Production of CDs, DVDs jumps 400pc -Pakistan Press Foundation (PPF)

Paksitan Press Foundtion

Production of CDs, DVDs jumps 400pc

KARACHI- Production of compact and digital video disks rises by 400 per cent in the two years, opening new avenue for country’s export and the industry becoming goldmine for stakeholders.

Currently total three CDs and DVDs plants in the city are producing 300,000 units a day – 100.8 million a year, which a couple of years back stood at 60,000 pieces a day – 21.6 million a year. Producers say 80 per cent of the total production are being exported.

“We are exporting almost 80 per cent of our total production. England and France are our major customers,” said one of the three owners of CDs and DVDs producing plants. “Number of exporting CDs and DVDs are not same every time. It varies on their (importers) demands. Sometime they ask for 5,000 pieces, sometime 10,000 and sometime they even order for 50,000 units,” he added.

Stakeholders informed that during the outgoing financial year some 80 million of CDs and DVDs had been exported mainly to Europe. “This year so far some 80 million of CDs and DVDs have been exported. Their major importers are France and England. We are also getting enquiries from the United States,” said Muhammad Saleem Memon, Senior Chairman Karachi Electronic Dealers Association (KEDA).

He claimed the government had been earning Rs120 to Rs150 million from the industry on account of several taxes. Memon agreed the rising demand from within and outside the country had motivated stakeholders to invest in the industry.

“Some four more CDs and DVDs manufacturing plants are in the offing and would hopefully become operational within two months,” he disclosed. “At present, three plants are providing employment to over 1,000 people,” he added.

Another owner of CDs and DVDs producing plants reasoned cheap labour in the country as a major source behind thriving industry. “Exactly, it’s all due to cheap labour. The only threat we feel from China, which is providing more and more incentives to its local industry,” he added.

On the other hand, rising trend of movies and mounting number of IT students have also increased local demand of CDs and DVDs within the country. “Definitely, software and movies have skyrocketed the local CDs and DVDs demand. It’s a good omen for industry,” said Saleem Memon.

The 12-storey Rainbow Centre in Saddar, the city heart, is Pakistan’s biggest centre for movies and software with more than 200 shops. “A year back I have a shop with over 3000 movies on VHS tapes. But I switched over to CDs and DVDs. Now I possess over 10,000 CDs and DVDs at a time which also includes software,” said Khalid Rehman, a shop owner at Rainbow Centre. He said switching over business medium did not cost very much, but even it had proved more profitable than the last one.

Source: The News
Date:6/7/2003