History:

Arj company was established in 1937 as one of the pioneers of home

appliance industry.

Arj company was established in a yard with more than 14 acres, in the 6th km

of Tehran -Karaj highway.

Right now, Arj company has the prospect of utilizing state of art technologies

and new ideas in order to produce modern products.

Main achievements of Arj during these

years are:

Recruitment of experts and professional training of employees.

Development of product engineering department and introducing exclusive

products to the market.

Production of several models of oil and gas heaters, air coolers, washing

machines with different capacities, refrigerators and freezers of 10 to 17

cubic feet.

Production of the first freezer-refrigerator in Iran.

Production of storage water heater with capacity of 50 gallons.

Achieving fame and reputation throughout middle eastern market

Perspective:

Edition of new production strategies

Benefit from elite engineers in development of new products and production process

Setting up production and assembly line using state of art technology

Wide and effective advertisement along with development of production process

Development of domestic market

Development of sales and exports to international and target markets

Enhancement of efficiency and elegance of products

Getting advantage from environment friendly technologies

Wide after sales services network

Modern projects based on ideas from knowledge-based companies

Type and level of contribution

Production and development viewpoint

Amount of investment for new products and machinery

Other factories of new owner

Current products

Future products basket

Product Introduction

Washing Machine

Estimated apparent consumption of the product is about 1 million devices a year

Almost 20-25 percent of domestic demand is supplied through importation

Penetration factor for this product is more than 90 percent (20 millions washing

machine in Iran)

Service life of about 10 years

Probability of replacing this product after 10 years in 20 percent of families

Potential demand for this section is about 402 thousand devices a year

Direct relation between registered marriages and purchase of the products

Total number of 608,977 marriages registered every year

85 percent of this number will probably purchase washing machine

Official exportation of this product is 5300 devices a year

Total estimated demand for washing machine will sum in 925 thousand devices a year

Washing Machine

21,185,647Total number of families in Iran

20,126,036Number of families subject to use of this product

402,527Replacement of washing machine after 10 years for 20 percent

of families

608,977Number of registered marriages each year

517,630Purchase of washing machine based on 85 percent of marriages

5,375Exportation potential for each year

925,533Total sum

Washing Machine Usage Potential

Dish Washing:

Estimated apparent consumption of the product is about 530 thousand devices a year

More than 6 times of domestic production capacity in imported each year

20 percent increase in importation in two past years (386 to 465 thousand devices)

Lower water consumption in dish washing machines

Global warming and repeated warnings about lack of water resources

Importance of water consumption in appliances using water

Global deficiency in water resources

Getting advantage from water saving methods in production of home appliances

A regular family consume 1500 liters of water every day

A dish washing machine consumes less water than washing by hands

Consumption of 15 liters in comparison with 100 liters in dish washing machine to washing

by hands

Buying dish washing machine is very financial

Dish Washing

21,185,647Total number of families in Iran

20,126,036Number of families subject to use of this product

402,527Replacement of dish washing after 10 years for 20 percent of

families

608,977Number of registered marriages each year

608,977Purchase of dish washing based on 100percent of marriages

19,376Exportation potential for each year

1,030,881Total sum

Dish Washing Usage Potential

Thus, according to the changes in dish washing habits and deficiency in water

resources, increase in demand of dish washing machines is predicted.

Oven

Exportation of oven has been in a increasing trend during recent years

Iraq, Afghanistan, UAE, Tajikistan, and Turkey are main importers of Iranian

ovens with share percentage of 47%, 26%, 8%, 4% and 2% accordingly

Total importation of oven has been from Italy (50%), China (24%), Turkey (17%),

Oman (3%) and UAE (3%)

Oven

According to the assumption of total families and replacing home appliances

for 20 percent of families every 10 years, demand for this product will be 423

thousand devices a year

The amount of building construction has direct effect on the demand for this

product-

Other section of demand for this product relates to marriage rate

Exportation potential for this product is about 142 thousand devices a year

Oven Usage Potential

21.185.647Total number of families in Iran

21.185.647Number of families subject to use of this product

423.713Replacement of oven after 10 years for 20 percent of families

96.000Number of new buildings constructed every year

384.0004 ovens per every 8 building units

608.977Number of registered marriages each year

608.977Purchase of washing machine based on 100 percent of marriage

142.544Exportation potential for each year

1.59.244Total sum

Conclusion

Air Conditioner:

Total domestic production has been 200 thousand devices during year 1396

Total number of importations for this product is about three times of domestic

production

Real demand of this product is 4 times of supplying

Considering deficiency in water resources has put this product in higher priority

Domestic demand for this product is obviously felt

Dish Washing:

The practical capacity of the production is equivalent to 76000 devices

Considering this device importation, 465000 devices yearly usage potential is estimated

to be about 540000 devices

No considerable changes is anticipated for coming years

Considering usage pattern and water shortage crisis consumption growth will be

considerable

Washing Machine:

The practical capacity of the production is equivalent to 875,000 devices

Considering this device importation, 169,000 devices yearly usage potential is

estimated to be about 1,000,000 devices

It is predictable that the upcoming market will have a capacity equivalent to

888,000 units.

In the case of the producing high-quality goods which would be capable of

competing with the foreign manufacturer, it is expected that the market will reach

at least 145 to 150 thousand units

Refrigerator and Freezer

The practical capacity of the production is equivalent to 110,000 devices

Considering this device importation, 252,000 devices yearly usage potential is

estimated to be about 1,350 thousand devices

235,000 devices is anticipated to be added to current market.

To enter to this field exportation market and competitive condition should be

thoroughly considered.

Oven

Total domestic production has been 1400 thousand devices

Total number of importations for this product is about 36 thousand devices

Domestic usage potential is about 1436 thousand per year

Most of the required and equipment is produced nationally

Unlike the past most of the manufacturer produces different type of ovens today

Oven

Nowadays capacity can be increased at least to 256,000 ton till next 4 years

Usage prediction in different fields( like replacing home ovens, exportation) is

predicted to have lower growth in comparison with growth production.

Considering high exploitation capacity is recommended to do more precise study

based on quality, price, creativity and other effective parameters in production

and competition.

Product

Description

domestic

marketExport Market

Suggested

Method

Suggested

Price

Suggested

Capacity

Market

priority

Washing machine

according to

legal import,

domestic

demand is

estimated about

169 thousand

device

The average

export during the

past four years is

10,000 devices

Outsourcing

Other non

Iranian 7kg

washing

machine/

5/000/000

100000 Yes

Dish Washing

Due to high

legal import

and usage

potential is

recommended

It stands at second

priority after

domestic market

Domestic

production

Other non

Iranian 24“

Dish washing

machine/

7/140/000

50000 Yes

Refrigerator and

Freezer

according to

legal import,

domestic

demand is

estimated

about 252

thousand device

An export

capacity around 20

thousand devices

per year to

neighboring

countries,

especially Iraq and

Afghanistan

Domestic

production

Other non

Iranian side by

side

refrigerator

100000 Yes

Oven

Due to the high

capacity of

existing and

under

construction

production

units is not

recommended

An export

potential of

150,000 devices is

available to all

European

countries and

region

Domestic

production

Non Iranian

Oven/

3/160/000

Other Iranian

Oven

2/170/000

50000 Yes