A
GLOBAL / COUNTRY STUDY AND REPORT
ON
Slovenia
Submitted to
Gujarat Technological University
By 62 Students of Parul Institute of Management & Research
Finance Division: A
Batch: - 2011-13
Institute Code:- 711
IN PARTIAL FULFILLMENT OF THE
REQUIREMENT OF THE AWARD FOR THE DEGREE OF
MASTER OF BUSINESS ASMINISTRATION
UNDER THE GUIDANCE OF
Faculty Guide: - Prof. Deepak Gaywala
Gujarat Technological University
Ahmedabad.
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Executive Summary
This report is prepared by us in accordance with the guidelines of the Gujarat Technological University. Slovenia is a developed country and important member of EU. The study of Slovenia has given us important inputs on the socio-economic environment of the country. All eleven sectors taken up for the study provide useful information about the contribution of each sector in the GDP Slovenia. Trade relations in each sector have been explored between India and Gujarat to strengthen ties in trade and commerce for the entrepreneurs of Gujarat and India. Opportunities for the Indian youth are many in sectors like Information Technology and Health Care. Advanced technology in the Automobile and Metal sectors are some areas where entrepreneurs from India and Gujarat can take benefit of their expert knowledge. Ample opportunities are available for co-operation between educational institutions in India and Gujarat with Slovenia. The country learns from the experience of the others and growth story of Slovenia is no exception. The literacy rate of Slovenia is almost 100%/ The youth to succeed in Slovenia have to develop competitive skills. Learning basic language of Slovenia will be an added advantage for them.
GTU has offered us excellent opportunity to learn and explore opportunities. In this process, our Faculty Guide Prof. Dipak S Gaywala and Director of the Institute Dr. P.G.K.Murthy guided us throughout this two semesters. We take an opportunity to convey our sincere thanks to these mentors.
Prepared by the Students of Finance A Division, Parul Institute of Management & Research
13 June 2013
P.O. Limda, Tal. Waghodia, Dist. Vadodara
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INDEX
SR. PARTICULAR PAGE NO. NO.
1 Executive summary
PART-I 4
HISTORY OF SLOVENIA ...... 4 4
GENERAL INFORMATION OF SLOVENIA ...... 7 7 PESTEL ANALYSIS ...... 11 12 POLITICAL SYSTEM ...... 11 12 ECONOMIC FACTOR ...... 17 18 SOCIAL FACTOR ...... 19
TECHNOLOGICAL FACTOR ...... 20..... 25
ENVIRONMENTAL FACTOR ...... 26.... 30 LEGAL FACTOR ...... 35 31 REFERENCES ...... 55 36
56
PART-II 65
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PART: 1 Report on Slovenia
HISTORY OF SLOVENIA Slovenia was originally settled by Illyrian and Celtic peoples. It became a part of the Roman Empire in the first century B.C.
Slovenia is a parliamentary republic with a strong economy and a stable democracy. Having declared independence from Yugoslavia in 1991, it successfully joined the EU and NATO in 2004, and became an active player in the international arena.
The Slovenes were a south Slavic group that settled in the region in the 6th century, A.D. During the 7th century, the Slavs established the states of Samu, which owed its allegiance to the Avars, who dominated the Hungarian plain until Charlemagne defeated them in the late 8th century.
When the Hungarian‟s were defeated by the Turks in 1526, Hungary accepted Austria‟s Hapsburg rule in order to escape Turkish domination; the Hapsburg monarchy was the first to include all of the Slovene regions. Thus, Slovenia and Croatia became the part of, the Austro-Hungarian kingdom when the dual monarchy was established in 1867. Like Croatia and different from the other Balkan states, it is primarily a Roman Catholic.
Following the defeat and collapse of Austria-Hungary in World War I, Slovenia declared their independence. It formally joined with Montenegro, Serbia, and Croatia on 4 Dec., 1918, to form the new nation called the Kingdom of the Serbs, Croats, and Slovenes. The name was later changed to Yugoslavia in 1929.
During World War II, Germany occupied Yugoslavia, and Slovenia got divided into Germany, Italy, and Hungary. For the duration of the war many Slovenes participated in guerrilla war against the Nazis under the leadership of the Croatian- born Communist resistance leader, Marshal Tito. After the final defeat of the Axis Page 4 of 204
powers in 1945, Slovenia was again made into a republic of the newly established Communist nation of Yugoslavia.
Slovenia‟s economic freedom scored 62.9, making its economy the 69th freest in the 2012 Index. It‟s score has decreased by 1.7 points since last year, with declines in half of the 10 economic freedoms, including a substantial drop in its score for government spending. Slovenia is ranked 32nd out of 43 countries in the Europe region, and it‟s overall score is still above the world average.
The Slovenian government‟s record on structural reform has been uneven the overall regulatory framework has been gradually evolving to promote the emergence of a more vibrant private sector and encourage broad-based employment growth. Slovenia enjoys a comparatively high degree of trade freedom,
Its economic infrastructure remained untouched, and its economy experienced solid growth in the years before the 2008 global recession. It joined the EU (European Union) and NATO in 2004; adopted the euro as its currency on January 1, 2007; chaired the European Union for six-months in 2008 and the Council of Europe in 2009; and it became a member of the Organization for Economic Co- operation and Development in May 2010.
Private property rights are constitutionally guaranteed, but the courts are inadequately staffed and slow. The top income tax rate is 41%, and the corporate tax rate is a flat 20%. Despite progress in streamlining the process for launching a business, other time-consuming requirements reduce regulatory efficiency. With no minimum capital required, launching a business takes only 6 days, but it takes almost 200 days to complete all of the necessary licensing requirements. The labor market remains saddled with rigid labor regulations that hamper dynamic employment growth. Inflation has been low.
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The trade weighted average tariff rate is low as in other members of the European Union, but layers of complex non-tariff barriers increase the cost of trade. Most sectors of the economy are open to foreign investment, but the overall investment regime lacks efficiency due to lingering bureaucracy. Privatization of state-owned financial institutions has been uneven, and the banking sector has been under strain.
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GENERAL INFORMATION OF SLOVENIA
Official name Republic of Slovenia
Capital Ljubljana
Area Total: 20,273 sq km, water: 122 sq km, land: 0,151 sq km
Climate Mediterranean climate on the coast, continental climate with mild to hot summers and cold winters in the plateaus and valleys to the east
Location Central Europe, eastern Alps bordering the Adriatic Sea, between Austria and Croatia
Geographic coordinates 46 07 N, 14 49 E
Comparative Area Slightly Smaller than New Jersey
Land boundaries Total: 1,334 km border countries: Austria 330 km, Croatia 670 km, Italy 232 km, Hungary 102 km
Coastline 46.6 km
Terrain A short coastal strip on the Adriatic, an alpine mountain region adjacent to Italy and Austria, mixed mountains and valleys with numerous rivers to the east
Elevation extremes Lowest point: Adriatic Sea 0 m highest point: Triglav 2,864 m
Government Parliamentary democratic republic
President Danilo Türk (2007)
Prime Minister Janez Jansa (2012)
Population (2012 est.) 1,996,617 (growth rate: -0.185%); birth rate: 8.76/1000; infant mortality rate: 4.12/1000; life expectancy: 77.48
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Literacy rate 99.7% (2010 EST.)
Languages Slovenian 91%, Serbo-Croatian 5% (2002)
Ethnicity/race Slovene 83.1%, Serb 2%, Croat 1.8%, Bosniak 1.1%, other or unspecified 12% (2002 census)
Religions Catholic 57.8%, Muslim 2.4%, Orthodox 2.3%, other Christian 0.9%, unaffiliated 3.5%, other or unspecified 23%, none 10.1% (2002 census)
Economic summary
GDP/PPP (2011 est.) $58.63 billion; per capita $29,000.
Real growth rate -0.2%.
Inflation 1.8%.
Unemployment 11.8%.
Arable land 8.53%.
Agriculture potatoes, hops, wheat, sugar beets, corn, grapes; cattle, sheep, poultry.
Labor force 934,700 (2011 est.); agriculture 2.2%, industry 35%, services 62.8%.
Industries Ferrous metallurgy and aluminum products lead and zinc smelting; electronics (including military electronics), trucks, electric power equipment, wood products, textiles, chemicals, machine tools.
Natural resources lignite coal, lead, zinc, mercury, uranium, silver, hydropower, forests.
Exports $28.77 billion (2011 est.): manufactured goods, machinery and transport equipment, chemicals, food.
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Imports $30.58 billion (2011 est.): machinery and transport equipment, manufactured goods, chemicals, fuels and lubricants, food.
Major trading partners Germany, Italy, Austria, France, Croatia, Hungary, China (2011).
Communications
Telephones main lines in use: 913,600; mobile cellular: 2.122 million (2010).
Broadcast media Public television broadcaster, Radiotelevizija Slovenija (RTV), operates a system of national and regional TV stations; 35 domestic commercial television stations operating nationally, regionally, and locally; about 60% of households are connected to multi-channel cable TV systems; public radio broadcaster operates 3 national and 4 regional stations; more than 75 regional and local commercial and non-commercial radio stations (2007).
Internet Service Providers 417,984 (2010).
Internet users 1.298 million (2009).
Transportation,
Railways 1,228 km (2007).
Highways Total: 38,925; paved: 38,925 km
Waterways (there is some transport on the Drava River) (2012).
Ports and harbors Koper.
Airports 16 (2012).
India and slovenia 6393.50 km
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PESTEL ANALYSIS
POLITICAL SYSTEM
The National Assembly Constitution
1. The Republic of Slovenia is a parliamentary representative democratic republic since 25 June 1991
2. The present Constitution of the Republic of Slovenia was adopted on 23 December 1991, following the results of the plebiscite on the sovereignty and independence of Slovenia on 23rd of December 1990, when Slovenes overwhelmingly voted for independence.
3. Slovenia became an EU member on 1 May 2004
4. Slovenia adopted the euro on 1 January 2007
Head of state
The President of the Republic (elected for a maximum of two, five-year terms by direct elections)
The current President is Dr Danilo Türk (elected in November 2007)
Legislative authority
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The National Assembly (90 deputies).
Political parties represented in Parliament (National Assembly), elections of 4 December 2011
Positive Slovenia - 28
Slovenian Democratic Party – 26
Social Democrats – 10
Gregor Virant's Citizens' List – 8
Democratic Party of Slovenian Pensioner‟s – 6
Slovenian People's Party – 6
New Slovenia – 4
Representatives each of the Hungarian and Italian national communities – 2
April 2012
Positive Slovenia - 28
Slovenian Democratic Party – 26
Social Democrats – 10
Gregor Virant's Citizens' List – 7
Democratic Party of Slovenian Pensioner‟s – 5
Slovenian People's Party – 6
New Slovenia – 4
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Representatives each of the Hungarian and Italian national communities – 2
independent - 2
The President of the National Assembly is Dr Gregor Virant.
The National Council performs an advisory role. Members are elected for a five-year term (40 members).
Blaţ Kavčič is the President of the National Council.
Executive authority
The Government consists of the Prime Minister and other Minister‟s. The government and the minister‟s are independent within the framework of their jurisdiction and responsible to the National Assembly.
The government is headed by Prime Minister Janez Janša.
The current government coalition consistitutes of the Slovenian Democratic Party, Gregor Virant's Citizens' List, Democratic Party of Slovenian Pensioners, Slovenian People's Party and New Slovenia.
Judiciary
Judicial power in Slovenia is implemented by the courts with general responsibilities and specialised courts which deal with matters relating to specific legal areas.
State Prosecutor
There are 11 regional public prosecution offices, 4 higher public prosecution offices and the Office of the State Prosecutor General of the Republic of Slovenia. Page 13 of 204
Ombudsman for Human Rights and Fundamental Freedoms
The first Slovenian Ombudsman was elected in Sept 1994. The Ombudsman reports to the National Assembly on his work.
Constitutional Court
The Constitutional Court decides on the conformity of laws with the Constitution. The Constitutional Court composes of nine judges - legal experts. They are elected for a term of nine years
Capital
Capital: Ljubljana (272.220 (2011))
Other major cities: Maribor, Kranj, Celje, Velenje, Ptuj, Novo Mesto, Koper, Jesenice, Nova Gorica, Trbovlje, Murska Sobota
Municipalities
210 (11 of them have urban municipality status: Celje, Koper, Kranj, Ljubljana, Maribor, Nova Gorica, Murska Sobota, Novo Mesto, Slovenj Gradec, Ptuj, Velenje)
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Ljudmila Novak Janez Janša Radovan Ţerjav, M.Sc. Karl Erjavec
Deputy Prime Minister Prime Minister Deputy Prime Minister Deputy Prime Minister Government Office for Minister of Economic Development and Slovenians Abroad Minister of Foreign Technology Affairs
Franc Bogoviè Zvonko Èernaè Dr Janez Šušteršiè Minister of Agriculture Andrej Vizjak, M.Sc. Minister of and the Environment Minister of Labour, Family Minister of Finance Infrastructure and and Social Affairs Spatial Planning
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Aleš Hojs Tomaţ Gantar Dr Ţiga Turk Dr Vinko Gorenak Minister of Health Minister of Education, Minister of Defence Minister of the Interior Science, Culture and
Sport
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ECONOMIC FACTOR Slovenia is considered to be a model country among the new EU member states. Sustainable reforms have already been implemented and the corporate sector has been restructured. The country is with well-developed infrastructure. Productivity has improved significantly in recent years, a condition that is of special interest to foreign investors. All these factors have helped Slovenia to generate steady economic growth since 1994. Remarkably, Slovenia was the first country from the 2004 EU expansion to meet the Maastricht deficit and public debt criteria – as a result, the Euro was implemented as the official currency on 1 January 2007.
At the beginning of 2009 the government announced an EUR 800 million assistance package for the Slovenian economy, it was designed to moderate the effects of the financial and economic crisis. This programme also includes subsidies of EUR 230 million to companies that are forced to introduce short-time work for their employees. Federal bonds with a total volume of EUR 2.5 billion were issued to strengthen the financial system and EUR 2.2 billion of other economic measures were implemented, including EUR 1.2 billion of federal guarantees for bank loans to businesses, EUR 500 million of federal sureties for businesses and EUR 300 million of assistance for new technologies. In September 2009 Ljubljana also issued federal guarantees totalling EUR 350 million for certain household loans, created a pool of EUR 150 million to support small and mid-sized companies (SME) and approved EUR 100 million for municipal infrastructure projects and EUR 50 million for renewable energy sources, environmental technology and energy efficiency.
The comprehensive tax reform that took effect on 1 January 2007 not only created new incentives for investments, but also introduced a number of benefits for the taxpayers. Additionally, the tax on total payroll was eliminated as of Jan 1, 2009. A need for further improvement can be identified in the area of privatization. The state continues to hold investments in major companies, e.g. Gorenje (household appliance manufacturer) and Petrol (energy corporation). The respective
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privatization plans have been postponed – at least for the time-being – due to the global financial crisis.
2011 2012 2008 2009 2010 projections* projections*
GDP per capita (EUR) in 18,437 17,295 17,286 17,437 17,778 PPS
GDP growth (% year - 3.5 8.1 1.4 0,5 0.2 on-year)
Gross external debt as 43.3 45.6 % of GDP 21.9 35.4 38.8
Inflation (year average, 5.7 0.9 1.8 1.8 1.8 %)
Inflation (year average, 4.4 5.9 10.7 11.8 12.5 %)
Since independence in 1991, Slovenia‟s economic development has been very successful, and maked it one of the most thriving countries in transition. Especially during the period 1995 to 2008, economic growth in Slovenia was stable, reaching an average slightly above 4%. The Slovenian economy is open, and level of internationalization, measured by the average share of exports and imports in gross domestic product (GDP), have increased from 52% to 70% from 1995 to 2008. Economic growth was further enhanced by buoyant growth of private consumption and investment spending, which was most prominent in the year 1999.
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Higher economic growth compared to the EU average has enabled a gradual decrease in Slovenia‟s development lag. Thus in 2007, Slovenia reached 89.2% of the average GDP of the EU-27 per capita, which is expressed in terms of purchasing power, which corresponds to an increase of 14.8 percentage points compared to 1995. This placed Slovenia in 16th place in the EU.
Global financial and economic crisis has been influencing Slovenian economy markedly from late 2008 on. In the 4th quarter of 2008 Sovenia faced the first decrease of the GDP after the 2nd quarter of 1993.
In Slovenia the economic crisis has placed a mirror in front of us and (among other things) has made confront with all the urgently needed reforms.
SOCIAL FACTOR 1. Population
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Population in Slovenia remained unchanged at 2.05 Million in December of 2011 from 2.05 Million in December of 2010, according to a report which was released by the World Bank. Historically, from 1960 uptil 2011, Slovenia Population averaged 1.88 Million reaching an all time high of 2.05 Million in December of 2011 and a record low of 1.58 Million in December 1960. The population of Slovenia represents 0.03% of the world´s total population which arguably means that one person in every 3366 people on the planet is a resident of Slovenia.
In July 2012 the Population is 1,996,617 & as per Comparison with other Countries Ranked No. 146 in World.
Population Growth Rate 0.185% in 2012.
2. Age Distribution
AGE Class Ratio of Male to Female
0-14 years: 13.4% (Male 138,116/ Female 129,804)
15-64 years: 69.5% (Male 698,993/ Female 688,642)
65 years and over: 17.1% (Male 135,229/ Female 205,833)
Birth Rate 8.76 births/1,000 population in 2012. Ranked in World 213 among comparison with other Countries.
Death Rate 11 deaths/1,000 population in 2012. Ranked in World 39 among comparison with other Countries.
Infant Mortality Rate
Total 4.12 deaths/1,000 live births Male 4.66 deaths/1,000 live births Female 3.55 deaths/1,000 live births (2012)
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This entry gives the number of death of infants under one year old in a given year per 1,000 live births in the same year; included This rate is often used as an indicator of the level of health in a country.
3. Educational Infrastructure
A large section of Slovenia's population is now a part of the well educated, urban- dwelling middle class. Extreme class differences between rich and poor are not present.
Education expenditures: 5.2% of GDP (In 2007)
In 2007,Country Comparison to the World: 54
Literacy: Total Population: 99.7% (In 2010)
Male: 99.7%
Female: 99.7% (2010)
School life expectancy (primary to tertiary Total: 17 years(2008) education):
Male: 16 years
Female: 18 years (2008)
Child Education. Education is mandatory and free until age fifteen. Most of the population has some basic education; another 42 percent have secondary schooling (past age fifteen at a high school; and approximately 9 percent receive higher, university education. There is a national, standardized curriculum. Competition for university places is strong. For Slovenes over ten years old, the literacy rate is placed at 99 percent.
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Higher Education. Around 36 percent of the people receive post secondary or higher levels of education. There are 30 institutions of higher learning but only two universities, the University of Ljubljana, founded in 1595, and the University of Maribor. Admittance to the universities is competitive but there are numerous schools that offers professional degree. It is also possible to obtain a 2 year "first stage" degree, equivalent to an associate degree, at the universities.
4. Religion
Slovenes have a Right to their own Religious Beliefs.
Religious Beliefs. Along with the guaranteed right of the preservation of national identity, the people of Slovenia have a right to their own religious beliefs. As the Constitution of the Republic of Slovenia states that nobody is obliged to declare their religious or other beliefs, there are no exact figures on no. within various religious groups. According to the 2002 census the most of population (58 %) are Catholics and there are 43 religious communities, spiritual groups, societies & associations registered in Slovenia. Among the oldest is the Evangelical Church, which has its roots deep in the Reformation and is most widely spread in the northeastern part of Slovenia.
5. Society
The story of Slovenia is also the story of its people and customs. Slovenes are hard- working and diligent. Love to do with great passion, energetically and with great zeal. Slovenes will mention Honesty as one of our principal values. “Slovene, as a value and a distinctive feature, which unites us and makes us who we are” –Slovenian.
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6. Culture
An important part of everyday lives in Slovenia, Slovenian authors are poets. Even though Slovenes like to describe themselves as calm and reserved, they get quickly open up to good food and drink, good company, and start to sing often.
Slovenia has always been a place of high artistic achievements. Arts and culture have had a special position in the history of the Slovenian nation and have compensated for the lack of its own state and political institutions in the past. A rich cultural life and far reaching institutions, organizations, and cultural societies are comparable to the most developed European countries.
7. Customs
Trad ition al cost ume s still have a place in its people's hearts
Slovenia has always preserved its ethnological features and traditions. Even today, the kozolec, a traditional rack for drying hay and other field crops, can be seen all across Slovenia. The double kozolec is unique in the world and delights the eyes with the originality of its construction and its ornate decoration. A special feature of Slovenia is the colorful bee-hive panel decorated with historical, religious and
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frequently humorous scenes found on the front of the original Slovene bee-hive. In the 18th and 19th centuries there were at least 50,000 in existence, and the more than 600 preserved motifs remain a genuine gallery of folk art.
8. Languages
The official language in Slovenia is Slovene, which is a member of the South Slavic language group. In 2002, Slovene was the native language of around 88 percent of Slovenia's population according to the census, with more than 92 percent of the Slovenian population speaking it in their home environment.
Regarding the knowledge of foreign languages, Slovenia is ranked among the top European countries. Around 15 percent of Slovenians can speak Italian, which is (according to the Euro barometer pool) the third highest percentage in the European Union, after Italy and Malta.
Official Languages Slovene; in some nationally mixed border areas also Hungarian and Italian
Other LanguagesEnglish, German, Croatian, Serbian
9. Health Consciousness
Medicine and Health Care. Health care is provided by the government for all of Slovenia's citizens. Life expectancy of people has increased and is almost at western European levels: 70 years for men and 78 years for women. The Birth Rate is low, under 8.76 per 1,000 people, and Infant Mortality is 4.12 per 1,000 Births.
Health Expenditure 8.3 percent of GDP & Ranked 37.
9.41percent of GDP (2009) & Country Comparison to the World: 42.
The Health expenditure; public (% of total health expenditure) in Slovenia was last reported at 73.66 in 2010, according to a World Bank report as published in 2012. Total health expenditure is the addition of public and private health expenditure. It Page 24 of 204
covers the provision of health services (preventive and curative), nutrition activities, family planning activities, and emergency aid designated for health but does not include provision of water and sanitation.
TECHNOLOGICAL FACTOR
. In Slovenia in 1996/1997 a special study was conducted on key (critical) technologies on a voluntary basis (Kos, 1996) as a Delphi survey with the participation of experts from industry and science, eliminating 88 technologies using several criteria such as R&D capacities, engagement of industry, government participation in the most important technologies, weighing their relevance for economic development. At this writing, there has not yet been any significant impact on science and technology policy.
. The technological infrastructure in Slovenian households, as well as in companies, is relatively well developed (around EU25 average), including school infrastructure (above EU25 average, except for PCdensity).
. However, E-learning in the school system still needs further steps: the full introduction of wireless Internet, the increase in teachers‟ equipments and, in particular, the increase in the number of PCs (or some other corresponding devices) for participating student/pupils. Page 25 of 204
. Optic cables are also needed for all school institutions; otherwise their absence will represent a growing barrier to modern eLearning with alots of multimedia content. Software, on the other hand, is not so much a decisive factor for the implementation of virtual learning environment anymore (due to user-friendly open source solutions), but the related organization, motivation and strategic issues are the key potential drawbacks.
. The long-term destiny of the few domestic LMSs, created by Slovenian organizations, might be unclear, because advanced and complex tools are very expensive to develop and even more expensive to maintain. However, they have so far been very prosperous in past years because they were accompanied by local professional support, which can be fully tailored to clients‟ needs. The latter is very often th e keydeficiency of open-source solutions in general (e.g. Microsoft vs. Linux).
Technological changes
Another trend is related to new technologies used in the automotive production. Among the most important technologies that have tangible benefit to consumers are safety, engine-management system, fuel technology, drive- by-wire electronics, telematics and 42-volt systems.
The latter is expected to become critical as vehicles continue to add electronic components, which is one of the industry‟s biggest technological trends. The share of electric and electronics is expected to reach 40% by 2015 (compared to 20% in 2002).
New technologies used in the automotive production are creating synergies that have impact beyond individual modules and systems and require tight cooperation among different design and production phases.
As international competition became more innovative and knowledge based, understanding trade performance went beyond the parameters of the
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comparative advantage paradigm and stressed role of technology in affecting international competitiveness.
Similarly, a frontier cost function identifies the minimum costs at a given output level, input prices and existing production technology. If we consider also relative input prices, DEA measures also the deviations of production units‟ costs from minimal costs that are a consequence of the use of inputs in suboptimal proportions without considering their given relative prices. This is so-called allocative effects. This allocative efficiency reflects the ability of the firm to use the inputs in optimal proportions, given their respective prices & the production technology.
Even the production and merchant organizations in Slovenia have to insure higher efficiency of transport by introducing containers and pallets, industrial rails and, above all, information technology: all of them together would form the basis for an advanced technology of transport.
Slovenia has a well developed R&D structure which is successfully integrated in international collaborations. International cooperation is one of the priorities of the country‟s research and education policy. Germany is an important co-operation partner for Slovenia. The collaboration between the 2 countries is based on a joint declaration on scientific and technological cooperation that was issued in 1993.
Slovenia is active partner in shaping the European Research Area. Of particular note in its co-operation with Germany is Slovenia‟s commitment to the Western Balkans through various network projects. The Ministry of Higher Education, Science and Technology (MHEST), the Federal Ministry of Education and Research (BMBF) and the International Bureau (IB) of the BMBF are working together on many projects.
Ten-Year Plan Aims to Make Slovenia a Regional Science Leader
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Slovenia's parliament is expected to approve a 10-year strategy next week to give the country's research and innovation sectors a major facelift. The plan aims to boost the government funding for science, attract more scientific talent from abroad, and make the nation of two million the science and innovation hub of the western Balkans.
The proposal for the new strategy was accepted by the parliament at the 1st reading in early March, together with a complementary strategy for higher education. On May 5, both plans were approved by the parliamentary committee on higher education, science and technology.
The numbers suggest that Slovenia was already making progress in its scientific development. According to last year's UNESCO Science Report, the number of researchers in the country grew by 51percent, to about seven thousand full-time researchers, between 2002 and 2008; its scientific output rose by 71percent, to 2766 papers, in the same period. In terms of papers published per „million inhabitants, the country is a way ahead of other countries in south Eastern Europe.
But the new research plan aims higher. It outlines a grand vision of an open and effective research and innovation system that brings together research, education, and innovation to create a sustainable high tech society. To help achieve that goal, the government's science budget will be almost doubled to 1percent of GDP (€390 million) in 2012 and grow further to 1.2 percent by 2020. (Total research spending in Slovenia is currently 1.6% of GDP, but only 0.52% comes from state coffers.)
Slovenian Technology Agency (TIA) is public agency for implementation of the National Research and Innovation Policy on the field of technology development and innovation. Measures and activities are designed to support achievement of the Page 28 of 204
strategic objectives, being, development of the comprehensive national innovation system, increased growth of investment in Research and Development and competitiveness of the economy, increased share of researchers employed in private sector, strengthening of the co-operation between research institutions and enterprises and their involvement in the international knowledge and value chains.
Products and services
Public Agency for Technology of the Republic of Slovenia promotes technologic development and innovation. The main strategic guidelines for our works are defined by the Government and National Parliament of the Republic of Slovenia.
Public Agency for Technology of the Republic of Slovenia performs the following functions in the interests of the founder and in the public interest:
o Implements programes and measures to promote competitiveness and technological development within the context of the National Research and Development Programme and the policies of the ministry responsible for technology (here in after: the ministry);
o Plans, directs and finances activities for: the promotion of innovation and Research and Development activities and the transfer of knowledge;
o Provides advice and technical support to promoters of the projects for the development of products, production processes and services in obtaining the information and financial resources;
o Promotes co-operation, the transfer and application of international technological knowledge;
o Promotes connections and the transfer of knowledge between Research and Development institutions and industry;
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o Its monitors the implementation of programs & measures and evaluates the effects of development policy and investments in R&D to increase competitiveness of Slovenian industry;
o Keeps the databases defined by the Research and Development Act and other regulations, provides information support for the orientation and implementation of development policy and, within the scope of its activity and competence, participates with the agency in the research sphere and with other organizations in the research and development sphere;
o Works to obtain additional funds for the implementation of the National Research and Development Programme;
o Participates in the planning of national technological development and innovation policy;
o Reports regularly to the ministry on the implementation of annual programes, the realization of financial plans and effects, in accordance with regulations;
o Ensures the publication of work and provides information to the public on the orientation‟s and effects of development policy;
o It performs other specialist functions in accordance with the purpose for which it was founded.
