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1 2013 MAJOR COMPANIES IN ROMANIA
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3 MCR CONTENTS 2013 EDITION Major Companies in Romania 3 7 FROM THE EDITOR 8 FOREWORD - Tracing the entrepreneurial spirit in Romanian industries - Bogdan Ion, Country Managing Partner, EY Romania 9 MCR RANKING METHODOLOGY 11 TOP 300 MAJOR COMPANIES IN ROMANIA 23 BANKING & FINANCE A new stability - Mihai Pop, Manager, Transaction Advisory, EY Romania TOP Banking Sustenability: the safe way to a mature market - Remi Vrignaud, CEO Allianz-}iriac Asigur`ri TOP Insurance Focus on clients expectations - Shane Dowling, General Manager, ALD Automotive TOP Operational Leasing TOP Financial Leasing TOP Pension Funding and TOP Capital Market Intermediation TOP Fund Management 35 ENERGY With the green (energy) fading, we re back to black - Mihaela Cu]urescu, Senior Consultant, Transaction Advisory, EY Romania TOP Electric power generation and distribution TOP Oil & gas extraction and distribution TOP Whole sale of electricity and fuels TOP Retail trade of gas - gas stations 45 CHEMICALS The shadow of the chemical industry - Alina Cinc`, Manager, Transaction Advisory, EY Romania Packaging industry: innovation is the key word - Radu Andrei, MBA Marketing, LivingJumbo Industry S.A TOP Manufacture of basic chemicals TOP Wholesale of chemical products TOP Manufacture of rubber and plastic products - except tires TOP Waste Management TOP Manufacture of paints, varnishes and similar coatings, printing inks and mastics 53 PHARMACEUTICALS The pharmaceutical retail battle field - Bogdan }enu, Senior Manager and Atena Mi]uc`, Consultant, Transaction Advisory, EY Romania TOP Manufacture of basic pharmaceuticals TOP Retail trade of pharmaceuticals TOP Wholesale of pharmaceuticals 59 GLASS & CERAMICS EU takes drastic measures to protect local producers - Magda Munteanu, Freelance Journalist and Photographer TOP Manufacture of glass and glass products TOP Manufacture of ceramic products 63 METAL The meltdown of the iron & steel industry - Horiana Istodor, Senior Manager and Adrian Netea, Consultant, Transaction Advisory, EY Romania TOP Primary metal manufacturing TOP Manufacture of metal products TOP Wholesale of metals and metal ores 71 MACHINERY Export demand, layoffs and cost cutting - Viorica Lungu, Consultant, Transaction Advisory, EY Romania Industry 4.0 Connecting everything - RADU GARBEA, Managing Director, KAESER KOMPRESSOREN Romania TOP Manufacture of machinery, industrial equipment, ships and aircraft TOP Wholesale of machinery, industrial equipment, ships and aircraft 79 ELECTRIC & ELECTRONIC EQUIPMENT The sway of a technology-aware consumer - Magda Purice, Freelance Journalist TOP Manufacture of electrical and electronic equipment TOP Trade of electrical and electronic equipment Manufacture of domestic appliances 85 IT&C Clash of the telecom titans: the battle continues - Mirela Calot`, Manager, Transaction Advisory, EY Romania Turning smarter and faster technologies into affordable and accessible ones - Jean-François Fallacher, CEO Orange Romania TOP Telecommunications TOP Communication equipment TOP Computer programming, consultancy and related activities TOP Manufacture and sale of computers and peripheral equipment 93 INDUSTRIAL ENGINEERING New business models: The merge of manufacturing and services - Magda Purice, Freelance Journalist TOP Industrial engineering 97 CONSTRUCTIONS Road construction and transportation status quo - Roxana Todiroae, Senior Consultant, Transaction Advisory, EY Romania TOP Construction of residential & industrial buildings TOP Building materials TOP Construction of roads, railways, bridges and tunnels TOP Construction of electric sites TOP Construction of utility projects for fluids and related services TOP Manufacture of equipment for construction industry TOP Electrical, plumbing and other construction installation activities TOP Hydro-technical constructions 105 REAL ESTATE On the road to recovery? - Liana Bulgaru, Senior Consultant, Transaction Advisory, EY Romania When shopping centers become civic centers - Georgios Argentopoulos, CEO, Alltrom Real Estate Group TOP Real estate agencies TOP Real estate project developers TOP Property & facility management TOP Real estate asset managers The chance of economic revival lies in re-financing - Adrian Crivii, FRICS, MAA, CEO, Darian DRS SA TOP Real estate evaluation companies 115 WOOD, PAPER & FURNITURE Romanian furniture gets comfy outside - Magda Purice, Freelance Journalist TOP Manufacture of wood and wooden products TOP Manufacture of paper and paper products TOP Manufacture of furniture TOP Retail trade of furniture, carpets and lighting equipment
4 MCR CONTENTS 121 TEXTILE & LEATHER Textile output slows down abruptly in 2012, production of clothing apparel slides in negative area - Diana Macovei, Freelance Analyst TOP Manufacture of wearing apparel TOP Preparation of textile fibers and textiles manufacture TOP Retail trade of clothing in specialised stores TOP Manufacture of footwear and leather goods TOP Retail trade of footwear and leather goods 129 AGRICULTURE Volatile on weather conditions - Raluca Stoica, Consultant, Transaction Advisory, EY Romania TOP Growing and trading agricultural raw materials TOP Farming and meat processing TOP Growing and trading fruit and vegetables 137 FMCG Consumers and retailers still not on the same page - Marius Vasilescu, Manager, Transaction Advisory, EY Romania Betting on Quality - Marius Melesteu, General Manager, Strauss South Central Europe TOP Processing of tea and coffee TOP Manufacture of condiments and seasonings TOP Manufacture of tobacco products TOP Manufacture of cocoa, chocolate and confectionery TOP Manufacture of dairy products TOP Manufacture of sugar TOP Manufacture of grain mill products and starches TOP Manufacture of vegetable and animal oils and fats TOP Manufacture of wine from grape TOP Manufacture of beer TOP Manufacture of soft drinks; production of mineral waters and other bottled waters TOP Distilling, rectifying and blending of spirits TOP Home and personal care 149 TRADE Forward through the slow-pacing economy - Alexandra Bulei, Senior Consultant, Transaction Advisory, EY Romania TOP Cash & Carry TOP Hypermarkets TOP Supermarkets TOP Do-it-yourself TOP Discount TOP Malls & Shopping centers TOP Distribution companies 155 TRANSPORT & CARGO One down, two to go - Mihaela Mihai, Senior Consultant, Transaction Advisory, EY Romania Infrastructure, precondition for the development of railway - Eduard Iancu, CEO DB Schenker Rail Romania TOP Road transport TOP Maritime & river transport TOP Rail transport TOP Air transport TOP Freight transport TOP Postal and courier activities 165 AUTOMOTIVE Mixed feelings and hampered sales in Liviu Rusu, Senior Consultant, Transaction Advisory, EY Romania Lean on a lean philosophy - Christian von Albrichsfeld, General Manager, Continental Automotive Romania TOP Automotive producers & importers TOP Automotive parts distributors TOP Car dealers TOP Automotive parts producers 175 PROFESSIONAL SERVICES Professional services market beyond Mircea Giurcan, Senior Consultant, Advisory Services, EY Romania TOP Accounting, audit, FAS & tax TOP Management consulting companies TOP Executive search, recruitment and HR management Loud and clear talkative market - Magda Purice, Freelance Journalist TOP Business Process Outsourcing Business Process Outsourcing - a market in evolution - Hugh Watkins, Managing Director, Trinity Corporate Services, Bucharest Emerging Europe: M&A Report CMS and DealWatch TOP Legal Political uncertainty, clear communication and investor confidence - Neil McGregor, Managing Partner, McGregor & Partners TOP Training companies TOP Market research companies 191 BUSINESS SERVICES Preparing for the better, hoping for the best - Magda Purice, Freelance Journalist The New Age of travel companies - Javier Garcia del Valle,CEO Happy Tour TOP Travel agencies TOP Security companies TOP Hotels and similar accommodation TOP Printing services 197 MEDIA & ADVERTISING Digital market going strong - Mihaela Matei, Supervising Associate, Marketing & Communication, EY Romania TOP Advertising agencies TOP PR agencies TOP Media agencies 203 HEALTH CARE Scanning the healthcare sector - Bogdan }enu, Senior Manager and Atena Mi]uc`, Consultant, A strong dentistry market: an illusion or an achievable goal? - Dr. Oana Taban, CEO & Founder DENT ESTET TOP Medical centers TOP Dental centers
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6 MAJOR COMPANIES IN ROMANIA Edited by: General Manager: Project Manager: Project team: doingbusiness.ro Dumitru Ion Roxana Neacsu Madalina Athanasiu Mirela Bobe Nicolae Ion Contributors: Magda Purice Diana Macovei Magda Munteanu DTP & Grafic design: Marian Caramihai Sales: Teodora Danciu Catalin Luca Ramona Raicu Elena Vijoli Catalin Zaf iu Vasile Sima Copyright 2013 doingbusiness.ro Strada Prof. Ion Bogdan nr. 4-6, etaj 4, sector 1, Bucureşti Phone: Fax: The Publisher cannot, under any circumstances, assume responsibility for any kind of damages supposing to be resulted from the use of the information provided by this publication. The information included into printed edition of Major Companies of Romania, was provided by sources we considered to be reliable: Coface, National Bank of Romania, Bucharest Stock Exchange, The Insurance Supervisory Commission, The Romanian Pension Funds' Association, Romanian Association of Fund Managers, Ministry of Finance, companies themselves. However the Publisher cannot take responsibility for the information accuracy. No part of this publication may be reproduced, copied or distributed in any form or by any means, electronic or printed, without mentioning the source, respectively the publisher or the contributor. Printed by Tipografia Everest 2001 Distribution: Major Companies in Romania is distributed for free. Copy available only free of charge, not for sale.
7 MCR From the editor 2013 EDITION Major Companies in Romania 7 Major Companies in Romania-Key word: Improving continuity The story goes on. For the third year in a row, we ve worked together with specialists at EY Romania, to produce the most comprehensive and relevant ranking of top 300 companies operating in Romania. We believe no one else has used so many quantitative and qualitative indicators as we did. We analyzed, scored and ranked more than 2,400 companies from 23 different industries and sectors, with the primary data obtained from the Coface and the Finance Ministry. In the case of financial entities and banks, we used the primary data from Coface, the National Bank of Romania and the Romanian Insurance Supervisory Commission. That s why we believe that the product we developed together with EY Romania has become one of a kind in Romania as far as the truly relevant enterprise rankings and scoring algorithms are concerned. We know and understand that the harsher the economic times are or shall be, the more important it is that our readers get the right picture about what is, was, or is about to happen. Our current X-ray of the Major Companies in Romania is accurate and as real as it can get. It has been a real effort on our side and we hope we generated a handy tool for you. Make use of it and grow your business. To avoid dry figures, we contacted experts and asked them to explain what stood behind the numbers. Which were the drivers that generated change. We went even further and asked key executives in different industries to talk about their stories. Stories of success based on innovation, boldness and knowledge. All this information comes into a thick book you can use as an Information Bible all through the year Yet, it s a book difficult to carry at meetings or on business trips. So we decided to make all data available online. Free of charge. You can access this database from everywhere, anytime. The Editorial Team
8 MCR Foreword Tracing the entrepreneurial spirit in Romanian industries BOGDAN ION, Country Managing Partner, EY Romania The contribution of entrepreneurs and corporations is now more important than ever, with countries facing some of the most challenging societal issues of our time: difficult economic conditions because of the recession of the last years and high levels of unemployment. Governments, and society as a whole, are increasingly looking to companies to kick-start their economies and provide the jobs that stimulate growth. In the last year s foreword, we were contending that many companies in Romania have been struggling with the still tough economic conditions. In 2013, as in 2012, smart companies tried to make a difference and keep the boat floating through cost cutting, but also through innovation and new strategies. As we re drawing closer to the end of the year, it is crucial to identify and acknowledge the excellence in every industry and the value creators from today s market. By looking at the performance of industry leaders we can spot the entrepreneurial / intrapreneurial spirit that undertook to make the most of the existing economic conditions, taking action either in family businesses, entrepreneurial companies or corporations. Either way, only companies with the pro-active approach and the drive of a resilient entrepreneurial spirit could navigate through the slow economic waters of another year. Because we want to acknowledge the high performers of our economy, EY Transaction Advisory team has contributed again with its expertise to this year s edition of Major Companies in Romania. As a global company, tapping into 150 diverse economies all over the world, at EY, we support a wide range of companies, enabling us to draw specific insights from every market where we are present. Together with the doingbusiness.ro team, we have designed a multifaceted methodology capturing all the qualitative and quantitative aspects that make the profile of the strongest, most competitive major companies on the market. We have pursued this unique project with the goal to build a reference instrument that can assist potential foreign investors, local firms as well as entrepreneurs, when looking at the business landscape in Romania. Through Major Companies in Romania, we bring forward a general ranking of the most performing 100 companies in the country, highlighting how positive results are distributed in the economy today. But even more importantly, through our methodology, we have put together specific analysis of 24 Romanian industry sectors, bringing a unique outline of market trends and predictions. This overview book that concludes our research for 2013 is more than a collection of rankings and industry outlooks. It is in a sense a White Paper of the Romanian economy that can assist top executives in planning their strategy for Foreign direct investments saw quite a decrease during the last years in Romania, however many investors and companies that are already active in the Romanian market see reasonable business potential here. This hotspot map of the Romanian economy will assist players in planning their future presence in the domestic economy and lead the way to a more competitive market. However, it is clear that nobody will step up the tempo in resuming strong growth in the economy if the business community doesn t take the lead. For that, the leaders, as well as all players, must continue their efforts, in seizing the potential Romania clearly shows. Creating value. Achieving potential.
