psarianos consulting albania
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Psarianos ConsultingAlbanian Market
Focal Areas
I. Market Overview
II. Customers per Sector A) Public Sector B) Private Sector
III. Competition
IV. Company’s Development in the Market A) Targets B) Market Share and Services Penetration C) Revenue Provisions and Expectations
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I. Market Overview
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Population: 3,100,000GDP 2010: 22,9 Billion
75% of Business activity is concentrated in Tirana
Focal Business Cities: Tirana , Kruja, Durres, Shkoder
Future Potential Cities: Fier, Korce, Vlora
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Why Albania
Established trading with the EU - 96.6 % of Albania’s exports are designated for EU markets and this export partner is an important predictor for future growth.
Site availability from production facilities to high quality office space
Total labor costs are lower than comparable countries
Adaptable and flexible skilled labor force
Administrative & business regulations are being simplified
Investment opportunities through privatization - The main tool used to realize this, is the law on concessions which has been passed with the support of the World Bank and is designed to stimulate the development of key sections of the county’s infrastructure and public services.
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With a look on the Market
A formal marketWithin the existing institutional frameworks, as theyunderwent restructuring.
An informal marketWith smaller scale activities operating within networks andprocesses outside the formal system.
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Economy Under the IPA, Albania was expected to receive: €81.2 million during 2009
€93.2 million during 2010 €95.0 million during 2011 €96.9 million during 2012
Despite the global economic turmoil of 2008, Albania's economic growth was in line with initial forecasts of 6%
Inflation remained within the 2-4% target band of the Bank of Albania.
Albania was one of only two countries in Europe that recorded economic growth in Q1 of 2009, growing by 0.4%.
Albania's business industry has been liberalized.
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Economy• Key Macroeconomic indicators 2010
Real GDP growth rate: 3.6%
GDP per capita (€): 3,133,665
Employment (thousand persons): 972K
Annual Unemployment rate: 12.8 %
Annual inflation rate: 3.5 %
Average monthly gross salary: 270€
Budget deficit (as % of GDP): -7.0 %
Public debt (% of GDP): 59.5 %
External dept (% of GDP): 23.1 %
Current account % GDP (excluding transfers): 15.6 %
Foreign Direct Investment : ~ 700 Bill. €
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Corporations
Lowest Salary: 200 €
Higher Salary: 650 €
Employer’s Insurance: Salary’s 15%
Salaries/Yr : 12
Corporate Tax: 10%
SHPK Set up cost ~ 1500 €
Lowest Share capital – Limited Liability Co. ~ 720 €
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Corporations – Tax Analysis
1. Profit Tax Rate - 10%
2. Capital Gains Tax Rate* - 10%
3. Branch Office Tax Rate - 10%
Withholding Tax**
Dividends 10%
Interest 10%
Royalties from patents, know-how, etc. -10%
* Capital gains are included in the personal taxable income and taxed at the regular tax rates. No
separate capital gains tax is imposed on companies in Albania.
** These withholding taxes are final withholding taxes
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II. Customers A) Public Sector B) Private Sector
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Public Sector
Target Industries of Albanian Gov: Energy Mining and Oil & Gas Infrastructure Financial Markets Albanian American Enterprise Fund
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Public Sector
USAID – United States Agency of International
Development
Currently the project is targeting public sector enterprises from four industries:
Textiles/garments Energy Recycling Information and communications technology
in the following municipalities: Tirana, Kruja, Durres, Elbasan, Fier, Gjirokaster,
Korce, Shkoder and Vlora
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Private Sector Target Groups
Banking Constructions Postal Service Medical Care Travel Agency Trade Oil and Gas Mining Energy Telecommunication & Information Services Advertising & Communications Agency Education Insurance Beverage Hotel & Restaurant
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Private Sector Banking
1. Pro Credit Bank S.A.
2. Tirana Bank S.A./Sh.A.
3. International Commercial Bank
4. Intesa Sanpaolo Bank
5. Alpha Bank Sh.A.
6. Banka Kombetare Tregtare
7. Raiffeisen Bank
8. First Investment Bank
9. Societe Generale Group
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Private Sector
Construction & Infrastructure
1. Rofix Albania Sh.p.k
2. TEQJA International
3. Colliers International
4. Vista Group
5. LF Construction
6. Cosedil Spa
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Private Sector
Postal Service - DHL International Albania Ltd.