ENVIRONMENTAL FACTOR
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Strategically important long-term directions and goals of the Ministry concerning environmental protection are aimed at preventing or mitigating adverse impacts presenting a threat to sustainable development. The Environmental Protection Act contains the regulatory framework for the environment in Slovenia. Moreover, the Resolution on the National Environmental Protection Programme brings forward the following 4 key areas: climate change, quality of life, nature and biodiversity, and waste and industrial pollution.
Climate Change
Today climate change represents one of the greatest challenges facing human kind. The active operation of Slovenia in the processes of the formation of international and national environmental policy is therefore urgent as in this manner we do not only protect our interests but we operate globally.
The climate change policy which is run by the EU is ambitiously designed and it applies to all the EU Member States. The goals adopted are as follows:
o By 2020 the greenhouse gas emissions must be reduced by the European Union by 20%.
o Increase the use of renewable sources of energy by 20% in the final use of energy.
o Achieve 10% share of bio fuel as motor fuel in transport and 20% increase of efficient energy use.
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Waste
Waste is undeniably a very pressing environmental problem. In the production of such products, be it a plastic bottle, a can or a car natural resources are used. At the moment, when this product becomes waste and is thrown away, certain of the natural resources are simultaneously discarded.
Especially when a product becomes waste, the legislation from field of waste management starts to apply to it. In Slovenia, the fundamental European policies are being followed which as a priority schedule the legislation and prevention of the generation of waste and management of waste and uses the following hierarchy of waste management:
Waste prevention,
Waste preparation for reuse,
Recycling,
Other processing (for example energy processing),
Disposal (for example, incineration and landfills).
The main goals of the waste management policy are therefore given as:
Reduction of detrimental effects of the generation of waste and waste management for human health and the environment, and
Reduction of the use of resources and promotion of practical use of adequate waste management.
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Water
The Ministry of the Environment and Spatial Planning also has responsibility for the subject of water protection, use and management and tasks with regard to the implementation of environment protection public services: potable water supply and treatment of urban and drainage waste water.
In the field of water regulation it is responsible for the preparation of a detailed plan for the reduction of flood hazards in compliance with the Flood Directive (Directive 2007/60/EC) and the preparation and implementation of the Water Fund programme: this is a programme of planning, preparation and implementation of water infrastructure for the achievement of water regulation and for the management and guidance regarding water infrastructure in relation to the construction of the Spodnja Sava Hydroelectric Power Plant.
Environmental Protection
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The crystal-clear green of the river Soča.
In November 2005, the National Assembly of the Republic of Slovenia adopted the newResolution on the National Environmental Action Programme (Neap) for the period up to 2012, whose main objective is the general improvement of the environment and the quality of life, and the protection of natural sources. It is a starting point for the environmental dimension of Slovenia‟s Development Strategy, determining the vision of Slovenia‟s future, and giving the orientation and measures for its realisation.
The basic aim of the environmental protection policy is to ensure sustainable development. In the environmental field this means the organisation of the economy, infrastructure, settlement, and way of life in view of the carrying capacity of the environment and natural resources, and the promotion of the integration of environmental issues with other sectorial policies in line with the principle of integration.
The basic aims of the NEAP in particular fields are:
Setting out climatic change as an important challenge in the years ahead, and reducing greenhouse gas emissions, thus contributing to the long-term
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stabilisation of the concentration of greenhouse gases in the atmosphere, as well as reducing the emission of substances causing ozone layer degradation.
Protecting and preserving all natural systems, habitats, freeliving animal and plant species, with the aim of preventing the loss of biotic diversity, genetic variety and further soil degradation.
Contributing to the high quality of life and social welfare of citizens by ensuring an environment in which the level of pollution does not harmfully affect people‟s health and by encouraging sustainable development in cities, and above all ensuring the measures for establishing good water quality.
Handling waste and using renewable and non-renewable natural resources that enable sustainable production and consumption, contribute to reducing environmental pollution and energy use so that the latter does not exceed the environment‟s carrying capacity.
LEGAL FACTOR
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1. Corporate Law
Slovenian corporate law is very similar to Austrian corporate law, but all companies in Slovenia have the status of a legal entity. The law on commercial companies permits foreigners to establish any legally recognized form of enterprise; only certain activities (e.g. banks and insurance companies) must be carried out under the umbrella of a stock corporation. The most popular company form in Slovenia is the limited liability company, which is selected by approx. 95% of all companies.
Legal Business Entity Slovenian Name
Stock company Delni•ka dru ba (d.d.)
Limited liability company Dru ba z omejeno odgovornostjo (d.o.o.)
Limited partnership Komanditna dru ba (k.d.)
Dru ba z neomejeno odgovornostjo General Partnership (d.n.o.)
Non-commercial partnership Samostojni podjetnik (s.p.)
Sole proprietorship Hèerin•ko podjetje
1.1Stock Company A minimum of five natural persons or legal entities is required to found a stock company. Registered capital must equal a minimum of EUR 25,000, whereby at least-one third must be contributed in cash and at least one-fourth must be paid in before registration. Contributions in kind must be transferred in full before registration. Page 36 of 204
The liability of shareholders is restricted to the amount of their investment (i.e. the purchase price paid for their shares). Shareholders cannot be held liable for the obligations of the company.
1.2 Limited Liability Company
Slovenian law restricts the number of shareholders in a limited liability company to a maximum of 50. A larger number requires the express approval of the Ministry of Commerce. A limited liability company may also be founded as a single-shareholder company. Since 1 February 2008 single-shareholder limited liability companies may also be founded online over the Internet portal http://evem.gov.si/evem/. Registered capital must equal a minimum of EUR 7,500 and each subscribed contribution must amount to at least EUR 50. This amount represents one vote at the annual general meeting. Shareholders who hold at least 10% of share capital also have the right to convene at annual general meeting. The administrative/management functions are exercised by one or more managing directors, who are not required to be Slovenian citizens. The shareholders are liable for the obligations of the company only up to the amount of their contributions.
1.3 Limited Partnership
A limited partnership must have at least one general partner and one limited partner. The general partner is liable to the full extent of his/her assets, while the liability of the limited partner is restricted to the amount of his/her contribution.
1.4 General Partnership
The “company with unlimited liability“ is similar to the Austrian “Offene Handelsgesellschaft”. All partners are jointly and severally liable for the obligations of the company. Page 37 of 204
1.5 Sole Proprietorship
The founding of a sole proprietorship is regulated in the Slovenian Company Act, and is similar to the sole proprietorship under Austrian law.
1.6 Subsidiary, Representation
A legal amendment replaced the representation (not a legal entity) with the branch office as the simplest form for foreign direct investment. Consequently, all representations must be converted into a branch or subsidiary. The founding of a branch office must be recorded in the relevant local commercial register.
A branch office may only be founded in Slovenia if the foreign company has been recorded in the commercial register of its home country for at least two years. The foreign company is liable for the obligations of the branch office in Slovenia with all its assets. If the head of the branch office is a foreign citizen, he/she requires a work permit or – if he/she is a citizen of an EU country – a residence permit.
2. ACCOUNTING AND ANNUAL REPORTS
2.1 General Information
Slovenian accounting standards (SAS) are based on International Accounting Standards (IAS) and the relevant EU guidelines as well as US and GB standards. Article 51 of the Law on Economic Enterprises states that all company forms regulated by this law are required to maintain accounts and comply with accounting standards in preparing their annual financial statements.
The above-mentioned law classifies economic entities into large, medium and smaller companies based on the average number of employees, annual revenues and the balance sheet total. The accounting and bookkeeping requirements differ according to the size of the company. Slovenian accounting standards generally
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require double-entry bookkeeping. However, independent entrepreneurs who do not exceed certain thresholds may use cash-basis accounting.
The general ledger and all ancillary accounting records must be stored for a period of ten years. Accounting records must be kept in Slovenian language and in the Euro.
The annual financial statements comprise the balance sheet, income statement, notes to the financial statements, management report, statement on the use of profit and coverage of losses as well as a cash flow statement. All companies must disclose the full version of the income statement, notes to the financial statements and the statement on the use of profit and coverage of losses. The balance sheet may be presented in an abbreviated or full form, depending on the size of the company. A cash flow statement must be prepared by large and medium-sized stock corporations, large and medium-sized limited liability companies, subsidiaries and all listed companies. The annual financial statements must be prepared within two months after the end of the financial year and must be published 30 days after the receipt of the audit report, but no later than eight months after the end of the financial year.
The tax return must be filed by 31 March of the following year. The principle of materiality in the financial statements prepared in accordance with commercial law also applies to the financial statements prepared for tax purposes, and divergence is only permitted in a very limited number of cases.
2.2 Audit of the Annual Financial Statements
Slovenian law calls for the mandatory audit of the annual financial statements of several classes of companies by an independent certified public accounting firm.
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For a company to be classified in a particular category, at least two of the three relevant criteria must be met:
Micro-companies:
– Average value of assets less than EUR 2 million
– Annual turnover less than EUR 2 million
– Less than 10 employees
Small companies:
– Average value of assets less than EUR 3.65 million
– Annual turnover less than EUR 7.3 million
– Less than 50 employees
Medium companies:
– Average value of assets over EUR 14.6 million
– Annual turnover of more than EUR 29.3 million
– Less than 250 employees
All banks, insurance companies and related companies (subsidiaries, affiliated companies etc.) are classified as large companies.
Subsidiaries and listed companies are also required to have their annual financial statements audited by an independent certified public accounting firm.The audit must be performed annually, within six months after the end of the financial year.
2.3 TAX AND CUSTOMS LAW
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The Slovenian tax system was completely overhauled in 1991. With this change, the parliament transformed a relatively ambiguous system with a wide range of contributions and taxes into a tax system based on West European models. Subsequently, a value added tax system was introduced on 1 July 1999. It was preceded by the introduction of a tax register, which assigned a tax identification number to every person and company who/which were subject to taxation. This number must be included on every tax return and invoice. In order to determine the amount of taxes due, the Slovenian taxation authorities are entitled to review accounting records and other documents from banks, insurance companies, etc. High penalties are charged for the late filing of tax returns.
A comprehensive tax reform took effect on 1 January 2007. It is designed to increase the attractiveness of Slovenia as an investment location and also give taxpayers the possibility to utilise tax benefits.
2.4 Corporate Income Tax
The new Corporate Income Tax Act includes amendments in areas that are important for foreign investors and corporations. All enterprises that conduct business activities for a profit and maintain their headquarters in Slovenia are subject to corporate income tax. This includes partnerships, corporations, investment funds, banks, insurance companies, co-operatives, public enterprises and other legal entities. Corporations that maintain their headquarters in Slovenia are subject to taxation on their worldwide profit, while corporations headquartered in other countries are only taxed on income earned by a permanent business establishment or permanent representative in Slovenia.
Beginning on 1 January 2007 the tax rate was gradually reduced from the original 25% to a level of 20% in 2010.
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The withholding tax on interest income was reduced from 25% to 15% as of 1 January 2007. Depreciation periods were also revised to ensure that 100% of the purchase price of an asset can be recovered through depreciation.
The so-called parent/subsidiary directive took effect with accession to the EU and limits the taxation of dividends paid by a subsidiary to its parent company. If an EU company holds a share of 25% or more in the capital stock of a Slovenian subsidiary for a minimum of two years, no withholding tax will be charged on distributions of profit from the subsidiary to the parent company. The Merger Directive permits the merger, division, transfer of business and exchange of shares between Slovenian and EU companies. It eliminates the taxation of gains on mergers and sales, and allows for the redistribution of reserves and losses between member states without any tax effects.
2.4 Personal Income Tax
Personal income tax is levied on the following forms of income: income from employment, pensions and similar payments, business or professional activities, agriculture, property or property rights. The tax reform that took effect on 1 January 2007 distinguishes between three tax classes with different rates: 16%, 27% and 41%.
Investment income – which includes interest, dividends and speculation gains - is now taxed at a flat rate of 20%. For speculation gains, the 20% tax rate applicable to interest and dividends is reduced by 5% at five-year intervals to 0% after the end of a 20-year retention period. The payroll tax was eliminated in 2009; this will provide significant relief for employers, above all when wages and salaries are higher.
3. Value-Added Tax
Slovenia has had a value added tax system with deductible VAT since 1 July 1999. Prior to this time, value added tax was generally charged only on sales to the final buyer. The Slovenian VAT system is very similar to the Austrian system. This tax is
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charged on revenues generated in Slovenia, whereby exemptions are granted for exports and a compensation tax is levied on imports. An amendment that took effect on 1 January 2010 reduced the 60-day period for the reimbursement of input VAT to 21 days.
VAT must be paid by:
– The company or person conducting business activities, or
– The tax representative designated by a company that does not maintain its headquarters in Slovenia but supplies goods or services in the territory of Slovenia. If a tax representative is not designated, the recipient of the goods or services is responsible for payment of VAT.
VAT is charged at a general rate of 20%. A reduced rate of 8.5% applies to items such as food, animal feed, water supplies, medicine, public transportation, word, picture and sound carriers, hotel accommodations, the utilisation of sport facilities and funeral parlours. A rate of 8.5% was introduced on 1 January 2010 for certain other goods and services, e.g. for hairdressers, nursing services and books.
The required storage period for vouchers is ten years. Vouchers relating to real estate transactions must be stored for 20 years.
The accession of Slovenia to the EU also resulted in the enactment of the regulations relating to reverse charges (transfer of tax liability on services provided by a foreign company, e.g. services related to advertising, legal and tax consulting to a Slovenian recipient) and triangular transactions between EU member states (deliveries involving three different companies from three different EU countries). Additionally, Slovenia has adopted the EU provisions on mail-order deliveries of goods from Slovenia to private persons and legal entities within the EU.
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The new EU value-added tax (VAT) scheme took effect on 1 January 2010. Among others, it brings a change in the place of performance for cross-border services and simplifies VAT reimbursements.
Change in the place of performance for services: As of 1 January 2010 the place of performance for services is defined primarily by the location of the recipient. Taxes are levied where the service is actually consumed.
VAT reimbursement: VAT reimbursement procedures for business people within the EU became significantly easier as of 1 January 2010. Applications for refunds can be filed electronically with the taxation authorities in the respective country of residence. This procedure substantially simplifies filing, above all through the elimination of language barriers. The submission of original invoices and authentication of the seller are no longer required for VAT reimbursement.
Excise Tax
An excise tax is charged at fixed rates per unit on mineral oil, beer, wine, liquor and tobacco products. A separate excise tax on electricity was introduced as of 1 July 2007. As of 1 March 2009 the excise tax on alcohol was increased.
Real Estate Tax
There is no tax on land in Slovenia.
Local Taxes
No information is available at the present time.
Custom Duties and Trade Barriers The general EU customs tariffs apply.
4. Court System Page 44 of 204
In accordance with Article 4 of the Declaration of Independence, legal regulations applicable in Yugoslavia that were valid as of 25 June 1991 in the territory of Slovenia and do not contradict Slovenian legal regulations will continue to apply until they are replaced by Slovenian laws. The Republic of Slovenia has since enacted numerous laws, which generally reflect EU legal norms. Although the legal system is well developed and firmly established, there are difficulties with enforcement in specific areas. The rising number of court cases (the volume of open cases now exceeds 600,000) and extreme length of proceedings represent a major problem. For this reason, the waiting period for execution titles can be very long. The Slovenian Ministry of Justice has approved a range of measures since December 2005 as part of the “Lukenda Project“, which are designed to shorten proceedings and thereby eliminate the court backlog.
4.1 Arbitration
Slovenia is a signatory to the 10 June 1958 United Nations agreement (New York Agreement) and the 1961 European Convention on international commercial arbitration, and accepts and enforces foreign arbitral awards. Decisions issued in other nations that are parties to these agreements can also be enforced in Slovenia. Contracts with foreign counter-parties may designate the International Arbitral Centre of the Austrian Federal Economic Chamber (“Wirtschaftskammer Österreich”, WKO), the International Chamber of Commerce (ICC) or another arbitration institution as the party responsible for arbitration. Austrian companies and members of the WKO may use the services of the WKO‟s International Arbitral Centre, but this close relationship could possibly disturb a strong foreign partner. In contrast, the International Chamber of Commerce (in Austria, represented by the ICC Austria) is an internationally recognised organisation.
The arbitration clause of the International Arbitral Centre of the WKO states that: “All disputes arising out of this contract or related to its violation, termination or nullity shall be finally settled under the Rules of Arbitration and Conciliation of the Page 45 of 204
International Arbitral Centre of the Austrian Federal Economic Chamber in Vienna (Vienna Rules) by one or more arbitrators appointed in accordance with these Rules.“
The arbitration clause of the ICC states that: “All disputes arising out of or in connection with the present contract shall be finally settled under the Rules of Arbitration of the International Chamber of Commerce by one or more arbitrators appointed in accordance with the said Rules“.
Both clauses are also available in many other languages. Detailed information is available in the Internet under http://wko.at/arbitration (International Arbitration Court of the Austrian Federal Economic Chamber) or under www.icc-austria.org (ICC Austria, International Chamber of Commerce).
4.2 INSOLVENCY
The 1989 Law on Settlement, Bankruptcy and Liquidation was transferred to Slovenian law in 1991. A new insolvency law based on foreign models was enacted in December 1993. Following the accession of Slovenia to the EU, European regulation 1346/2000 (dated 19 May 2000) on insolvency proceedings must be applied in any proceedings between member states. However, this regulation does not cover proceedings with third countries and national law must be applied in these cases.
Slovenian law provides three procedural alternatives for bankrupt debtors: bankruptcy, settlement and liquidation.
Bankruptcy is the most frequently used procedure. The law defines bankruptcy as the inability to pay (in the sense of the debtor‟s permanent inability to meet his/her
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obligations) as well as over-indebtedness. A majority of at least two creditors is required to open bankruptcy proceedings. A single creditor may opt for the faster and less expensive execution procedure. Bankruptcy proceedings can only be opened if the debtor‟s assets that constitute the bankruptcy estate are sufficient to cover the costs of the proceedings. The rights of the debtor are dissolved when bankruptcy is opened, and management is transferred to an administrator. The name of the company must carry the addendum “in bankruptcy“ as of this date. Creditors must register their receivables within an extremely short period of time (normally two months) after the bankruptcy is announced in the official gazette. These periods are preclusive, i.e. late registrations are normally not accepted. It should be noted that bankruptcies are only announced in the official gazette and not in the Internet, and that the bankruptcy judge is not required to notify creditors. Private bankruptcy has also been possible in Slovenia since 1 October 2008, whereby the application may be filed by either the debtor or the creditor.
Settlement represents the second most frequently used process, and is similar to the Chapter 11 proceedings defined by the United States Bankruptcy Code. The goal is to rescue companies that are threatened by over-indebtedness or an inability to pay by allowing them to adjust their debt structure. Settlement can take place in connection with or separate from bankruptcy proceedings.
Insolvency cases are handled by the local court at the debtor‟s place of residence. The collection of outstanding receivables is substantially impaired by the extreme length of proceedings.
4.3 SECURITIES
Mortgages and Pledges
Pledge law distinguishes between the following depending on the item to be pledged: a pledge on an unmovable item, also called mortgage (zastavna pravica na nepremic´ninah, hipoteka); a pledge on a movable item (zastavna pravica na
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premic´ninah); and a pledge of rights (zastavna pravica na pravicah, pignus nominis). A valid legal contract is required for all types of pledges, whereby mortgages only take effect after they are recorded in the land register.
Guarantee
The provisions of the Law on Obligations (Zakon o obligacijskih razmerjih, ZOR) apply to bank guarantees. A bank guarantee can be used as security for a loan when another bank is designated as the beneficiary or the bank has been given a guarantee as a pledge.
Assignment of Claim
There is no specific form required for the assignment of a claim under Slovenian law. Verbal agreements for assignment are also accepted.
Warranty
The warranty period equals two years.
Retention of Title
This form of security is not used very often because of the extremely strict formal requirements. The foreign seller must include a provision for the retention of title in the sale contract.
Land Register
In accordance with legal requirements, the ownership of land must be recorded in the land register. The buyer of rights to real property must arrange for filing within six months after the conclusion of the relevant legal transaction.
4.4 LABOUR LAW
The maximum working time per week equals 40 hours. The minimum holiday is four weeks per year, whereby persons less than 18 years of age are entitled to seven additional days. Maternity leave covers 12 months, but can be extended to the child„s third birthday if the mother works part-time. Page 48 of 204
Work Permits
Foreigners can be employed in Slovenia on the basis of a work permit (except for EU citizens who only need a residence permit). Work permits are issued by the employment agency at the request of the employer or a foreigner. The employment agency will only grant a work permit if there is no unemployed Slovenian citizen with the same qualifications. An application for a residence permit can only be filed after a work permit has been granted.
Citizens of EU and EEA countries are only required to register in Slovenia. No further work permits are necessary.
Foreign citizens can also serve as authorised representatives of a company. A trade permit or license to conduct independent business activities also serves as a personal work permit and can be obtained at the local employment agency.
Termination of Contract
The notice period equals a minimum of 30 days and a maximum of six months. If the employer terminates the employment relationship, the employee may file an appeal with the labour and social court within 15 days. In the case of restructuring, the Slovenian employment agency can agree to pay up to 50% of the costs for retraining. A workers council must be installed in companies with more than 20 employees.
Social Security Contributions
The accession of Slovenia to the EU was also connected with the implementation of various social security rules. Accordingly, an employee who is sent to work in another EU member state for a period that is not expected to exceed 12 months is subject to the regulations governing the “home” country. The Slovenian authorities may extend this period for another 12 months. Coverage under the insurance laws of Slovenia only takes effect after the end of the extension period.
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4.5 ACQUISITION OF REAL ESTATE
The purchase of Slovenian real estate by foreign citizens is regulated in the Foreign Exchange Law and the Real Estate Law. Accordingly, companies registered in Slovenia have unlimited rights to acquire real estate. The accession of Slovenia to the EU eliminated the reciprocity criterion connected with real estate purchases, e.g. there are no restrictions on such acquisitions by natural persons and legal entities from EU member states. The only limitations are connected with agricultural and forestry areas.
The Slovenian Land Register Law took effect in July 1995 and is very similar to its Austrian counterpart. The land register is comprised of a main register and a document file, and is administered in the first instance by the 44 district courts.
The main register is comprised of three pages, and is available for public review free of charge. A specific legal interest is required to gain access to the document file.
In contrast to Austria, Slovenian law allows for the acquisition of “storey ownership“. These titles were previously maintained in a separate register, but the current legal position indicates that “storey ownership“ must now also be noted in the land register.
Trade Relations of India with Slovenia
Principal exports
Motor cars, pharmaceuticals, steel and steel products, turbines, home appliances and accessories, medicaments etc.
Principal imports
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Petroleum oils, motor vehicles for transport of persons, parts and accessories of the motor vehicles, electrical energy, medicaments.
Main destinations
Export
Germany, Italy, Croatia, Austria, France, Russian Federation
Import
Germany, Italy, Austria, France, Croatia, Netherlands
Slovenia became an independent nation in 1991. Prior to this, India had considerable trade and economic ties with all the Republics of Yugoslavia, including the Republic of Slovenia, which was the most, advanced of all the Yugoslav Republics. Following independence, Slovenia‟s focus turned towards strengthening its ties with Europe and towards becoming a member of the EU and the Euro zone.
More recently, however, there is recognition of the need to diversify Slovenia‟s trade and investment relations. The coalition agreement of the present government has in fact specifically referred to expanding ties with BRIC countries that include India as well.
Bilateral Trade In 2010, the total bilateral trade in goods as per Slovene statistics amounted to Euro 246.87 million with India enjoying a trade surplus of Euro 103.61 million as indicated in the table below. Exports of Slovenia to India after witnessing continuous rise since 2004 suffered last year by 5.8%. However, total bilateral trade increased by 14.71% during 2010 as compared to a year before. Moreover, India‟s exports to Slovenia increased by 26% during the same period. The main exports from India were petroleum oils, heterocyclic compounds with Nitrogen hetro-atoms, ferro-alloys, Page 51 of 204
diodes, transistors and semiconductor devices, electrical transformers, static convertors, antibiotics, textile items, artificial staple fibre, etc.
On the other hand, India‟s main imports from Slovenia during 2010 were nucleic acids and their salts, air or vacuum pumps, antibiotics, flat rolled products of stainless steel, other bars and rods of alloy-steel, hydraulic turbines, plastic plates, sheets and films, electrical apparatus, prepared binders for foundries,etc.
Trade in goods between Slovenia and India year wise-Euro Million
Exports from Imports from Balance in Slovenia to India to India’s Favour Year Total India Slovenia
2004 17.2 42.3 59.5 +25.1 2005 17.8 47.6 65.4 +29.8 2006 31,9 52.8 84.7 +20.9 2007 36.29 69.61 95.90 +33.32 2008 49.03 87.91 136.94 +38.88 2009 76.04 139.16 215.20 +63.12 2010 71.63 175.24 246.87 +103.61
Recent Trends (January – April 2010/2011)
Trade figures available for the first four month of 2011 indicate that Slovenia‟s exports to India as well as its imports from India both decreased by 8.29% and 15.42% respectively in comparison to the trade figures for the corresponding period in 2010. This has resulted in decreasing our trade gap from 36.36m to 28.71m during this period. Page 52 of 204
Major items of exports from Slovenia to India Major items of exports from Slovenia to India during the first four months of 2011 are Nucleic acids and their salts, Air or vacuum pumps, Uncoated paper and paperboard, Antibiotics, Flat-rolled products of stainless steel, Steam turbines, machine tools and other vapour turbines, Plates, sheets, film, foil and strip of plastics, other bars and rods of alloy steel, electrical apparatus for stitching or protecting electrical circuits, washing machines, etc.
Major items of imports from India into Slovenia Major items of imports from India into Slovenia during the first four months of 2011 are Petroleum oils and oils obtained from bituminous minerals, Heterocyclic compounds, medicaments, Nucleic acids and their salts, diodes and transistors and semi conductor devices, Motor cars and other motor vehicles, Antibiotics, Artificial staple fibres, coffee, Electrical transformers, static convertors, Sulphonamides, aluminium ores and concentrates, bed linen and other types of linens, amine- function compounds, parts of footwear, etc.
Joint Venture Agreement between Indian and Slovenian company A Slovene company M/s Petra Machines Ltd. Ljubljana, signed a Joint Venture Agreement with a Chennai-based company M/s Delta Hydrotech for manufacturing Band Saw machines in India. The JV Agreement was signed in Ljubljana in May 2009 during the visit of the representatives from the Chennai based company.
Slovene Chamber of Commerce and Industry (GZS) signs MoU with Indian Chamber of Commerce, Kolkata The Slovenian Chamber of Commerce and Industry (GZS) signed in February 2010, a memorandum on cooperation with Indian Chamber of Commerce in Ljubljana. The signatories agreed that by exchanging information, the chambers would enhance
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cooperation among their members. India is 35th most important export partner of Slovenia and ranks 31st in terms of imports.
Details of Slovenian companies in India
M/s. Krka, a leading pharmaceutical company of Slovenia also has a procurement office in Bangalore which sources raw materials and intermediates from India for their plants worldwide.
A Slovene company, M/s Petra Machines Ltd. Ljubljana, signed a Joint Venture Agreement with a Chennai-based company, M/s Delta Hydrotech for manufacturing Band Saw machines in India. Recently, we were informed that the metal cutting machines produced in India are now being exported to African countries.
A Slovenian computer company Dhimahi having rich experience and knowledge in the field of software development has entered into cooperation with an Indian IT Company, Geodesic.
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REFERENCES
. http://www.heritage.org/index/country/slovenia
. http://www.fco.gov.uk/en/travel-and-living-abroad/travel-advice-by- country/country-profile/europe/slovenia/?profile=all
. http://news.bbc.co.uk/2/hi/europe/country_profiles/1097296.stm
. http://en.wikipedia.org/wiki/slovenia
. http://europa.eu/abc/european_countries/eu_members/slovenia/index_en.htm
. https://www.cia.gov/library/publications/the-world-factbook/geos/si.html#top
. http://www.mp.gov.si/en/bodies_of_the_ministry/prison_administration/)
. http://www.theodora.com/wfbcurrent/slovenia/index.html
. http://www.reportlinker.com/r0795/Slovenia-industry-reports.html
. http://www.indexmundi.com/
. http://www.indexmundi.com/slovenia/
. http://erawatch.jrc.ec.europa.eu/erawatch/opencms/information/country_page s/si/country
. http://www.fco.gov.uk/en/travel-and-living-abroad/travel-advice-by- country/country-profile/europe/slovenia/?profile=history
. http://www.nationsonline.org/oneworld/slovenia.htm#History
. http://www.countrywatch.com/country_profile.aspx?vcountry=156
. http://ebookbrowse.com/country-perspective-slovenia-ppt-d131338316
. http://ebookbrowse.com/slovenia-country-report-doc-d370463032
. http://travel.state.gov/travel/cis_pa_tw/cis/cis_1020.html
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PART: 2
SECTOR: 1
BANKING SECTOR AND INSURANCE
Introduction The Slovenian banking sector consists of twenty banks, three savings banks and three branches of Member State banks (as at 30 November 2009, source: BoS). Nova Ljubljanska banka (NLB) remains the largest bank. The two largest shareholders are the Republic of Slovenia and the Belgian KBC whose stake has been on the selling block for almost two years. The Spanish Santander is yet another bidder for KBC‟s stake in NLB as the plans for its recapitalisation are being made.