9 MCR MCR Methodology 2013 EDITION Major Companies in Romania 9 Ranking methodology for Major Companies in Romania Developed by EY Romania and doingbusiness.ro doingbusiness.ro and EY Romania developed the present study by analyzing a composite mix of indicators based on the results reported by companies registered in Romania for EY Romania, together with doingbusiness.ro, have put together an in-depth assessment algorithm, which balances the most relevant business performance indicators, factoring in the particular conditions of today s economic context. The ranking methodology includes a scoring system by which each company is assessed, based on turnover, financial and non-financial aspects, all considered by separate weights which reflect our insights regarding the specifics of doing business in the local market. The most important criteria taken into consideration by our methodology was the turnover reported by companies. This was further weighted alongside other financial and non-financial performance aspects. The indicators included in this methodology are computed based on public information disclosed either by authorized bodies and institutions or by the companies themselves. The analysis of non-financial indicators was applied to aspects such as average number of employees, type of company (listed, unlisted, large companies, SMEs or microenterprises), corporate social responsibility and environmental initiatives developed in Romania as well as the contribution to developing a local brand. The financial indicators were computed based on information extracted from annual financial statements as at 31 December A number of financial indicators were selected, such as Total assets turnover, Earnings before Interest, Taxes, Amortization and Depreciation (EBITDA) growth, Current Ratio, Return on Equity Ratio, Debt to Equity Ratio and Interest Coverage Ratio. Each indicator has been assessed based on a scoring grid from 1 to 5 allotted for specific value intervals, 1 being the value assigned for the lowest performance and 5 being assigned for the highest performance. We have developed a separate methodology the banking sector. Apart from Total Assets, which represent the major size measure, we have considered other indicators such as: Net Banking Income growth, Return on Equity, Cost/Income Ratio, Net Interest Income/Income Bearing Assets, Loans/Deposits Ratio. Furthermore, for insurance companies we have considered the Gross Written Premiums ( GWP ), while for leasing companies we have considered annual turnover. With this revised approach, Major Companies looks at the performance of companies registered in Romania that have filed the financial statements for the year ended 31 December 2012 with the Trade Register. Companies that have not submitted their financial statements for 2012 were not included in this analysis. EY Romania was pleased to bring its contribution to Major Companies drawing upon its significant experience in serving leading companies and investors across various industry sectors. Our 20 years of experience on the local market allowed us to thoroughly customize the research algorithm in order to reflect the particular aspects of doing business in Romania.
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11 2013 EDITION Major Companies in Romania rank for Romania in overall 'Ease of Doing Business' for 2014 (out of 189 economies) Top 300 Major Companies in Romania
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13 MCR TOP EDITION Major Companies in Romania 13 TOP 300 MAJOR COMPANIES IN ROMANIA RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS CANTITATIV SCOR CALITATIV SCOR COMPANIES WITH ANNUAL TURNOVER MORE THAN 2.5 BLN RON 1 OMV PETROM MARKETING S.R.L ,092,697, ,603, BRITISH AMERICAN TOBACCO (ROMANIA) TRADING S.R.L ,600,194, ,479, ELECTRICA FURNIZARE S.A ,441,432, ,538, OMV PETROM GAS S.R.L ,246,247, ,414, SOCIETATEA NATIONALA DE GAZE NATURALE ROMGAZ S.A ,842,983, ,244,049, MOL ROMANIA PETROLEUM PRODUCTS S.R.L ,147,768, ,118, ORANGE ROMANIA S.A ,119,424, ,785, VODAFONE ROMANIA S.A ,457,194, ,157, OMV PETROM S.A ,510,054, ,850,620, MEDIPLUS EXIM S.R.L ,146,688, ,903, AUTOMOBILE DACIA S.A ,742,145, ,239, KAUFLAND ROMANIA S.C.S ,438,372, ,507, SELGROS CASH & CARRY S.R.L ,426,331, ,597, CARREFOUR ROMANIA S.A ,288,398, ,710, ARCELORMITTAL GALATI S.A ,418,682, ,066, COMPANIA NATIONALA DE TRANSPORT AL ENERGIEI ELECTRICE TRANSELECTRICA SA ,719,196, ,976, real,- HYPERMARKET ROMANIA S.R.L ,898,670, ,524, INTERAGRO S.A ,808,818, ,252, E.ON ENERGIE ROMANIA S.A ,257,350, ,597, GDF SUEZ ENERGY ROMANIA S.A ,315,829, ,555, PETROTEL - LUKOIL S.A ,933,476, ,444, ROMPETROL RAFINARE S.A ,323,113, ,653, ROMPETROL DOWNSTREAM S.R.L ,155,062, ,017, LUKOIL ROMANIA S.R.L ,030,862, ,080, RENAULT INDUSTRIE ROUMANIE S.R.L ,431,278, ,821, COMPANIES WITH ANNUAL TURNOVER FROM 1.0 BLN RON TO 2.5 BLN RON 1 ARCTIC S.A ,372,278, ,225, PHILIP MORRIS TRADING S.R.L ,281,851, ,986, COFICAB EASTERN EUROPE S.R.L ,218,249, ,274, DELPHI PACKARD ROMANIA S.R.L ,703,187, ,549, HEINEKEN ROMANIA S.A ,180,982, ,532, DEDEMAN S.R.L ,410,570, ,767, RENAULT COMMERCIAL ROUMANIE S.R.L ,392,502, ,327, DISTRIGAZ SUD RETELE S.R.L ,025,701, ,765, SAMSUNG ELECTRONICS ROMANIA SRL ,378,875, ,169, ENEL ENERGIE MUNTENIA S.A ,069,364, ,388, AUTOLIV ROMANIA S.R.L ,894,716, ,830, HOLZINDUSTRIE SCHWEIGHOFER S.R.L ,816,739, ,611, SILCOTUB S.A ,666,747, ,057, ENEL ENERGIE S.A ,066,949, ,250, MEGA IMAGE S.R.L ,757,017, ,722, PORSCHE ROMANIA S.R.L ,609,520, ,543, TINMAR - IND S.A ,387,536, ,271, SAS VISUAL ANALYTICS Picture hidden trends coming into plain sight.
14 MCR TOP 300 TOP 300 MAJOR COMPANIES IN ROMANIA RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER PROFIT/LOSS CANTITATIV CALITATIV RANKING SCOR SCOR 18 PROFI ROM FOOD S.R.L ,155,745, ,138, J.T. INTERNATIONAL (ROMANIA) S.R.L ,476,816, ,172, REGIA NATIONALA A PADURILOR - ROMSILVA R.A ,296,656, ,929, AZOMURES S.A ,829,333, ,049, ROMANIA HYPERMARCHE S.A ,461,578, ,556, BILLA ROMANIA S.R.L ,266,573, ,654, OSCAR DOWNSTREAM S.R.L ,467,509, ,243, CONTINENTAL AUTOMOTIVE PRODUCTS S.R.L ,376,683, ,362, CEZ VANZARE S.A ,560,517, ,989, PROCTER & GAMBLE DISTRIBUTION S.R.L ,254,784, ,076, COCA-COLA HBC ROMANIA S.R.L ,939,420, ,409, FARMEXPERT D.C.I. S.A ,053,874, ,369, STRABAG S.R.L ,403,884, ,268, FARMEXIM S.A ,122,009, ,346, SOCIETATEA NATIONALA DE TRANSPORT GAZE NATURALE - TRANSGAZ S.A ,327,987, ,305, MICHELIN ROMANIA S.A ,126,820, ,009, DELPHI DIESEL SYSTEMS ROMANIA SRL ,849,217, ,508, COMPANIA NATIONALA 'LOTERIA ROMANA' S.A ,002,015, ,748, POLISANO S.R.L ,311,577, ,132, MAIRON GALATI S.A ,135,910, ,303, ROCHE ROMANIA S.R.L ,300,199, ,535, AUCHAN ROMANIA S.A ,973,757, ,298, ALTEX ROMANIA S.R.L ,132,228, ,329, COMPANIA NATIONALA DE CAI FERATE CFR S.A ,111,726, ,645, COSMOTE ROMANIAN MOBILE TELECOMMUNICATIONS S.A ,940,513, ,829, REWE (ROMANIA) S.R.L ,927,506, ,586, PIRELLI TYRES ROMANIA S.R.L ,521,577, ,019, AGRANA ROMANIA S.A ,223,059, , JT INTERNATIONAL MANUFACTURING S.A ,813,264, ,211, SOCIETATEA COMPLEXUL ENERGETIC OLTENIA S.A ,236,654, ,328, ALRO S.A ,081,764, ,270, SOCIETATEA NATIONALA NUCLEARELECTRICA S.A ,653,156, ,469, ELECTROCENTRALE BUCURESTI S.A ,093,864, ,569, ARABESQUE S.R.L ,564,021, ,590, TAKATA ROMANIA S.R.L ,545,861, ,103, FILDAS TRADING S.R.L ,115,265, ,082, KRONOSPAN SEBES S.A ,073,407, ,522, CELESTICA ( ROMANIA ) SRL ,728,543, ,648, CONTINENTAL AUTOMOTIVE SYSTEMS S.R.L ,526,272, ,430, SENSIBLU S.R.L ,090,217, ,513, RCS & RDS S.A ,047,044, ,152, COMPANIA NATIONALA DE AUTOSTRAZI SI DRUMURI NATIONALE DIN ROMANIA S.A ,064,952, ,139, SAS VISUAL ANALYTICS See your data for all it s worth.
