
Jotun balancing business
opportunities and political
risks
Jotun Middle East, India and Africa (MEIA) Jotun Middle East, India and Africa (MEIA)
Jotun in Iran – Peder Bohlin
Jotun Middle East, India and Africa (MEIA) Jotun Middle East, India and Africa (MEIA)
Differentiation through 4 segments D
ecora
tive
Marine
Pow
der
Pro
tective
Jotun in Iran – Peder Bohlin
Jotun Middle East, India and Africa (MEIA) Jotun Middle East, India and Africa (MEIA)
Jotun in Iran
Jotun in Iran – Peder Bohlin
Jotun Middle East, India and Africa (MEIA)
• Iran is the 2nd largest nation in the Middle East with population of 77 mil
• Rated as upper-middle income economy by World Bank (1/3rd population middle class). GDP per capita USD 13,000 (PPP)
• Literacy rate of Iran is high at 92%
• largest natural gas supply in the world and the 4th largest proven petroleum reserves
• Sanctions against Iran is hitting the economy
Iran a big potential market
Jotun in Iran – Peder Bohlin
Jotun Middle East, India and Africa (MEIA)
Paints market in Iran USD 400 mil dominated by local manufacturers
Big potential for quality international products
Jotun in Iran – Peder Bohlin
Jotun Middle East, India and Africa (MEIA)
Jotun in Iran for past 15 years Suspended operations in Protective, Marine and Powder
• Decorative: ‘Kishwood Industries’ Distributor from 1999. Distributor employees : 16
• Powder: ‘Poudre Range Moj’ from 2004 (On Hold from 2012). 70% volume through distributor and 30% Direct sales
• Protective: Direct sales through ‘Pars Corrosion’(On Hold from 2012). Employees : 4 (3 C/A and 1 Sales)
• Marine: Direct Sales (On Hold from 2012)
• 3 Full time Jotun employee based in Iran (1 Deco , 1 Prot and 1 Marine)
Jotun in Iran – Peder Bohlin
Jotun Middle East, India and Africa (MEIA)
Iran – 90 Mil people waiting for Jotun
Great opportunities for Jotun in Iran. The Jotun Penguins in Iran are ready for
the growth!
Jotun in Iran – Peder Bohlin
Jotun Middle East, India and Africa (MEIA)
1. Sanction period: • Register Jotun as a sales company • Continue with current set up for Decorative
paints through distributor • Focus on Decorative projects and multicolor
distribution 2. After lifting of sanctions/Banking active: • Direct invoicing to customers by Jotun Iran
including current distributor • Resume Protective, Powder and Marine sales • Operate own warehouse and office
Jotun’s Approach and the way forward
Sales to reach USD 30 mil by 2020
Jotun in Iran – Peder Bohlin
Jotun Middle East, India and Africa (MEIA)
• Legal consultants engaged – Lotfi & Lotfi to assist in incorporation
• 100% foreign investment allowed; Corporate tax – 25%. No tax on dividend (Norway treaty)
• UAE central bank not yet given green signal to local banks to start operations with Iranian Banks. International Banks expected to open up shortly
• Jotun Iranian is under tax registration (VAT, Social security)
• Same company can carry out manufacturing operations in future
Jotun Iranian registered as a Private Joint Stock company
Jotun in Iran – Peder Bohlin
Jotun Middle East, India and Africa (MEIA)
Jotun expects to continue its high growth and profitability in the Middle East markets!
Jotun in Iran – Peder Bohlin
Jotun Middle East, India and Africa (MEIA)
Jotun Protects Property