The second largest Slovenian bank – Nova Kreditna banka Maribor (NKBM) – shares the destiny of other credit institutions worldwide and the recent bond issue should help improve its capital adequacy ratio and provide cash to be passed on through loans to its customers. The combined market share of NLB and NKBM by total assets was 40.6% (31 September 2009), with Abanka Vipa on the 3rd place with a 9% market share. NLB‟s share in total lending of 28.3% dwarfs a 9.3% share of NKBM (30 September 2009) and the picture remains the same when the banks‟ capacity to gather deposits is measured: 31.5% and 9.9% for NLB and NKBM respectively. With net profit of 49.3 million euro (30 September 2009), NLB accounted for a hefty third of the aggregate profit generated by the Slovenian banking sector.
BUSINESS BANKS IN SLOVENIA:
Abanka Vipa UniCredit Banka Slovenija Banka Celje Banka Domţale - bank group NLB Banka Koper Banka Sparkasse Banka Zasavje - bank group NLB BAWAG banka Deţelna banka Slovenije Factor Banka Gorenjska banka Hypo Alpe-Adria Bank Koroška banka - bank group NLB Nova kreditna banka Maribor (NKBM) Nova Ljubljanska banka (NLB) Poštna banka Slovenije (PBS) Probanka Page 64 of 204
Raiffeisen Krekova banka SKB Volksbank - Ljudska banka
Laws and Regulations
The Act of Bank of Slovenia - Official Gazette of RS, No. 1/91-I (English translation), not valid any more The Act of Bank of Slovenia - Official Gazette of RS, No. 58/02 (English translation) The Act of Bank of Slovenia - Official Gazette of RS, No. 72/06 (Official consolidated version) Law on monetary unit in the Republic of Slovenia - Official Gazette of RS, No. 17/91-I Law on use of monetary unit of the Republic of Slovenia - Official Gazette of RS, No. 17/91-I Law on change of law on monetary unit of the Republic of Slovenia - Official Gazette of RS, No. 33/92
Foreign Exchange
Foreign exchange act, unofficial fair copy Decision on Currency Exchange Operations Instructions for the Implementation of the Decision on Currency Exchange Operations
Regulations based on Foreign exchange act
DECISION On Criteria for and a Method of Identifying the Aim of Establishing Lasting Economic Links and Gaining the Possibility of Exercising Effective Influence on the Management of a Company or Other Economic Entity DECISION On the Procedures of Opening Foreign Currency Resident Accounts with Authorised Banks DECISION On the Method of Making Credit Arrangements between Residents and Non-Residents DECISION On Conditions for Making Foreign Currency Credit Arrangements between Residents DECISION On Conditions for Opening and Maintaining Non-Resident Accounts DECISION On Conditions for and a Method of Carrying out Cross-Border Payment Transactions
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DECISION on the terms and procedures under which residents may receive or disburse a payment in foreign currency when conducting transactions with non-residents DECISION on the expiration of the decision on the obligation of residents and non-residents to conduct purchases or sales of foreign currency only with persons who have previously been granted permission by the Bank of Slovenia to conduct such transactions and on the obligation to report such transactions DECISION On Currency Exchange Transactions DECISION On Obligatory Reporting on Cross-Border Transactions RULES On Mutual Informing between Supervisory Authorities
New Payment Services and Systems Act
The entry into force of the new Payment Services and Systems Act (ZPlaSS) from 1 November 2009 will alter the organisation of the transaction account register. In accordance with the ZPlaSS, the Agency for Public Legal Records and Services (AJPES) will assume responsibility for the register from 1 July 2010, while in the interim (1 November 2009 to 1 July 2010) it will continue to be administered by the Bank of Slovenia, with the provisions of Article 10 of the ZPlaSS applying mutatis mutandis during that period.
Access to data from the register will not change for users who are not payment service providers. Data from the register, except the data on transaction accounts of individuals (that is classified as personal data), will be public and accessible until 1 July 2010 on the Bank of Slovenia website, while individuals‟ data will only be accessible to persons or entities for whom a specific law defines a legal basis for access and grounds for processing such data.
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The changes that affect register users relate to the data set that will be processed within the register.
In accordance with the ZPlaSS only data on open accounts will be kept in the register, with data on closed account being deleted on the day of closure and transferred to the register archive. Register users will therefore only be able to access data on open accounts, and not on closed accounts. The opening date of transaction accounts will also be included in the register.
The ZPlaSS also introduced joint accounts, i.e. accounts held by two or more natural or legal persons. Data on joined accounts will be available in the register.
Payment systems comprise instruments, procedures, rules and infrastructure for transmitting information and funds transfer and are crucial to the functioning of the economy. There are two types of payment system: the systems for the interbank settlement of large-value payments (operated by the central bank and functioning in real time), and the systems for the interbank settlement of retail payments (settlement accounts of the system members (settled on a gross basis (each payment separately) within a few minutes ( real-time gross settlement systems). Payments from monetary operations, monetary claims and liabilities within the securities settlement systems, members‟ claims and liabilities from participation in other payment systems, transfers of liquidity funds (e.g. interbank lending) and urgent payments by customers are all settled in these systems.
The second type serves for settling large-volume retail payments, namely payments for individuals and companies by means of credit orders, card-based payments, direct debit payment services, etc. The resulting settlement of interbank claims and liabilities can be made on a net or gross basis.
SEPA (Single Euro Payment Area)
In netting systems payments between members are not settled individually, but rather banks‟ claims and liabilities are calculated at a specific time during the day, and are settled by banks in the real-time gross settlement system in which the banks hold open accounts.
The systems that operate in Slovenia are the TARGET2-Slovenija system, which operates on the single shared platform of the TARGET2 system, and in formal legal terms is a system controlled and operated by the Bank of Slovenia, and intended primarily for the settlement of large-value payments and time-critical payments in euros; the single entry point (SVT), which allows banks and savings banks to participate indirectly in the STEP2 XCT system operated by the firm EBA Clearing, which facilitates the processing of cross-border payments of up to EUR 50,000 and is intended for the processing of mass payments that can be processed entirely automatically; the SEPA external credit transfers (SEPA ECT) system, which is operated by the firm Bankart d.o.o. to allow Slovenian banks and savings banks to participate indirectly in the STEP2 SCT system operated by EBA Clearing, and is Page 67 of 204
designed for the processing of SEPA credit transfers with no limit on payment value; and the SEPA internal credit transfers (SEPA ICT) system, which is a multilateral netting payment system operated by Bankart to allow the execution of internal SEPA credit transfers (SEPA credit transfers where both the originator bank and the beneficiary bank are members of the SEPA ICP system).
The supplementary payment infrastructure in Slovenia comprises systems for the interbank settlement of retail payments arising from card-based payments and cash withdrawals at bank ATMs (the Card Payment Clearing and ATM Clearing card- based payment systems operated by Bankart, the Card-based payment system Activa operated by Banka Koper, and the MasterCard Clearing system operated by the international institution MasterCard International), and the Processing Centre operated by Bankart, which was established by banks and savings banks in the Bank Association of Slovenia for the purpose of standardising and rationalising procedures for transacting in new payment instruments (special payment orders, special paper-based debit orders, direct debits, direct credits and standing orders).
In 2002 the largest European banks approved a strategy for creating the SEPA, committed themselves clearly to this target, and adopted a general strategy to meet the objectives of the SEPA by 2010. They also reached a consensus over governance structures, with the European Payments Council (the EPC) as the central decision-making body. The Bank Association of Slovenia has been a member of the EPC since 2004
PROFILE-
Slovenia's central bank governor Marko Kranjec :
SLOVENIA-CENBANK (PROFILE) Position: Bank of Slovenia Governor Incumbent: Marko Kranjec, Date of Birth: April 12, 1940 Term: Appointed by parliament in June 2007. The mandate lasts six years and could be renewed, if that were supported by President Danilo Tuerk and approved by parliament.
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Key facts: As a voting member of the European Central Bank's Governing Council, he styles himself as an anti-inflation hawk. He does not make many public appearances, so little is known of his role in ECB policy. - Kranjec was deputy bank governor for six years until 1997 when he became Slovenia's ambassador to the European Union, taking part in accession talks that led to Slovenia joining the EU in 2004. - Kranjec was Slovenia's finance minister for a year from 1990 to 1991, when he prepared the ground for the tolar currency which replaced the Yugoslav dinar. The tolar was abolished in 2007 when Slovenia joined the euro zone. - Kranjec is an expert on taxes and public finances and has been urging the government to curb the budget deficit and privatise state-owned banks which he says are poorly managed. - After graduating from Ljubljana University's Faculty of Economics in 1964, he took his PhD from the same faculty in 1975. As a macro-economist he worked at Slovenia's largest bank Ljubljanska Banka, at the OECD and the World Bank and at the Institute of Economic Research in Ljubljana, also serving for several years as a professor of public finance. Slovenia participent banks names :
BANK ADDRESS IDENTIFICATION IBAN BIC
Slovenska cesta 58 SI56 0100 0000 0500
ABANKA VIPA D.D. 151 05 021 ABANSI2X
7 Ljubljana
Vodnikova 2 SI56 0100 0000 0600
BANKA CELJE D.D. 300 06 028 SBCESI2X
0 Celje
Pristaniška 14 SI56 0100 0000 1000
BANKA KOPER D.D. 650 10 153 BAKOSI2X
2 Koper
Slovenska 35 SI56 0100 0000 0100
BANKA SLOVENIJE 150 01 090 BSLJSI2X
5 Ljubljana
Cesta v Kleče 15 SI56 0100 0000 3400
BANKA SPARKASSE D.D. 100 34 030 KSPKSI22
0 Ljubljana
Dunajska cesta 161 SI56 0100 0000 3500
BKS BANK AG, BANČNA PODRUŢNICA 100 35 134 BFKKSI22
0 Ljubljana
Kolodvorska 9 SI56 0100 0000 1910
DEŢELNA BANKA SLOVENIJE D.D. 100 19 013 SZKBSI2X
0 Ljubljana
Tivolska 48 SI56 0100 0000 2700
FACTOR BANKA D.D. 100 27 078 FCTBSI2X
0 Ljubljana
Bleiweisova 1 SI56 0100 0000 0700
GORENJSKA BANKA D.D., KRANJ 400 07 035 GORESI2X
0 Kranj
Dunajska 117 SI56 0100 0000 3300
HYPO-ALPE-ADRIA BANK D.D. 100 33 023 HAABSI22
0 Ljubljana
Ulica Vita Kraigherja 4 SI56 0100 0000 0400
NOVA KREDITNA BANKA MARIBOR D.D. 250 04 014 KBMASI2X
5 Maribor
Trg republike 2 SI56 0100 0000 0200
NOVA LJUBLJANSKA BANKA D.D. 152 02 097 LJBASI2X
0 Ljubljana
Ulica Vita Kraigherja 5 SI56 0100 0000 9000
POŠTNA BANKA SLOVENIJE D.D. 200 90 034 PBSLSI22
0 Maribor
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Trg Leona Štuklja 12 SI56 0100 0000 2510
PROBANKA D.D. 200 25 055 PROBSI2X
0 Maribor
Zagrebška cesta 76 SI56 0100 0000 2400
RAIFFEISEN BANKA D.D. 200 24 057 KREKSI22
0 Maribor
Dunajska cesta 128 a SI56 0100 0000 3029
SBERBANK BANKA D.D. 100 30 005 SLBVSI2X
0 Ljubljana
Ulica Josipine Turnograjske SID - Slovenska izvozna in razvojna banka, D.D., SI56 0100 0000 3800 6 Ljubljana 38 058 SIDRSI22 100 0 Ljubljana
Ajdovščina 4 SI56 0100 0000 0300
SKB BANKA D.D. 151 03 007 SKBASI2X
3 Ljubljana
Šmartinska 140 SI56 0100 0000 2900
UNICREDIT BANKA SLOVENIJA D.D. 100 29 092 BACXSI22
0 Ljubljana
Bravničarjeva 13 SI56 0100 0000 3700
ZVEZA BANK, PODRUŢNICA LJUBLJANA 100 37 051 VSGKSI22
0 Ljubljana
SAVINGS BANK ADDRESS IDENTIFICATION IBAN BIC
Miklošičeva 5 SI56 0100 0000 6100
DELAVSKA HRANILNICA D.D. 100 61 025 HDELSI22
0 Ljubljana
Bleiweisova 2 SI56 0100 0000 6000
HRANILNICA LON D.D., KRANJ 400 60 018 HLONSI22
0 Kranj
Glavni trg 15 SI56 0100 0000 6400
HRANILNICA IN POSOJILNICA VIPAVA D.D. 527 64 046 HKVISI22
1 Vipava
OTHER FINANCIAL INSTITUTIONS ADDRESS IDENTIFICATION IBAN BIC
Tivolska 48 SI56 0100 0000 7900
KDD-KLIRINŠKO DEPOTNA DRUŢBA D.D. 100 79 054 KDDSSI22
0 Ljubljana
Insurance
History of insurance
In some sense we can say that insurance appears simultaneously with the appearance of human society. We know of two types of economies in human societies: natural or non-monetary economies (using barter and trade with no centralized nor standardized set of financial instruments) and more modern monetary economies (with markets, currency, financial instruments and so on). The former is more primitive and the insurance in such economies entails agreements of mutual aid. If one family's house is destroyed the neighbours are committed to help rebuild. Granaries housed another primitive form of insurance to indemnify against famines. Often informal or formally intrinsic to local religious customs, this type of insurance has survived to the present day in some countries where a modern money economy with its financial instruments is not widespread.[citation needed]
Turning to insurance in the modern sense (i.e., insurance in a modern money economy, in which insurance is part of the financial sphere), early methods of transferring or distributing risk were practiced by Chinese and Babylonian traders as long ago as the 3rd and 2nd millennia BC, respectively.[13] Chinese merchants travelling treacherous river rapids would redistribute their wares across many vessels to limit the loss due to any single vessel's capsizing. The Babylonians Page 70 of 204
developed a system which was recorded in the famous Code of Hammurabi, c. 1750 BC, and practiced by early Mediterranean sailing merchants. If a merchant received a loan to fund his shipment, he would pay the lender an additional sum in exchange for the lender's guarantee to cancel the loan should the shipment be stolen or lost at sea.
Achaemenian monarchs of Ancient Persia were the first to insure their people and made it official by registering the insuring process in governmental notary offices. The insurance tradition was performed each year in Norouz (beginning of the Iranian New Year); the heads of different ethnic groups as well as others willing to take part, presented gifts to the monarch. The most important gift was presented during a special ceremony. When a gift was worth more than 10,000 Derrik (Achaemenian gold coin) the issue was registered in a special office. This was advantageous to those who presented such special gifts. For others, the presents were fairly assessed by the confidants of the court. Then the assessment was registered in special offices.
The purpose of registering was that whenever the person who presented the gift registered by the court was in trouble, the monarch and the court would help him. Jahez, a historian and writer, writes in one of his books on ancient Iran: "[W]henever the owner of the present is in trouble or wants to construct a building, set up a feast, have his children married, etc. the one in charge of this in the court would check the registration. If the registered amount exceeded 10,000 Derrik, he or she would receive an amount of twice as much."[14]
A thousand years later, the inhabitants of Rhodes invented the concept of the general average. Merchants whose goods were being shipped together would pay a proportionally divided premium which would be used to reimburse any merchant whose goods were deliberately jettisoned in order to lighten the ship and save it from total loss.
The ancient Athenian "maritime loan" advanced money for voyages with repayment being cancelled if the ship was lost. In the 4th century BC, rates for the loans differed according to safe or dangerous times of year, implying an intuitive pricing of risk with an effect similar to insurance.[15] The Greeks and Romans introduced the origins of health and life insurance c. 600 BCE when they created guilds called "benevolent societies" which cared for the families of deceased members, as well as paying funeral expenses of members. Guilds in the Middle Ages served a similar purpose. The Talmud deals with several aspects of insuring goods. Before insurance was established in the late 17th century, "friendly societies" existed in England, in which people donated amounts of money to a general sum that could be used for emergencies.
Separate insurance contracts (i.e., insurance policies not bundled with loans or other kinds of contracts) were invented in Genoa in the 14th century, as were insurance pools backed by pledges of landed estates. These new insurance contracts allowed insurance to be separated from investment, a separation of roles that first proved
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useful in marine insurance. Insurance became far more sophisticated in post- Renaissance Europe, and specialized varieties developed
Introduction: - Insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer, or insurance carrier, is a company selling the insurance; the insured, or policyholder, is the person or entity buying the insurance policy. The amount to be charged for a certain amount of insurance coverage is called the premium. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice.
The transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate (indemnify) the insured in the case of a financial (personal) loss. The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insured will be financially compensated
INSURANCE SECTORS OF COMPANY NAMES:
1 Triglav Grupa Slovenia
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2 Croatia osiguranje Croatia
3 Adriatic Slovenica Slovenia
4 Zavarovalnica Maribor Slovenia
5 Vzajemna Slovenia
6 Dunav osiguranje Serbia
7 DDOR Novi Sad Serbia
8 Allianz Zagreb Croatia
9 Euroherc osiguranje Croatia
10 Jadransko osiguranje Croatia
11 Delta Generali Serbia
12 Kvarner VIG Croatia
13 KD Life Slovenia
14 Zavarovalnica Tilia Slovenia
15 Grawe Hrvatska Croatia
16 Generali Zavarovalnica Slovenia
17 Osiguranje Zagreb Croatia
18 Wiener Stadtische Serbia
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Principles
Insurance involves pooling funds from many insured entities (known as exposures) to pay for the losses that some may incur. The insured entities are therefore protected from risk for a fee, with the fee being dependent upon the frequency and severity of the event occurring. In order to be insurable, the risk insured against must meet certain characteristics in order to be an insurable risk. Insurance is a commercial enterprise and a major part of the financial services industry, but individual entities can also self-insure through saving money for possible future losses.
COMPANY DETAIL:
Croatia osiguranje compay: Type Public (ZSECROS-R-A
Industry Insurance
Founded June 4, 1884
Headquarters Zagreb, Croatia
Number of 23 branches[1] locations
Zdravko Zrinušić, Chairman of the Board Key people Ivan Šuker, Chairman of the Supervisory Board
Employees 2,853 (31 December 2009)
Website www.crosig.hr
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Croatia osiguranje d.d. (English: Croatia Insurance) is a insurance company based in Zagreb.
Croatia osiguranje is the largest and oldest insurance firm in Croatia. Founded in 1884 in Zagreb as Croatia osiguravajuća zadruga (Croatia Insurance Society), one of its founders was the famous Croatian writer August Šenoa. It is main sponsor of Croatian handball club RK Osiguranje Zagreb, which bears the name of its sponsor.
Branches: Filijala Bjelovar, Filijala Koprivnica, Filijala Vinkovci, Filijala Sisak, Filijala Karlovac, Filijala Slavonski Brod, Filijala Šibenik, Filijala Čakovec, Filijala Kutina, Filijala Poţega, Filijala Virovitica, Filijala Gospić, Filijala Varaţdin, Filijala Zabok, Filijala Zadar, Filijala Dubrovnik, Filijala Zagreb PIK, Filijala Zagrebački prsten - Velika Gorica, Filijala Osijek, Filijala Pula, Filijala Rijeka, Filijala Split and Filijala Zagreb
Insurance policy:
In insurance, the insurance policy is a contract (generally a standard form contract) between the insurer and the insured, known as the policyholder, which determines the claims which the insurer is legally required to pay. In exchange for payment, known as the premium, the insurer pays for damages to the insured which are caused by covered perils under the policy language. Insurance contracts are designed to meet specific needs and thus have many features not found in many other types of contracts. Since insurance policies are standard forms, they feature boilerplate language which is similar across a wide variety of different types of insurance policies.
The insurance policy is generally an integrated contract, meaning that it includes all forms associated with the agreement between the insured and insurer. 10 In some cases, however, supplementary writings such as letters sent after the final agreement can make the insurance policy a non-integrated contract. One insurance textbook states that "courts consider all prior negotiations or agreements ... every Page 75 of 204
contractual term in the policy at the time of delivery, as well as those written afterwards as policy riders and endorsements ... with both parties' consent, are part of written policy".The textbook also states that the policy must refer to all papers which are part of the policy. Oral agreements are subject to the parol evidence rule, and may not be considered part of the policy. Advertising materials and circulars are typically not part of a policy. Oral contracts pending the issuance of a written policy can occur.
Sector: 2 Telecom sector
Introduction Market intelligence firm, IDC Adriatics is already crunching the numbers. Their prediction is that total IT spending in Slovenia in 2011 will eventually amount to around EUR 670m. Yes, this is slightly better than 2010 – by about two percent – and yes, this corresponds to global trends in IT markets worldwide. The problem is that the IT business continues to struggle instead of being one of the key generators of progress. With the economy being distressed one would think that companies would eventually turn to technology to try to get more value out of the business. Some are doing this. But they are primarily using IT solutions to reduce running costs instead of investing in new solutions and new business models and the general consensus is that cost cutting alone is not enough. Instead, people and companies need to seek innovation and development that add value to their creations.
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When looking at the bigger picture, the Slovenian IT sector is still in the so called infrastructure phase. Hardware and software sales are still a very important part of IT, while services continue to grow at a relatively slow pace compared to developed IT environments and countries.
In general though, 2011 will be remembered as having a lack of new IT projects and companies breaking into smaller entities. At least the public sector managed to get something done. DURS, the Slovenian tax office, implemented a new system which – once it is up and running – will enable a „360-view‟ of taxpayers. This way the government should lose much less money through ineffective and/or unjustified transfers. The other big story of the year was in the telecommunication segment. Telekom Slovenije and its daughter company, Mobitel, are now back under one roof and identifying synergies. The company is now the country‟s biggest phone operator, employing 2,765 people. In future years it hopes to strengthen the number of business clients.
Companies in Telecom Sector in Slovenia: o Si.Mobil o Mobitel o Tušmobil o T-2 o Debitel o Telekom Slovenije o Telemach o Amis Telekom o Serbia Broadband o Tuštelekom[2]
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Telekom Slovenije Telekom Slovenije‟s mobile subsidiary Mobitel merges with parent company; sharp rise in VoIP connections as PSTN declines; telecoms sector investment recovers from economic downturn; insufficient access regulation hindering altnet investment in NGNs; Telekom Slovenije unbundles fibre infrastructure; government funding to extend broadband to 23 municipalities; Telekom Slovenije‟s cable network fully digital; CATV retains 52% share of TV subscribers; government broadband program targets extending FttH to 90% of the population by 2020; T-2 switches partnership from Telekom Slovenije to Si.mobil for IPTV services; RTV Slovenia signs 10-year contract with Eutelsat; mobile broadband accounting for over a third of mobile subscribers; Si.Mobil expands HSPA+ upgrade to 90% of the population; new MTRs effective from early 2012; AmisMobil launched services; Mobitel trials LTE; regulator‟s 2011 market report; telcos‟ operating and financial data to June 2012; market developments to mid-2012.[1] Key telecom parameters – 2010; 2012
Sector 2010 2012
Subscribers by sector (thousand):
Fixed broadband subscribers 485 548
Mobile broadband 350 510
Mobile phone 2,120 2,170
Fixed-line telephony 818 735
Penetration by sector:
Fixed broadband 25% 27%
Mobile 103% 105%
Fixed-line 44% 35%
(Source: BuddeComm)
Market Highlights Delayed due to frequency issues, LTE is set to be launched by Mobitel in several bands in 2013, further supporting the government‟s commitment to expand broadband in rural areas.
DTTV has expanded following ASO in late 2010, though the launch of the remaining seven of nine multiplexes has been hampered by neighbouring countries which have not yet concluded digital switchover and which have restricted Slovenia‟s use of additional frequencies. Page 78 of 204
Slovenia‟s IPTV market is among the most developed in Europe, with household penetration at about 25%, far above the EU average.
The FttH market is dominated by two operators, with T-closely followed by Telekom Slovenije. However, T-2 has recently been burdened with a pre- bankruptcy compulsory settlement procedure it has been limited in its ability to invest in further fibre infrastructure.[2]
MISSION, VISION AND VALUES OF THE TELEKOM SLOVENIA GROUP
Mission “The Telekom Slovenia Group offers its clients that they are always and everywhere the best connected with their loved ones, colleagues and content.” Vision “Leader in integrated communications, simple to use” Values We are a well-tuned team.
We live with the user.
We are reliable and innovative.
We are proud of our roots and talents.[1]
COMPANY PROFILE Name of Telekom Slovenia company:
Address of the Cigaletova 15, 1000 Ljubljana Company:
Registration 5014018000 number:
Date of Third January 1995, registration number 1/24624/00 registration at the District Court:
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Phone hc: 01/234 10 00
Toll-free 080 80 00 telephone:
Fax: 01/231 47 36
E-mail address: [email protected]
Web site: www.telekom.si
Company Joint-stock company organization:
Founders: The Republic of Slovenia Capital company pension and disability insurance, ddSlovenian Restitution Fund
Number of 1741 (at 31 12th 2010) 2765 (as at 1 7th 2011 - merger with employees: Mobitel)
The mag. Rudolf Skobe, CEO mag. ZoranVehovar, vice Management president mag. Matthew Christmas, board member Board: ZoranJanko, a board member DarjaSenica, Board Member and Director of Labour Relations
The Supervisory mag. Berginc Thomas, President of Representatives of Board: capital: dr. TomazKalin, vice president dr. JaroslavBerce dr. Marko Hocevar FranciMugerle mag. Natasha Štelcer Employee representatives: Milan Richter, vice president Martin GorišekBrankoSparavec
THE TELEKOM SLOVENIA GROUP It is one of the major business systems in Slovenia, which is also home country focused on the markets of SE Europe, such as Bosnia and Herzegovina, Kosovo, Macedonia, Croatia and Montenegro. The consolidation of Group companies, particularly the merger of Planet 9 and Najdi, as well as the merger of Telekom Slovenije and Mobitel, has resulted in changes to the Telekom Slovenije Group‟s portfolio of brands. Since July 2011 the Telekom Slovenije Group has been represented by the new Telekom Slovenije logo, which represents the common denominator of the Company Page 80 of 204
and, at an associative level, maintains the strength of the corporate brand, which has existed and been part of the Slovenian national identity for many years. The current Telekom Slovenije logo has shifted from the corporate level to the contextual level. Today Telekom Slovenije, Mobitel and SiOL represent the three central service brands. [3]
ACHEIVEMENTS In 2011 the Telekom Slovenije Group:
Generated EUR 824.5 million in operating revenues, down 2% on 2010;
Successfully carried out the merger of Mobitel and Telekom Slovenije;
Introduced a range of new services, products and content on all markets, which will improve the user experience and thus customer satisfaction;
Had 341,083 retail broadband connections and 2,480,299 fixed voice and mobile connections; and,
DEVELOPMENT STRATEGY AND PLANS Based on strategic objectives and guidelines set for the period until 2015, the Telekom Slovenije Group will realise the following plans in 2012:
In the context of stiff competition, the regulatory environment and the adverse macroeconomic situation, the Telekom Slovenije Group will focus on the search for new revenue sources and primarily on reducing costs in the short term.
The Group will make the transition from a provider of predominantly infrastructure-related services to a provider of advanced IT and multimedia services.
The Group will achieve profitable growth on the markets of South-Eastern Europe through growth in revenues and coordinated operations within the Group.
The Group will transition to a contemporary telecommunications operator at the national and regional level, capable of providing a comprehensive range of state-of-the-art complex and multi-dimensional information and telecommunication services.
We will transform the Company from a national telecommunications operator into a regional operator with the necessary elements of a regional corporation, and the establishment of a system of corporate governance to support that aim.