Medical Care - Hygeia Hospital Tirana Sh.A
Travel Agency
1. Austrian Airlines
2. Malev Airlines
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Private Sector
Trade
1. Porsche Albania sh.p.k
2. Tobacco Holding Group
3. Elida Co 94
4. Philip Morris Albania
5. Praktiker Albanian
6. British American Tobacco Albania
7. JTI Albania
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Private Sector
Oil & Gas Industry
1. Global Petroleum Albania
2. VIL OIL sha & ALPET
3. Bankers Petroleum Albania
4. ALBITOIL shpk
5. Stream Oil & Ga
6. Mamidoil Albanian
7. Taci Oil International sh.a
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Private Sector Mining1. Eurotech Cement
2. Selenice Bitumi Sh.A
3. JAB Resources shpk
4. Antea Cement Sh.a
5. Albanian Chrome
6. Tirex Resources shpk
7. Fushe-Kruja Cement Factory
8. Colacem Albania Shpk
9. Leader Beton – Heracles Cement, Lafarge Group
10. Titan Cement
11. R A Krom Tirana/ SBM Group Construction and Mining
12. BERALB sh.a - Turkey
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Private Sector
Energy1. Schneider Electric Sas
2. Amadeus Group
3. Terna Energy
4. CEZ Albania sh.a
5. Statkraft
6. EVN Albania Devoll Hydropower S.A.
7. CNR (Compagnie Nationale du Rhone)
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Private Sector Telecommunication & Information Services1. Vodafone Albania Sh.A
2. Primo Communications
3. Albanian Mobile Communications Sh.a
4. Printec Albania Ltd
5. Konsort Albania
6. Teleperformance Albania - CC Albania Shpk
7. Eagle Mobile
8. I-TIRANA
9. Intracom Telecom Albania S.A
10. ALEAT shpk
11. Albacall Sh.a/ Abramo
12. ALBTELECOM
13. NSN
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Private Sector
Advertising & Communications Agency
1. Comport
2. Iceberg Publicity
3. Le Spot Productions
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Private Sector
Education
1. Business Link, British School
2. NY College
3. Krystal University
4. European College
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Private Sector
Insurance
1. SIGAL UNIQA Group AUSTRIA S.A.
2. Interalbanian Insurance Company
3. MAI sh.a Insurance and Reinsurance Brokers
4. SIGMA/Vienna Insurance Group
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Private Sector Beverage
1. Coca - Cola Bottler Shqiperia
2. Agna Group
3. United Albanian Breweries
Hotel & Restaurant
1. Sheraton Tirana Hotel
2. Rogner Hotel Europapark
3. Far East Restaurant
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III. Competition
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The other side
Deloitte Albania
KPMG Albania Sh.p.k
Ernst & Young
Gjini Shpk - Subcontractor of Ernst Young
Business Concern
VEVE Group – project oriented
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IV. Company’s Development in the
Albanian Market A) Targets
B) Market Share and Services Penetration
C) Revenue Provisions and Expectations
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Targets
“We are in Business because we serve a need.”
Vision: To provide the Albanian Market with the most
Qualitative and Complete Business Financial
Consulting Solutions Co
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Targets
Target : Penetrate with Corporate Consulting Services into the
local Private and Public Sector:
Corporate Strategy
-Feasibility
-Viability
-Economic stability
Consolidations
Buy-outs
Financial Services, Corporate Conversions and Liquidations
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Strategy: Market Share and Services Penetration
Internal Audit
Accounting Mgt and Accounting Dep. Supervision
Buy Outs and Corporate Conversions
Strategic Corporate and Commercial Consulting
CRM Consulting
**Consolidations
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Main Services Range Penetration
Additional Business Consulting Services aimed to penetrate the Albanian Market, thus increasing the company’s market share:
• Tax Mgt
• HR Evaluation
• Liquidations**A potential revenue path in Liquidation Services Range, exists in the Corporate Customer Groups of Greek Law Consulting Companies
Revenue Provisions and Expectations for 2011Service Desc./on Value in Euros (K)
Internal Audit 10
Buy Outs and Corp. Conversions 8Corporate Strategy 25
CRM 8HR Evaluation 8Consolidations 8
Tax Mgt 5Accounting Mgt and Supervision 8
Liquidations 4
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Internal Audit12%
Buy Outs and Corporate Con-versions
10%
Cosporate Strategy 30%
CRM10%
HR Evaluation10%
Consolidations10%
Tax Mgt6%
Accounting Mgt and Supervision10%
Liquidations5%
Estimated Consulting Services Penetration to Company’s Revenue
Thank you
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