15 2013 EDITION Major Companies in Romania 15 TOP 300 MAJOR COMPANIES IN ROMANIA RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER PROFIT/LOSS CANTITATIV CALITATIV RANKING SCOR SCOR 60 ALFRED C. TOEPFER INTERNATIONAL (ROMANIA) S.R.L ,890,825, ,320, BUNGE ROMANIA S.R.L ,132,502, ,885, CONTINENTAL AUTOMOTIVE ROMANIA S.R.L ,420,700, ,611, JOHNSON CONTROLS ROMANIA S.R.L ,295,437, ,185, COMPANIA NATIONALA DE TRANSPORTURI AERIENE ROMANE TAROM S.A ,048,339, ,617, COMPANIA NATIONALA POSTA ROMANA S.A ,205,532, ,061, CARGILL AGRICULTURA S.R.L ,057,112, ,852, SCHAEFFLER ROMANIA S.R.L ,427,843, ,122, URSUS BREWERIES S.A ,283,124, ,329, SOCIETATEA COMERCIALA DE PRODUCERE A ENERGIEI ELECTRICE IN HIDROCENTRALE ,402,785, ,010, HIDROELECTRICA S.A. 70 SOCIETATEA NATIONALA DE TRANSPORT FEROVIAR DE CALATORI CFR CALATORI S.A ,668,976, ,207, REGIA AUTONOMA DE DISTRIBUTIE A ENERGIEI 71 TERMICE BUCURESTI R.A.D.E.T. R.A ,099,350, ,472, FORD ROMANIA S.A ,479,148, ,681, COMPANIES WITH ANNUAL TURNOVER LESS THAN 1.0 BLN RON 1 HENKEL ROMANIA S.R.L ,989, ,576, EATON ELECTRO PRODUCTIE S.R.L ,422, ,273, YAZAKI ROMANIA S.R.L ,212, ,422, PORSCHE INTER AUTO ROMANIA S.R.L ,338, ,606, METKA BRAZI SRL ,621, ,488, HELLA ROMANIA S.R.L ,299, ,040, CONTITECH ROMANIA S.R.L ,122, ,568, WIEE ROMANIA S.R.L ,193, ,523, KRAFT FOODS ROMANIA S.A ,630, ,619, TRW AUTOMOTIVE SAFETY SYSTEMS S.R.L ,361, ,409, ENEL DISTRIBUTIE MUNTENIA S.A ,864, ,283, FILIALA DE DISTRIBUTIE A ENERGIEI ELECTRICE 'ELECTRICA DISTRIBUTIE MUNTENIA NORD' S.A ,196, ,148, TEHNOSTRADE S.R.L ,761, ,510, ARELCO DISTRIBUTIE S.R.L ,723, ,007, SANOFI-AVENTIS ROMANIA S.R.L ,969, ,151, BENROM S.R.L ,431, ,522, TOYOTA ROMANIA S.R.L ,476, ,434, E.ON MOLDOVA DISTRIBUTIE S.A ,605, ,344, KATHREIN ROMANIA S.R.L ,747, ,777, CAMERON ROMANIA S.R.L ,638, ,200, EGGER ROMANIA S.R.L ,763, ,969, BRISEGROUP S.R.L ,428, ,533, CEZ DISTRIBUTIE S.A ,749, ,956, INTERBRANDS MARKETING & DISTRIBUTION SA ,741, ,388, RENAULT TECHNOLOGIE ROUMANIE S.R.L ,158, ,863, ALPIQ ROMENERGIE S.R.L ,896, ,636, SAS VISUAL ANALYTICS Picture hidden trends coming into plain sight.
16 MCR TOP 300 TOP 300 MAJOR COMPANIES IN ROMANIA RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER PROFIT/LOSS CANTITATIV CALITATIV RANKING SCOR SCOR 27 TRANSENERGO COM S.A ,570, ,374, APA NOVA BUCURESTI S.A ,912, ,135, SOCIETATEA COMERCIALA ENEL DISTRIBUTIE BANAT S.A ,162, ,228, ALPIQ ROMINDUSTRIES S.R.L ,657, ,820, CARPATCEMENT HOLDING S.A ,945, ,524, COMFERT S.R.L ,524, ,769, IPSO S.R.L ,143, ,241, ARCELORMITTAL TUBULAR PRODUCTS ROMAN S.A ,413, ,901, ECHIPCOMER? TRADE COMPANY SRL ,736, , MERCEDES-BENZ ROMANIA S.R.L ,467, ,377, REMAT S.A ,178, ,005, BAMESA OTEL S.A ,827, ,733, ENERGOBIT S.R.L ,831, ,076, ADMINISTRATIA ROMANA A SERVICIILOR DE TRAFIC AERIAN ROMATSA R.A ,129, ,424, SMITHFIELD FERME S.R.L ,598, ,478, AMBIENT S.A ,086, ,278, SOCIETATEA COMERCIALA FILIALA DE DISTRIBUTIE A ENERGIEI ELECTRICE 'ELECTRICA ,123, ,079, DISTRIBUTIE TRANSILVANIA NORD' S.A. 44 LEONI WIRING SYSTEMS ARAD S.R.L ,955, ,916, STX RO OFFSHORE TULCEA S.A ,801, ,906, SCHENKER ROMTRANS S.A ,220, ,624, SPEDITION UMB S.R.L ,762, ,399, TMK - RESITA S.A ,629, ,635, EUROPHARM S.A ,464, ,336, REMATHOLDING CO. S.R.L ,848, ,739, BAYER S.R.L ,077, ,218, E.ON GAZ DISTRIBUTIE S.A ,364, ,019, ARTIMA S.A ,186, , SOCIETATEA COMERCIALA FILIALA DE DISTRIBUTIE A ENERGIEI ELECTRICE 'ELECTRICA ,835, ,804, DISTRIBUTIE TRANSILVANIA SUD' S.A. 55 AQUILA PART PROD COM S.R.L ,899, ,360, ARAMIS INVEST S.R.L ,910, ,192, IBM ROMANIA S.R.L ,374, ,461, ROSKO TEXTIL S.R.L ,704, ,492, EGL GAS & POWER ROMANIA S.A ,112, ,333, LAFARGE CIMENT (ROMANIA) S.A ,878, ,619, PRUTUL S.A ,972, ,621, T.M.K. ARTROM S.A ,074, ,493, AGRICOVER S.R.L ,341, ,272, ZAHARUL ORADEA S.A ,115, ,830, INTERGAZ S.R.L ,444, ,140, LEONI WIRING SYSTEMS RO S.R.L ,018, ,527, SAS VISUAL ANALYTICS See your data for all it s worth.
17 2013 EDITION Major Companies in Romania 17 TOP 300 MAJOR COMPANIES IN ROMANIA RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER PROFIT/LOSS CANTITATIV CALITATIV RANKING SCOR SCOR 67 NESTLE ROMANIA SRL ,734, ,507, MARQUARDT SCHALTSYSTEME SCS ,590, ,317, STRACO GRUP S.R.L ,556, ,347, INTERAGRO S.R.L ,193, ,266, DANTE INTERNATIONAL S.A ,110, , SILNEF M.G. S.R.L ,094, , RENAULT MECANIQUE ROUMANIE S.R.L ,983, ,086, DANONE - PRODUCTIE SI DISTRIBUTIE DE PRODUSE ALIMENTARE S.R.L ,400, ,890, PRYSMIAN CABLURI SI SISTEME S.A ,971, ,095, T.C.E. 3 BRAZI S.R.L ,181, ,757, CONSTRUCTII ERBASU S.A ,822, ,179, TRANSAVIA S.A ,905, ,729, HIDROCONSTRUCTIA S.A ,555, ,438, ASESOFT DISTRIBUTION S.R.L ,403, ,468, GRUP ROMET S.A ,541, , GRUP FEROVIAR ROMAN S.A ,683, ,824, COMPANIA NATIONALA AEROPORTURI BUCURESTI S.A ,519, ,125, HELP NET FARMA S.A ,074, ,872, EUROPHARM HOLDING S.A ,511, ,706, SMITHFIELD PROD S.R.L ,901, ,255, ICME ECAB S.A ,695, ,462, GERSIM IMPEX S.R.L ,328, ,102, AVON COSMETICS (ROMANIA) S.R.L ,080, ,436, TIMKEN ROMANIA S.A ,023, ,165, STEINEL ELECTRONIC SRL ,407, ,123, AUTONET IMPORT S.R.L ,354, ,473, PFIZER ROMANIA S.R.L ,062, ,935, BRICOSTORE ROMANIA S.A ,986, ,478, UNICARM S.R.L ,869, ,633, ELECTROMAGNETICA S.A ,968, ,955, KROMBERG & SCHUBERT ROMANIA S.R.L ,872, ,928, PLANOIL S.R.L ,689, ,803, VEGETAL TRADING S.R.L ,285, ,234, ENERGY FINANCING TEAM ROMANIA S.R.L ,826, ,919, EXPUR S.A ,823, ,979, MECHEL SERVICE ROMANIA S.R.L ,389, ,790, GRUP SERVICII PETROLIERE S.A ,037, ,596, A.D.M. FARM S.R.L ,210, ,080, TERAPIA S.A ,499, ,879, REGIA AUTONOMA DE TRANSPORT BUCURESTI R.A ,666, FOSTER WHEELER ITALIANA S.R.L ,254, ,793, ROMPETROL GAS S.R.L ,998, , SAS VISUAL ANALYTICS Picture hidden trends coming into plain sight.
18 MCR TOP 300 TOP 300 MAJOR COMPANIES IN ROMANIA RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER PROFIT/LOSS CANTITATIV CALITATIV RANKING SCOR SCOR 109 PRAKTIKER ROMANIA S.R.L ,507, ,836, ROMAQUA GROUP S.A ,826, ,125, TEHNOLOGICA RADION S.R.L ,013, ,486, BAUMAX ROMANIA S.R.L ,864, ,483, ALUM S.A ,972, ,462, DELTA ANTREPRIZA DE CONSTRUCTII SI MONTAJ 93 S.R.L ,606, ,186, STRABAG AG AUSTRIA SUCURSALA BUCURESTI ROMANIA ,401, ,361, BUNGE DANUBE TRADING SRL ,913, ,591, BMW VERTRIEBS GMBH SALZBURG SUCURSALA BUCURESTI ,977, ,275, AMEROPA GRAINS S.A ,371, ,568, UNILEVER SOUTH CENTRAL EUROPE S.A ,524, ,910, FLANCO RETAIL SA ,224, , HAVI LOGISTICS SRL ,795, , MAKITA EU S.R.L ,598, ,193, AGRO-CHIRNOGI S.A ,397, ,836, LLK LUBRICANTS ROMANIA S.R.L ,098, ,531, GASPECO L &D S.A ,108, ,518, COMISION TRADE S.R.L ,310, ,596, DUCTIL STEEL S.A ,642, ,962, ENERGOMONTAJ S.A ,460, ,948, ALBA BALKAN RECYCLING S.R.L ,689, ,046, ROTTCO CONSULT SRL ,528, , QUADRANT AMROQ BEVERAGES S.R.L ,559, ,278, YAZAKI COMPONENT TECHNOLOGY S.R.L ,690, ,383, ROMSTAL IMEX S.R.L ,967, ,300, ENEL DISTRIBUTIE DOBROGEA S.A ,310, ,474, CORD ROMANIA S.R.L ,595, ,012, SOCIETATEA NATIONALA DE TRANSPORT FEROVIAR DE MARFA - CFR MARFA - S.A ,399, ,086, SEWS ROMANIA S.R.L ,448, ,859, SOCIETATEA COMERCIALA DE DISTRIBUTIE SI FURNIZARE A ENERGIEI ELECTRICE ,371, ,363, ELECTRICA S.A. 139 ENERGY HOLDING S.R.L ,875, ,392, ENI ROMANIA S.R.L ,634, ,356, REMAT M.G. S.A ,460, , MAX BOEGL ROMANIA S.R.L ,873, ,264, PETROLEXPORTIMPORT S.A ,578, ,147, REPOWER FURNIZARE ROMANIA SRL ,948, ,983, ECOFOREST S.A ,425, ,409, GEN - I BUCHAREST - ELECTRICITY TRADING AND SALES SRL ,332, ,458, ASTALDI SpA ITALIA SUCURSALA ROMANIA BUCURESTI ,591, ,487, SAS VISUAL ANALYTICS See your data for all it s worth.