We will carry out the financial consolidation of the Telekom Slovenije Group, including the optimisation of key financial indicators that will be comparable with those of similar companies operating in the region and the EU. In this way, we will also fulfil the requirements of the majority owner.
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In line with the strategic objective of profitable growth, the planned net profit of the Telekom Slovenije Group in 2012 is EUR 55 million.
FINANCIAL RESULTS OF THE TELEKOM SLOVENIJE GROUP The Telekom Slovenije Group‟s operating revenues totalled EUR 824.5 million, down 2% on those achieved in 2010.Net sales revenues amounted to EUR 815 million, down 3% on 2010. The Group‟s operating expenses amounted to EUR 766.2 million, down 25% on 2010. The most notable decline was recorded by other operating expenses, which included the effects of the impairment of assets and investments in 2010. In other areas, measures to optimise operations at all Group companies have shown their first results. EBITDA reached EUR 255.6 million, an increase of 3% on 2010. The EBITDA margin improved by 1.8 percentage points to reach 31%. Earnings before interest and taxes (EBIT) rose to EUR 63.3 million, after recording a negative value in 2010. [15]
in EUR thousand/% 2011 2010 Index 11/10
* EBITDA in 2010: earnings before interest, taxes, depreciation and amortisation
Operating revenues 824,507 843,548 98
EBITDA* 255,616 247,156 103
EBITDA margin 31.0 % 29.2 % 106
EBIT 63,250 -178,482 -
Return on sales – ROS (EBIT/net sales revenues) 7.8 % neg. -
Net profit/loss 34,011 -210,317 -
Assets 1,575,314 1,658,228 95
Equity 815,275 807,812 101
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in EUR thousand/% 2011 2010 Index 11/10
Equity ratio 51.8 % 48.7 % 106
Net financial debt 388,591 503,360 77
NFD/EBITDA 1.5 2.0 75
Investment in property, plant and equipment (CAPEX) 91,966 113,575 81
EBITDA – CAPEX 163,650 133,581 123
Ratio f (EBITDA - CAPEX) to EBITDA (cash margin) 64.0 % 54.0 % 11
STEPS TAKEN BY SLOVENIA AGAINST DECLINE IN IT SERVICE MARKET Systems integration The economic crisis has had a significant effect on IT companies, and represents the reason for the more than 20% decline in the IT services market in Slovenia between 2009 and 2011.15 Taking into account revenues in 2010,Avtenta.si maintained third place on the systems integration market. Over the next two years investments will primarily focus on solutions that will bring rapid recovery in investments or reduce operating costs (e.g. the optimisation of business processes, consolidation of IT equipment and virtualisation). These are areas that Avtenta.si has well covered. Its solutions are therefore expected to be even more accessible to and desirable for users.
Telekom Slovenije17 generated operating revenues of EUR 698.7 million in 2011, down 2.5% on 2010. Operating expenses totalled EUR 630.3 million, down 5.5%. Earnings before interest, taxes, depreciation and amortisation (EBITDA) amounted to EUR 221.0 million, up 6.1% on 2010. The EBITDA margin also rose, from 29.1% to 31.6%. Earnings before interest and taxes (EBIT) amounted to EUR 68.4 million, exceeding the 2010 level by 37.5%. The EBIT margin was 9.8%, up 2.8 percentage Page 83 of 204
points on 2010. The main reasons for the significantly improved EBIT were cost optimisation measures in all areas. Corporate income tax, including deferred taxes, amounted to EUR 14.3 million. Net profit at Telekom Slovenije reached EUR 21.3 million, which is significantly better than in 2010, when a significant loss was recorded due to the impairment of investments. [17]
OPPORTUNITIES IN INDIA India offers an unprecedented opportunity for telecom service operators, infrastructure vendors, manufacturers and associated services companies. A host of factors are contributing to enlarged opportunities for growth and investment in telecom sector: An expanding Indian economy with increased focus on the services sector Population mix moving favourably towards a younger age profile Page 84 of 204
Urbanization with increasing incomes
Investors can look to capture the gains of the Indian telecom boom and diversify their operations outside developed economies that are marked by saturated telecom markets and lower GDP growth rates. Inflow of FDI into India‟s telecom sector during April 2000 to Feb. 2010 was about Rs.405,460 million. Also, more than 8 per cent of the approved FDI in the country is related to the telecom sector. [24] Research & Development India has proven its dominance as a technology solution provider. Efforts are being continuously made to develop affordable technology for masses, as also comprehensive security infrastructure for telecom network. Research is on for the preparation of tested infrastructure for enabling interoperability in Next Generation Network. It is expected that the telecom equipment R & D shall be doubled by 2010 from present level of 15%. Modern technologies inductions are being promoted. Pilot projects on the existing and emerging technologies have been undertaken including WiMax, 3G etc. Emphasis is being given to technologies having potential to improve rural connectivity. Also to beef up R&D infrastructure in the telecom sector and bridge the digital divide, cellular operators, top academic institutes and the Government of India together set up the Telecom Centres of Excellence (COEs). The main objectives of the COEs are as follows: Achieve Telecom Vision 2010 that stipulates a definite growth model and take it beyond. Secure Information Infrastructure that is vital for country‟s security. Capacity Building through Knowledge for a sustained growth. Support Planned Predictive Growth for stability.
Reduce Rural Urban Digital Divide to reach out to masses. Utilize available talent pool and create environment for innovation. Management of National Information Infrastructure (NII) during Disaster Cater the requirement of South East Asia as Regional Telecom Leader
FINDINGS 1. Telekom Slovenije has managed to grow considerably by the acquisition and formation of many subsidiaries. 2. There is slow growth in the IT sector of Slovenia.
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3. The economic crisis has had a significant effect on IT companies, and represents the reason for the more than 20% decline in the IT services market in Slovenia between 2009 and 2011.15 Taking into account revenues in 2010,Avtenta.si maintained third place on the systems integration market.
4. The total number of mobile telephony users rose by 47,500, compared with 21,500 in 2010, to reach 2,170,000 at the end of 2011. Since mobile telephony penetration has exceeded 100%, growth was recorded primarily on account of growth in dual SIM cards for an individual user due to growth in data services, and partly for calls. 5. In line with the strategic objective of profitable growth, the planned net profit of the Telekom Slovenije Group in 2012 is EUR 55 million. 6. Telekom Slovenije receives an award for best annual report for 2010 from the financial daily Finance. 7. Under the Mobitel brand, Telekom Slovenije is the first operator in Slovenia to offer its users an HD voice service, which significantly improves the quality of conversations by providing a more natural and purer sound. CONCLUSION 1. Slovenia should try to increase its IT sector which can boost its other sectors also. 2. Due to economic slowdown between 2009 and 2011 IT companies are affected more so Slovenia should find out the reason for slowdown and try to remove the impact of economic crises. 3. There no tread between India and Slovenia so Slovenia should develop the tread relation with India which helps in the growth of IT sector in Slovenia. 4. Telekom Slovenia should try to increase its profitability growth so that it impact on Slovenian IT sector. 5. Telekom Slovenia should enter into Indian market as here it can get more market for its mobile which boost its sales and profit also.
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SECTOR: 3 AUTOMOBILE SECTOR Number of companies: 222 Number of employees: 14,966 Revenues (in €): 3.5 billion Exports (in €): 3 billion Key export markets: Austria, Croatia, Hungary, France, Germany, Italy, Mexico, Romania, Spain, Turkey, UK, USA Source: AJPES, 2012
Slovenia also has a long tradition in the Automotive Industry, which started at the end of the 19th century with its first auto mechanical workshops, some of which later changed into producers of component parts for cars. “The industry also saw rapid growth in Yugoslavia, when Slovenian producers supplied components for car production in Crvena Zastava. Due to the strong orientation to Yugoslav markets the industry faced a difficult restructuring after the country‟s independence and companies simultaneously needed to enter new and more demanding export markets. At that time serving the biggest global players like BMW, VW, Audi, Ford, Magna Steyer, Bosch and others became a great challenge to Slovenian suppliers. Today, More than 80% of car components produced in Slovenia, Accounting for EUR 950 million, is sold to EU markets, especially Germany and France (Busen, 2004). This proves that Slovenian Suppliers are competitive in the global market and according to the sample data Slovene Automotive Suppliers are investing more in R&D compared to German suppliers, which will help Slovene suppliers to maintain and improve their market position in the future. ACS Slovenia‟s Strategic Agenda for More efficient joint R&D processes with the Slovenian Automotive Supply Industry based on Synergetic Effects Inventive-innovative system is the basic drive of the automotive industry which creates conditions for co-operation between private sector, public sector and government. The manufacturers who control the majority of the production of car Page 87 of 204
assembly parts have become associated in the ACS. The association also involves six research institutes and faculties which are, to a large extent, connected into the automotive industry. In order to acquire the necessary resources for research activities, it is important that the synergetic effects of vertical and horizontal integrations (between companies, knowledge bearers ...) are fully utilized. The success of Automobile Industry in Slovenia is, therefore, strongly connected with knowledge and competence management and integration.
Slovenian Potentials- The significance of the activity of the automotive industrial in Slovenia is obvious that the vehicles, automotive components, tools and machines of the automotive supply industry represent a total of 20.2 per cent of Slovenian goods exports. In the overall export of goods and services they represent 17.5 per cent. This industry employs about 24,000 workers.
The vehicles were mainly bought by buyers from France, Italy, Germany, Turkey, Spain, Croatia and the automotive components were mainly purchased by buyers from Germany, France, Italy, Austria, Croatia, Hungary, Mexico, Great Britain, Spain, Romania, the USA, ecetera.
The Slovenian automotive supply industry includes about 85 manufacturers that can mainly be defined as tier two and tier three suppliers. There are also tier one system suppliers of pedal boxes, gear shift mechanisms, braking systems and other assemblies at CIMOS, auto-electric equipment for engine and steering systems at Iskar Avtoelektrika, engine ignition systems and electronics at Hidria AET, seats at TPV, Bowden cables at TBP, headlights at Hella Lux.
The buyers of components for the first implementation from Slovenia are VW, BMW, Audi, DC, MAN, Bosch, Ford in Germany, Renault, PSA, Brose in France, Lombardini, Landini, Fiat in Italy, Magna Steyr, Grammar in Austria and many others, also in the UK, the USA, Spain, Hungary and many other countries. These companies have an intensive development in introducing automatisation into the production process and they are also flexible in adjustments to customer needs.
Today the Slovenian automotive sector represents a sectoral coverage of the supply chain, particularly strong in sub-clusters of material processing, production technologies and mechatronic/telemetric applications. Unique for the automotive sector in Europe, Slovenian suppliers are in private ownership of Slovenian owner. . Around Europe, there are many cars on the road which contain Slovenian components and know-how. Generally speaking, the companies which produce these components are valued by their customers. They usually excel with their knowledge, technology and innovation. The problem used to be that there weren‟t as many customers as there could be, mainly because the automotive workforce here still costs significantly more than in some Eastern and Southern countries. However, the sector is tackling this issue successfully, with export figures speaking for themselves. Page 88 of 204
. Slovenia‟s automotive industry accounts for 21 percent of the country‟s entire exports and, notably, 80 percent of what is produced by the industry is exported. When director of the Automotive Cluster of Slovenia Dušan Bušen gives a list of some of the sector‟s clients, it reads like a who‟s who of the automotive industry: “Audi, BMW, Citroen, Daimler, DAAF, Deutz, Ford, GM, Iveco, Jaguar, John Deere, MAN, Nissan, Opel, Peugeot, Renault, Saab, Skoda, Toyota, VW, Volvo and system suppliers: BNP, Remy, Continental, Johnson Controls, Perkins, Bosch, Brose, Magna, TRW, Valeo, Grammer, Faurecia,Denso,Aisin.”
Slovenia‟s Automobile Sector Contribution In The National Economy
. The automobile industry of Slovenia represents a total share of 20.2 % of Slovenia’s exports.
. The total number of employees in the automobile Industry would be approx. 24000.
. The export of the automobile Industry as compared from the year 2006 to 2007 has increased to 10% (mainly personal vehicles).
. The major buyers of the vehicles are France, Italy, Germany, Turkey, Spain, and Croatia.
Industry Forecast Scenario Production . Slovenian vehicle production stood at 221,207 units in 2011, according to figures released by the European Automobile Manufacturers Association (ACEA). Virtually all of Slovenia's vehicle output comes from the Revoz car plant (100% owned by French carmaker Renault). This marked a 2.0% increase year-on-year (y-o-y), according to ACEA. Breaking down the headline figure, Slovenia produced a total of 210,005 passenger cars (up 1.8% y-o-y) and 11,203 commercial vehicles,anincreaseof4.9%y-o-y.2011 output was affected by the Japanese earthquake and tsunami of March, which led to a shortage of electronic car parts from Japan. . This led to Revoz announcing in May 2011 that it would be scaling down production, with the company night shift scrapped on 23 May and over 500 staff (390 temporary and 130 employees on fixed-term contracts) losing their jobs as a consequence. Although half of the night shift was resumed on 29 August, with 300 workers getting back their jobs, it is clear that the blow to output caused by the Japanese tsunami will likely be significant.
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. Looking forward, they believe that there is scope for Slovenian auto production to advance more rapidly in the years ahead. From 2013, Revoz will start production of Daimler Benz's Smart car, as part of Renault- Nissan/Daimler's joint Edison project. Revoz will also build the new Twingo model, which is due to go on sale in 2013. Consequently, although they remain cautious on the near-term outlook for production (only currently forecasting a 2.55% increase in output for 2012), they believe there is scope for stronger growth over 2013-16, leading to a total of over 250,000 vehicles produced by the end of our newly extended forecast period. Further information on Revoz is available in the Company Profiles section at the end of this report.
Trade
. The automotive sector accounts for 78% of Slovenia's exports, according to Invest Slovenia. Renault‟s Revoz is the country's largest single exporter. Euro membership has cemented exchange rate stability with Slovenia's major export partners, including the major markets for Renault's Revoz. . In 2010, Invest Slovenia stated that the automotive industry incorporates some 213 companies employing some 14,600 people. Automotive exports were worth EUR2.9bn to the Slovenian economy, with key export markets being Austria, Croatia, France, and Germany, Hungary, Italy, Mexico, Romania, Spain, Turkey, the UK and US. . Given the ongoing sovereign debt crisis within the EU, our currency team recently revised down our EUR/USD exchange rate forecasts, to US$1.34/EUR in 2012 (from US$1.38/EUR) and to US$1.28/EUR in 2013 (from US$1.30/EUR), with downside risks. . This prolonged euro weakness could aid Slovenia's export competitiveness in non-EU markets
COMPANY DETAIL: HELLA SATURNUS SLOVENIA
Address: LETALIŠKA CESTA 017, 1000 LJUBLJANA Tel.: 00386 1 5203333 Fax: 00386 1 5203401, 00386 1 5203404 E-mail: [email protected] URL: http://www.hella-saturnus.si
Company management:
General Director: CHRISTOF JOHANNES DROSTE, Marketing, PR and Non-automotive Sales Manager: LILIJANA DOLENC, Purchasing & Sales Manager: TJAŠA CETINSKI,
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Extract of management responsible for a company's business operations abroad:
LILIJANA DOLENC,[email protected]
Registration number: 5035945 Tax number: 21491895 Basic activity: Manufacturing Organisational form: Limited Liability Company Source of capital: Foreign
Inter-company connections:
Parent company: HELLA KGaA Hueck & Co., RIXBECKER STRASE 75, 59552 Lippstadt, Germany.
Number of employees: 1018 Size of company: Large Exports share in income: 95 % Tradition since: 1921
Company‟s trademarks: SATURNUS: Company logo. Company Profile:-
HELLA develop and manufacture lighting technology and electronics components and systems as well as complete vehicle modules, air-conditioning systems and wiring systems for the automotive industry. HELLA has one of the largest aftermarket organizations in Europe for automotive parts and accessories with its own sales companies and partners. They have become a leading global company in the automotive industry.
MISSION is to provide its customers with innovative products and services that meet their requirements, they do have more than 100 years - in the areas of lighting equipment, electronics and after sales.
Regarding its VISION, Hella Saturnsus Slovenija wrote that it wishes to become the most wanted partner of its buyers in the development and production of headlamps and extra lamps due to adaptability, desire for novelties, dynamic character and capability, and at the same time manage the competences in the fields of AFS, LED development and the development of systems of lighting support for the driver.
Comparative Position Of Automobile Industry Slovenia With India
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India is also an emerging market for worldwide auto-giants. Due to low cost of labor many multinational companies are investing in India. Its automotive industry has grown very rapidly from the middle of 1990‟s. Recently, there are two big investments expected to boost the sector further, one is from Maruti and the other is from Honda Siel. Tata‟s proposed investment to manufacture cheap car is also expected to boost the industry. India is the second most populated country in the World, and the growth rate of Indian economy is very high, which indicates the presence of huge demand in different industrial sectors. Automobile industry is not the exception in this regard. Indian automobile sector has huge demands from its own country. This demand also attracts the 19 giant automobile suppliers throughout the world to come and invest in the Indian automotive industry. Due to the contribution of many different factors like sales incentives, introduction of new models as well as variants coupled with easy availability of low cost finance with comfortable repayment options, demand and sales of automobiles are rising continuously. Government has also contributed in this growth by liberalizing the norms for foreign investment and import of technology and that appears to have benefited the automobile sector. The production of total vehicles increased from 4.2 million in 1998- 99 to 7.3 million in 2003-04. It is likely that the production of such vehicles will exceed 10 million in the next few years. The increase in the exports of automobile sector is also due to the adaptation of international standards. After a temporary slump during 1998- 99 and 1999-00, such exports registered robust growth rates in last few years. Investment is also a major factor for this growth of Indian automotive industry, with investment exceeding US$ 11.11 billion, the turnover of the automobile industry exceeded US$ 13.22 billion in 2002-03. The turnover has increased to US$ 18.5 billion by the end of 2004-05. Recently in 2006, Maruti invested US$ 0.67 billion and Honda invested US$ 0.2 billion on small cars. It is expected that by the year 2016, the turnover of the Indian automobile sector could grow to $145 billion. Today, this sector has emerged as a sunrise sector.- However, the overcapacity problem is haunting many of the players as demand may not go up significantly. Hence, many players are looking for an external market for Indian automobiles. The prospect of component industry is quite positive. The leading local firms have established over 200 technical cooperation agreements with foreign firms to be able to reach international standards in cost and manufacturing
Automobile Production Trends in India
Category 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011- 2012 Passenger 1309300 1545223 1777583 1838593 2357411 2982772 3123528 Vehicles Commercial 391083 519982 549006 416870 567556 760735 911574
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Vehicles Three 434423 556126 500660 497020 619194 799553 877711 Wheelers Two 7608697 8466666 8026681 8419792 10512903 13349349 15453619 Wheelers Grand Total 9743503 110087997 10853930 11172275 14057064 17892409 20366432
Automobile Sales statistics of Slovenia
Year 2005 2006 2007 2008 2009 2010 2011 2012
Passenger 59324 59578 68719 71575 57967 61142 60193 50091 cars
Commercial 8532 8258 9679 10056 5319 5729 7258 6951 Vehicles
Total 67856 67836 78398 81631 63286 66871 67451 57042
Data Analysis
Productions Automobile Production statistics of Slovenia
Years 2011 2012 %change Passenger car 168955 126836 -24.9% Commercial 5164 4113 -20.4% vehicles Page 93 of 204
Analysis of the automobile Industry
Sales:-
There was a continuous increase in the sales of the automobile industry in terms of both Passenger cars and commercial Vehicles from the year 2005 to 2008. There was fall in the sales in the year 2009 as compared with the previous year in both PC and CV.Year 2011 witnessed a fall in sale of PC compared with the previous years all though that was not the case in CV, as its sales did not witnessed a fall in year 2011.And again in the year 2012 there was a fall in sale in both CV & PC. From the above data they can say that most of the years have witnessed an increase in the sales of automobile industry total car sales expect for the year 2009 & 2012.
Production:-
There has been a fall in the production of cars from the year 2011 to year 2012. This could be one of the reasons that the sales has fallen in year 2012 as compared to year 2011. India’s Automobile Industry statistics
Automobile Sales statistics of India
Year 2008 2009 2010 2011 2012 PC 1545414 1816878 2387197 2510313 2773516 CV 437657 449391 653193 777424 803240 TOTAL 1983071 2266269 3040390 3287737 3576756
Automobile production statistics of India
Year 2011 2012 % change
PC 3038322 3285496 8.13 CV 888185 859698 -3.20 Total 3926517 4145194 5.6
Analysis of automobile industry Sales:-
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There has been a continuous increase in the sales of passenger car and commercial vehicles from the year 2005 to year 2012 in the Indian automobile industry.
Production:-
Though there was a fall in the commercial vehicle of Indian automobile industry, the segment of passenger cars was increasing in terms of sales. This kept the total % change in production of automobile sector at an increase of 5.6% from the previous year.
Export Import Data of India and Slovenia
Sr.no Prticular 2007-08 2008-09 2009-10 2010-11 2011-12 1 EXPORT 48,080.91 73,298.14 91,744.36 85,230.28 108,597.55 2 %Growth 52.45 25.17 -7.1 27.42 3 India's Total 65,586,352.18 84,075,505.87 84,553,364.38 114,292,192.18 146,595,939.96 Export 4 %Growth 28.19 0.57 35.17 28.26 5 %Share 0.07 0.09 0.11 0.07 0.07 6 IMPORT 23,185.33 34,414.52 55,775.26 41,995.47 71,941.25 7 %Growth 48.43 62.07 -24.71 71.31 8 India's Total 101,231,169.93 137,443,555.45 136,373,554.76 168,346,695.57 234,546,324.45 Import 9 %Growth 35.77 -0.78 23.45 39.32 10 %Share 0.02 0.03 0.04 0.02 0.03 11 TOTAL TRADE 71,266.24 107,712.66 147,519.62 127,225.75 180,538.79 12 %Growth 51.14 36.96 -13.76 41.9 13 India's Total 166,817,522.10 221,519,061.32 220,926,919.14 282,638,887.75 381,142,264.41 Trade 14 %Growth 32.79 -0.27 27.93 34.85 15 %Share 0.04 0.05 0.07 0.05 0.05 16 TRADE 24,895.58 38,883.62 35,969.11 43,234.80 36,656.30 BALANCE 17 India's Trade -35,644,817.75 -53,368,049.58 -51,820,190.38 -54,054,503.39 -87,950,384.49 Page 95 of 204
Balance Values in Rs Lacs
Key Findings
Political risk of Slovenia is low as compared to other European countries.
New technologies used in the automotive production are creating synergies that have impact beyond individual modules and systems and require tight cooperation among different design and production phases.
Nowadays, however, commercial solutions are increasingly cheaper, powerful and friendly. Open-source solutions are also expanding, which all contributes to the wider accessibility of tools such as Moodle or Dokeos. On the other hand, own solutions clearly enable much greater flexibility to suit clients‟ needs. Slovenia faces the largest decline in the fertility rate in the entire EU. The generations have shrunk radically, from 30,000 in 1980 to almost 17,000 in 2005. The process is much more dramatic than in the majority of EU countries.
Furthermore, Slovenia has committed itself to achieve a share of energy from renewable sources in its gross final energy consumption of 25% by 2020.In 2009, the Slovenian government set up two main political tools to improve the implementation of the national and the EU legislation on energy and climate change.
The Slovenia constitutional court is the highest judicial body for the protection of constitutionality, legality, human rights, and fundamental freedoms, and highlights its position as an independent and autonomous state authority. The court is the highest judicial body for the protection of constitutionality, legality, human rights, and fundamental freedoms, and highlights its position as an independent and autonomous state authority.
Slovenian vehicle production stood at 221,207 units in 2011, according to figures released by the European Automobile Manufacturers Association (ACEA). Virtually all of Slovenia's vehicle output comes from the Revoz car plant (100% owned by French carmaker Renault). This marked a 2.0% increase year-on-year (y-o-y), according to ACEA.
In 2010, Invest Slovenia stated that the automotive industry incorporates some 213 companies employing some 14,600 people. Automotive exports were worth EUR2.9bn to the Slovenian economy, with key export markets being Austria, Croatia, France, and Germany, Hungary, Italy, Mexico, Romania, Spain, Turkey, the UK and US. Today, More than 80% of car components produced in Slovenia, Accounting for EUR 950 million, is sold to EU markets, especially Germany and France (Busen, 2004). This proves that Slovenian Suppliers are competitive in the global market and according to the sample data Slovene Automotive Suppliers are investing more in R&D compared to German suppliers, which Page 96 of 204
will help Slovene suppliers to maintain and improve their market position in the future.
There was a continuous increase in the sales of the automobile industry in terms of both Passenger cars and commercial Vehicles from the year 2005 to 2008. There was fall in the sales in the year 2009 as compared with the previous year in both PC and CV.
There has been a fall in the production of cars from the year 2011 to year 2012. This could be one of the reasons that the sales has fallen in year 2012 as compared to year 2011.
Exports in Slovenia increased to 1644.45 EUR Million in January of 2013 from 1457.25 EUR Million in December of 2012. Exports in Slovenia are reported by the Statistical Office of the Republic of Slovenia.
Imports in Slovenia increased to 1859.83 EUR Million in January of 2013 from 1573.28 EUR Million in December of 2012.Imports in Slovenia are reported by the Statistical Office of the Republic of Slovenia.
Trade in Slovenia equals about 120% of GDP (exports and imports combined). Slovenia exports mostly motor vehicles, furniture and household electrical equipment, pharmaceutical products and clothes. The country imports machinery and transport equipment, manufactured goods, chemicals, fuels and lubricants and food.
Conclusion • From the above data and interpretation they can draw following conclusions about our study of the industry and the company in Slovenia. • We can see from our analysis that overall impression of the country is good for its domestic trades, infrastructure and international trades. It is having positive growth prospects in future as its overall facilities and trade policy is favourable for the industries. • There are various benefits to the industries those are involved in the foreign business and male handsome revenues from their exports. • There is a positive movement in the industrial outputs especially in the exports of the goods. The data shows that there is an increase in the overall industrial productions and sales.
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• As far as the automotive industry is concern then there is high percentage of contribution from the industry in the overall GDP of the country. • The components parts and the products that are produce bye the automotive industry in the country having great demand in other European countries. • There is overall positive movement in the production and the sale of automotive industry in past years except in 2012 may be due to the fall in overall production of the industry, otherwise it is having good prospect of exporting the components and earning the foreign exchange. • The important thing is to be noted is that the initiatives by the country to expand business in the other countries which is good sign for the foreign trade. There are number of initiatives in the form of meetings are taken place between the Slovenia and India which indicates good sign for them as well as for India. • Now as far as the company we have chosen is concern then it is having well past record, having great past history as it has been serving since year 1899. It is having clear vision and mission, having decent corporate philosophy. • As far as the financial aspect is concern then it is having good financial conditions, having positive earnings and also making efforts to grow further. Its sales data also shows positive result. • It‟s involved in exports of the various automobile components in various European countries and more other countries. It making effort to increase its export. • Thus overall we can say that the company is doing good that can be seen from its financial statements and the import exports data which is enough to prove the capability of the company and the overall industry. SECTOR: 4 FOOD INDUSTRY AND FOOD MACHINERY INDUSTRY
INTRODUCTION
From the period of last fifteen years Food industry in Slovenia, food- processing companies have been facing serious problems, initially as a consequence of the loss of markets in the area of former Yugoslavia and, later, as the impact of Slovenia‟s accession to the European Union.
So the adjustment to new circumstances and restructuring of companies was necessary.
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Most Slovenian food enterprises have been modernized and have improved their competitiveness.
Today they have a number of competitive advantages, such as: meeting demanding European standards, high quality certificates, the traceability control system, the introduction of systems ensuring food safety, food being produced in a natural environment etc.
For those reasons Slovenian food enterprises represent a strong potential for qualitative and reliable business partnerships.
A lot of companies are inward-oriented and primarily supply the domestic market.
The major products for export are beverages, milk products, and canned fruit and vegetables, meat and meat preparations and so on.
Countries of former Yugoslavia and the European Union are the major destinations for Slovenia‟s food exports, together accounting for more than 80% of the total export for the greater part of export products.
Imports are dominated by unprocessed products, primarily cereals, fruits and vegetables.
The most important suppliers are the countries of European Union.
Processing of meat and the production of bread are two major activities, in terms of the number of companies and employees, together accounting for almost a half of all employed in the food industry.
Food processing facilities are mostly located in small towns and villages that produced the high degree of fragmentation with a large number of small-scale enterprises, it is located randomly throughout the country.
