Solutions for Emerging Markets

Emerging Markets Highlights

Our business in the markets of China, India, Russia and Southeast Asia combined realized growth of over 25 percent in 2010, led by Russia at over 60 percent and India at over 40 percent.

Emerging Markets will receive heightened focus over the coming years as we have two dedicated management teams to support its growth, one focused on China and North Asia, and the other focused on India, Southeast Asia, Russia and the Middle East and Africa. A key growth strategy for Emerging Markets is the development of industrial focus teams to support and own the "verticals" from distribution to end-user.

  • In China, our organic sales were up 32 percent versus the prior year, with 90 percent operating margin expansion. For the year, we achieved 11 working capital turns. In 2010, we successfully launched Stanley Racing tools in the local automotive repair market. We also established a nationwide automotive repair distribution channel with 36 distributors and 120 dealers on board. Our Security Asia business achieved organic growth of nearly 23 percent and 25.6 working capital turns. Stanley Access Technologies successfully penetrated the High Speed Train Station sector, establishing a leading position in China, and delivering over 55 percent growth. In addition, we acquired GMT, a commercial hardware manufacturer in China with $40 million in sales and an extensive distribution network across the country, to bolster our mechanical security growth platform.

  • Our growth of more than 40 percent in India is attributable to the strength of the local management team coupled with increased localization of products. The country's GDP growth outlook is 8–9 percent through 2013, with significant investment planned in infrastructure (public transportation, highways, airports) and robust growth in consumer sectors. India is increasingly recognized as a center of innovation and localization of products for Emerging Markets. We currently have one manufacturing plant and one assembly plant in the country.

  • Our business in Russia had a very strong recovery from a challenging economic year in 2009, posting revenue gains of over 60 percent in 2010. The country's GDP growth outlook is roughly 4 percent through 2013. We have a favorable outlook in the key verticals of infrastructure, oil and gas, construction and automotive. Going forward, growth will be driven by both customer and territory expansion as well as distribution channel synergies.

  • Our business in Qatar in 2010 grew 8 percent in sales and 10 percent in gross margin over the prior year. We expect to double that sales growth in 2011, as the country pursues numerous construction and infrastructure projects related to the 2022 World Cup and economic expansion in general. Qatar plans to build nine new stadiums and refurbish three others as well as invest $20 billion in roads and $25 billion in rail systems leading up to the World Cup. In Saudi Arabia, our net sales grew 23 percent and gross margin 18 percent over the prior year. We project even greater growth in 2011. The country has committed to over $200 billion combined in construction and infrastructure projects that include rail and airport expansion, and oil and gas development. Across the two countries, our Professional Accessories sales grew by over 25 percent. We also conducted over 150 job-site training sessions, with over 6,000 participants.

    Middle East