19 2013 EDITION Major Companies in Romania 19 TOP 300 MAJOR COMPANIES IN ROMANIA RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER PROFIT/LOSS CANTITATIV CALITATIV RANKING SCOR SCOR 148 LINDE GAZ ROMANIA S.R.L ,511, ,166, EURO CONSTRUCT TRADING 98 S.R.L ,900, ,318, WHITELAND IMPORT EXPORT S.R.L ,242, ,077, OLTCHIM S.A ,442, ,443, DAEWOO MANGALIA-HEAVY INDUSTRIES S.A ,178, ,982, SOCIETATEA COMERCIALA FILIALA DE INTRETINERE SI SERVICII ENERGETICE ,369, ,233, OIL PROD SRL ,482, , REMAT SCHOLZ S.A ,338, ,224, GOODYEAR DUNLOP TIRES ROMANIA S.R.L ,324, ,554, HOLCIM ROMANIA S.A ,750, ,762, SIEMENS S.R.L ,783, ,356, AD AUTO TOTAL S.R.L ,258, ,192, HORNBACH CENTRALA S.R.L ,220, ,360, UNICOM HOLDING S.A ,576, ,157, ACTAVIS S.R.L ,494, ,284, S.I.E.P.C.O.F.A.R. SA ,508, ,180, REGIA AUTONOMA PENTRU ACTIVITATI NUCLEARE RA ,841, ,578, ROPHARMA S.A ,590, ,687, CONEF GAZ S.R.L ,085, ,716, AGRIUM-AGROPORT ROMANIA S.A ,938, , MAREX S.A ,852, ,511, TIRIAC AUTO S.A ,495, ,997, MONSANTO ROMANIA S.R.L ,328, ,758, ANGHEL N.G. S.R.L ,595, , AVICOLA CREVEDIA S.A ,517, ,139, ROMPETROL PETROCHEMICALS S.R.L ,167, ,786, SERMEDIC S.R.L ,585, ,280, EDISON TRADING SPA MILANO - SUCURSALA BUCURESTI ,412, , AUTOMOBILE BAVARIA S.R.L ,755, ,298, KIRAZOGLU CORPORATION S.R.L ,956, , METROREX S.A ,247, ,302, ORACLE ROMANIA S.R.L ,661, ,842, MCDONALD S ROMANIA S.R.L ,908, ,150, VEGA 93 S.R.L ,784, , MACROMEX S.R.L ,213, ,947, ROMINSERV S.R.L ,678, ,646, AROMET S.A ,681, ,574, CARLSROM BEVERAGE CO S.R.L ,874, ,933, ROMRECYCLING S.R.L ,198, ,014, ARCELORMITTAL HUNEDOARA S.A ,597, ,612, AGRICOLA INTERNATIONAL S.A ,291, , SAS VISUAL ANALYTICS Picture hidden trends coming into plain sight.
20 MCR TOP 300 TOP 300 MAJOR COMPANIES IN ROMANIA RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER PROFIT/LOSS CANTITATIV CALITATIV RANKING SCOR SCOR 189 ENEL TRADE ROMANIA SRL ,442, , HUAWEI TECHNOLOGIES SRL ,049, ,009, C.E.T. GOVORA S.A ,438, ,788, ROMTEM S.A ,344, ,096, FRIESLANDCAMPINA ROMANIA S.A ,116, ,970, COMPANIA NATIONALA A HUILEI S.A ,220, ,473, ROMASTRU TRADING S.R.L ,445, ,541, UPC ROMANIA S.R.L ,796, ,580, PHARMAFARM S.A ,268, ,354, A & G MED TRADING S.R.L ,369, ,900, BERGENBIER S.A ,307, ,104, PRO TV S.A ,773, ,234, DOOSAN I.M.G.B. S.A ,640, ,026, ENERGY BIO CHEMICALS S.A ,071, ,398, KRONOSPAN ROMANIA S.R.L ,717, ,059, SAS VISUAL ANALYTICS See your data for all it s worth.
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23 2013 EDITION Major Companies in Romania ,77 billion RON - Total assets of Romanian banking system in 2012 Banking & Finance BANKING INSURANCE FINANCIAL LEASING OPERATIONAL LEASING PENSION FUNDS ADMINISTRATORS FUND MANAGEMENT CAPITAL MARKET INTERMEDIARIES
24 MCR BANKING & FINANCE A new stability Mihai Pop, Manager - Transaction Advisory, EY Romania In the financial global markets, stability is the most praised quality of the system and, from the smallest player, to the Central Banks, everyone is taking stability as an underlying assumption for the upcoming evolution. The financial markets have come a long way in providing stability in the past two decades, and a salutary effort was that of the National Bank of Romania s Governor of the entire period, Mugur Isarescu. But stability was obtained at a price, and that price means that the necessary adaptation of the system to the post-lehman world has not entirely been paid. For Romania, looking forward to the next couple of years, there are two current trends which we see as gaining momentum. These two are expected to be or become the focus of all the players in the market, from the top large players up to niche players. Firstly, final decisive efforts in the workout department to deal with the out-of-proportion size of the non-performing loans portfolios. Within this subject it has to be included deeper credit haircuts in the corporate sector, together with outplacing of retail portfolios, all having effects on its institution s equity and P&L. At the same time, a restructuring of the risk profiling and overall procedures will be completed, but results of the reshuffling are already obvious in the prudency to accept clients of the current period. As a direct result of this trend, a number of transactions are expected in the market. The transactional focus will be on retail portfolios, with corporate portfolios having less appetite. In order to have the portfolios tradable, a number of steps will have to be complete, including ring-fencing the clean portfolio from the effects of contagion from the non-performing assets. Secondly, a change in the strategic focus on a limited number of markets is foreseen, where the players can be considered market or niche influencers. As a direct result, consolidation is expected to be continued, with banks and insurance companies as major exponents, but also asset managers, brokerages and other financial services companies. In retrospective, it may not sound as steps to achieve stability. Nevertheless, if all these steps are correctly administered at macroeconomic level, they are bound to offer the perspective of a mature system, able to manage a downward cycle, and with better equipped competitors, hence a new stability. The largest financial markets, banking and insurance, are largely populated with international players. Given the nature of the changes due to take place, the first one is to be driven by the local decision makers, with local influencers, whereas the second is set out through the strategic vision, heavily influenced from the headquarters, with strategic flavor of large economies, uncorrelated to Romania. The above separation of chains of interest between local and international hierarchies might bring an extra level of discomfort for the market regulators, having to manage international interests with local tools. As a result, the involvement of the regulators will become tighter in the coming period, both as promoters of change, where such is considered desirable, but also as a barrier of change. For the period covering the medium-term following the next two years, the trend of consolidating the markets is expected to continue. In the banking market is expected that the number of retail networks will be reduced, but leaving the market with a better coverage of the remaining networks. In the insurance market, a double consolidation is expected, a new wave of regulation pushing players in the non-life insurance to reprioritize efforts from market share growth to obtaining margins and, in the insurance brokerage, larger players taking over significant market share in detriment of the independent players, but overall growing the market. On a final note, in what concerns the Bucharest Stock Exchange as a financing market for the local economy, although positive changes are expected to occur due to new management, the overall profile might not change significantly. Therefore it will continue to be regarded as a low priority option for raising equity or securities. Results of such strategy implementation can be clearly seen in the market, with both large banks and insurance companies, showing M&A activity. Other effects could include closing of peripheral businesses, amalgamation of local businesses, or even closing of the local branches.
25 2013 EDITION Major Companies in Romania 25 BANKING RANK COMPANY NAME MCR SCORING PEERS MORE THAN 4% MARKET SHARE TOTAL ASSETS 2012 RON MARKET SHARE PROFIT/LOSS 2012 RON 1 RAIFFEISEN BANK SA ,604,769, % 378,065,252 2 UNICREDIT TIRIAC BANK SA ,061,501, % 173,128,861 3 BANCA TRANSILVANIA SA ,572,044, % 320,431,880 4 BRD - GROUPE SOCIETE GENERALE SA ,924,059, % -331,929,991 5 BANCA COMERCIALA ROMANA SA ,524,929, % -1,214,832,834 6 ING BANK N.V. AMSTERDAM SUCURSALA BUCURESTI ,438,951, % 172,863,424 7 CEC BANK SA ,883,398, % 36,962,870 8 ALPHA BANK ROMANIA SA ,479,458, % -5,106,760 9 VOLKSBANK ROMANIA SA ,460,847, % -821,325,854 PEERS BETWEEN 1% AND 4% MARKET SHARE 10 GARANTI BANK SA ,691,000, % -106,759, CITIBANK EUROPE PLC, DUBLIN - SUCURSALA ROMANIA ,513,499, % 116,419, BANCA COMERCIALA INTESA SANPAOLO ROMANIA SA ,065,671, % -105,449, BANCPOST SA ,174,115, % -49,910, CREDIT EUROPE BANK (ROMANIA) SA ,045,293, % -98,910, PIRAEUS BANK ROMANIA SA ,830,774, % -94,992, BANCA DE EXPORT IMPORT A ROMANIEI (EXIMBANK) SA ,931,388, % 13,065, BANCA ITALO ROMENA SPA ITALIA VOLPAGO DEL MONTELLO SUCURSALA BUCURESTI ,475,665, % -61,932, BANCA ROMANEASCA SA MEMBRA A GRUPULUI NATIONAL BANK OF GREECE ,914,756, % -166,847, OTP BANK ROMANIA SA ,641,848, % -77,089, BANCA COMERCIALA CARPATICA SA ,725,920, % 21,666,531 PEERS LESS THAN 1% MARKET SHARE 21 PROCREDIT BANK SA ,204,495, % 2,220, BCR BANCA PENTRU LOCUINTE SA ,504,466, % 25,547, BANK LEUMI ROMANIA SA ,150,088, % 13,632, MARFIN BANK (ROMANIA) SA ,585,169, % 5,205, BANK OF CYPRUS PUBLIC COMPANY LIMITED NICOSIA SUCURSALA ROMANIA ,427,061, % -4,162, BLOM BANK FRANCE SA PARIS SUCURSALA ROMANIA ,393, % 10,495, CREDIT AGRICOLE BANK ROMANIA SA ,294,403, % -27,337, BANCA MILLENNIUM SA ,573,719, % -106,116, LIBRA INTERNET BANK SA ,257, % 5,988, CAIXABANK SA (BARCELONA) - SUCURSALA ROMANIA ,605, % 8,610, PORSCHE BANK ROMANIA SA ,710, % -11,606, FORTIS BANK SA/NV BRUXELLES SUCURSALA BUCURESTI ,108, % 4,277, NATIONAL BANK OF GREECE SA SUCURSALA BUCURESTI ,167, % -22, ROMANIAN INTERNATIONAL BANK SA ,993, % -10,887, NEXTEBANK SA ,046,091, % -48,436, BANCA COMERCIALA FEROVIARA SA ,883, % -20,453, ATE BANK ROMANIA SA ,293,152, % -253,069, RAIFFEISEN BANCA PENTRU LOCUINTE SA ,137, % 580,335 Source: National Bank of Romania, Coface, Ministry of Finanace
26 MCR Opinion REMI VRIGNAUD, CEO Allianz-Țiriac Asigurări We believe there is still enough room for growth on the Romanian insurance market, especially on certain segments like non-motor in general and life and health specifically. These are segments with a high potential, if certain growth drivers will be implemented. One of the growth drivers for the life insurance segment would be the deductibility which would certainly be a strong motivating factor for potential clients, stimulating the long term savings for individuals. This would also be reflected through an increase of the population s financial security with long term effects for the personal and public budgets and for the economy. It is important to underline the current context of the financial markets and with regard to this, the competitiveness of the financial planning offer coming from the insurance industry, especially in terms of risk yields rate. While, for most popular savings i.e. bank deposits an annual interest rate of 2% for euro placements would nowadays be a good deal, Allianz-Tiriac, for example, offers a guaranteed interest rate of 4% to its clients of traditional life insurance. Another growth driver for the local insurance market would be, in our opinion, a coherent health reform with a well defined basic package and total deductibility for the facultative health insurance for the employer and the employee as well, associated with a free market which respects the principles of free competition. The development of the facultative health insurance would reduce the pressure on the public budget. A price increase trend can be noticed on the non-life segment, especially on MTPL, which is a sign that things are going in the Sustenability: the safe way to a mature market right direction. For 7 years now, the market posted an aggregated loss, determined mainly by the motor segment and especially by non-sustainable prices for MTPL policies. Therefore, the price increase on this segment can be considered a positive sign, as to reach a healthy balance on the market. We have to speed up this process and have a pricing policy strictly based on actuarial principles. On the property & casualty non-motor segment, the context of the household insurance will probably bring the market to a degree of coverage of over 50%. What is important on the household insurance segment is the clients awareness regarding the need for insurance, especially if we are taking into consideration the latest floods. The insurance coverage is still low, especially in certain geographical areas, such as rural areas, and we have to understand that these are the most exposed ones. In respect of underwriting volume there will probably not be any significant variations this year or in the following year. The preliminary information shows a certain stability of the market. Looking at the numbers for the first semester, we can notice an increase of 1% for the life segment and an increase of approximately 6% for the non-life segment. It is obvious that the market still depends on the motor segment and this dependence will certainly limit the market dynamic due to the fact that the fleet is getting old in Romania and the new car sales are decreasing, which also influences the insurance market. Romania is among the markets with the most abrupt new car sales decrease in the past 5 years, of approximately 77%. Moreover, half of the fleet is older than 10 years which means these cars cannot be insured with an MOD policy (Casco), therefore the effect might be compensated on the short term only by pricing policies. But we should not yet expect to see a two digits market growth. The maturity of the market is reflected mainly by the financial stability of its players, by the legal stability and framework predictability and by clear measures and long term view. Also the client awareness regarding the importance of the insurance products might be an indicator for a mature market. Financial stability means that at any given time, the players will be able to meet their financial obligations to the customers. Financial stability was always a priority for Allianz-Tiriac and we have always strived to maintain our financial safety indicators above the minimum standards stipulated by the supervisory authorities. Also the long term view, which is closely linked to the stability and the predictability of the legal and financial framework is essential for the development of the market as a mature one. In respect to the clients awareness regarding the need for insurance, approaching the clients is still a challenge within the Romanian market for insurance companies, due to the economic context on the one hand and the population income level as compared to other countries on the other hand. Speaking of the clients, we have to say that in terms of a mature market it is also important to focus on the clients responsibility, which can be reflected by deductibles. Deductibles bring certain advantages for both parties - the client and the insurer such as would reflect in lower prices for the client, lower claims frequency and it might influence even the MOD penetration degree. From the product range perspective, we believe there is a generous offer on the market, covering all the clients segments - from corporate to individual clients and from life insurance policies with investment component or MOD products to green energy insurance. For example, Allianz-Tiriac offers green energy insurance, using the extensive knowledge of the Allianz Climate Solutions, the specialized division of Allianz Group. To conclude, we can say that we expect mainly the following, for a transition to a mature market: financial and legal stability, predictability, and a long term view. Only this way the market will be able to have a healthy development on the long term.