Year 2005 2006 2007 2008 2009 2010 2011 Number of companies 818 823 835 823 807 805 947
Number of employees 23.090 23.187 22.551 22.208 19.510 21.461 19.038 Turnover (in mio EUR) 1.595,0 1.779,5 1.888,1 1.993,2 1.796,9 1.935,4 2.006,5
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FUTURE PROSPECTS IN RELATION BETWEEN INDIA AND SLOVENIA
India-Slovenia should target bilateral trade at US$ 500 million in next two years
New Delhi, January 29, 2013. Energy and renewables, energy efficiency, automotive industry, logistics, ICT, metal processing, electronics, services and tourism are few of the key sectors that offer scope for enhancing business relations between India and Slovenia, Mr. Radovan Žerjav, Deputy Prime Minister and Minister of Economic Development and Technology, Slovenia, said here today. Addressing an meeting oranganised by FICCI, Mr. Ţerjav said for Slovenia, India has emerged as a key strategic market. “We are accompanied by top notch companies offering top notch products and services backed by knowledge. We offer complete solutions starting with providing a product and helping with its implementation,” he remarked. Mr. Samo Hribar Milič, President, Chamber of Commerce and Industry of Slovenia (CCIS), pointed out that Slovenia is an export-driven economy, as the country exports six times more than Greece and twice more than Italy. There are 25 focus sectors and there is tremendous opportunity for both the nations to develop business relationship and network. He said that the two nations should set a bilateral trade target of US$ 500 million to be achieved in the next two years. There is a need to encourage free-flow of information and exchange of business opportunities between the two countries. Dr. A Didar Singh, Secretary General, FICCI, said, “I hope India and Slovenia can leverage the evolving economic scenario to their advantage. India‟s slowing yet sustained economic performance has created the basis for further development of bilateral economic relations based on complementarities of interests and mutual benefit for Slovenia.” Mr. Ravi Chaudhry, Chairman, CeNext Consulting & Investment Pvt. Ltd., said Slovenia ranks amongst the top 12 nations, which have greater transparency in their government‟s functioning. Also, Slovenia is way ahead of India when it comes to anti-corruption movement. With perseverance, hard work and by choosing the right alliances, the two nations can forge rewarding business partnerships and associations, he said. LIST OF COMPANIES DEALING IN FOOD SECTOR OF SLOVENIA:-
Droga Kolinska- A global company, which produces & markets food products of high quality under established brands to consumers all over the world. ERA, D.D - Retail and wholesale trade with food and non-food products. Import of food and non-food merchandise. ETOL - Supplier of flavorings and spices for baby food, ice cream, yogurts, confectionery, soft and hard drinks and savory products. Page 100 of 204
Fructal - Produces & markets high quality products made from fruit & several other fruits of nature. Gostol-Gopan - A world-known supplier of technological solutions and equipment for bakeries, having the largest market share in Slovenia. Ipros d.o.o. - Produces equipment process for food, pharmaceutical and chemical industry. Jamnik d.o.o. - Packaging production for different products, from technical items to demanding food & cosmetics products, drinks & glassware. Klasje Celje, d.d - With its seat in Celje is a producer of bread, bread pastries, cookies, sweets, flour, milling products and pasta. Ljubljanske mlekarne - Specializes in the production of milk, yogurt, cream, cottage cheese and cheese. Mercator-Emba - Produces & sells high quality food products: dessert additives, fruit filling, syrups, instant drinks, cereal based products Perutnina Ptuj d.d. - Provides poultry, chicken meat, meat products, and more. Petek d.o.o. - Process Engineering in Food Industry. Pivka perutninarstvo d.d. - Meat processing joint-stock company in the field of raising and processing poultry meat and products in Slovenia. Tina d.o.o. - A private company for the food production : mayonnasie, mustard, ketchup, olives, horse-radish and more. Zelene Doline - The biggest & most automated producer of semi-hard cheese in Slovenia. Providing company profile & details on products.
COMPANY DETAIL:
DROGA KOLINSKA:-
VISION
With their own brands, we will become a leading regional provider of food products while achieving above-average financial results food industry.
MISSION
By offering quality food and beverages daily meet the needs of consumers of all ages, the owners provide increasing value of the company, employees are offered stimulating working environment for their personal development.
VALUES
Growth - We strive to grow our business with one of them also grow personally each one of us. Courage - in our business decisions are brave. Even when we are not completely confident in your decisions. We have the courage to take risks. Only then will we achieve victory the market. Page 101 of 204
Truth - In communicating with colleagues, we are open and honest. "Fair Game" (fair play) is our best guarantee to avoid misunderstandings and unnecessary conflict. Trust - Droga Kolinska you trust. Therefore, we are not hard to talk about mistakes. We talk about them in time and they also work together to fix it. Fun - We enjoy our work. In our work we have fun. We look forward to both large and small successes. Our work is important, but important to us is our private life.Therefore create a healthy balance between work & private life.
COMPANY PROFILE Droga Kolinska d. d. is a regional company that manufactures and markets food products of high quality and with the established brand names across the world.
Through the merging of two successful food companies, Droga, d. d. and Kolinska, d. d. Slovenia got a new company in May 2005, Droga Kolinska with its registered office in Ljubljana.
The company is characterized by its market focus and experience in the food industry.
Droga Kolinska is a part of the Atlantic Grupa group as its fifth division. REGISTERED NAME: DROGA KOLINSKA, Ţivilska industrija, d.d. ABBREVIATED NAME: Droga Kolinska, d.d. REGISTERED OFFICE: Kolinska ulica 1, 1544 Ljubljana TELEPHONE: 00386 1 472 15 00 FAX: 00386 1 472 15 35 EMAIL: [email protected] WEBSITE: www.drogakolinska.com PRINCIPAL ACTIVITY: 10.830 processing of tea and coffee SIZE OF THE COMPANY: large MANAGEMENT BOARD: from 29 November: Srećko Nakić, president of the management board Enzo Smrekar, member of the management board CHAIRMAN OF THE SUPERVISORY BOARD: from 29 November 2010: Emil Tedeschi NUMBER OF COMPANIES IN THE SUBGROUP (as at 31 December 2010): 19 Page 102 of 204
NUMBER OF EMPLOYEES IN THE GROUP AND SUBGROUP (as at 31 December 2010): 2,483 REGISTRATION NO.: 2114011000 VAT NO.: Sl88736172 COMPANIES REGISTER NO.: 14189800 DATE OF ENTRY WHEN COMPANY IS REGISTER: 3 May 2005 COMPANY SHARE CAPITAL: €61,379,314.81 NUMBER OF SHARES: 14,708,939 LISTING OF SHARES: The Company's shares are not listed on the organised market.
MAIN BRANDS
Droga Kolinska is present in different markets with the following brands
Coffee Ground coffee and coffee beans Barcaffé, Grand Kafa, Grand Flavour, Grand Gold, Grand De Lux, Grand Pleasure, C Kafa, Bonito Instant Coffee Barcaffé, Grand Kafa Drinks Non-alcoholic beverages Cockta, Jupi, Fresh Drink-capable Donat Mg Bottled water Silent, Tempel, Karadjordje Spreads - (meat, fish pate) Spreads Argeta, Argeta Junior (meat, tuna and salmon pâté) Snacks - sweet and salty Snacks (flips, salty sticks) Smoki, Prima Chocolate and pulse products Best wishes, Bananica, Cherry, No problem Sweet cakes, waffles, biscuits Zlatno box, Wafers, Petit Beurre, Baton, Cupcakes Baby Food Processed cereal-based foods Bebi, Bebi Premium, Bebi Junior (dry and wet), formula, water
FOOD SAFETY We manage the food safety policy in accordance with local and European legislation, market and costumers requirements. Page 103 of 204
They build our own responsibility regarding for production of safety food on our suppliers' responsibility, on consideration of requirements for best production and hygienic practice and implementation of internal control established on HACCP (Hazard Analysis and Critical Control Point System) principles.
We have elaborated a plan for withdrawal or recall of food product in case of suspicion or proved health non-compliance of food.
In future, we will ensure safety products of all brands of our company and other production programmes by consideration of the newest discoveries about new risk factors for products' safety and by following of new scientific ascertainments on risks and their management.
Highlights from activities of Droga Kolinska Group for 2011-2009 (in 1000 EUR)
PARTICULARS 2009 2010 2011 INDEX 11/10
OPERATING REVENEUE 376.338 387.792 328.157 85
EARNINGS BEFORE INTEREST AND TAXES 25.461 25.977 23.254 90 (EBIT)
EARNINGS BEFORE INTEREST, TAXES, 50.298 50.383 45.398 90 DEPRECIATION, AND AMORTIZATION (EBITDA)
NET PROFIT OR LOSS 14.110 6.207 76 1
NET PROFIT OR LOSS OF THE MAIN 11.162 5.979 –273 - SHAREHOLDER
CASH FLOW 38.947 31.395 22.221 71
NET OPERATING ASSETS 385.830 409.925 373.589 91
EQUITY 212.698 202.034 190.722 94
NUMBER OF EMPLOYEES ON 31 DECEMBER 3.274 2.953 2.598 88
VALUE ADDED PER EMPLOYEE 30 30 28 93
RETURN ON CAPITAL IN % 6.6 % 3.0 % 0 % 1
NET EARNINGS PER SHARE, IN EUR 1.26 0.80 0.42
COMPARISON OF FINANCIAL DATA OF PREVIOUS TWO YEARS:
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Operating revenue is in growing trend in 2009 & 2010 but it was slightly reduced in 2011
Net profit was being going downwards in going years Down the line number of employees has also been gone reduced slightly Cash flow has also following same downwards trend Net operating assets in 2010 was higher compared to 2009. Earning per share net available to shareholder had also been reduced as year passed So we can say that company is in better position in 2009 compared to 2010 & in 2010 compared to 2011
It is due to world wide big problem of recession & less population so less growth
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SECTOR: 5 HEALTH CARE & SOCIAL SECURITY SECTOR
CONTRIBUTION OF THE SLOVENIA HEALTH AND SOCIAL SECURITY INDUSTRY TO THE NATIONAL ECONOMY
There are many ways in which to assess the economic contribution of an industry sector to the wider economy, such as employment or contribution to GDP. In 2010, EUR 8,830 million or almost a quarter of gross domestic product (GDP) was used for social protection schemes in Slovenia. In 2007, the share of GDP spent on health was 5.9%. In 2009, around EUR 3,280 million was spent on health care in Slovenia; in 2010, around EUR 3,194 million was spent or 2.6% less than in the previous year
The state works towards preventing social exclusion, particularly by influencing the social position of the population in the areas of taxation, employment and work, and through grants, housing policy, family policy, health care, education and other policy areas. HEALTH CARE
Disability Expenditure In Slovenia Lower Than In The EU
According to the internationally comparable ESSPROS methodology, in 2010 in Slovenia expenditure on social benefits for disability amounted to EUR 626.4 million (included is expenditure on social benefits for men under 65 and for women under 60). This expenditure represented 1.76% of GDP, which is lower than the EU average of 2.25%. Expenditure On Social Benefits For Disability Expenditure on social benefits for disability represented 7.09% of total social protection expenditure in Slovenia. In EU the average share was slightly higher at 7.65%.In Slovenia the share of expenditure on social benefits for disability amounted to 1.76% of GDP. The average for EU Member States was 2.25% of GDP. Amount Spent On Health Care
In 2009, around EUR 3,280 million was spent on health care in Slovenia; in 2010, around EUR 3,194 million was spent or 2.6% less than in the previous year.
Health Assessment 3% of people aged 66 or more assess their health as very good, 23% as good, 41% as fair, 26% as poor and 7% as very poor. Health information on the web was sought by 46% of people aged 10-74: the share for 55-64-year-olds was 26% and for 65-74- year-olds 10%.
Food Consumption Page 106 of 204
In 2010, a person in Slovenia consumed on average 121 kg of cereals, 91 kg of vegetables, 70 kg of potato, 93 kg of meat and 36 kg of sugar.
Infected With HIV
In Slovenia less than 1 per 1,000 people are infected with HIV, which is among the lowest values in the EU-27. However, the number is growing. According to the Institute of Public Health, in the past ten years (2000–2009) 293 cases of HIV infection were recorded in Slovenia and 25 AIDS patients died. The annual incidence (number of new cases per population in a given time period) of HIV infection increased from 6.5 per million in 2000 to 23.5 per million in 2009. Compared to most EU Member States it was still relatively low. SLOVENIA HEALTH AND SOCIAL SECURITY SECTOR PROFILE (LIST OF COMPANIES)
Health Care: Pharmaceutical Companies The most featured pharmaceutical companies in Slovenia are:
Galex is a Slovenian pharmaceutical company founded in 1991. It is internationally oriented manufacturer of generic medicines and self- medication products.
Salus Ljubljana: it operates within the Drugs, proprietaries, and sundries sector.
Krka: Krka‟s basic line of business is the production and sale of prescription pharmaceuticals, non-prescription products and animal health products. Regulation
The health sector is regulated at various levels and by several organizations. The government and the parliament set the limits of the compulsory health insurance budget and contribution rates, coordinated and respected by the annual planning process of the HIIS. The annual financial plan for compulsory health insurance prepared and accepted by the HIIS assembly is the framework for the partnership negotiating process for each year. The Medical Chamber of Slovenia, the Slovenian Chamber of Pharmacy and the Nursing Chamber of Slovenia have a different regulatory role: they are responsible for controlling professional advancement, including professional auditing of physicians , dentists, pharmacists and nurses. Health care providers are further governed by internal regulations of institutions according to the public health network and contracts between third- party payers and health care providers. The local governments of the self-governing communities are responsible for regulating primary health care services. The director and managers of the national Institute of Public Health (IPH), in cooperation with the Ministry of Health, are responsible for managing the activities of the national IPH and coordinating the regional institutes of public health as defined by law.
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SUPPLY CHAIN IN HEALTHCARE SECTORS
Legend: Committee on Social Hierarchical/ administrative relation Parliament Affairs, Work, Family Matters and Health Contractual level
Professional Economic and supervision Social Council advisory relation National level Regional level National Board Local level Government of Health
Health Council - Health Inspectorate
- Office for Medicinal Products Ministry of Health National - National Chemicals Bureau speciality expert - WHO Liaison Office groups
University National Medical Medical and Public Public Centre pharmaceutical Health compulsor and other chambers y health university Institute insurance departments institute (tertiary with level) 10 regional and 46 local Hospitals and branches specialist care providers (secondary care level) 9 regional public health institutes
Self-governing local communities
insurance Public funds Health care centres, parmacies, private and providers with concession (primary level) private voluntary health
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P r i v f a c i l i t i e s w i t h o u t a c o n c e s s i o n
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COMPARATIVE POSITION OF HEALTH AND SOCIAL SECURITY OF SLOVENIA AND INDIA Health statistics: India vs. Slovenia
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Slovenian Health Indian Health stats stats Birth rate, crude > per 23.8 per 1,000 people 8.8 per 1,000 people 1,000 people Ranked 73rd in 2012 Ranked 179th in 170% more than 2012. Slovenia Dependency ratio per 61 42 100 Ranked 84th. 45% Ranked 161st. more than Slovenia Drug access 0% 95% Ranked 152nd. Ranked 33rd. expenditure per capita > 31.4 $ 1,438.2 $ current US$ Ranked 140th in 2012 Ranked 28th in 2012. 45 times more than India expenditure, total > % 5.0 % 8.7 % of GDP Ranked 128th in Ranked 29th in 2012. 2012. 74% more than India Fertility rate, total > 2.84 births per woman 1.23 births per births per woman Ranked 74th in 2012 woman 131% more than Ranked 175th in Slovenia 2012. Hospital beds > per 0.9 per 1,000 people 5 per 1,000 people 1,000 people Ranked 59th in 2012 Ranked 27th in 2012 5 times more than India Intestinal diseases 24.25% 0.29% death rate Ranked 43rd. 83 Ranked 131st. times more than Slovenia Life expectancy at birth, 63.5 years 77.61 years total > years Ranked 128th in Ranked 36th in 2012. 2012. 22% more than India Maternal mortality 540 per 100,000 11 per 100,000 Ranked 19th. 48 Ranked 111st. times more than Slovenia Physicians > per 1,000 0.51 per 1,000 people 2.18 per 1,000 people people Ranked 67th in 2012. Ranked 44th in 2012. 3 times more than India Prevalence of HIV, total 0.92 % 0.1 % > % of population ages Ranked 58th in 2012. Ranked 136th in 15-49 8 times more than 2012. 112
Slovenia
Probability of reaching 59.9% 72.8% 65 > Male Ranked 92nd. Ranked 42nd. 22% more than India Tobacco > Adult female 2.5 20.3 smokers Ranked 102nd. Ranked 40th. 7 times more than India Tobacco > Adult male 29.4 30 smokers Ranked 92nd. Ranked 90th. 2% more than India Tobacco > Total adult 16 25.2 smokers Ranked 101st. Ranked 71st. 58% more than India Total expenditure on 6.1% 8.3% health as % of GDP Ranked 89th. Ranked 37th. 36% more than India Total fertility rate 3 1.1 Ranked 76th. 173% Ranked 167th. more than Slovenia Tuberculosis cases > 199 12 Per 100,000 Ranked 23rd. 16 Ranked 127th. times more than Slovenia Water availability 1,880 cubic meters 16,031 cubic meters Ranked 123rd. Ranked 46th. 8 times more than India
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HEALTH PROVIDER OVERVIEW OF KRKA
Krka‟s basic line of business is the production and sale of prescription pharmaceuticals, non-prescription products and animal health products. Company HQ
Krka, d., Novo mesto Šmarješka cesta 6 8501 Novo mesto Slovenia
Telephone +386 7 331 21 11 Fax +386 7 332 15 37 E-mail [email protected]
MISSION, VISION, VALUES Mission “Living a healthy life.”
Our basic task is to enable people to lead a healthy, good quality life. This we achieve through our rich range of products and services – with prescription pharmaceuticals, self-medication products, with cosmetic and animal health products, and with our health-resort services, with investment in people and the environment, and through sponsorship and donations.
Vision We are continually consolidating our position as one of the leading generic pharmaceutical companies worldwide.
We are achieving this on our own by strengthening the long-term business connections and by establishing partnerships in the fields of development, product supply and marketing.
Values Speed and flexibility
Our knowledge, our abilities, our capability to innovate, our productivity and our ingenuity enable us to be fast. We want to be first. Not just in sales, but in discovering the markets‟ new needs. We can do this by successfully shortening the development process, swift acquisition of registration documentation and our harmonised production and distribution. With our responsiveness and the ability to adapt we overcome the obstacles in our path, be they of a marketing or legislative nature. We can cope with any
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and all challenges – regardless of the size and the site of the project. Using flexible solutions, we make sure our partners can rely on us.
Partnership and trust
Krka helps create good relationships. We strive for trust-based relationships with our partners: our customers, our suppliers, our owners and everyone else who surrounds us. Only good and open relationships can help us achieve both business success and our primary mission.
Creativity and efficiency
The only real way to achieve first-class results is by creating an atmosphere that motivates our employees to be innovative and creative. Therefore, we encourage our employees to speak freely of their ideas and if these ideas prove to be good for the company, we encourage them realise them. Together, we seek new paths to make our customers satisfied.
We perform our tasks as well as we can. We strive to do what we do in the best, most efficient and most time conserving way.
Company Presentation
Krka is among top generic pharmaceutical companies in the world. They have now been successfully implementing their strategies and pursuing our mission and vision for over half a century.
PRESENT POSITION AND TREND OF BUSINESS (IMPORT / EXPORT) IN INDIA
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India is one of the fastest-growing pharmaceutical markets in the world and has established itself as a global manufacturing and research hub. A large raw material base and the availability of a skilled workforce give the industry a definite competitive advantage.
The Indian pharmaceutical industry was estimated to be worth US$ 21.5 billion in 2009-10 and is expected to touch US$ 40 billion by 2015.
Globally, India ranks third in terms of volume of production and fourteenth largest by value.
The domestic market is likely to grow from US$ 13 billion in 2009-2010 to US$ 20 billion by 2015.
The domestic pharmaceuticals sector is witnessing strong growth due to higher penetration in tier-II and tier-III cities and greater focus on the largely- untapped rural market.
Improvement in healthcare delivery and increased healthcare insurance have further accelerated market growth.
In recent years, the industry has been witnessing a strong wave of modernization and technological up gradation. This has resulted in:
o A shift from manufacturing tablets and capsules to high-value, specialty products like parenteral solutions and novel drug delivery systems (NDDS).
o Vertical integration and horizontal consolidation of production processes.
o Development of supply chain management.
o Improvement in productivity. India’s Export and Import Data of 5 Years with Slovenia
EXPORT DATA
Commodity: 30 PHARMACEUTICAL PRODUCTS Country: SLOVENIA
2007- 2008- 2009- 2010- 2011- S.No. Year 2008 2009 2010 2011 2012 1. Values in US$ Million 3.63 10.72 12.61 11.14 17.17 2. %Growth 194.97 17.66 -11.68 54.16 3. Total export of 4,159.44 5,078.77 5,191.18 6,676.43 8,483.46 commodity 4. %Growth 22.10 2.21 28.61 27.07 Source: http://commerce.nic.in/eidb/ecomxcnt.asp 116
From the above table, it can be observed that from the year 2007-2008 transaction between two countries is started. The highest percentage of growth (in terms of value) 194.77% was in the next year that is 2008-2009 and highest fall in the growth -11.68%was in the year 2010-2011 but in next year the growth increase by is 54.16%. Growth in terms of total export of commodity is observed in the year 2010-2011 which is 28.61% and lowest is in the year 2009-2010. IMPORT DATA
Commodity: 30 PHARMACEUTICAL PRODUCTS Country: SLOVENIA
2007- 2008- 2009- 2010- 2011- S.No. \Year 2008 2009 2010 2011 2012 1. Values in US$ Million 0.47 1.08 0.54 0.32 1.52 2. %Growth 130.60 -49.71 -41.15 374.87 3. Total Import of 701.03 924.95 1,097.93 1,204.81 1,685.52 commodity 4. %Growth 31.94 18.70 9.73 39.90 Source : http://commerce.nic.in/eidb/icomxcnt.asp From the above table it can be observed that imports are less in compare to exports from country India. In the year 2011-2012 the growth of imports is highest with comparison to its earlier year i.e. 374.87% in terms of value. In comparison to total import of commodity highest growth takes place in the year 2011-2012 only
COMPARATIVE POSITION OF KRKA WITH INDIA
For comparison purpose Krka is compared with Sun Pharmaceuticals Industries Ltd (India) Brief Profile of Sun Pharmaceuticals Industries Ltd Sun Pharma are an international specialty pharma company, with a large presence in the US and India, and have a footprint across 41 other markets. In the US, which is their largest market, they have built a strong pipeline of generics, directly and through their subsidiaries Caraco and Sun Pharmaceutical Inc. Taro add strong dermatology range to their portfolio. In India and rest of the world markets, their brands are prescribed in chronic therapy areas like cardiology, psychiatry, neurology, diabetology, ophthalmology, orthopedics etc. They are market leaders in specialty therapy areas in India.
They retain the drive for growth that marked their early days, when they had. Journey started in 1983, with just 5 products. Since then, they have crossed 117
several milestones to emerge as a leading pharma company in India where they are the 5th largest by prescription sales, a rank that they have retained over a decade. (IMS ORG Stockist Audit, March. 2012) Since the mid- nineties, they have used a combination of growth and acquisition to drive growth. Important acquisitions have included those of the US, Detroit-based Caraco Parma Labs and a plant at Halol which now holds UKMHRA and USFDA approvals. The 2010 acquisition of Taro Pharmaceuticals doubles their US business and increases their strengths in dermatology and pediatrics.(http://www.sunpharma.com/Profile.do)
Close Price Date (Rs)
21.3.2013 832.15
24.3.2008 255.82
Sales Data($ million) from 2009 to 2011 for both companies
Company Name 2009 2010 2011 Sun Pharmaceutical Industries 806.95 1,151 1,601 KRKA 1,107.20 1,102 1,234 (http://www.bioportfolio.com/channels/top-pharma-companies)
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From the above table and chart it can be observed that Indian Company‟s sale is increasing year by year and Slovenia‟s company is increased in 2009 then there is fall in 2010 but after there is increase in 2011. But when Sun Pharma is compared with Krka then Indian company‟s sales is less with comparison to Slovenia but after that sun pharma sales rise higher than Krka in 2010 and 2011.
Following is the data of different companies but our focus would be on Sun Pharma and Krka Company only and the Information as per Citibank
September 2010 Valuations for all companies except for Krka and Gideon
Richter which are per Morgan Stanley September valuation.
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(http://www.google.co.in/url?sa=t&rct=j&q=sun+pharma+and+krka&source=w eb&cd=16&c
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FINDINGS
It was found while researching that Slovenia‟s pharma sector is well developed in the country. Its science and technology area have proficiency.
Highest population is aging in Slovenia so pharma sector business prospects are high. But in other side it can be said that their employees are also aging so they can tie up with India for it. Slovenia‟s economy is contracting and heavy financial crisis are there which led to affect on the industry businesses also. In health statistics Slovenia is ahead with comparison to India. The reason is their proficiency in health and security sector. But in aging, birthrate and fertility rate India is ahead
It was found during the study that Krka have good expertise in generics products but still their sales are in decline. As compared to Indian company Sun pharma sales are rising as compare with Krka. Krka market is not that developed in India only representative office is there and Krka have great opportunity to increase their revenue by having tied up or merger with Indian company. The imports from Slovenia are less than the export s done to Slovenia from India. In the year 2011-2012 imports is not even 10% of exports from Slovenia. In terms of market cap and enterprise value comparatives, revenue CAGR, price and earning comparatives, HEPS comparative Sun Pharma Company is ahead of Krka Company. In EBITDA, revenue comparatives Krka Company are ahead of Sun Pharma Company. From the Table no. on page no. Sun pharma don‟t have market in Europe and Krka have Representative Office in India. But percentage of revenue is not that high so Krka can make merger with sun pharma for better revenue and increase the market cap. Sun pharma can have proficiency in know- how n make presence in Europe market.
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As there population is aging government is taking focus on that by implementing various programs.
CONCLUSION
In 2008, Euros 8910 million were imported from India to Slovenia and this was increased to Euros 17,400 million in 2009. (http://www.izvoznookno.si/Dokumenti/india_slovenia.pdf) Both Slovenia and India are countries on the ascent. The rising import and export levels prove that each has to some extent recognized this in the other. Krka company plays a role of major importer from Slovenia to India.
Above table/ image shows India is one of the emerging markets for pharmaceutical and health care products. Though emerging markets are small, the rapid growth of emerging pharmaceutical markets against slowing regulated markets makes them an attractive target. Higher GDP growth, increasing population and greater health awareness combined with higher incomes to spend on healthcare will drive the growth of pharmaceuticals in emerging markets. By 2017, IMS forecasts revenues from emerging markets to be between US$ 290 bn and US$ 320 bn, with a CAGR of 12- 15%.
The generic industry in Slovenia, which has domestic Krka as its market share leader, is complaining about the regulations. The industry argues they will push the prices of some generic medications to a totally unrealistic level. They believe these measures will affect their transactions in the coming year and that certain drugs will no longer be available on the Slovenian market.
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Nevertheless, the Ministry of Health plans to introduce the new regulations shortly. Innovative as well as generic producers are therefore increasingly turning their attention to the Indian and Chinese markets and their massive populations. In Slovenia, the Health Ministry has this year also focused on regulating waiting times and changing the law concerning professional qualifications for healthcare workers.
It can be said that Slovenia‟s economy is contracting but in terms of expertise and other things it has good future so they can make good trade relations with India and improve their condition. For India there is good scope of gaining their expertise and other resources like capital and manpower is abundant with comparison to Slovenia.
SECTOR: 6 “ELECTRONICS AND ELECTRICAL INDUSTRY ”
The Slovenian Electronics and Electrical Engineering Industry own a long industrial tradition in the area of electrical machines and devices, design, development and production of electrical components as well as electronic components, appliances and systems. A notable professional expertise in the fields of modern, product development and up to date technologies with highest international quality standards and specifications rendered possible a successful presence on both European and world markets. Supported by its own expertise, Electronics and Electrical Engineering Industry has been successfully filling international market niches, particularly
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in the fields of household appliances; telecommunication equipment; electrical motors and electric machinery; electronic measuring, medical and optical equipment; than power distribution equipment and control systems; and electronic components. The excellence of both the entire quality process as well as environmental issues is reflected in numerous issued certificates of conformity according to standards VDA 6.1 and QS 9000, as well as ISO 9000 and 14000. Today, Slovenian Electronics and Electrical Engineering Industry included in global supply chains and technology partnerships with its customers in industry of white goods, automotive industry, electronic systems and apparatus producers as well as in power supply management systems and installations. Its products satisfy all the demanding regulations concerning established quality standards (VDA; ISO; etc.) as well as environmental regulations regarding product technology.
