Fitch Ratings has assigned DSI Samson Group,a National LongTerm Rating of ‘BBB+(lka)’. The Outlook is Stable.
DSG’s rating reflects leading positions in the domestic rubber tyre and footwear markets, which are supported by its wellknown brand, and an unmatched distribution network of 313 retail and wholesale points and six franchisees.
DSG’s market share also benefits from high tariffs on imports of tyres and footwear. These strengths are counterbalanced by increasing competition from imported footwear products and the weak local currency, which raises the costs of imported raw materials.
DSG is the market leader in the bicycle, motorcycle and three wheeler tyres industry in Sri Lanka, with a 45% export market exposure as of financial year end March 31,2016 (FY16). Furthermore, the company also holds the leading market position in the footwear segment despite competition from imported products.
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