27 2013 EDITION Major Companies in Romania 27 INSURANCE RANK COMPANY NAME GWP (2012, RON) GWP GENERAL INSURANCE (2012, RON) GWP LIFE INSURANCE (2012, RON) MARKET SHARE 2012 * For Omniasig VIG GWP are for first 4 month of 2012; ** For Aegon Asigurari de Viata S.A, GWP are for first 10 month of 2012; *** For CHARTIS ROMANIA GWP are for first 3 month of 2012 MARKET SHARE 2011 PROFIT/LOSS (2012, RON) 1 ASTRA SA 1,131,544,783 1,107,387,211 24,157, % 12.89% 6,671,058 2 ALLIANZ - TIRIAC ASIGURARI SA 900,180, ,647,922 93,532, % 11.49% -42,742,255 3 GROUPAMA ASIGURARI SA 807,086, ,602,055 46,484, % 9.05% -87,859,059 4 OMNIASIG VIG (FOSTA BCR ASIGURARI VIG) 794,993, ,993, % 0.00% -228,156,874 5 ASIROM VIENNA INSURANCE GROUP SA 596,449, ,366,693 84,082, % 8.03% 14,880,090 6 ING ASIGURARI DE VIATA SA 544,539, ,539, % 7.09% 25,177,551 7 UNIQA ASIGURARI SA 504,925, ,925, % 4.90% -19,184,806 8 EUROINS ROMANIA ASIGURARE REASIGURARE SA 444,732, ,732, % 3.74% 6,750,480 9 GENERALI ROMANIA SA 432,001, ,372,307 83,629, % 6.54% -18,071, BCR ASIGURARI DE VIATA VIENNA INSURANCE GROUP SA 425,194, ,194, % 4.41% 24,991, CITY INSURANCE SA 263,789, ,789, % 2.55% 33,684, CARPATICA ASIG SA 247,299, ,299, % 2.55% -6,994, OMNIASIG VIENNA INSURANCE GROUP SA* 232,350, ,350, % 15.37% N/A 14 ALICO ASIGURARI ROMANIA SA 197,868, ,868, % 2.65% 41,336, GARANTA ASIGURARI SA 90,453,041 86,410,998 4,042, % 1.04% 2,100, METROPOLITAN LIFE ASIGURARI SA (FOSTA AVIVA) 65,904,978 65,904, % 0.94% -15,625, BRD ASIGURARI DE VIATA SA 61,978, ,978, % 0.57% 4,378, GRAWE ROMANIA ASIGURARE SA 54,555,175 1,099,768 53,455, % 0.70% 1,320, ASITO KAPITAL SA 50,958,059 50,958, % 0.73% 700, CERTASIG - SOCIETATE DE ASIGURARE REASIGURARE SA 43,934,487 43,934, % 0.38% -2,648, EUREKO ASIGURARI SA 42,456,101 11,270,994 31,185, % 0.54% -17,093, CREDIT EUROPE ASIGURARI - REASIGURARI SA 41,855,209 41,855, % 0.44% 465, PLATINUM ASIGURARI REASIGURARI SA 37,958,253 37,958, % 0.23% -8,316, LIG INSURANCE SA 36,938,492 36,938, % 0.18% 1,825, AXA LIFE INSURANCE SA 32,494, ,494, % 0.32% -43,835, F.A.T.A. ASIGURARI SA 27,475,726 27,475, % 0.26% -4,398, POOL-UL DE ASIGURARE P.A.I.D. 24,200,893 24,200, % 0.45% -2,853, EXIM ROMANIA SA 22,083,347 22,083, % 0.11% -6,668, ABC ASIGURARI - REASIGURARI SA 17,656,706 17,656, % 0.21% 48, ERGO ASIGURARI DE VIATA SA 17,648, ,648, % 0.35% -3,575, EFG EUROLIFE ASIGURARI DE VIATA SA 14,895, ,895, % 0.13% 4,514, FORTE ASIGURARI REASIGURARI SA 13,716,028 13,716, % 0.06% 123, SIGNAL IDUNA ASIGURARI DE VIATA SA 10,858, ,858, % 0.10% -10,233, EFG EUROLIFE ASIGURARI GENERALE SA 6,993,552 6,993, % 0.07% 2,227, AEGON ASIGURARI DE VIATA SA ** 6,285, ,285, % 0.12% 36 UNIQA ASIGURARI DE VIATA SA 4,281, ,281, % 0.01% -4,649, ONIX ASIGURARI SA 3,522,422 3,522, % 0.00% 404, ATE INSURANCE ROMANIA SA 1,688,418 1,688, % 0.02% 80, GERMAN ROMANIAN ASSURANCE SA 1,686,773 1,686, % 0.02% 80, ASIGURARE REASIGURARE ASIMED SA 1,388,851 1,388, % 0.02% 333, CHARTIS ROMANIA SA *** 89,222 89, % 0.62% 29,224,714
28 MCR Opinion Focus on clients expectations since the launch of the bidding platform 3 years ago. Considering our 8 years experience on the operational leasing market, this figure positions us as the main player on the market of used operational leasing cars. SHANE DOWLING, General Manager, ALD Automotive Operational leasing is still an emergent market in Romania and the evolution in the last 8 years has shown that. The growth was very slow in the first half of the year, but it still existed. After S1, there were 41,514 vehicles managed by the operational leasing companies, based on the ASLO statistics. The main factors causing the slow growth were the legal changes affecting the operational leasing players, the limitation of the deductibility amortization and the stamp tax together with the general difficult economic context. Such legal changes have had a major impact on the profitability of leasing companies and have hindered any significant investments so far this year. This eco tax has caused a far more negative impact on the market: it has a direct cost impact on the new vehicles contracted under operational leasing and for the used vehicles sold at the end of their leasing term. For ALD Automotive the impact is even greater because we have been the first to start our operations locally. So we have more vehicles in the fleet which reach the contract termination and which are put for sale on the bidding platform. From our total fleet we estimate that up to 2,000 vehicles are exposed to the eco tax at end of contract. Thus, the effects of this tax are one major aspect to be considered for For sure however we will continue to see a rising trend in operational leasing and if legislation permits we should see a recovery of the volumes. At the end of 2012 ALD have registered very good financial figures, where we have reported a turnover of nearly Euro 30 mil while maintaining a healthy profit. This year we expect to exceed the turnover attained at the end of 2012 and continue our customer portfolio growth, despite the recent market challenges as the legal changes affecting the operational leasing sector. Although the limitation of the deductibility amortization was applied until the end of May for operational leasing companies, about 30% of the vehicles in our fleet were directly impacted by this limitation. In terms of client retention, last year we ve achieved 86% renewal of our existing contracts and this year we ve noticed so far an 87% renewal rate, which confirms again the successful long term collaboration we share with our customers. We also saw a rise in the number of clients which grew to 255 companies at the end of September 2013, resulting in a 4% increase compared to same period last year. This year, too, we have focused on the internal efficiency of our processes and cost optimization strategies for our customers: we ve supported our customers with TCO reduction plans, we ve integrated a new tool in our internal process for the short term vehicle rental management, we ve constantly improved our customer care service and we ve obtained two ISO standards :2008, which certifies the quality of our management system and 14001:2005 that stands for the good development of our environmental management system. We ll continue the year with the launch of a new app-based service meant to increase the drivers mobility, called ALD mobile and we also plan the development of a web service aimed at simplifying the customers car selection. In May this year we ve reached a milestone in our used vehicle sales: the 4,000th vehicle was sold online via ALD Carmarket Our focus in 2014 is to support the cost saving initiatives of our clients, considering the important role the car fleet spend plays. We plan to further consult them on car policy optimisation avoiding the need to de-fleet. Taking advantage of the manufacturers latest technology and developments in engine efficiency we have encouraged a trend of fleet rightsizing rather than downsizing. Fleet managers continue to focus on lower CO2 emitting vehicles which address key corporate and financial values while also safeguarding HR concerns by rightsizing the fleet and keeping their drivers in the same car bands. We expect this trend to continue next year and positively shape the fleet operational costs for our customers. Our current and future investments mainly target the customer care services, internal efficiency and strategies to improve our customers TCO as we continue to transition through these difficult times. We ll carry on with our defensive driving program organized in partnership with Titi Aur, which after 2 years since its launch was attended by 10% of the ALD Automotive drivers and showed very satisfactory results: 40% from the drivers have improved their driving style by reducing damages, while the total number of damages declared before the program has decreased by 25% after the drivers attended the courses. This program has long term benefits regarding the fleet costs optimization, securing road safety and protecting the environment by assuming a more responsible driving style. For all our customers in search of better car policies we ll continue to work even closer with them by proposing them fleet rightsizing solutions, CO2 reduction plans, and seamless measures to optimize their TCO and support their business needs. ALD Group will celebrate a major achievement next year, reaching a fleet of 1 mil. vehicles world-wide, and this will give us another opportunity to show our customers our appreciation for their long term partnership.