Quality Workforce
By ensuring a continuation of training and education opportunities that support a skilled workforce in the electronics and electrical sector, Slovenia‟s workforce combines successfully the country‟s skills to produce clever technical solutions and long industrial tradition with inventiveness.
Foreign investors (FI‟S) eager to increase efficiency can tap Slovenia‟s pool of highly qualified and dedicated workers and researchers always ready to increase productivity and help modernise production and. In the year 2010, Slovenia‟s expenditure for research and development was € 746 million (2.11% of its GDP) and there are government incentives for investors that set up their product development activities in technology parks and collaborate with various scientific institutions in Slovenia.
The electronics and electrical sector employs approximately 30,000 people in 570 plus companies. More than 2,500 students are enrolled in undergraduate courses for electrical and electronics engineers. The total number of students in secondary schools are7, 000 in electrical engineering and computers. 124
Since, the gross enrolment ratio in tertiary level of education is 87.6%(As per Human Development Report 2011, UNDP) of the total Slovenian population, it does not come as a wonder that some 91% of population is able to communicate in one and 71% of population in two or more world languages with English and German being the most widespread. Slovenian Government sponsored training and re-training programmes help upgrade job seekers‟ employability by providing adult education and other in-demand skills to meet employers‟ entry-level job requirements. Within the framework of Slovenia‟s active employment policy measures, Co-financing is available to manufacturers to provide training in skills specific to their jobs for new employees.
Company detail:
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The Iskra Group
The Iskra Group is a group of affiliated companies operating in the field of electro and electronic industry with nearly 60 years of presence on the Slovenian and global market. The Iskra Group is the holder of the ISKRA brand, which has, in the six decades of its existence, acquired reputation and prestige on the Slovenian and global market. Throughout this time, the company has, in various organisational forms, experienced many enviable success stories and even occasional failures. Nevertheless, it was strong enough to overcome the obstacles and persist even in periods when many a reputable Slovenian brand had vanished from the market along with its representatives. Even during the transition period, the Group was well aware of the exceptional and strategic character of its brand name, adequately appreciating and nurturing it as its priority value. A consolidated version of the Iskra Group annual report is available at the registered office of the parent/controlling company, which is MAOS, d.o.o., Stegne 21, SI-1000 Ljubljana, and also at the Iskra, d.d., registered office located at Stegne 21, SI-1000 Ljubljana.
The ISKRA Group comprises 18 companies active in six fields of business which include: o Parts and elements o Devices o Automation o Telecommunications o IT and business solutions o Services
Vision and mission
The vision of the Group is to be a modern corporation and to achieve long- term development and business growth, generate profit and increase the value of Iskra's shares by displaying great flexibility to any market situation both in terms of our companies and product range.
Strategic orientations
The strategic orientation of ISKRA Group is mainly focused on: 126
o Achieving a higher level of innovation, faster introduction of new, more complex and sophisticated products with higher added value, o Facilitating faster changes in the staff‟s educational structure with an increase in employees who have college and university education and the rejuvenation of management and executive teams of the companies, o Pursuing intense efforts in terms of initiated joint implementations, notably in the field of strategic staff, it and international trading, achieving organisational changes and carrying out company mergers resulting in a better utilisation of resources and improved economic benefits, o Realising acquisitions of enterprises which increase and expand the range of products and services offered on the market and improving economic stability of the group.
Programme orientation
The Iskra Group will continue to develop the following programmes: o Automation o Telecommunications o Elements and parts o Devices o IT and business solutions o Services o New programmes developed in the Group or obtained by acquisition
It is estimated that the Group will experience the highest growth in the field of element production and the lowest in service delivery. The specified orientations and planned objectives, along with new programmes and possible acquisitions, will further reinforce the Group‟s reputation in the electro and electronic industry as well as in the trade and service industries.
Effect of the economic situation on business operations
In comparison to the year 2010, in the year 2011 saw yet another fall in Slovenia‟s economic situation. The GDP decreased by 0.2% and foreign demand was the main engine of the country‟s growth, despite the slow-down of the global economy. Accordingly, the growth of exports was reduced by almost 50% compared to the preceding year, amounting to 6.8%. In 2011, the average rate of exports was equal to that from 2008. In the first half of 2011, the economic growth was also spurred by the favourable investment activity of enterprises, while private consumption remained low as a result of the aggravated situation in the labour market. In the second half and particularly at the end of the year, the increased risk of the debt crisis spreading across the Euro Zone lead to a sharp drop of companies‟ and households‟ trust in the recovery of the economy, influencing the availability of financing resources and curbing the elements of domestic consumption. As a result, the domestic consumption decreased by 1.6%. 127
The continuous decrease of the Slovenian market share on the global market came to a halt in 2011, whereas the market share in the EU experienced an increase. The average inflation was 1.8% in 2011 and remained low throughout the year. The 12-month inflation in December 2011 was 2.0%. Compared to 2010, the industrial production rose by 3.2% in 2011. Growth in the processing industry remained unchanged.
In 2011, the situation in the trade of goods, mostly in terms of prices in raw materials, was approximately the same as in the preceding year. The expansionary measures introduced by major global monetary authorities have kept the interest rates very low. The interest margins and fixed interest rates remained high. The euro was depreciating against major world currencies (US dollar, Swiss franc and Japanese yen) for the most part of 2011.
NET REVENUE BY FIELD Revenues Revenues Share in %
Automation 21,334,813 24,273,085 18.0%
Elements and parts 62,189,233 58,214,681 52.6%
Devices 2,066,626 973,240 1.7%
Telecommunications, IT and business 13,345,687 12,812,955 11.3% solutions
Services 18,843,295 18,912,090 15.9%
Other 490,915 1,460,553 0.4%
TOTAL 118,270,569 116,646,604 100.0%
Consolidated net sales revenues geographic
by areas
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SALES BY MARKET Revenues Revenues Share in% 2011
Slovenia 52,928,289 56,413,232 44.8%
South-Eastern Europe 3,818,255 2,159,017 3.2%
Eastern Europe 5,738,885 4,654,466 4.9%
EU and EEC 44,344,877 42,095,466 37.5%
Asia 9,259,031 8,685,771 7.8%
America 910,203 1,108,471 0.8%
Other countries 1,271,029 1,530,181 1.1%
TOTAL 118,270,569 116,646,604 100.0%
The Iskra Group generated most of its sales revenue on foreign markets. The main export market in 2011 remained the European Union, more specifically Germany. The share sold on the German market accounted for 38% of total Sales. The Group recorded a growth in sales on foreign markets, whereas the sales on the domestic market declined due to a smaller number of public tenders in which the telecommunications and automation fields generate most of their sales revenue. Consolidated net sales revenues by geographic areas are presented below.
INDIAN ELECTRICAL INDUSTRY
VIDEOCON
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Today the Videocon group operates through 3 key sectors:
Consumer Electronics and Home Appliances Videocon Ltd. manufacture, assemble and distribute a comprehensive range of products and home appliances, consumer electronics, including finished goods such as Home entertainment systems, television, Washing machines, refrigerators, Air Conditioners and other small household appliances and components such as glass shell(panels & funnels), motors, compressors etc. Power Business The Videocon Company is developing the Pipavav power project through a wholly- owned subsidiary of the Company, Pipavav Energy Private Limited (PE Pvt. Ltd.). The Pipavav Energy Project is designed to have a capacity of 1200 MW and comprises two units of 600 MW each.
The Company is also developing the Chhattisgarh power project through a wholly- owned subsidiary of the Company, (CPV Pvt. Ltd.)Chhattisgarh Power Ventures Private Limited. The Chhattisgarh power project is framed to have a capacity of 1200 MW and comprises two units of 600 MW each.
Telecommunication Videocon Group operates the GSM mobile services through Videocon Telecommunications Limited (VTL). VTL was granted a license by the Government of India to provide unified access services in the following 6 circles in India: Gujarat, Haryana, Uttar Pradesh(West), Uttar Pradesh (East), Madhya Pradesh-Chhattisgarh, Bihar-Jharkhand.
Milestones
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VIDEOCON IN ELECTRONICS
o Videocon Company is doing a business in electronics industry since more than 25 years. o Videocon Company earning $3billion from electronic industry out of its overall $5billion revenue from its total business. Videocon company has total number of employee is 30000 worldwide. Indian Electronic Industry o India accounts for only 3.5% of the global electronic industry market. o Worldwide market size = $1.8 trillion
o Size of Indian market = $65 billion(approx.)
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Global Electronics Landscape
Size of the global electronics industry vis-à-vis other major industries...
o 4.40 times Oil, Petrol & Minerals
o 2.75 times Chemical & Plastics
o 2.45 times Food, Beverage & Tobacco
o 2.44 times Transportation
o 2.20 times Electricity, Gas & water
For the 2004–09 period, the global industry has grown at an annual rate of 3%. At the current pace, the global production is projected to reach USD2 trillion in 2014 and USD2.4 trillion in 2020.
Indian Electronics Landscape
Electronics Hardware Production in India
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o Indian electronics manufacturing has seen a CAGR growth of 16 percent since 2003.
Domestic Demand of Electronics in India
o Domestic demand is expected to reach USD 100 billion in FY 14 and USD 400 Billion in FY20.
Findings o The demands for the electronic and electrical products are increasing at global level in large numbers.
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o India is mostly depending on importing (mostly from China) the parts for producing electronic products. on the other hand Slovenian electrical and electronic companies is exporting the goods in Europe as well as other parts of the world. o There is a vast improvement in the technology that is being used for producing the goods and services. o There is a huge market opportunity for Slovenian companies as well as domestic investors to invest money in the production of goods relating to electrical and electronic industry. Suggestions
o As India is importing the spare parts as well as finished products of electronics goods in large numbers, it needs to reduce it by inspiring the domestic investor to invest in it and produce the same in India.
o Reduction in imports will lead to save the lot of Indian rupees outflow which will help the country to reduce the current account deficit of the country.
o As Slovenian Electronic and Electrical Industry companies are mostly exporting the electronic goods, should be attracted for investing the money in India so that the employment opportunities as well as benefit of technology sharing will be possible.
o As the world is turning to eco friendly products i.e. more energy saving electronic products needs to be produced by Indian as well as Slovenian companies in order to grab the market opportunity at world level.
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Conclusion
Slovenian Electrical and Electronic industry is very mature but Indian Electrical and Electronic industry on the path of expansion, Slovenian Electrical and Electronic industry produce electronics products with least imports of parts while India is still heavily depend upon importing the parts for producing the electronic products and the reason is political and geographic factors of India. If India wants to grow in Electrical and Electronic industry then they have to take some big actions and invest more amounts in to Electrical and Electronic industry.
Slovenia and Indian Electrical and Electronic Industry is in process, India need to attract more and more foreign investors as well as domestic investors in order to grab the opportunity to satisfy market need by producing the product at cheaper cost and selling the same in the world market. Moreover, India is emerging as the world‟s second largest market for electronic goods .So, for Slovenian companies it is the great opportunity that they invest in
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India take the advantage of tax breaks and duties, the access to technical and engineering expertise, proper manufacturing facilities etc..
Since last few years the bilateral trade between India and Slovenia has increased, It is forecasted that Electrical and Electronic Industry of both the country has lots of opportunity in this area and both country will come together and increased the trade in Electronic and Electrical Industry through sharing of expertise in various areas.
From this we can say that the coming Time will be very important for the both the countries Electrical and Electronic industry.
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SECTOR: 7 METAL PROCESSING INDUSTRY
. INTRODUCTION
Metal processing industry is a strong industrial branch within Slovenian national economy. These facts put it in the top range of national manufacturing industries. Traditional business relationships with Europe's and the world's most prominent businesses are based on up-to-date technology, considerable professional expertise and total quality assurance.
Due to historical, geographical and other reasons the prime export market is the demanding and highly competitive area of EU. As acting globally became an imperative, focus enlarges onto the East Balkans, Near, Middle and Far East as well as East and Central Europe, Asia and both Americas. The share of non-EU export is rising constantly. Permanent innovation and improvement in all fields - be it product, production process or business conduct - is a conditio sine qua non.
Production of steel in Slovenia has a rich tradition of almost 400 hundred years. On the foothills of the Julian Alps and the Karavanke range, over Lower Carniola and southern Styria, our ancestors were melting iron as early as the 14th century. The abundance of natural resources – deposits of iron ore, vast forests for the production of charcoal as well as water sources for powering sledgehammers – enabled bloomeries (an early type of smelter pre-dating blast furnaces) to thrive.
The second half of the last century brought about the closing of smaller bloomeries due to their inability to compete. The crisis of the Slovenian iron industry led to the merging of iron plants. New technological developments in metallurgic science around the world made it possible for the first steel furnaces and rolling mills to be built in Slovenia. Between the World Wars, Slovenia accounted for two thirds of Yugoslavia‟s steel production, and after the Second World War major developments were on the horizon for Slovenian ironworks, due to active investments in modern technology. The need for a common presence on foreign markets, as well as the need for division and specialisation of the production programme, resulted in the emergence of the United Company of Slovenian Steelworks after the worker‟s ballot in 1969. Four years later four more processing companies joined the United Company (Veriga Lesce, Plamen Kropa, Ţična Celje and Tovil Ljubljana) and they merged into the Slovenian Steelworks – United Company Ljubljana. In 1978 it was again restructured as the Slovenian Steelworks – Complex Organisation of Associated Labour. The company went through the processes of restructuring and renaming two more times – in 1990 it became a limited liability company Slovenian Ironworks and early in 2005 a joint stock company SIJ – Slovenian Steel Group.
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The separation of the Republic of Slovenia from Yugoslavia, and the declaration of Slovenia‟s independence, led to an unforeseen economic crisis in the Slovenian iron industry. The loss of the traditional markets in former Yugoslavia, and the unpreparedness for international competition, heralded major troubles for Slovenian steel-making. In 1991 and 1992 the Government of the Republic of Slovenia passed a renovation and restructuring programme for the Slovenian steel industry in three stages: nationalisation – renovation – privatization. With the nationalisation in 1991 the Republic of Slovenia became the only holder of Slovenske Ţelezarne. In March 2007 the privatization process was concluded, as the Republic of Slovenia sold 55.35 per cent of its shares in SIJ – Slovenian Steel Group to the Russian group KOKS.
SIJ – Slovenian Steel Group is today the largest steel company in Slovenia, which maintains and develops the steel industry and is one of the key elements of Slovenian economic development. We will continue our orientation towards constant improvement of the technology, production processes and logistics, and we will also intensively build our own sales network to maintain and increase our market share in the EU and worldwide.
Metal articles Machine building Motor vehicles, trailers, Ship & rail
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Estimated gross annual labour costs in metals industry 2012
Revenue
139
140
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Industry structure
Companies comprising Slovenian metal industry are involved into three main activities: metalworking, machine building and transport equipment. The latter is most strongly represented by entities operating in automotive field. In the group of most important companies in the metalworking area there are UNIOR d.d., TRIMO d.d., KOVINOPLASTIKA d.d., IMPOL d.d., being leaders of production of hand tools, forged articles, metal constructions and stainless steel products. Among the biggest companies in the machine building sector we find ADK d.o.o., GKN DRIVELINE d.o.o., LITOSTROJ E.I. d.o.o., HIDRIA IMP KLIMA d.o.o., producing lorry cranes, constant velocity joints, turbines, air distribution systems.
Automotive industry suppliers are a big and growing group of companies. Complying with the requirements of highest international standards they produce components, assembleys, sub-assembleys and systems as renowned suppliers to the world's leading groups in automotive sector. Top companies are: REVOZ d.d., CIMOS d.d., ADRIA MOBIL d.o.o., TPV d.d., TBP d.d. manufacturing passenger cars, pedals' systems, motorhomes, bowden cables.
The main body of metal processing industry consists of small and medium- sized companies (SMEs) which operate mostly international - be it as producers of their own final products or manufacturing parts and components for other industries. Metal processing sector employs more than 55.000 employees. Of the three aforementioned subsectors, metalworking one is the strongest in means of employment it comprises of 50,2% of all employees in metal processing industries, it represents 42% of total income and almost 48% of value added accumulated in all three fields of activities.
Opportunities
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• Technologically-minded, long industrial tradition • Highly educated: 16 % university degree, 62 % secondary school • Multi-lingual population • Not cheap, but cost-effective workforce • Logistics • Export-oriented (66%) • Traditional business relations with EU
COMPANY DETAIL:
Acroni
ABOUT THE COMPANY 143
Company profile Company name: ACRONI, podjetje za proizvodnjo jekla in jeklenih izdelkov, d.o.o. Address: Cesta Borisa Kidriča 44, 4270 Jesenice Date of formation: 23 December 1992
Status: Limited liability company
Registered share capital: EUR 83,458,521
Ownership: SIJ – Slovenska industrija jekla, d.d., 100% Acroni has the legal status of a limited liability company. Its sole founder and owner is the SIJ Group – Slovenska industrija jekla, d.d. The supreme body of the company is the General Assembly. It is comprised of two members of the Board of Directors of SIJ – Slovenska industrija jekla d.d., Tibor Šimonka, President of the Board of Directors, and Viacheslav Korchagin, Member of the Board of Directors.
The company has two subsidiaries abroad – Acroni Italia and Acroni Deutschland, and the Acroni Sweden affiliate, which are all 100% in its possession Vision and Goals Acroni is a technologically advanced company which manufactures flat steel products. It has a centuries-old tradition, since this area has always been famous for its iron industry. Nowadays Acroni is distinguished by its modern steel machinery and equipment that enables the production of top-quality steel. By remelting scrap iron and adding alloy metals and slag forming additives, Acroni produces new quality products. Acroni continues to be true to its vision of becoming the leading European manufacturer of stainless steel quarto plates and products made from special steel and alloys. In 2010 it became the second biggest stainless steel quarto plate manufacturer in the EU.
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SLOVENIAN STEEL GROUP Production of steel in Slovenia has a rich tradition of almost 400 hundred years. On the foothills of the Julian Alps and the Karavanke range, over Lower Carniola and southern Styria, our ancestors were melting iron as early as the 14th century. The abundance of natural resources – deposits of iron ore, vast forests for the production of charcoal as well as water sources for powering sledgehammers – enabled bloomeries (an early type of smelter pre-dating blast furnaces) to thrive. The second half of the last century brought about the closing of smaller bloomeries due to their inability to compete. The crisis of the Slovenian iron industry led to the merging of iron plants. New technological developments in metallurgic science around the world made it possible for the first steel furnaces and rolling mills to be built in Slovenia.
Between the World Wars, Slovenia accounted for two thirds of Yugoslavia‟s steel production, and after the Second World War major developments were on the horizon for Slovenian ironworks, due to active investments in modern technology. The need for a common presence on foreign markets, as well as the need for division and specialization of the production programme, resulted in the emergence of the United Company of Slovenian Steelworks after the worker‟s ballot in 1969. Four years later four more processing companies 145
joined the United Company (Veriga Lesce, Plamen Kropa, Ţična Celje and Tovil Ljubljana) and they merged into the Slovenian Steelworks – United Company Ljubljana. In 1978 it was again restructured as the Slovenian Steelworks – Complex Organisation of Associated Labour. The company went through the processes of restructuring and renaming two more times – in 1990 it became a limited liability company Slovenian Ironworks and early in 2005 a joint stock company SIJ – Slovenian Steel Group. The separation of the Republic of Slovenia from Yugoslavia, and the declaration of Slovenia‟s independence, led to an unforeseen economic crisis in the Slovenian iron industry. The loss of the traditional markets in former Yugoslavia, and the unpreparedness for international competition, heralded major troubles for Slovenian steel-making. In 1991 and 1992 the Government of the Republic of Slovenia passed a renovation and restructuring programme for the Slovenian steel industry in three stages: nationalisation – renovation – privatization. With the nationalisation in 1991 the Republic of Slovenia became the only holder of Slovenske Ţelezarne. In March 2007 the privatization process was concluded, as the Republic of Slovenia sold 55.35 per cent of its shares in SIJ – Slovenian Steel Group to the Russian group KOKS. SIJ – Slovenian Steel Group is today the largest steel company in Slovenia, which maintains and develops the steel industry and is one of the key elements of Slovenian economic development. We will continue our orientation towards constant improvement of the technology, production processes and logistics, and we will also intensively build our own sales network to maintain and increase our market share in the EU and worldwide. Financial data
In Mio euro 2009 2010 2011 PRODUCTION OF CRUDE STEEL (t) 356,005 462,619 488,440 SALES (t) 352,614 498,331 563,446 REVENUES 371.2 590.9 765.0 EXPORT SHARE IN REVENUES 79.2% 82.7% 85.3%
EBITDA -8.0 40.5 64.2 EBITDA share in REVENUES -2.1% 6.9% 8.4% PROFIT BEFORE TAXES -34.1 4.4 21.5 NET PROFIT / LOSS -26.9 3.7 17.1 ROS -7.2% 0.6% 2.2% EQUITY 308.7 314.3 331.3
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RETURN ON EQUITY -8.7% 1.2% 5.2% EQUITY TO ASSETS RATIO 49.5% 42.5% 43.5% INVESTMENTS 72.4 46.7 56.3 SHARE OF INVESTMENTS IN REVENUE 19.5% 7.9% 7.4% AVERAGE NUMBER OF EMPLOYEES 3,345 3,321 3,321 Gearing ratio 50.3% 72.2% 63.6% Current ratio 1.61 1.32 1.16
Danfoss Trata The beginnings of Danfoss Trata date backto the year 1937, when Ţelezolivarna Franc Smole started operating in the fi eld of casting and machining of cast-iron products for industry and public utility services. In the years following the Second World War, the development in the fi eld of central and district heating installations brought about the development of production programmes of various regulation elements. 147
In 1957, the company was one of the founders of the company Industrijsko montaţno podjetje, IMP, and quickly spread its production programme to the field of electronic regulators and valves. In the beginning of the 1990's, the company had almost a 90% market share in the fi eld of district heating regulation and air-conditioning in the territory of former Yugoslavia.
Danfoss, a leading international company in the field of heating, refrigeration, and motion systems regulation, with the registered office in Denmark, became Trata‟s majority owner in 1995. One of the purposes of the takeover was the establishment of a competence centre for the development and production of district heating components in Slovenia. Therefore, Danfoss has invested in the development from the very beginning and has succeeded in consolidating the production of district heating components dispersed in its numerous factories throughout Europe.
Since 1995, Danfoss Trata has achieved significant results including exceptionally profi table growth, introduction of modern production principles and a highly developed supply chain. In 2003, Danfoss District Heating business unit started intensive expansion from the operation associated with components to the area of substations, it acquired and set up businesses in numerous countries in Europe and in China. Employees from Danfoss Trata have contributed significantly to the operation of the whole business unit, which in 2010 became a division and was renamed Danfoss District Energy.
In 2008, the company Danfoss Trata completed the renovation and expansion of its business and production premises in Ljubljana.
In 2011, due to closing down the production in Finland, development, logistics and production of heat exchangers were relocated to rented premises in Kamnik, Slovenia.
Today, Danfoss Trata is a successful development and production company in the field of energy efficient products and applications, providing solutions for efficient mitigation of climate change. Our employees live our ideas and strive to achieve our mutual goals.
Vision Danfoss Trata will be a top business and technology centre for district heating controls with employees who will be able to share their expertise and leadership skills in accordance with the requirements of the development of Danfoss.
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Financial performance of Acroni and Danfoss
Net profit :- Net profit is one of the most closely followed numbers in finance, and it plays a large role in ratio analysis and financial statement analysis. Shareholders look at net profit closely because it is the source of compensation to shareholders of the company, and if a company cannot generate enough profit to compensate owners, the value of shares will plummet. Conversely, if a company is healthy and growing, higher stock prices will reflect the increased availability of profits. CHART:-
INTERPRETATION: The net profit of the acronu company is increased in the year of 2011 in comparision of 2010
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The net profit of the danfoss company is decreased in the the year of 2011 in comparision of 2010. From this comparision we can say that the Acroni‟s performance is better than the danfoss.
Net sales :- The net sales of the company describe the sales made by a business organization in year deducting the sales return.
CHART:-
INTERPRETATION:- The net profit sales of the acroni company and the danfoss company is increased in the year 2011 in comparision of 2010. But the the pearformance of danfoss company is better than the Acroni company.
Return on equity :-
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Return on equity or return on capital is the ratio of net income of a business during a year to its stockholders' equity during that year. It is a measure of profitability of stockholders' investments. It shows net income as percentage of shareholder equity. The formula to calculate return on equity is:
CHART:-
INTERPRETATION: The return on Equity of Acrony Company for 2011 is 4.3 which is higher than 2010 which shows positive performance of the organization.
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The return on Equity of Danfoss Company is declining in the year 2011 from 2.06 to 1.45. From this we can say that performance of Acroni Company is better than the Danfoss Company.
9.2 Current ratio :- This is the most widely used ratio shows the proportion of current assets and current liabilities. It is also known as „working capital ratio‟ as it is a measure of working capital available at particular time.
The ratio is obtained dividing current assets by the current liabilities. It is a measure of short term financing strength of the business and shows whether the business will be able to meet its current liabilities, as and they mature. Remember that a liability which will mature within a period of 12 months is a current liability
FORMULATION:
Current Ratio =Current Assets / Current Liabilities
Where,
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Current Assets = Cash & bank balance+ stock + debtors+ B/R+ Prepaid expenses + loan & advance.
Current Liabilities = Creditors + B/P + Bank O/D + Unclaimed Dividend +Provision for IT + Proposed Dividend.
CHART:-
INTERPRETATION:- General norm for current ratio in India is 1.33:1 and internationally it is 2:1. Acrony Company not follows the norm of current ratio so its current assets are not as per the norm. Danfoss Company follows the norm of the current ratio so it may invest its current assets in the fixed assets if it is required.
CONCLUSION 153
The metal sector in Slovenia employs almost 20% of workers and makes about 15% of Slovenian GDP. Companies pertaining to the metal industry employ over 100,000 people and the metal industry‟s share of Slovenian exports amounts to around 70%. In Slovenian metal industry there are 2,400 companies, 51,537employees, 7.4 billion € of turnover, 5 billion € of export, 51,000 € value added per employee The performance and the market share of the metal sector is about more than 60% in the Slovenia and its contribution in growth of the Slovenia is higher rather than other sector. From the study of Slovenian metal industry we can say that it‟s an opportunity and growth for an investor to establish their business in the metal sector of Slovenia.
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SECTOR: 8 CHEMICAL SECTOR INTRODUCTION ABOUT CHEMICAL INDUSTRY IN SLOVENIA
Chemical industry is one of the support of the Slovenian economy It is very diverse and includes: • Narrow chemical industry (NACE 20) • The pharmaceutical industry (NACE 21) • Industry of rubber and plastic products (NACE 22) Total of 634 companies: 38 large, 39 medium, 72 small, 485 micro Total in 2009:25,300 employees 4.2 billion € revenue, 2.9 billion € of capital Generated 1.3 billion added value Average added value per employee is 63,400 € Chemical industries are in Europe among the most big and dynamic categories of firms. The most relevant aspect of these kinds of industries at a European level is the regulation, in particular for environment and health reasons. Chemical industries produce about the 30% of all chemical production in the world and for this they represent a very strong point for European economy. Productivity in industry 2006
Whereas, Slovenia among the eastern European countries is the most productive when examined the GDP per person employed in industry. In this sector there are about 26.700 employers and 250 companies.
The growth of this sector has due to the natural raw but also to the skills of the human resources. Over 8000 students are enrolled in chemical and scientific 155
undergraduate courses and about 7900 in the secondary school courses of chemical.
