SG Global Pvt Ltd, established in August 2011, is a fully owned subsidiary of the well known Shanker Group, an industrial and trading conglomerate. It is the authorised distributor for Sharp Electronics (Japan) and Mahindra Two Wheelers (India) in Nepal. “We want to create a truly professional and multinational company in the sense how we work,” says Akhil Gupta, Director of SG Global Pvt Ltd. He adds, “Our desire is to run the company in a professional manner and let that environment accomplish for our employees, customers and associates.”

Even though Shanker Group was an established trading conglomerate involved in trading of popular brands such as Konka Electronics and Force Electronics, SG Global was conceived as a trading and representation wing of the group to pursue trading of worldwide brands in a more aggressive manner. Gupta says that each product has a certain way of getting advertised. He observes that while commercial advertising is good for electronic products, it’s BTL (below the line) activities that work better for two wheelers. He explains, “For two wheelers, commercial advertising can only create awareness. We have to eventually bank on BTL activities for the pull factor.”

After studying the Nepali market over a period of time and realising the potential for two wheelers, SG Global plunged into the market following a deal with Mahindra Two Wheelers Limited. “We were impressed with the growth trend for two wheelers in Nepal with economic condition of the people in the country improving considerably,” justifies Gupta. He presents the statistics, “A total of 129,000 two wheelers were sold in the Nepali market last year out of which 21,000 were scooters. This spurred us to sell Mahindra scooters – already popular in the Indian market – in Nepal.”

Human Resource

The company has 70 employees on its payroll with its workforce spread across its corporate office at Tinkune, Sharp showroom at Naxal and the two showrooms of Mahindra Two Wheelers at Teku Road and Naxal. Mahindra showrooms at Teku Road and Naxal are spread over 4,000 sq ft and 1,500 sq ft respectively. Gupta believes that everyone in the company is a decision maker in his or her own right. He elaborates, “We have this culture of inculcating a sense of responsibility in everyone who is part of the company. I am confident that a sense of ownership among employees certainly helps the fortunes of a business enterprise in the long run.”                                                                                     

                                                                                                                                                        Akhil Gupta:-Director

Infrastructure

With its modern sales and service infrastructure in place, SG Global promises to offer customers a world class buying and ownership experience. It has kick started operations with 14 dealers across Nepal and plans to expand its network by adding another 78 dealers across 72 towns of Nepal within a year’s span.  Six out of these 78 dealers will be appointed at strategic locations within the valley including at Balaju, Kalanki, New Baneshwor, Bhaktapur and Boudha. “All these dealers will have well equipped 3S (sales, service and spares) set ups at their respective locations,” Gupta asserts.

Sharp Electronics

SG Global — the authorised distributor of Sharp Electronics in Nepal — has its Sharp Showroom in Naxal, Kathmandu with a view to offer original and high-tech electronic home appliances to Nepali customers. Sharp, a renowned and popular Japanese brand has been ruling the roost not only in its home country but also across the world. The showroom showcases a wide range of Sharp products including Audio Visual products such as Box TV, LCD and LED TVs, DVD and Home Theatre. While its Home Appliances include Microwave Ovens, Vacuum Cleaners, Washing Machines, Air Purifiers and Refrigerators, it also has Small Appliances such as Rice Cookers, Jars and Pots.

Competition

Since Mahindra Two Wheelers is a relatively new brand in Nepal, SG Global is looking to establish the brand first. It is in direct competition with Honda and Hero Honda, the other scooter marketers in Nepal. Gupta enthuses confidence though, “Our products are unique and we are certain that we can pull it off having a strong team which knows how to compete.”

Future Plans

SG Global is on its way to consolidate the existing business, says Gupta, “Sharp and Mahindra Two Wheelers are both very strong brands so it makes our job a bit easier.” He, however, reiterates that the company’s current business model requires consolidation over the next couple of years. He also says that, meanwhile, he is open to other business opportunities that might come his way but more importantly, businesses that suit the market dynamics. The company has kept itself a reasonable target of selling 3,000 scooters within the remaining period of the current fiscal year. Given the scooters’ popularity and customers’ attraction towards the brand, it’s already expecting to reach the figure of 5,000 scooters during the same period; it is selling 25 scooters on an average each day. “The day we feel we have built a company which stands for the purpose of its establishment and implemented the system in our own unique way, we would consider our mission accomplished,” Gupta signs off on a positive note.

SWOT Analysis

Strengths  Strong Brands and Infrastructure 

Flagship Service Centre covering 6,000 sq ft coming up at Naxal

Weaknesses 

Competitive Market (Pricing, Market Share) Opportunities

Growing Market for Scooters

Urbanisation Threats

Being a new entrant

Inexperience in Two Wheeler business

Mahindra Two Wheelers

SG Global was appointed the authorised distributor of Mahindra Two Wheelers for Nepal in November this year. Its two showrooms at Teku Road and Naxal in Kathmandu sell three Mahindra Two Wheeler products – Rodeo, Flyte and Duro. These scooters are priced at Rs 159,900, Rs 151,900 and Rs 145,900 respectively. The products will also be sold through the dealers appointed by the previous distributor of Mahindra Two Wheelers. The scooters have already been in the market for a year before there was a change of hands in distributorship. Mahindra Two Wheelers’ Research and Development (R & D) wing is ceaselessly working on motorcycles which are the largest segment of the two wheeler market in Nepal. It promises to soon expand its product line by offering motorcycles as well.