29 2013 EDITION Major Companies in Romania 29 OPERATIONAL LEASING RANK COMPANY NAME TOTAL TURNOVER (2012, RON) TOTAL TURNOVER (2011, RON) ANNUAL TURNOVER GROWTH % PROFIT/LOSS (2012, RON) CONTACT 1 LEASEPLAN ROMANIA SRL 175,268, ,300, % 11,831,596 2 ALD AUTOMOTIVE SRL 159,734, ,534, % 21,087,635 3 ARVAL SERVICE LEASE ROMANIA SRL 131,142, ,379, % 21,805,432 4 FELBERMAYR ROMANIA SRL 83,431,026 77,610, % -3,023,843 ILFOV 5 PORSCHE MOBILITY SRL 80,628,906 66,572, % 14,531,298 Voluntari, ILFOV 6 NEW KOPEL ROMANIA SRL 65,499,141 59,860, % -1,009,184 Otopeni, ILFOV 7 DOSCO PETROSERVICES ROMANIA SRL 62,968,728 46,491, % 7,468,648 8 ROLLING STOCK COMPANY SA 59,292,747 51,834, % 14,976,246 9 ECS INTERNATIONAL ROMANIA SA 51,354,817 68,743, % 1,835, RCI FINANTARE ROMANIA SRL 47,298,459 34,584, % 17,069, AUTONOM SERVICES SRL 36,814,617 23,788, % 2,048,729 Piatra Neamt, Neamt 12 PREMIUM LEASING SRL 36,746,922 27,899, % 3,177, MY CAR TRADING SRL 33,635,090 28,866, % 596, BRD SOGELEASE ASSET RENTAL SRL 31,618,991 33,778, % -478, AUTOTECHNICA FLEET SERVICES SRL 31,501,905 37,846, % 2,397,745 Otopeni, ILFOV 16 INDUSTRIAL ACCESS SA 31,366,702 32,744, % 48, GRENKELEASING SRL 29,993,060 15,995, % 544, UNICREDIT LEASING FLEET MANAGEMENT SRL 29,466,948 27,806, % 5,756, DOKA ROMANIA TEHNICA COFRAJELOR SRL 23,499,374 18,878, % 1,654,083 Tunari, ILFOV 20 AVIROMS RENT-A-CAR SRL 21,693,289 18,704, % -1,627, AGER BUSINESS TECH SA 21,437,152 35,840, % 906, RAD-TRANS SRL 19,150,562 15,966, % 603,985 Bacau, BACAU 23 GE EQUIPMENT SERVICES RO SRL 18,425,654 18,457, % 1,403, ALGECO SRL 17,697,167 14,287, % -2,188,229 Sibiu, Sibiu 25 OPERATIONAL AUTOLEASING SRL 17,324,306 18,519, % 2,751,464 Scheia, SUCEAVA 26 MEDICAL DEVELOPMENT SISTEM SRL 16,643,788 10,874, % 102, KASIM EMAKA SRL 15,752,111 10,853, % 1,705,741 Brasov, BRASOV 28 BT FINOP LEASING SA 15,343,586 12,664, % 1,984, CARPAT BETON SERVICII POMPE SRL 15,282,975 17,220, % -578,325 Mogosoaia, ILFOV 30 DANUBE CRUISES ROMANIA SRL 15,239,900 13,997, % 144, IMPULS - LEASING SERVICES SRL 15,139,061 15,652, % -1,427, MANULOC ROMANIA SRL 14,175,322 13,365, % 1,735, PERI ROMANIA SRL 13,927,096 19,614, % 523, FLEET MANAGEMENT SERVICES SRL 13,738,805 11,210, % 2,342, CIM SERVICE SPED SRL 11,512,035 10,002, % 4,978 Cluj Napoca, Cluj
30 MCR BANKING & FINANCE FINANCIAL LEASING RANK COMPANY NAME TOTAL TURNOVER (2012, RON) TOTAL TURNOVER (2011, RON) ANNUAL TURNOVER GROWTH % PROFIT/LOSS (2012, RON) CONTACT 1 IVECO CAPITAL LEASING IFN SA 858,846, ,585, % -96,761,866 2 BCR LEASING IFN SA 516,392, ,475, % -9,724,745 3 NBG LEASING IFN SA 475,362, ,459, % 179,353 4 PIRAEUS LEASING ROMANIA IFN SA 455,988, ,769, % -76,879,700 5 UNICREDIT LEASING CORPORATION IFN SA 409,744, ,403, % 2,664,994 6 PORSCHE LEASING ROMANIA IFN SA 329,383, ,828, % 25,052,838 Voluntari, ILFOV 7 CETELEM IFN SA 265,354, ,838, % 19,205,137 8 RAIFFEISEN LEASING IFN SA 227,906, ,311, % 6,880,689 9 MOTORACTIVE IFN SA 216,466, ,988, % 14,547, VFS INT ROMANIA IFN SA 200,669, ,052, % 29,301, ERB LEASING IFN SA 195,033, ,918, % 15,151, RSL LEASING IFN SA 177,950, ,820, % 5,649, TIRIAC LEASING IFN SA 149,997, ,353, % 5,016, IMPULS - LEASING ROMANIA IFN SA 148,514, ,505, % 4,614, VB LEASING ROMANIA IFN SA 144,416, ,800, % 27,795, FORTIS LEASE ROMANIA IFN SA 139,495, ,488, % -16,073, ING LEASE ROMANIA IFN SA 129,501, ,279, % -12,166, BRD SOGELEASE IFN SA 126,363, ,587, % 9,764, RCI LEASING ROMANIA IFN SA 107,459, ,203, % 29,761, RALFI IFN SA 101,008, ,249, % 12,911, DEUTSCHE LEASING ROMANIA IFN SA 100,059,191 57,401, % 3,244, BT LEASING TRANSILVANIA IFN SA 85,381,248 91,693, % 7,707,087 Cluj-Napoca, CLUJ 23 OTP LEASING ROMANIA IFN SA 81,895, ,589, % 8,380, CREDIT EUROPE LEASING IFN SA 73,960,081 91,235, % -6,544, ALPHA LEASING ROMANIA IFN SA 72,118, ,652, % -9,213, TBI LEASING IFN SA 59,650,509 88,437, % 3,069, AGER LEASING IFN SA 53,598,758 58,006, % 405, MKB ROMEXTERRA LEASING IFN SA 42,258,627 56,880, % -28,419, BNP PARIBAS LEASE GROUP IFN SA 40,732,078 33,186, % 9,680, ERSTE GROUP IMMORENT ROMANIA IFN SA 37,458,405 45,548, % 295, TEZAUR IMOBILIARE IFN SA 12,498,403 25,325, % 2,121,385
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32 MCR BANKING & FINANCE PILLAR II PENSION FUNDS ADMINISTRATORS RANK COMPANY NAME FUND NAME NET ASSETS NET ASSETS NO OF PARTICIPANTS PROFIT/LOSS (2012, RON) YEAR VARIATION 31 DEC 2012 (2012, MLN RON) 1 S.C. ING PENSII SAFPAP S.A. FPAP ING 3,654,381, % 1,729, S.C. ALLIANZ-}IRIAC PENSII PRIVATE SAFPP S.A. FPAP AZT VIITORUL TAU 2,241,674, % 1,368, S.C. GENERALI SAFPP S.A. FPAP ARIPI 788,939, % 538, S.C. ALICO SAFPAP S.A. FPAP ALICO 682,725, % 386, S.C. AVIVA SAFPP S.A. FPAP PENSIA VIVA 663,290, % 432, S.C. BCR PENSII SAFPP S.A. FPAP BCR 540,400, % 438, S.C. EUREKO - SAFPP S.A. FPAP Eureco 539,575, % 439, S.C. AEGON SAFPAP S.A. FPAP VITAL 276,453, % 234, S.C. BRD SAFPP S.A. FPAP BRD 254,812, % 203, PILLAR III PENSION FUNDS ADMINISTRATORS RANK COMPANY NAME FUND NAME NET ASSETS NET ASSETS NO OF PARTICIPANTS PROFIT/LOSS (2012, RON) YEAR VARIATION 31 DEC 2012 (2012, MLN RON) 1 S.C. ING ASIGUR~RI DE VIA}~ S.A. FPF ING OPTIM 209,024, % 89, S.C. BCR PENSII, SAFPP S.A. FPF BCR PLUS 102,219, % 81, S.C. ALLIANZ-}IRIAC PENSII PRIVATE SAFPP S.A. FPF AZT MODERATO 88,477, % 33, S.C. ING ASIGUR~RI DE VIA}~ S.A. FPF ING ACTIV 70,863, % 29, S.C. ALLIANZ-}IRIAC PENSII PRIVATE SAFPP S.A. FPF AZT VIVACE 40,950, % 20, S.C. S.A.I. RAIFFEISEN ASSET MANAGEMENT S.A. FPF RAIFFEISEN ACUMULARE 30,280, % 7, S.C. AVIVA SAFPP S.A. FPF PENSIA MEA 28,626, % 10, S.C. BRD SAFPP S.A. FPF BRD MEDIO 19,752, % 11, S.C. GENERALI SAFPP S.A. FPF STABIL 5,819, % 4, S.C. EUREKO - SAFPP S.A. FPF EURECO COMFORT 3,224, % 3, S.C. ASIROM - CONCORDIA SAFPF S.A. FPF CONCORDIA MODERAT 732, % CAPITAL MARKET INTERMEDIARIES RANK COMPANY NAME TRADED VALUE MARKET SHARE % TRADED VALUE MARKET SHARE % RANK 2012 (JAN-SEP 2013, RON) (JAN-SEP 2013) (2012, RON) (2012) 1 SWISS CAPITAL S.A. 3,164,896, % 1 4,370,312, % 2 RAIFFEISEN CAPITAL & INVESTMENT 2,572,896, % 7 803,991, % 3 WOOD & COMPANY FINANCIAL SERVICES, A.S. PRAGA 2,235,863, % 8 728,061, % 4 S.S.I.F. BROKER 1,870,730, % 9 655,685, % 5 BANCA COMERCIALA ROMANA 1,087,851, % 4 1,204,857, % 6 BT SECURITIES 614,292, % 6 864,140, % 7 NBG SECURITIES ROMANIA S.A. (ETEBA ROMANIA) 534,917, % ,517, % 8 BRD GROUPE SOCIETE GENERALE 479,556, % 2 2,211,531, % 9 IFB FINWEST 427,663, % 5 936,745, % 10 ACTINVEST 415,681, % ,694, % 11 TRADEVILLE 257,448, % ,844, % 12 HARINVEST 253,497, % ,057, % 13 INTERCAPITAL INVEST 227,962, % ,352, % 14 RAIFFEISEN CENTROBANK AG 212,823, % ,280, % 15 CARPATICA INVEST 176,645, % ,767, % 16 VOLTINVEST 165,798, % ,774, % 17 IEBA TRUST 165,731, % ,505, % 18 KBC Securities N.V. 147,200, % 30 79,833, % 19 ESTINVEST 129,185, % ,488, % 20 AVANTGARDE FINANCE S.A. 119,443, % ,889, %
33 2013 EDITION Major Companies in Romania 33 FUND MANAGEMENT UCITS NON UCITS DISCRETIONARY ASSET MANAGEMENT COMPANIES ASSETS UNDER MARKET CLOSED END TOTAL MARKET F.I.C. PORTFOLIO MANAGEMENT SHARE FUNDS ASSETS SHARE MANAGEMENT 1 ERSTE ASSET MANAGEMENT 3756,7 37,28 x x 19,5 3776,2 22,69 2 RAIFFEISEN ASSET MANAGEMENT 3370,9 33,45 x 217,3 49,3 3637,5 21,85 3 SOCIETATEA DE INVESTITII FINANCIARE OLTENIA 1438,7* 1438,7* 8,64 4 SOCIETATEA DE INVESTITII FINANCIARE BANAT-CRISANA 1327,5* 1327,5* 7,97 5 ING ASSET MANAGEMENT SUC. BUCURESTI 1266,2 12,56 x x x 1266,2** 7,61 6 SOCIETATEA DE INVESTITII FINANCIARE TRANSILVANIA 1148,5* 1148,5* 6,90 7 SOCIETATEA DE INVESTITII FINANCIARE MOLDOVA 1063,1* x x 1063,1* 6,39 8 SAI MUNTENIA INVEST (SIF MUNTENIA) 1057,4* x X 1057,4* 6,35 9 BRD ASSET MANAGEMENT 747,1 7,41 x X 747,1 4,49 10 BT ASSET MANAGEMENT 380,8 3,78 63,1 1,4 445,3 2,68 11 OTP ASSET MANAGEMENT 264,4 2,62 9,6 0,4 274,4 1,65 12 CERTINVEST 47,1 0,47 62,4 40,6 150,1 0,90 13 GLOBINVEST 34,9 0,35 25,4 x 60,3 0,36 14 ATLAS ASSET MANAGEMENT 36,5 0,36 18,3 0,9 55,7 0,33 15 PIONEER ASSET MANAGEMENT 50,1 0,50 x x 50,1 0,30 16 CARPATICA ASSET MANAGEMENT 45,6 0,45 x x 45,6 0,27 17 KD INVESTMENTS ROMANIA 31,2 0,31 x x 31,2 0,19 18 ZEPTER ASSET MANAGEMENT 19,4 0,19 x x 19,4 0,12 19 SAFI INVEST X x 14,8 x 14,8 0,09 20 INTERCAPITAL INVESTMENT MANAGEMENT 1,5 0,01 9,6 x 11,1 0,07 21 STAR ASSET MANAGEMENT 9,5 0,09 X x 9,5 0,06 22 TARGET ASSET MANAGEMENT 7,2 0,07 x x 7,2 0,04 23 SWISS CAPITAL ASSET MANAGEMENT 4,4 0,04 x x 4,4 0, SIRA 2,7 0,03 x x 2,7 0,02 25 VANGUARD ASSET MANAGEMENT 1,4 0,01 X x 1,4 0,01 TOTAL MLN RON DEC ,5 100,0 6035,2 420,5 112, ,4 100% * Figures for ; ** Foreign funds admin. locally
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35 2013 EDITION Major Companies in Romania MW installed capacity and 1 bln EUR - Rovinari power plant, the larger investment in the last decades Energy OIL & GAS EXTRACTION AND DISTRIBUITION ELECTRIC POWER GENERATION AND DISTRIBUTION WHOLE SALE OF ELECTRICITY AND FUELS RETAIL TRADE OF GAS - GAS STATIONS