Production/Value added per Value-added per employee (in EUR) employee in 2006 Company Lek-Novartis 114.555,00 Krka 78.597,00 Istrabenz plini 74.770,00 Jub 65.269,00 Juteks 54.962,00 Etol 53.647,00 Belinka-Belles 47.863,00 The table shows also the most productive companies in chemical and pharmaceutical sector. Slovenia has a long experience in these two fields, in particular in processing base chemicals for various products. The position of this country is one of the best reasons for success. This is also the cause of being an export-oriented country. In fact the 66% of chemical and pharmaceutical sales are earned in foreign markets. Some number can complete the specific overview for this sector in Slovenia: Revenue: 4.35 billion (EUR) Exports: 3.11 billion (EUR) Key export markets (most important): Austria, Germany, Italy, Usa, Russian Federation, most part of the eastern county etc. (AJPES, 2007) As a conclusion Slovenia has a great potential in chemical and pharmaceutical sector. This advantage is exploited very well and this can be seen from the great number of revenues, in particular from foreign countries. Also the great skills of human resources in this field are very important and it is due to school preparation and to the long industrial tradition. SLOVENIAN CHEMICAL SOCIETY
The Slovenian chemical society established in 1951. The Slovenian chemical society was founded to unite all chemists and chemical engineers The Slovenia chemical society has 1300 members The society‟s aims are to: 1. Promote the science of chemistry 2. Further its application in industry 3. Unite all members into organized activities 4. Organize symposia, meetings, conferences & discussions 5. Contribute to professional advancement of the members
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6. Establish connections with other organizations active in the field of chemistry
Slovenian Chemical Society is a full member of : – The International Union of Pure and Applied Chemistry (IUPAC) – The European Association for Chemical & Molecular Sciences (EuCheMS) – The European Federation of Chemical Engineering (EFCE)and ORGANIZATION OF THE SCS
Divisions (2): Division of chemistry Division of chemical engineering & chemical technology Branches (2): Dolenjska branch Maribor branch: organizes on once a year basis the conference "Slovenian Chemical Days"
Commissions (2): Commission for Chemical Nomenclature & Terminology Commission for Chemical Education: members dynamically participate in the magazine "Chemistry at School“
STUDY OF CHEMISTRY IN SLOVENIA
University of Ljubljana: Faculty of Chemistry & Chemical Technology
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University of Maribor: Faculty of Chemistry & Chemical Engineering
University of Nova Gorica: School of ecological Sciences
Number of company’s Slovenian chemical industry for its segments
Narrow chemical industry 20% Pharmaceutical industry 2% Rubber industry 9% Plastic industry 69%
SALES
20% Narrow chemical industry 2% Pharmaceutical industry
9% Rubber industry 69% Plastic industry
Revenue of slovenian chemical industry for its segments
Narrow chemical 29% Pharmaceutical industry 38% Rubber industry 12% Plastic industry 21%
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Sales 21% 29% Narrow chemical Pharmaceutical industry 12% Rubber industry Plastic industry
38%
EXPORT-IMPORT DATA OF INDIA-SLOVENIA Department of Commerce Export Import Data Bank Export :: Country-wise
Dated: 10/4/2013 Values in Rs. Lacs
2012- S.No. Country 2011-2012 %Share 2013(Apr- %Share %Growth Dec) 1. SLOVENIA 108,597.55 0.0741 113,785.61 0.0967 India's Total Export 146,595,939.96 117,717,591.15
Dated: 10/4/2013 Values in Rs. Lacs
S.No. Country 2010-2011 %Share 2011-2012 %Share %Growth 1. SLOVENIA 85,230.28 0.0746 108,597.55 0.0741 27.42 India's Total Export 114,292,192.18 146,595,939.96
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Dated: 10/4/2013 Values in Rs. Lacs
S.No. Country 2009-2010 %Share 2010-2011 %Share %Growth 1. SLOVENIA 91,744.36 0.1085 85,230.28 0.0746 -7.10 India's Total Export 84,553,364.38 114,292,192.18 35.17
Export Import Data Bank Import :: Country-wise
Dated: 10/4/2013 Values in Rs. Lacs
2012- S.No. Country 2011-2012 %Share 2013(Apr- %Share %Growth Dec) 1. SLOVENIA 71,941.25 0.0307 47,230.88 0.0239 India's Total Import 234,546,324.45 197,752,416.0
Dated: 10/4/2013 Values in Rs. Lacs
S.No. Country 2010-2011 %Share 2011-2012 %Share %Growth 1. SLOVENIA 41,995.47 0.0249 71,941.25 0.0307 71.31 India's Total Import 168,346,695.57 234,546,324.45 39.32
Dated: 10/4/2013 Values in Rs. Lacs 160
S.No. Country 2009-2010 %Share 2010-2011 %Share %Growth 1. SLOVENIA 55,775.26 0.0409 41,995.47 0.0249 -24.71 India's Total Import 136,373,554.76 168,346,695.57 23.45
HELIOS GROUP company
HELIOS, Tovarna barv, lakov in Company: umetnih smol Količevo
Količevo 65, 1230 Domzale, Seat: Slovenia
Legal-org. form: limited liability company
20.12.1989, the District court in Registration: Ljubljana, number of entry 10447300
Registration number: 5043212000
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Tax number: SI45984794
Activity code: 20.300
Transaction account: NLB 02300-0014845089
Phone: 01 / 722 40 00
Fax: 01 / 722 43 10
E-mail: [email protected]
Internet: www.helios.si
Number of employees: 857 (as of 31.12.2010)
SOCIAL RESPONSIBILITY
Helios nurtures a responsible and partnership relationship towards the social environment and individuals, as it is indicated within the company and outside.
The drive for these activities represents numerous projects for keeping contact with nature, charitable efforts, sports events etc. Further to wilful orientation to society, our activities are also directed outwards and they are focused on satisfaction of employees‟ trends and interests of their families, provided by the well known business excellence systems.
Fund for keeping Slovene rivers clean
Helios‟s fund was founded in 1998. In partnership with the Ministry for environment and spatial planning we directed our activities into renovation of 162
wells and cleaning of Karst caves. In 2004 we introduced also the pupils of elementary schools into this project.
Renovation of sports facilities
In 1999, at Helios we started to co-operate with the Olympic committee of Slovenia. With joint efforts we constantly dedicate ourselves to renovation of different sports facilities and thus contribute to improvement of sports infrastructure for present and future generations.
Basketball club Helios Domţale
In view of the social responsibility and intergration with the environment we have been for more than 30 years a proud main sponsor of the domestic basketball club, which became a state champion in the first Slovene league in 2007. The mutual successes inspire us with optimism and confirm that our efforts contribute to the success of a wider social sphere.
PRODUCTS OF THE COMPANY
MOBIHEL : advanced car refinishing coatings i) CLEANERS ii) PE PUTTIES iii) PAINTING OF PLASTICS iv) PRIMER AND FILLERS v) MOBIHEL FADE OUT
WOOD COATINGS Machinery Steel constructions Metal reservoirs Containers
METAL COATINGS Interior furniture Exterior furniture Oils and waxes
ROAD MARKING PAINTS At Helios, the paints for straight road marking represent a special production-sales segment.
POWDER COATINGS Powder coatings are a mixture of resin, colors and additives which, in the production process are mixed, extruded, ground and packed as powder in plastic bags in boxes.
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BUILDING COATINGS Construction coatings in HELIOS represent an important segment and a strong link with end users and professional users. Paints for interior and exterior surfaces of this segment are specialized and intended for the bottom, wall and ceiling wall surfaces. The correct and effective painting of these surfaces requires systematic work, that means that for a good and durable result a certain painting procedure should be followed. In accordance with this we divided our production-sales programme into several areas; each is directed to its segment of treatment of surfaces. You can see the correct procedures for the treatment of different I. Impregnations II. Putties III. Interior wall paints - white IV. Interior paints for high wear wall surfaces V. Interior decorative coatings VI. Interior coatings for special purposes VII. Biocide preparations VIII. Façade paints IX. Plasters
X. Paints for concrete
SYNTHETIC RESINS The production of synthetic resins is intended for sale as well as for internal use inside Helios Group. The wide production programme covers two main application areas: • coatings; • resins for PU systems (soft foams); - resins for electric insulations (in smaller quantities).
GROUP SALES BY REGION
Country Sales Slovenia 9% former yu countries 21% eu markets 36% cis countries 32% Other 2% 164
GROUP SALES BY SEGMENT
Segment Sales Decorative coatings 23% coatings for industry 29% car refinishing coatings 13% Road marking 5% Synthetic resins 28% Other 3%
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INCOME STATEMENT OF LAST TWO YEARS
Data in EURO
MILLION € FY2011 FY2012 GROWTH
Sales 337.5 337.7 0.059259
EBITDA 22.60% 26.8 % 18.58407
Margin 6.70% 7.90% 17.91045
EBIT 790.00% 9.4 18.98734
Net income 1.3 4.4 238.4615
EPS 4.8 15.9 231.25
N.Debt/Ebitda 3.4 3.2 -5.88235
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TREND STATEMENT ANALYSIS
in
EUROOO YEAR 2007 2008 2009 2010 2011 Revenue 100 13.507 -14.596 -3.4128 8.25219 Cost of goods sold 100 12.835 -16.213 -4.6885 10.1197 Gross profit 100 15.745 -9.2103 0.8345 2.03424 Selling and marketing costs (including depreciation and 100 23.669 4.8172 19.321 26.19 amortisation) Administrative expenses (including 100 38.514 31.566 22.514 4.3279 depreciation and amortisation) Other income 100 253.07 486.68 84.95 61.9287 Financial income from investments 100 -46.848 -52.17 -58.059 -49.771 a) Income from investments in 100 163.73 152.87 271.93 -37.7049 associates and joint ventures b) Income from investments in other 100 -26.316 -87.281 -91.667 242.982 companies c) Gains from investment disposal 100 153.75 140.31 -77.003 214.212 Financial income from loans and 100 52.588 50 124.95 99.4824 operating receivables Finance costs for investment 100 41.4 -72.1 306.8 308.8 impairment and write-offs Finance costs from financial 100 103.89 47.985 -16.201 8.53951 liabilities Finance costs from operating 100 1960.1 312.23 118.62 115.426 liabilities Profit before income tax 100 141.99 236.19 21.088 32.3263 Income tax expense 100 -26.302 -12.932 -85.81 -67.3493 Deferred income tax 100 -368.85 -146.62 -305.23 -158.606 Net profit for the year 100 114.51 120.98 94.006 5.91483 Attributable to :- Equity holders of 100 -56.417 -82.181 -78.758 -86.6787 the parent - Non-controlling interests 100 4782.8 -1017.2 324.14 508.621 Earnings per share basic and 100 -61.538 -84.615 -80.769 -88.4615 diluted (in EUR)
GROWTH OF LAST TWO YEARS
Data in EURO
Million€ FY2011 FY2012 GROWTH
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Investments 25.3 23.7 -6.32411 Cash 22.4 9.9 -55.8036 Debt 125.1 118.8 -5.03597 Net debt 77.4 85.2 10.07752 Equity 200.1 195.1 -2.49875 0.217984 Assets 367 367.8 FIN. D/E 62.50% 60.90% -2.56
FIN. D/A 34.10% 32.30% -5.27859
N.Debt/EBITDA 3.4 3.2 -5.88235 Findings • Chemical industries are in Europe among the most big and dynamic categories of firms. • Chemical industries produce about the 30% of all chemical production in the world and for this they represent a very strong point for European economy. • Slovenia among the eastern European countries is the most productive when examined the GDP per person employed in industry. In this sector there are about 26700 employers and 250 companies. • In fact the 66% of chemical and pharmaceutical sales are earned in foreign markets. It has 38% revenue from the pharmaceutical industry and 21% revenue from the plastic chemical industry.
Conclusion • As a conclusion Slovenia has a great potential in chemical and pharmaceutical sector. • This advantage is exploited very well and this can be seen from the great number of revenues, in particular from foreign countries.
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• Also the great skills of human resources in this field are very important and it is due to school preparation and to the long industrial tradition. • SLOVENIA has better business environment and their legal rule and regulations are liberal to start a new business. • Chemical industry is one of the pillars of the Slovenian economy because about 21% revenue is generating from the chemical industry of the Slovenian country. • However, the import and export between the INDIA and SLOVENIA is also shows that INDIA‟s import from SLOVENIA will be more than the export. • It will be good sign of growth in the trade of SLOVENIA. It shows that SLOVENIA will export more to INDIA than then import.
SECTOR:9 TOURISM INDUSTRY OVERVIEW OF THE TOURISM INDUSTRY The Central European nation of Slovenia offers tourists a wide variety of landscapes in a small space: Alpine in the northwest, Mediterranean in south-west, Pannonia in the northeast and Dinaric in the south-east. They 169
approximately correspond to traditional regions of Slovenia, based on the former four Habsburg crown lands (Carniola, Carinthia, Styria, and the Littoral). Each offers its own natural, geographic, architectural and the cultural specificities.
The proposal for conservation dates back to the 1908, and was realized in the 1924. Then, on initiative taken by Nature Protection Section of the Slovene Museum Society together with the Slovene Mountaineering Society, a twenty year lease was the taken out on the Triglav Lakes Valley area, some 14 km. It was destined to become an Alpine Protection the Park, however the permanent conservation was not probable at that time. In year 1961, after many years of the effort, the protection was renewed (this time on a permanent basis) and somewhat enlarged, embracing around 20 km. The protected area was officially designated as Triglav National Park. Under this act, however, all objectives of a true national park were not attained and for this reason over the next two decade, new the proposals for expansion and rearrangement of the protection were put forward. Finally, in year 1981, a rearrangement was the achieved and the park was given a new concept and enlarged to 838 km the area it continues to cover to this day. Today there are 249 tourism destination and 1002 hotels are there.
TOURISM IN SLOVENIA
Tourism in terms of content upon Slovenia's accession to EU. Among eleven competitors, Imago agency's Slovenia Invigorates was chosen. This was the beginning of first main joint publicity the campaign, by way of which Slovenia required to position itself abroad as a country that the surprises, invigorate and enriches European Union. The slogan Slovenia invigorate represent the first attempt involving the use of a uniform slogan not only in tourism, but in all the other area. Slovenia has a number of highly qualified travel agencies that can help make your trip to Slovenia a smooth the experience. All agencies on our list have a lot of years of experience in accommodating foreign visitor. They can make all essential reservations for you, and they also the offer other service, such as the transport, tours, excursion, all kind of the ticket sales and special programmers. The agencies on the list are for the most part larger Slovenian the operators, who are the better equipped for the service foreign visitors and are 170
also known to inspire the trust. Some also have representative of the offices abroad. In 2006, this slogan gave way to the new slogan I feel the Slovenia, which is in use the today. Between the year 2006 and 2010, the brand I feel the Slovenia was primarily used in the tourism. In this area, the use of brand was constantly implemented both visually and in terms of content. In 2010, the brand – particularly in terms of visual elements – was also introduced into other areas, for example in the area of sport, where it was included in major sport events, such as the Winter Olympics, the Football World Cup and the Basketball World Championship.
Tourist Industry
Tourism and welcome Chamber of the Slovenia comprises 2,400 members, two thirds of them being companies and one third independent entrepreneurs.
The activities linked with hotel and restaurant sectors (both companies and independent entrepreneurs) all together represent a 68 percent share in the tourist industry, the share of travel agencies and travel organizers amounts to 15 percent, the share of other sports activities to 7 percent while gaming activities represent a 10 percent share.
As is the case in the European Union, small companies (with up to 50 employees) prevail in the sector of the tourism, hotel industry and restaurants, their the total share amounting to the 98 percent. company pertaining to tourism, hotel industry and restaurants sector have on the average of 9 employees. Nearly a third of all people employed in this sector works in small companies.
Innovative Slovenian tourism
Slovenia is full of unique, strange, interesting, new and innovative things. Sometimes Slovenia just happens to come across the providers of innovative the experience, and sometimes they are hiding in the remote places that tourists rarely the visit. Everyone who is travels through the Slovenia in search of special experience should visit the winners of the Sejalec and the Snovalec awards. They are most innovative the Slovenian tourist products and providers of tourist services, which have been the methodically selected at a national level since 2004.
Experience the innovative Slovenia! Innovation is one of the most important human behavior. Innovations are key factor of the 171
development, and tourism is the no exception. This also apply to Slovenia‟s tourism. To be the innovative or not in tourism is no longer question. The question is how to be most innovative.
The Slovenian Tourist Board has given great importance and role to innovations in tourism for the many years. Thus, since 2004, those who is contributed the most to innovation in Slovenian tourism were presented with the Sejalec award for the best realized innovative tourist products in Slovenia. In year 2009, the Snovalec award was introduce in addition to the Sejalec award, with which the most promise tourist the ideas are financially and promotionally stimulated.
Apart from visiting individual winners of the Sejalec and the Snovalec awards, you can join the travels organized by the tourist agencies that connected the award-winning products in the tourist packages under the name Innovative Slovenian travels.
Since 2004, the Sejalec award has been presented to the most innovative tourist products and providers of tourist services at a national level. Visit best of the best innovation in Slovenian tourism yourselves!
The Slovenian Tourist Board has a given great the importance and role to innovations in tourism for many.
The development of innovative tourism in Slovenia has been supported with the Snovalec award since year 2009. Every year, several promise the tourist ideas are award. Some of them already await you! Since year 2009, the realization of the most promising tourist ideas has been made possible by presenting the Snovalec award.
Sava Group Škofjeloška c. 6, 4000 Kranj, Slovenia Tel: +386 4 206 50 00 Fax: + 386 4 206 64 46
E-mail: [email protected] www.sava.si
About the Sava Group The Sava Group incorporates the following divisions: • Investment Finance
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• Tourism • Other Operations
The Sava Group employs about 1,100 associates, mainly in the Tourism division. As outlined in the restructuring strategy of Sava until 2014, divestment processes will continue in 2013 too, what will show in further remodeling of the Sava Group. Sava Tourism d.d., Bled, is the biggest provider of tourist services in the Slovenia. The division operates under common brand name Sava Hotels & Resorts and comprises five destination the division includes the company Sava TMC d.o.o., Kranj, which owns and leases tourist real properties. The Tourism division markets hotel, health and other tourist services, as well as the golf course and campsites of the highest category. Owing to the sustainable-oriented development of the division much importance is given to interaction with a narrower and broader environment. MAJOR TOUR PACKAGES IN SLOVENIAN TOURISM
Slovenian weekend (3 day tour price) GROUP (PUBLIC) TOUR o Min of 2 persons: from 199 € / person
PRIVATE TOUR o Min of 2 persons: from 389 € / person o Min of 4 persons: from 255 € / person o Min of 6 persons: from 189 € / person o Min of 12 persons: from 145 € / person o Min of 15 persons: from 135 € / person
ABOUT OTHER OFFERS
Accommodation in HOSTEL (double room) with breakfast (2 nights)
Karst & Coast tour (full day)
Alpine fairytale tour (full day)
Sightseeing tour with train ride or funicular,
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Transport from/to Airport,
Touring by modern A/C coach,
Professional English speaking guide.
FOR PRIVATE TOURS
Private tours include private transfers and private guiding according to program.
Additional night in hostel (double room): 33 € / night Supplement for 3-star hotel (double room): 30 € / person Additional night 3-star hotel (double room): 45 € / person / night Supplement for 4-star hotel (double room): 75 € / person Additional night in 4-star hotel (double room): 63 € / person / night
Slovenian weekend (5 day tour price)
GROUP (PUBLIC) TOUR o min of 2 persons: from 329 € / person
PRIVATE TOUR o min of 2 persons: from 609 € / person o min of 4 persons: from 399 € / person o min of 6 persons: from 309 € / person o min of 12 persons: from 299 € / person o min of 15 persons: from 279 € / person PRICE INCLUDES
Accommodation in HOSTEL (double room) with breakfast (2 nights) Karst & Coast tour (full day) Alpine fairytale tour (full day) East circle tour (full day) Sightseeing tour with train ride or funicular, Transport from/to Airport, Touring by modern A/C coach Professional English speaking guide.
FOR PRIVATE TOURS
Private tours include private transfers and private guiding according to program. Additional night in hostel (double room): 33 € / night Supplement for 3-star hotel (double room): 60 € / person
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Additional night 3-star hotel (double room): 45 € / person / night Supplement for 4-star hotel (double room): 150 € / person Additional night in 4-star hotel (double room): 63 € / person / night.
ANALYSYS OF TOURISM OF SLOVENIA
The Slovenian Tourist Board, along with the competent authorities for the development and promotion of tourism, at a press conference on World Tourism Day, presented the starting points of the new strategy of the development of Slovenian tourism for the period 2012-2016 as well as the programme guidelines in the area of promotion in 2012 on the basis of the data on Slovenian tourism in the first seven months of the current year, 2011 was determined to be a successful tourist year. According to the final data of the Statistical Office of the RS, 6% more arrivals and 5% more overnight stays of tourists were recorded in the first seven months of the current year in comparison with the same period last year, whereby 9% more foreign tourists visited Slovenia and generated 10% more overnight stays. If they focus only on July, 6% more arrivals and 4% more overnight stays were recorded this year in July in comparison with July 2010. Temporary data for August indicates a continuation of positive growth trends. In August, the growth of arrivals was even higher (9%), while there were 7%more total overnight stays in comparison with August 2010. Therefore, the Slovenian Tourist Board has not only achieved, but exceeded this year`s plans in the area of the growth of tourists and their overnight stays. This growth actually exceeds the growth of the number of foreign tourists on the European and global level. It is also delightful to note that the income from tourism in the first seven months of this year was 8% higher in comparison with the same period in 2010. In the first seven months of this year, Slovenia recorded a balance of payments in the area of tourism in the amount of 670,805,000 EUR (last year 525,546,000 EUR). The Slovenian Tourist Board estimates that positive data is also a result of the concentration of promotion on the key markets of Slovenian tourism in connection with the partners of the Slovenian tourist economy. The Slovenian Tourist Board has also actively oriented towards target and harmonized addressing of key target groups and the increase of the recognisability of Slovenia and its tourist offer, which will also function as a guideline of the Slovenian Tourist Board in its activities in 2012.
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Opportunities of tourism business in Slovenia
INVEST IN SLOVENE TOURISM
Slovenia is allowing you to present a small country but big enough to boast many natural beauties: sunny Alps, the Adriatic Sea, the dynamic Karst and enchanting Pannonian Plain. Slovenia offers the experience of rich forests, breathtaking rivers, and lovely hills with terraced vineyards, mysterious underground caves, lively cities and rich cultural heritage. Slovenia is a very clean and safe country where you can drink water from the tap but Slovenia would gladly offer you a glass of delicious wine.
Tourism has been progressively developing in Slovenia, and tourist activities are developing faster than other economic activities, implying that the importance of tourism to the economy continues to increase.
In 2006, the share of tourism in the national GDP was estimated at 5.5%, excluding, however, the numerous indirect effects existing in tourism. With regard to the fact that the share of tourism in GDP has increased and continues to grow, this also signifies the increasing importance of tourism in Slovenia on the one hand and stronger competitiveness of Slovenian tourism on the other hand.
Slovenia believes that these figures are also the result of the active policy of the Ministry of the Economy and its Tourism Directorate, through their financial incentives as well as numerous "softer" projects raising the quality of tourism.
At the Ministry of the Economy Slovenia have completed the cycle of investments in tourism infrastructure from the previous financial period, providing EUR 50 million to support 36 projects, and have now commenced a new investment cycle. In the 2007–2013 period, an amount as high as EUR 145 million will be allocated to tourism infrastructure development – because Slovenia believe in tourism!
Slovenia would like to take this opportunity to invite you to invest in Slovenian tourism. There are numerous new investments planned in the field of Slovenian tourism. Some of the most prospective are here presented to you. They are in different stages – some still in conceptual designs, while for others building permits has already been obtained.
Slovenia wish to acquaint you with projects ranging from golf courses, hotels and wellness centres to castles - situated in different parts of Slovenia. You are kindly invited to examine them. Slovenia trusts that some will draw your attention.
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The key words best describing Slovenia are: extraordinary country and friendly people; however the best way to really discover the country is to visit us and experience it! Here you are never more than a short trip away from the next natural beauty or sight of interest!
2012-2016 SLOVENIAN TOURISM DEVELOPMENT STRATEGY
The objective pursued by the Ministry of Economic Development and Technology in drafting the document for the period 2012-2016 was to design an efficient development model of Slovene tourism for the defined period that would provide an optimum method for evaluating all key attributes and potentials of Slovene tourism.
In drafting the Tourism Strategy, all principal stakeholders and the relevant interested public in Slovenia are included in the process. In its final phase, this document should represent a harmonized text from all participants of tourist interests in the country, i.e. from the public, private and civil sector.
The proposed development strategy of tourism in the envisaged period from 2012 until 2016 is based on a detailed analysis of the internal and external environment, and on the consideration of the latest trends in the development of tourism. From this analysis, the vision, fundamental objectives, corporate and business strategies, as well as policies with the envisaged measures and activities for the achievement of the basic strategic objectives were derived.
For the purpose of continuously monitoring the implementation of basic strategic objectives, this document also anticipates the establishment of an efficient evaluation and implementation supervision system covering the Slovenian Tourism Development Strategy.
The 2012-2016 Slovenian Tourism Development Strategy is the key strategic document in the field of tourism development and sets out the role and the importance of individual stakeholders in this field, defining them as true bearers or participating parties in the implementation of particular tasks.
SUMMARY/CONCLUSION Slovenia has been deeply affected by the global crisis, but is now recovering gradually along with the rest of the OECD area. Reforms of the education system and policies to promote innovation. The region has achieved very high level of IS adoption and phenomenon such as post-implementation of ERP.
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EMPLOYMENT- In 2012 Travel & Tourism directly supported 33,000 jobs.
Travel & Tourism investment in 2012 was EUR673.
SECTOR: 10 INFRASTRUCTURE SECTOR
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Introduction
In the last 15 years the volume of transport on Slovenian transport network increased considerably in passenger as well as goods transport. In passenger transport particularly national road transport involving cars increased, followed by the air passenger travel. In freight transport road traffic has increased the most, mainly due to increased international goods flows in directions of the Corridor V and Corridor X (which happened following the accession of several eastern European countries to EU and an increase in international trade exchange).
The actual expansion of infrastructure was rather uneven, as in the last 15 years most of activities were realized in the area of road (highway) infrastructure, which was to provide an effective integration of Slovenia in international (road) transport infrastructure connections; there was actually no development and construction of rail infrastructure as the activities were limited only to minimum maintenance work.
These two modes of transport – their efficiency directly depends on the extent and condition of built infrastructure, are of essential importance for the efficiency of national freight and passenger transport as well as international transport, goods transit in particular.
The significance and prospective of the location are further emphasized by placing several important transport connections over the Slovenian territory. The most important one are passageway V and passageway X, which actually cross in the city of Ljubljana. Such a transport location requires establishment of an efficient transport network, while on the other hand provides situation for further increase of (particularly transit) freight traffic.
Objective development of transport infrastructure is of crucial importance for planning and understanding of traffic, on a national as well as on international level, and particularly in transit. These activities should be consistent with the principles of sustainable development and transport.
Infrastructure
Transport Infrastructure
According to the National Motorway Construction Programme in the Republic of Slovenia in the period 2003-2013, EUR 3.5 billion is being to be paid to the construction and modernization of the road network (motorways, public roads and railway system). 179
1. Road network
The motorway density in Slovenia is higher than EU-27 average. The links with the neighboring EU Member States and the southeast Europe is equally good as well. In other words, you will easily reach Slovenia from anywhere in Europe by car or lorry within a day or two. percentage of motorways compared to the total road network
COUNTRY Germany Slovenia Austria Belgium UK Slovakia Czech rep Hungary Poland Proportion 1.85% 1.50% 1.50% 1.20% .85% .85% .50% .45% .25% Source: European Union Road Federation (ERF);
Implementation of the National Motorway Construction Programme began in 1994 when Slovenia had less than 200 km of motorways. Currently, there are about 675 km of well-maintained motorways and around 800 km of trunk roads. In the period from 1994 till the end of 2011, 530 km of motorways, expressways and other roads have been built. The completion of the complete motorway network is scheduled for 2013.
2. Railway network
As railway service is regaining its importance, infrastructure modernization on the Pan-European Transport Corridors No. V and X is one of national priority. Goods traffic is well urbanized, and the rail links between the Adriatic Sea and the landlocked CEE countries offer plenty of opportunity. The density of the rail network in Slovenia is above the average density of EU-15 countries.
The broad network of railway lines enables door-to-door cargo transport services and the shunting yard in Ljubljana guarantees quick transport across Slovenia.
Both freight and passenger service with southeastern Europe has grown over the last few years.
The national rail operator Slovenian Railways (SŽ) runs both passenger and freight service and operates railway infrastructure including 60,000 m2 of warehouses. It also provides mutual transport services, and has container terminals in Ljubljana, Maribor and Celje. In 2010, Slovenian railways transported 17.3 million tons of goods and its trains travelled 3,617 million net ton kilometers.