36 MCR ENERGY With the green (energy) fading, we re back to black Mihaela Cuţurescu, Senior Consultant - Transaction Advisory, EY Romania A reality check of the recent changes in Romanian energy market shows that the support scheme for renewable energy developed by the Romanian government proved to be too expensive for the industry and population to handle in their electricity bills. As in other European countries (Spain or Italy), the incentive scheme raised sufficient concern (Arcelor Mittal took into consideration closure of business in Romania and Europe due to high energy prices) so as to be re-assessed and modified, following major complaints about increase in electricity pricing determined by the green certificates and lack of investments in the Romanian industry (sub-contracting, acquisitions of equipment). Following the three years boom, with renewable energy being in the spotlight for foreign investors, the fast pace for development and the lack of a national strategy in energy led to significant concerns with regards to grid stability and infrastructure. The lack of express government support and of active search for equity partner in order to upgrade other types of technologies, which is vital for balancing the energy market, determined also the imposed technical slow down on renewable energy investments. Interest shown by China Huadian Engineering towards Rovinari materialized through signing a memorandum of understanding in spring This looks like a breath of fresh air for the Romanian energy market and it is expected to be the largest investment in the last decades (600 MW installed capacity and EUR 1 billion). There is no shortcut to the process, the next steps envisaged including a feasibility plan, evaluation of contribution in kind of CE Oltenia company and negotiations with the Romanian state (the majority shareholder). Nevertheless, the involvement in a project of this magnitude, in Europe, is a statement about the capabilities and interest of China in the energy market worldwide. Briefly analyzing the evolution of Romania energy in the recent years, the consumption decrease is a source of concern from economic perspective, as it confirms a lack of industrial production growth. For instance, we saw only a 7% increase in H compared to similar period in Thus, new plants seem to lack market reasoning. Coal-fired power plants and the increase in efficiency is a major topic for international organizations. Looking closer to a high profile investment in Romania in Rovinari and its currently foreseeable execution, it can be expected that a large capital investment could only be deployed if secured by a supportive legislative and fiscal regulatory market, but most of all, by a kick-back in consumption. It appears that the local energy market may not be competitive enough for the new project, considering the recent re-organization in the coal-fired sector in Romania, which is why the new plant is expected to export energy in the region. IN THE MEANTING, THE GLOBAL PICTURE CHANGES China is the top global consumer of coal globally and is constantly building power plants, having extensive resources of lignite and hard coal. Considering the low-carbon global trend and the high level of greenhouse emissions of coal-fired plants, the Chinese utilities were thoroughly considering innovative methods for Highest CO2 emitting power plants in the world Source: CARMA (Carbon Monitoring for Action), Google Maps
37 2013 EDITION Major Companies in Romania 37 counter-acting: carbon capture and storage (CCS) as an option for the investments in high efficiency, low emissions (HELE) technologies: pre-combustion (treat fuel before combustion to extract pollutants), post-combustion (treat gases after the process) and oxy-fuel (burn the coal in an oxygen atmosphere). Average worldwide efficiency level for coal-fired plants is approximately 30%. Improved technology achieved efficiencies of 38%, reaching reductions in emissions of more than 20%. According to IEA, Highly efficient technologies, not yet used at large scale, reached more than 40% efficiency, exceeding 30% reduction of CO2 emissions. Moreover, during 2011, approximately 50% of newly built coal-fired plants use HELE technology (pulverized coal combustion units higher steam pressure and temperatures), which implies an efficiency level of up to 45%. Nevertheless, despite the wider use (double in the last 10 years), it is still too expensive for plants smaller than 300MW and three quarters of existing coal-fired power plants are more than 25 years old. Larger scale use is expected to take place in the following years. The carbon capture and storage is an interesting new concept that has already caught attention from major players in the coal-fired power (China and USA). At European level, a coordinated approach should include public communication on costs implied by reducing or removing coal from the sources of energy generation, together with going public on the steps undertaken to reduce the greenhouse emissions. LOOKING FORWARD While gas is expensive in Europe, shale gas is still controversial and green energy works only in conjunction with other energy sources and not by itself, it appears only natural to make use of the existing coal resources. Nevertheless, authorities should give important consideration to the energy strategy for coal sector. The full cycle, from mining to coal fired plants is in danger due to lack of competitiveness and important operational losses. With a view towards the expected closing of important mining explorations (Petrila by 2015, Uricani and Paroseni by 2017), as set by the European Commission, and the lack of investments in re-habilitation of the coal-fired plants, it is difficult to assess the level of reliance on coal for energy production in Romania on the long-term, especially in the drought periods when hydro power will be scarce. All these take us to basics: the lack of a long-term energetic strategy for Romania. CHINA AND EUROPE - FAR APART According to Global CCS Institute reports, there are more than 10 CCS projects in China, for all three technologies. At the same time, there is an important lag for Europe, the determinant being the carbon price, which does not pay off. The EUROCOAL representative states that the European Emissions Trading system (EU ETS) should be the primary incentive to invest in CCS. The trading price for CO2 during Q was approximately EUR 4/ton, but estimations show that a price of minimum EUR 40 would incentivize investment in carbon capture. The other side of the coin with regards to increase in CO2 price would be an unacceptable electricity price increase for European consumers. Multiple opinions address the fact that the EU ETS failed to penalize coal-burning plants. As a result, there are considerable coal-burning plants under construction in Europe (German, Turkey and Poland). In countries where geologies are not favorable for carbon storage (old mines or former exploitations) and the scale of projects is not large enough to support CCS technology, improvement in efficiency could still be viable and sustainable.
38 MCR ENERGY ELECTRIC POWER GENERATION AND DISTRIBUTION RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES 1 COMPANIA NATIONALA DE TRANSPORT AL ENERGIEI ELECTRICE TRANSELECTRICA SA ,719,196, ,976, ENEL DISTRIBUTIE MUNTENIA SA ,864, ,283,901 1,213 3 FILIALA DE DISTRIBUTIE A ENERGIEI ELECTRICE 'ELECTRICA DISTRIBUTIE MUNTENIA NORD' SA ,196, ,148,792 2,068 CONTACT 4 E.ON MOLDOVA DISTRIBUTIE SA ,605, ,344,771 1,556 Bacau, BACAU 5 SOCIETATEA COMPLEXUL ENERGETIC OLTENIA SA ,236,654, ,328,802 18,770 Târgu Jiu, GORJ 6 SOCIETATEA NATIONALA NUCLEARELECTRICA SA ,653,156, ,469,000 2,136 7 ELECTROCENTRALE BUCURESTI SA ,093,864, ,569,722 3,097 8 CEZ DISTRIBUTIE SA ,749, ,956,471 1,285 Craiova, DOLJ SOCIETATEA COMERCIALA ENEL DISTRIBUTIE BANAT SA SOCIETATEA COMERCIALA FILIALA DE DISTRIBUTIE A ENERGIEI ELECTRICE 'ELECTRICA DISTRIBUTIE TRANSILVANIA NORD' SA SOCIETATEA COMERCIALA FILIALA DE DISTRIBUTIE A ENERGIEI ELECTRICE 'ELECTRICA DISTRIBUTIE TRANSILVANIA SUD' SA SOCIETATEA COMERCIALA DE PRODUCERE A ENERGIEI ELECTRICE IN HIDROCENTRALE HIDROELECTRICA SA ,162, ,228,325 1,166 Timisoara, TIMIS ,123, ,079,013 2,023 Oradea, BIHOR ,835, ,804,940 1,818 Brasov, BRASOV ,402,785, ,010,530 5, ENEL DISTRIBUTIE DOBROGEA SA ,310, ,474, Constanta, CONSTANTA 14 RUDNAP SRL ,750, , ELECTROCENTRALE GALATI SA ,764, ,123, SOCIETATEA COMPLEXUL ENERGETIC Petr 16 HUNEDOARA SA ,504, ,904,154 1,918 HUNEDOARA 17 CEZ ROMANIA SRL ,781, ,649, ESPE RO SA ,274, ,017,769 3 Giroda, TIMIS 19 MW TEAM INVEST SRL ,781, ,752, EON ROMANIA SRL ,351, ,368, Tirgul Mures, MURE 21 SOCIETATEA COMERCIALA DE PRODUCERE A ENERGIEI ELECTRICE SI TERMICE TERMOELECTRICA - SA ,450, ,397,944 1, TOMIS TEAM SRL ,122, ,829, HIDROELECTRICA SA BUCURESTI - FILIALA PENTRU REPARATII SI SERVICII HIDROSERV SLATINA SA ,908, , ENEL GREEN POWER ROMANIA SRL ,456, ,426, Rusu de Sus, BISTRITA-NASAUD 25 BIO ELECTRICA TRANSILVANIA SRL ,370, ,466, SOCIETATEA COMERCIALA DE PRODUCERE A ENERGIEI IN HIDROCENTRALE HIDROELECTRICA BUCURESTI SA FILIALA PENTRU REPARATII SI SERVICII HIDROSERV ,567, , Drobeta Turnu-Severin, MEHEDINTI PORTILE DE FIER SA 27 GRINSEG CONSTRUCT SRL ,987, , Campina, PRAHOVA 28 SOCIETATEA COMERCIALA FILIALA PENTRU REPARATII SI SERVICII 'HIDROSERV' SEBES SA ,838, , Sebes, ALBA 29 ELECTRIFICARE CFR SA ,830, ,214,280 2, GENERAL ENERGETIC SA ,852, ,746, Stejaru, NEAMT CENTRALA ELECTRICA DE TERMOFICARE 31 ARAD SA ( CETARAD) ,028, ,258, Arad, ARAD FILIALA PENTRU REPARATII SI SERVICII Curtea de Arges, 32 HIDROSERV CURTEA DE ARGES SA ,830, ,735, ARGES 33 CONTOURGLOBAL SOLUTIONS (PLOIESTI) SRL ,327, ,068, ECOGEN ENERGY SA ,655, ,597, Buzau, BUZAU 35 EFE ENERGY SRL ,848, ,896 5 Buzau, BUZAU 36 BEPCO SRL ,964, ,043, Ghimbav, BRASOV 37 ENERGY COGENERATION GROUP SA ,790, , Zimnicea, TELEORMAN 38 EDP RENEWABLES ROMANIA SRL ,113, ,872, CENTRALA ELECTRICA DE TERMOFICARE 39 HIDROCARBURI (CET HIDROCARBURI) SA ,275, ,944, Arad, ARAD 40 VEST - ENERGO SA ,855, ,349, UZINA TERMOELECTRICA GIURGIU SA ,648, ,334, Giurgiu, GIURGIU
39 2013 EDITION Major Companies in Romania 39 OIL & GAS EXTRACTION AND DISTRIBUITION RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER PROFIT/LOSS NO OF RANKING EMPLOYEES CONTACT 1 DISTRIGAZ SUD RETELE SRL ,025,701, ,765,289 2,924 2 SOCIETATEA NATIONALA DE GAZE NATURALE ROMGAZ SA ,842,983, ,244,049,106 5,730 Medias, SIBIU 3 OMV PETROM SA ,510,054, ,850,620,876 20,508 4 ARELCO DISTRIBUTIE SRL ,723, ,007, EON ENERGIE ROMANIA SA ,257,350, ,597, Targu Mures, MURES 6 GDF SUEZ ENERGY ROMANIA SA ,315,829, ,555, PETROTEL - LUKOIL SA ,933,476, ,444, ROMPETROL RAFINARE SA ,323,113, ,653, Navodari, CONSTANTA 9 EON GAZ DISTRIBUTIE SA ,364, ,019,676 3,738 Targu Mures, MURES 10 INTERGAZ SRL ,444, ,140, Zimnicea, TELEORMAN 11 BULROM GAS IMPEX SRL ,641, ,093, LINDE GAZ ROMANIA SRL ,511, ,166, Timisoara, TIMIS 13 OIL PROD SRL ,482, , Constanta, CONSTANTA 14 CONEF GAZ SRL ,085, ,716, PETROSANTANDER ROMANIA SRL ,561, ,408, Arad, ARAD 16 GAZ SUD FURNIZARE SRL ,891, ,375, TACROM DRILLING SRL ,843, ,027, TEN GAZ SRL ,596, ,812, Cluj Napoca, CLUJ 19 CONGAZ SA ,070, ,702, Constanta, CONSTANTA 20 TOTAL LUBRICANTS ROMANIA SA ,454, ,365, MOL ENERGY TRADE ROMANIA SRL ,658, ,760, WIROM GAS SA ,687, ,843, NABORS DRILLING INTERNATIONAL 23 PLOIESTI SRL ,673, ,523, PRAHOVA 24 RAFO SA ,654, ,409, PETROM DISTRIBUTIE GAZE SRL ,572, ,329, AMROMCO ENERGY SRL ,994, ,768, RAFINARIA STEAUA ROMANA SA ,121, ,998, Campina, PRAHOVA