National and international railway goods transport (1000 tons), 2009- 2010
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Source: Slovenian Railways, 2012
3. Maritime transport
Maritime cargo throughput in the port of Koper, 2000-2010 (in 1000s of tons)
The Port of Koper, the largest of Slovenia's ports, represents the southern gateway to global commercial links between Europe and overseas. It lies on the shortest transport path linking commercial centers in Central and Eastern Europe with Mediterranean countries and countries along the Suez Canal. transport to the Port of Koper means gaining 7 to 10 days for ships arriving from Asia compared with sailing Europe‟s northern ports. Your cargo will be in Vienna, Munich or Prague in 24 hours or in two days‟ time in Warsaw, Copenhagen or London. These facts have contributed to the development of the Port of Koper into a logistical and distribution centre significant at all times.
There are currently 11 modern and fully equipped terminals specialized for various types of goods. Port of Koper has also inside and outside warehouses for general cargo and several special warehouses:
Companies can enjoy special advantages in the port‟s economic zone, which expanses over an area of 4.7mn km and features 324000m2 of covered and sheltered warehouse facilities and slightly less than 1 mn m2 of open-air storeroom. With its total range of high-quality basic and additional port services, definite by acquisition of the ISO 9001 quality certificate, as well as with all the reward offered by the port‟s economic zone, the port of Koper establishes opportunities for industry success. In making contacts, it also offers logistical, marketing, financial, information and investment support. 181
The Port of Koper also pays great attention to the surroundings. An ecological management system was therefore introduced in accordance with ISO 14001 standards.
In the year 2008, the Port of Koper set a new record as the maritime throughput achieved the mark over 16 million tons. The facts for 2010 (15.4 million tons) showing signs of recovery.
At present the port is considering further expansion and is also debating the possibility of expanding the railway network in the region, which could lead to a further increase in business.
4. Air transport
Ljubljana Jože Pučnik Airport, 25 km from the capital is the main Slovenian airport for passengers and goods. It is the sixth largest passenger airport in the new EU-12 members. The airport has been newly renovated, its infrastructure complete and the cargo terminal restructured. Regular and charter flights carry passengers to all important European destinations.
Ljubljana Airport in figures
2006 2007 2008 2009 2010 passengers 1,334,355 1,524,028 1,673,050 1,433,855 1,388,651 Cargo in 15,308 21,717 17,188 14,333 17,310 tons
Source: Ljubljana Airport, 2011
Maribor Airport mostly handles cargo transportation whereas Portorož Airport has facilities for smaller planes only.
The national carrier Adria Airway member of the Lufthansa group Star Alliance boasts a modern task force of aircraft. In 2010, Adria Airways carried near 1.2 mio passengers and 1,850 tons of freight traffic.
In conclusion the following SWOT study can be prepared for the transport sector in Slovenia. Energy
Despite the fact that Slovenia is completely dependent on the import of liquid and gas fuel, with 48 per cent in 2010, the country‟s energy dependence was 4.9 proportion point below the EU-27 average and the reason for classifying Slovenia among the Member States with medium dependency.
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The use of diesel fuel doubled in the last ten years, which the statistical office of the republic of Slovenia ascribes to an expansion of passenger transport and even more so of cargo road transport.
Slovenia covers 81 per cent of its needs for Country Percentage hard fuels through domestic production and of supplied almost of its needs for energy from renewable sources. The share of electricity created in Slovenia from renewable sources was 30 per cent in 2010; the number stayed at the same level as a year before.
Power generated by hydro power plants still accounts for some 95 per cent of power generated in Slovenia from renewable sources, and the waste – and biogas-fired power plants are still rare.
Final energy consumption in Slovenia is rising
In 2010 in Slovenia the final energy consumption increased for 3 % compared to 2009.
The increase of total final energy consumption was mainly influenced by higher consumption of renewable energy sources by 10%, heat by 7%, electricity and natural gas by 6%. Again, the second consecutive year the consumption of liquid fuels decreased, namely by 2%. While the use of transport diesel remained about at the same level as the previous year, the use of motor gasoline in 2010 decreased by 5%. Consumption of bio fuels (biodiesel and bio gasoline) for transport in 2010 increased by 53% compare to 2009, but the total use of both fuels still accounted for only 2.5% of total energy consumption in transport. the last decade. The share of hydro has increased to 26 per cent from 25.7 per cent.
GUJARAT: The Responsibility to expand the power part is not only of the private entrepreneurs but the Government is not in the situation to create more savings for growth of power sector due to limited resources. Apart from that shortfall of electricity has not been satisfied due to other reason as well asthe quick industrial 737‐ Narmada College of Management ‐ Bharuch development. Hence the Govt. is making hardwork to attract more investment from private enterprise in the power sector.
Utilities 1. Natural gas
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Slovenia depends approximately entirely on Russia 48 natural gas supplied from abroad, as it has only Algeria 29 about one percent of its own gas sources. Austria 17 Italy 5 The connections of the Slovenian pipeline system with the neighboring countries of Italy, Austria and Croatia are one of the reward of Slovenia‟s geographical position.
The market of natural gas
In Slovenia the participants of the natural-gas market include the traders and suppliers delivering natural gas to customers.
The opening of the natural-gas market presents the option to choose the supplier of natural gas. A consumer that wishes to switch supplier can be supplied with gas by any supplier working in Slovenia, while the transmission or distribution of natural gas will still be supplied by the current system operator.
Connecting to the gas network
Making a connection to the gas network is a task of the system operator. The customers wish to join to a gas distribution network have to obtain a connection approval from the distribution system operator in the area in which they live, or in which the construction require a network connection is located.
Prices of natural gas in Slovenia
The gas prices for qualified customers are set by the market and are the subject of negotiations or agreements between the suppliers and eligible customers.
The final cost for the supply with natural gas consists of three elements:
the value for the use of the networks the price for the natural gas The excise duties, the value-added tax, as well as other taxes.
Natural gas prices by type of industrial consumer (EUR/GJ; all taxes included), 1st half of 2011
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Source: Statistical office of the Republic of Slovenia 2012 2. Water distribution and sewage collection and disposal
The public services of the supply with water intended for human consumption (drinking water) and collection and disposal of waste water and meteoritic water is carried out by public companies on the basis of authorities granted by local communities. These compulsory economic services are operated by using the public infrastructure under their management.
For every new services (utility) connection or a modification to the existing one it is necessary to apply to the operator of the service for approval. The agreement to connect to the service is issued on the basis of a previously prepared house connection drawing made by the public company against a fee.
Prices for water and sewage services for business entities in the largest municipalities, February 2012
Charges for drinking water service
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The quantity of water used is the basis for billing consumers on a monthly basis. In adding, the charge for the water service and the network charge are included in the bill based on the scale of the water meter plus the value-added tax (VAT).
Charges for waste water
Sewage fee is also charged on the basis of the water supplied. On top of the base fee for collection, action, cleaning and discharge, the environment load duty, network charge and VAT are added.
Charges for services provide to industrial customers
The methodology for the collection and separation and purification of industrial effluents/waste water, processing of liquid waste and slush is adjusted to the profile of the industrial consumer. Business customers are entity discharging over 4,000 m3 of effluent/misuse water annually and/or are payers of the fee for monitor industrial waste water due to the nature of their activity. Industrial effluent/misuse water means additional load on municipal waste water (sewage) treatment plants. Public companies come into contracts with industrial customers to collect and treat effluents/industrial waste water and the charge for this waste water service is calculated in line with the approved methodology for a particular public company.
3. Waste management
Rising incomes and population growth are putting pressure on water supplies and generating more waste. Authorities are having difficulty trying to meet demand for water and manage municipal and industrial misuse water.
When Slovenia became a full-fledge member of the European Union, its legislation governing the atmosphere protection had to be fully compliant with the EU legislation including special waste and dangerous substances management. Every small, medium-sized and big enterprise that engages in a specific activity where waste dumped without taking special measures could harm the environment, must take sufficient waste management steps.
Municipal wastes (household waste and similar commercial, industrial and institutional wastes) with separately collected fraction. According to the United Nations, a few 50 million tones of electronic goods (e-waste) are discarded every year and the EU‟s WEEE directive (Waste from Electrical and Electronic Equipment) aims to ensure that e-waste does not end up in landfill (producer take-back law).
Charge for disposal of municipal waste
The public service of disposing of waste is carried out by companies on the basis of authorizations granted by local communities. 186
Disposal of discharge of solid waste is billed on the basis of quantity (usually in cubic meters - m3) of waste in by taking into account the number of disposals per month. For the companies producing dangerous waste, special regulations apply R&D intensity (GERD as % of GDP), 2010
Source: Eurostat, 2012.
GERD financed by business enterprise and by government as % of GDP, 2010
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For the countries with established high R&D intensities, growth was exclusively driven by the business sector (Denmark, Sweden, Finland, Germany and Austria), whereas in Finland, Germany, France and Slovenia, government-funding also played an important role.
Gross domestic expenditure on R&D (GERD) as a percentage of GDP, 2000-2010
Source: Eurostat, 2012
Human resources for R&D
GERD, by source of funding, 2010 Researchers employed by main
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field of science, 2010
Source: Eurostat, 2012 Source: Statistical Office of the Republic of Slovenia
According to the survey on research and development there were 16,243 persons employed in 2008; the number of persons employed increased to 17,045 in 2009 and to 17,972 persons employed in R&D in 2010.
About us
DARS, Motorway Company in the republic of Slovenia is a joint-stock company. The company was established by law and entered in the companies‟ register on 7th dec. 1993. Since 1st January 1994, DARS d.d. has had its head office in Celje and a branch in Ljubljana.
By way of contract on 1st January 1994, the republic of Slovenia transferred the management of all existing motorways, as well as relevant infrastructure and plant, to DARS d.d. The republic of Slovenia transferred to DARS d.d. 198.8 km up –to-then built two-lane and four-lane motorways and expressways and 67.5 km of access roads to them. Thus, DARS d.d. has assumed the right to collect motorway tolls as a source of income necessary for the management and maintenance of slovenia‟s motorway network, as well as an important source for building new ones.
DARS d.d. in accordance with the new Slovenian Motorways Company Act approved in 2010:
on behalf of and for the account of the Republic of Slovenia performs individual tasks regarding spatial planning, implementation of motorways into space and tasks related to the acquisition of real-estate needed for the building of motorways; 189
on its behalf and for its account implements the building of motorways; Manages and maintains the motorway sections for which it acquires building concessions.
At the moment DARS manages and maintains a total of 606 km of motorways and expressways, 161 km of access roads and 27 km of rest areas.
MISSION, VISION, VALUES AND STRATEGIC ORIENTATION 1. The mission We ensure the socially responsible and efficient construction, management and maintenance of motorways and other infrastructure networks in the Republic of Slovenia and provide the conditions for their safe use.
The constant growth and development of the DARS dS.d. motorway company and its employees is encouraged by the systematic development of new business ideas
2. The vision Year by year, DARS d.d. has become a more successful and market-oriented learning company, developing and managing modern infrastructure networks, and working for the benefit of all stakeholders.
3. Corporate values Our core values are responsibility, efficiency, innovativeness and transparency.
4. STRATEGIC ORIENTATION Strategic partnerships with stakeholders
The Company systematically endeavours to develop strategic partnerships with all stakeholders to provide us with adequate conditions for optimum performance and long-term growth and development. Effective debt management The Company ensures stable and sustainable servicing of its obligations regarding debt (effective financial engineering for the successful management of debt).
Ensuring a smooth flow of traffic and safety on motorway networks
Through a professional approach and based on objective analyses, we ensure a smooth flow of traffic and safety on motorways and other road 190
infrastructure, and improve our organization and operational excellence in a continuously measurable and financially viable way. Systematic development and implementation of new ideas
We strive to develop new, market-oriented programmers with high added value in a systematic and sustain-able manner. Effective management of resources
We are endeavoring to manage all the resources of our business system as efficiently as possible - personnel, material, financial and information. The Indian Infrastructure Sector an Overview
General Overview
Over the past four years, the Indian Economy consistently recorded growth rates in excess of 8.5% per annum resulting in rapidly increasing infrastructure spending. Total infrastructure spending is expected to increase from US$ 24 billion in 2005to US$ 47 billion in 2009. (FICCI)
Total investment requirement in the infrastructure sector over the next five years is US$ 445 billion It is estimated that the Infrastructure Sector needs to grow at a CAGR of 15% over the next five years to support the growing requirements of virtually every other sector of the Indian Economy. With the objective of stimulating and mobilizing increased private sector investments, either from domestic sources or foreign avenues, the government has offered various incentives: Liberalization of FDI Regulations
Barring aviation, 100% FDI under the automatic route is now permitted in all infrastructure sectors. FDI under the automatic route is permitted up to 49% - 100% for various services in the aviation sector. Extended tax holiday periods
Under section 80-IA of the Income Tax Act, 1961, a ten year tax holiday is available to enterprises engaged in the business of development, operation and maintenance of infrastructure facilities, subject to compliance with the conditions prescribed therein. Introduction of Public Private Partnerships (PPP)
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Based on resounding global success, the government has introduced the concept of public-private partnerships in India, to combine the best practices of public and private sectors to efficiently develop and maintain infrastructure facilities. PPPs are aimed at inducing private sector participation in activities which might otherwise prove to be cost prohibitive e.g. development, operation and maintenance of toll roads.
The Industry has received an aggregate of US$ 6.6 billion in infrastructure investments over the past six years. (DIPP) The Government has indicated that the Indian infrastructure sector has the potential to absorb US$ 150 billion (including the power sector) in FDI over the next five years.
Sector Specific Opportunities Roads
India has one of the largest road networks in the world, aggregating to approximately 3.34 million kilometers.
The government has laid down ambitious plans for development and upgradation of the domestic road network. Private sectors participation through PPPs is being actively encouraged to achieve greater efficiencies in development, operation and mainteanance. It is estimated that the total investment requirement for development and upgradation of the country‟s road network over the next five years is approximately US$ 55 billion. Ports
India‟s coastline of 7,517 kilometers is spread over 13 stares and houses 12 major ports and 187 non-major ports. Traffic handling at these ports has been increasing at an average of 10% per annum over the past three completed financial years. Average turnaround time at the major ports is presently in the region of 35 days, as compared with 10 hours in Hong Kong – reflecting the potential or increasing the global competitiveness of our ports.
It is estimated that the total investment requirement for upgradation and modernization of the country‟s ports over the next five years is approximately US$ 12 billion. Airports
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Domestic and international air traffic over the past three financial years has been increasing at over 35% per annum.
It is estimated that the total investment requirement for expansion and modernization of the country‟s airports to counter the aforementioned traffic increases is approximately US$ 10 billion. Projects for upgradation, operation and maintenance for several major airports including the Delhi, Mumbai, Hyderabad and Bangalore airports are already in the process of being executed/ have been executed:
Airport Project executor Delhi GMR Infrastructure Mumbai Larsen and Tubro Hyderabad GMR Infrastructure Bangalore Consortium of privately held enterprises.
Private sector participation through PPPs has been the preferred mode of execution for the aforementioned projects. The Airport Authority of India has already firmed up plans for modernizing 35 other non-metro airports across the country.
Railways
Indian railways are the world‟s 2nd largest rail network under single management. Passenger traffic and freight traffic have been increasing at an average of 7% and 9% respectively over the last three financial years. By 2012, Indian railways expect to handle double the traffic it already handles. To scale up manufacturing capabilities sufficiently to meet the increasing flow of traffic, the total investment requirement for modernization and up gradation of the country‟s rail networks and rail infrastructure is approximately US$ 75 billion. Development of dedicated freight corridors, at a cost of US$ 7.5 billion, with the objective of easing the flow of freight traffic across the country are already in the process of being executed in accordance with the XIth five year plan.
As part of its modernization plan, the Government has presently identified 22 stations at metro cities and major tourist destinations for substantial upgradation and revamping through the PPP route. Telecommunications 193
India‟s telecommunications network is the third largest in the world, with more than 270 million existing connections and is expected to grow to 500 million subscribers by 2010. Wireless services have been growing at an impressive CAGR of over 87% per annum since 2003. The investment opportunity in areas such as network infrastructure, value added services sector etc. is estimated at US$ 76 billion. Development of telecommunication infrastructure presents substantial investment opportunities on account of the following reasons: i. Rapidly increasing telecommunication subscriber base, particularly on account of the increased affordability of mobile phones; ii. Technological innovations that have resulted in tariffs in India falling to among the lowest in the world– the government has recently announced subsidy benefits to telecom operators, the benefit of which is expected to be passed on to customers in the form of further reductions in tariffs; and iii. Increasing integration of the telecom sector with the IT sector (through development of telecom-specific software applications), as highlighted by the recent announcement made by the Telecom Regulatory Authority of India (TRAI) permitting mobile virtual network operators (MVNOs) to enter the Indian market.
Transportations sector
Indian Slovenian Aircraft departures 214,300 13,200 Ranked 19th. 15 times Ranked 81st. more than Slovenia Air transport, freight > 773.22 million tons/km 2.64 million tons/km million tons per km Ranked 29th in 2005. Ranked 109th in 292 times more than 2005. Slovenia Airports > with unpaved 103 9 runways > total Ranked 37th in 2010. 10 Ranked 135th in times more than 2010. Slovenia Motor vehicles 12 motor vehicles per 413 motor vehicles 100 p per 100 p Ranked 104th. Ranked 21st. 33 times more than India 194
Pipelines > Total length 18,546 km 2,537 km Ranked 16th. 6 times Ranked 59th. more than Slovenia Pipelines > Total length 26.8 km per $1 billion of 78.8 km per $1 billion (per $ GDP) GDP of GDP Ranked 76th. Ranked 47th. 194% more than India Pump price for diesel $0.70 $1.26 fuel > US$ per liter Ranked 130th in 2008. Ranked 48th in 2008. 80% more than India Quality of port 3.47 5.25 infrastructure, WEF > Ranked 88th in 2009. Ranked 27th in 2009. 1=extremely 51% more than India underdeveloped to 7=well developed and efficient by I Railways, goods 521,371 3,520 transported > million Ranked 4th in 2008. 147 Ranked 49th in 2008. ton-km times more than Slovenia Rail lines > total route- 63,327 1,228 km Ranked 4th in 2008. 51 Ranked 70th in 2008. times more than Slovenia Railways, passengers 769,956 834 carried > million Ranked 2nd in 2008. Ranked 55th in 2008. passenger-km 922 times more than Slovenia Railways > total 63,221 km 1,229 km Ranked 3rd in 2006. 50 Ranked 82nd in 2006. times more than Slovenia Speed limit > Speed 50-60 50 limits in specific countries > Within Towns Travel services > % of 16.83 % 48.16 % commercial service Ranked 125th in 2003. Ranked 68th in 2003. exports 186% more than India Vehicle abundance 2.5 per square km 45.12 per square km Ranked 85th. Ranked 19th. 17 times more than India
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In energy sector
Indian Slovenian Coal > Production 304,103,000 ton 6,000 ton Ranked 3rd in 1999. Ranked 60th in 1999. 50683 times more than Slovenia Commercial energy use 494.03 3,288.04 Ranked 100th. Ranked 32nd. 6 times more than India Electricity > Production 81.7% 35.2% by source > Fossil fuel Ranked 105th in 2003. Ranked 171st in 132% more than 2003. Slovenia Electricity > Production 14.5% 27.3% by source > Hydro Ranked 99th in 2003. Ranked 82nd in 2003. 88% more than India Electricity > Production 3.4% 36.8% by source > Nuclear Ranked 29th in 2003. Ranked 10th in 2003. 10 times more than India Gasoline prices 0.98 1.03 Ranked 78th. Ranked 69th. 5% more than India Geothermal power use 699 196 Ranked 15th. 3 times Ranked 26th. more than Slovenia Hydroelectricity 68.5 3.11 consumption Ranked 8th. 21 times Ranked 66th. more than Slovenia imports, net > % of 18.5 % 52.04 % energy use Ranked 72nd in 2004. Ranked 40th in 2004. 181% more than India Nuclear electricity 17.8 terawatt-hours 5.3 terawatt-hours generation Ranked 18th. 2 times Ranked 25th. more than Slovenia Nuclear reactors 14 1 operable Ranked 9th. 13 times Ranked 27th. more than Slovenia Nuclear reactors 1 0 planned Ranked 9th. Ranked 13th. Nuclear reactors under 8 0 construction Ranked 2nd. Ranked 16th. Nuclear waste generated -0.06 -0.35 196
Ranked 7th. Ranked 37th. Traditional fuel 20.7% 1.5% consumption Ranked 59th. 13 times Ranked 99th. more than Slovenia Uranium > Production 150 ton 2 ton Ranked 17th in 1992. 74 Ranked 24th in 1992. times more than Slovenia Wall plugs > Frequency 50 HZ 50 HZ Ranked 105th. Ranked 102nd. Wall plugs > Voltage 240 V 230 V Ranked 14th. 4% more Ranked 80th. than Slovenia
Conclusions
The infrastructures of Slovenia are well developed. Location of country is central of Europe so, for the trade purpose it is important location. The geographical location of Slovenia within Europe makes it an important transit country. Two TEN-T corridors cross the relatively small country. Transit traffic is high both on the motorways (approx. 15 and 30% transit traffic for respectively passengers and freight) and the port of Koper and connected railway linkages. The position of rail in freight transport is strong. The country is also relatively wealthy, expressing itself in high levels of car ownership. The country has embarked on an ambitious programme of motorway construction in the past which will be close to completion in the coming period. The current state of the rail network and state road network clearly deserves future attention. In the coming period stringent budget discipline has to be attained in view of the expressed wish to join the Euro. SECTOR: 11
EDUCATION SECTOR
Introduction of Education sector of Slovenia
In Slovenia the education system is handled by the national education institute of the republic of Slovenia. This organization directs development and growth in the field of education of Slovenia. It covers kindergartens, schools of elementary, music schools, secondary schoolings, schools of music and the boarding schools.
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If we talk about the higher education, the Slovenian system of education faced the number of changes as in other countries. But the Slovenian education system balanced the quality of education with large number of students at undergraduate level. This happened due to the new set up institutes in large number especially private institutes brought range of study options. As well increase in competition and globalization.
There are major four public Universities and many private institutes.
Public Universities University of Ljubljana, Ljubljana University of Maribor, Maribor University of Primorska, Koper University of Nova Gorica, Nova Gorica Private institutes 1. GEA College of Entrepreneurship, Ljubljana 2. Faculty of Postgraduate National and European studies, Kranj 3. Faculty of Information Studies, Novo mesto 4. Faculty of Applied Social Studies, Nova Gorica 5. Ljubljana Graduate School of the Humanities, Ljubljana 6. IEDC-Bled School of Management, Bled 7. International School for Business and Social Studies, Celje 8. Josef Stefan International Postgraduate School, Ljubljana Statistics show that the number of students has more than tripled since 1991. The Share of higher education students per thousand inhabitants has risen from 19.1% In 1991 to 41.1% in 2005.
No. of enrolled students Academic Undergraduate Postgraduate Total Year 1991/92 36.5 1.65 38.15
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2005/06 73.97 8.34 82.31 2009/10 98.97 15.9 114.87
There are three major level of education 1. Preschool First age group: In the school year 2012/13 almost 77% of all children of the proper age are enrolled in kindergartens. In the school year 2012/13, 938 kindergartens and their units are providing pre-school education; this is 16 more than in the previous school year. The majorities (95%) of kindergartens are public; only 50 or 5% are private. The number of children enrolled in kindergartens is still on the rise, but not as much as in the previous years
In the school year 2012/13 the number of children enrolled in kindergartens increased by 2.3% over the previous school year, but the growth is not as high as in the school years 2008/09 to 2011/12, when the annual growth rate was around 7%. Slightly more than 83,000 children are enrolled in kindergartens and in childminders‟ families, which is 76.7% of all children of the proper age.
Compared to the previous school year, the number of children particularly increased in the second age period (children aged 3 up to entering basic school), which recorded a 3.3% increase in enrolment, so that the share now stands at almost 90%. In the first age period (children up to 3 years) the number of children increased only slightly. Kindergartens now include more than half of the children in this age group.
Preschool Class Children education units Total 1st age 2nd age period period 938 4861 89090 24856 58234 Total
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Public 888 4696 80456 23947 56509 preschools Private 50 165 2634 909 1725 preschools
2. Primary and secondary education programmes In 1996, reforms of pre‐ primary, primary and secondary education were enacted. With the independence of Slovenia, daily child care and preschool education was removed from the social protection sector and placed within the ministry for education and sports. The educational reform strongly accentuated the role of preschool education in making up for inequalities of children stemming from different socio‐ economic backgrounds, especially with regard to the development of their abilities. Children under three years of age are placed in crèche groups, those between the age of three and six are placed in preschool groups. Full‐ time, part‐ time and shorter programmes of preschool education are offered. The most widely implemented are full‐ time programmes. Shorter programmes are meant for children from 3 years of age to the time of enrolment in primary schooling.
Primary education: Primary education was extended from 8 to 9 years, starting at the age of 6 and lasting. To the age of 15 (Primary Schooling Act, 1996). It finishes with an external examination. Until 2006 the results of the external final examination played an important role as the entrance criteria in gaining access to various types of secondary Education programmes.
The following types of education and training are provided at the secondary level: • Lower vocational education • Three‐ year secondary vocational education • Secondary technical education • Secondary general education 200
• Vocational‐ technical education • Professionally oriented general education • Maturity course • Vocational course • Master craftsmen, foremen and managerial examinations (Ministry of Educationand Sport, 1999; Ignjatović et al., 2003).
Three‐ year secondary vocational programmes are intended to provide qualifications at skilled workers‟ level for work in the industrial, crafts and service sectors. These programmes can be provided by vocational schools or in a dual system in the Form of apprenticeship.
Higher education
Before the 1990s, the Slovenian system of higher education was organised in three stages: i) shorter two‐ year university programmes (first stage of higher education) and two‐ year higher vocational programmes; ii) four‐ and five‐ year university programmes (second stage higher education), and iii) postgraduate programmes that included professional specialization, masters degree and doctoral degree (third stage higher education). However by the end of the 1980s, the first stage programmes mostly died out. In the first half of the 1990s a reform of the higher education system was implemented. The main purpose was on one hand to improve the quality of higher education and bring it more in line with the employment and on the other hand to make it more internationally comparable.
Classification of education in Slovenia in an international Perspective Slovenia is a very small country so there are no more national standard classification of education existed. Instead one can know different 201
classification used for various purposes. They reflect diverse developments in the Slovenian educational system as well as in the labor market. Organizations of studies 1. Academic year In Slovenia the academic year begins in October and ends in September in the following year. It is divided in two semesters: the winter semester runs from generally October to January and the summer semester from February to july. The Higher Education Act additionally regulates undergraduate study programmes that last for 30 weeks in the academic year and comprise the minimum of 20 and the maximum of 30 hours of lectures, seminars and exercises per week. If the programme also includes practical training then it can last up to 42 weeks per academic year but the total student workload must not surpass 40 hours per week.
Methods of teaching Lectures, seminars, colloquia and written assignments. Lectures are given for a large group of students, where seminars and excerises are usually offered for a small group of students.
Tests and exams The rules and regulations of the examination policy are set by the constitution of the higher education institutes. Exams can be oral, written, or both. Grading system In Slovenia the system to grade used in higher education is unifies: 10= excellent (91-100%) 9= very good (81-90%) 8= very good (71-80%) 7= good (61-70%) 6= satisfactory (510-60%) 5-1= fail (less than 51%)
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International student Every higher education institute accepts foreign students. They have international relations.
Comparison of Education system between Slovenia and India
Particulars Indian education Slovenian education Adjusted savings = Education expenditure > 3.99 % of GNI 5.35% of GNI % of GNI Average years of adult schooling 5.1 7.1
Duration of compulsory education 8 years 7 years
Duration of education > primary level 6 years 4 years
Duration of education > secondary level 5 years 8 years
Education enrolment by level > tertiary level 11,295,041 101,458
Education spending (% of GDP) 4.1% 6.1%
Female enrolment share > primary level 43.6% 48.5%
Female enrolment share > secondary level 39.6% 49.6%
Geographical aptitude results 77.883 75.008
Illiteracy rates by sex, aged 15+ 40.5% 0.3%
Literacy rate, adult total > % of people ages 49.32% 99.56% 15 and above Public spending on education, total > % of 10.74% 12.56% government expenditure Public spending per student > Primary level 7.2 20.6
Public spending per student > tertiary level 68.4 37.9
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Pupil teacher ratio, primary 40.2 15.1
Scientific and technical journal articles 12774 969
Tertiary enrollment 10.5% 60.5%
Women to men parity index, as ratio of 0.67 1 literacy rates, ages 15-24
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