40 MCR ENERGY WHOLE TRADE OF ELECTRICITY AND FUELS RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 ELECTRICA FURNIZARE SA ,441,432, ,538,488 1,165 2 OMV PETROM GAS SRL ,246,247, ,414,558-3 ENEL ENERGIE MUNTENIA SA ,069,364, ,388, ENEL ENERGIE SA ,066,949, ,250, TINMAR - IND SA ,387,536, ,271, OSCAR DOWNSTREAM SRL ,467,509, ,243,051-7 CEZ VANZARE SA ,560,517, ,989, Craiova, DOLJ 8 WIEE ROMANIA SRL ,193, ,523, ALPIQ ROMENERGIE SRL ,896, ,636, TRANSENERGO COM SA ,570, ,374, ALPIQ ROMINDUSTRIES SRL ,657, ,820, EGL GAS & POWER ROMANIA SA ,112, ,333, PLANOIL SRL ,689, ,803, ENERGY FINANCING TEAM ROMANIA SRL ,826, ,919, ROMPETROL GAS SRL ,998, , LLK LUBRICANTS ROMANIA SRL ,098, ,531, GASPECO L &D SA ,108, ,518, Otopeni, ILFOV 18 COMISION TRADE SRL ,310, ,596, Braila, BRAILA 19 EZPADA SRL ,630, ,684, ROTTCO CONSULT SRL ,528, , Voluntari, ILFOV 21 SOCIETATEA COMERCIALA DE DISTRIBUTIE SI FURNIZARE A ENERGIEI ELECTRICE ,371, ,363, ELECTRICA SA 22 ENERGY HOLDING SRL ,875, ,392, PETROLEXPORTIMPORT SA ,578, ,147, REPOWER FURNIZARE ROMANIA SRL ,948, ,983, GEN - I BUCHAREST - ELECTRICITY TRADING AND SALES SRL ,332, ,458, ECO PETROLEUM SA ,682, , Constanta, CONSTAN A 27 CASTROL LUBRICANTS RO SRL ,864, ,849, UNICOM HOLDING SA ,576, ,157, Voluntari, ILFOV 29 VOTROM SRL ,350, ,723, Oradea, BIHOR 30 FIDELIS ENERGY SRL ,320, ,733,296 8 Valea Lupului, IASI 31 EDISON TRADING SPA MILANO - SUCURSALA BUCURESTI ,412, , RONEFER SRL ,903, ,361,929 5 Voluntari, ILFOV 33 ENERGON POWER & GAS SRL ,988, ,767,321 9 Cluj-Napoca, Cluj 34 RENOVATIO TRADING SRL ,980, ,058, ENEL TRADE ROMANIA SRL ,442, , PLANOIL INDUSTRIES SA ,059, , MASTER CHEM OIL SRL ,909, , OET - OBEDINENI ENERGIINI TARGOVTSI OOD BULGARIA SUCURSALA BUCURESTI ,431, ,580, LIEB-BENZ-OIL COMPANY LTD SRL ,732, ,410, Timisoara, TIMIS 40 KDF ENERGY SRL ,962, ,927, TAN STEEL HOLDING SRL ,048, , CEZ TRADE ROMANIA SRL ,551, , AIR TOTAL ROMANIA SA ,145, ,038, Techirghiol, CONSTANTA
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42 MCR ENERGY RETAIL TRADE OF GAS - GAS STATIONS RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 OMV PETROM MARKETING SRL ,092,697, ,603, MOL ROMANIA PETROLEUM PRODUCTS SRL ,147,768, ,118, ROMPETROL DOWNSTREAM SRL ,155,062, ,017,505 2,111 4 LUKOIL ROMANIA SRL ,030,862, ,080,093 3,309 5 ENI ROMANIA SRL ,634, ,356, ARAL SRL ,487, ,846, Saliste, SIBIU 7 SMART DIESEL SRL ,344, ,171, Chisineu-Cris, ARAD 8 TURIST SERVICE SRL ,135, , GIURGIU 9 ROMBEER CRINGASU SRL ,623, ,308, I. L. Caragiale, DAMBOVITA 10 ANA OIL SRL ,643, , Sibiu, SIBIU 11 EUROGENETIC SRL ,000, ,564, Craiova, DOLJ 12 ALPHA GRUP OIL SRL ,041, , VILKY SERV SRL ,307, , Nojorid, BIHOR 14 ROMAR OIL SRL ,246, , Constanta, CONSTANTA 15 SOCAR PETROLEUM S.A ,757, ,613, Botosani, BOTOSANI 16 TRANS IVINIS & CO SRL ,287, , Sebes, ALBA 17 BENZ OIL SRL ,937, , Medias, SIBIU 18 DESIRA IMPEX SRL ,611, , Beius, BIHOR 19 EUROIL SRL ,607, ,527, Saliste, SIBIU 20 OZANA SRL ,800, , Bistrita, BISTRITA- NASAUD 21 ALASCOM SRL ,934, , Buzau,BUZAU 22 AS24 TANKSERVICE SRL ,386, ,806 9
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45 2013 EDITION Major Companies in Romania % fall of the Romanian chemical production market in 2012, 22% of chemical producers or distributors active at the end of 2011 closed their businesses Chemicals MANUFACTURE OF BASIC CHEMICALS WHOLESALE OF CHEMICAL PRODUCTS MANUFACTURE OF PAINTS, VARNISHES AND SIMILAR COATINGS, PRINTING INKS AND MASTICS MANUFACTURE OF RUBBER AND PLASTIC PRODUCTS - EXCEPT TYRES WASTE MANAGEMENT
46 MCR CHEMICALS The shadow of the chemical industry Alina Cincă, Manager Transaction Advisory, EY Romania CURRENT STATUS During the global economic crisis, the chemical sector did not record a severe drop in terms of turnover. The relatively stable condition changed during recent years, with the downturn in the automotive and construction industries. Together with the related impact on the demand for chemical products, this determined the closure, within one year and a half of 22% of chemical producers and distributors that were active at the end of (According to BMI report, chemical production in Romania fell by 2.3% y-o-y in 2012, a decrease higher than that of EU countries). According to a Coface report, the chemical industry sector in Romania was estimated at RON 47.4 billion at end of The global downturn did not allow chemical producers to start new operations and compensate for entities which closed business. Thus the risk affecting this sector could be roughly estimated at a turnover loss of RON 2 billion and the disappearance of 1,900 workplaces. The same report addresses the insolvency threat for many Romanian chemical producers, as well as their failure to start the recovery in terms of profitability for Moreover, only 22% of chemical companies succeeded in returning to profit position after losses incurred in the previous year. More than 25% of entities had liabilities to state budget at end of 2012 and moreover, their value increased significantly compared to the end of EXPECTED DEVELOPMENTS An increase of gas prices for industrial consumers could worsen the financial performance of the petrochemicals sector that is highly reliant on gas, particularly for methanol and fertilizer production. The European competition in the chemical sector is intense and, under the condition of increasing fuel prices, operational profitability is in danger, with even lower margins determined by higher production costs. Gas price in Romania is the lowest in the European Union, which is not sustainable due to pressure from the EU and the IMF to raise prices ahead of gas market deregulation. The only important variable with regards to this expected change is the timing, how much it will take to reach and thus how much time do the chemical producers have for adapting to the increasing prices. On a larger perspective, the European Chemical Industry Council (CEFIC) estimated that the European chemicals industry will contract by 1% during 2013 compared to the previous year, determined by the decline in construction and automotive sectors, as well as the high energy and feedstock costs compared to the other markets (e.g. Asia). Very few chemical producers have managed to resist and maintain or increase their competitiveness in the local and export market mostly. One example is Azomureş, which during 2012, despite a fall in the net profit of 33% compared to 2011, increased its turnover by 12.5% due to strong international demand for fertilizers. More importantly, in 2013, the company has concluded a EUR 75 million contract for the modernization of the urea production facilities and it also plans to modernize two ammonia factories. Azomures was purchased in 2012 by Ameropa A.G., a Swiss cereals and fertilizers trader. In contrast, the situation of Oltchim became dramatical. The company s decline began in 2008, once Arpechim stopped the ethylene and propylene deliveries. After a failed
47 2013 EDITION Major Companies in Romania 47 and well known attempt of privatization to Dan Diaconescu in late 2012, the company entered the insolvency procedure at the beginning of 2013, not being able to meet its obligations to creditors. Later on, 930 people have been fired, while 715 others were forced into technical unemployment. Oltchim, once one of the largest producers of PVC in Europe, was forced to shut down production after running out of raw materials in Its main supplier, Arpechim, a refinery owned by Petrom Group, was closed in 2011 after Austrian shareholders decided that it is not cost effective. On one hand, the estimated growth could be dismissed by lack of incentive for foreign investments, since there is a political risk that Romanian Governance might fail to meet IMF conditions to release outstanding tranches from the country's financial balance. On the other hand, favorable trade market integration within EU regulatory framework would enable an increase of chemical products exports. This context might be an interesting access point for cost-effective Romanian chemical industry companies, in their attempt to enter other European markets. The media announced the interest of several entities for acquiring Oltchim (e.g. the Turkish chrome producer Yildirim Holding Inc., Fortissimo Capital, an investment fund from Israel or SOCAR, the Azerbaijan petrol company, and Oil Gas Trade LLC, a Russian group). Interest may also apply to Oltchim and Arpechim package. Rompetrol Petrochemicals is the only producer of propylene and polyethylene in the country. In 2012, the turnover of the company has declined by 20% compared to However, its losses plummeted 58% during the same period. During 2013, the Group decided to integrate the entity with Rompetrol Rafinare. According to Mediafax news agency, the management of Uzinele Sodice Govora declared in the summer of 2013 that the going concerns of the company, as well as that of its suppliers of commodities and utilities are at risk, unless the EU regulation regarding silt settling tanks will not be modified. According to the company reports, 2012 financials show a loss of RON 56.7 million, up from RON 35.2 million in the previous year. LOOKING FORWARD The persistent feedstock shortages and volatile price of natural gas created cost pressures on the domestic chemicals industry. Still, after almost 45% of companies active in the chemical industry increased their risk of insolvency (as per a Coface report), the Romanian chemical industry might have a chance to recover in the upcoming years. Attracting direct domestic or international investment can turn the sector into a success, taking into account the estimated global growth of 12%.
48 MCR Opinion Packaging industry: RADU ANDREI, MBA Marketing, LivingJumbo Industry S.A. innovation is the key word The packaging industry was affected by the crisis that started in Europe at the end of 2008 beginning of However, it is in a continuous development process and has a growth rate of around 4% per year. It is a highly competitive industry in which every player is forced to keep the pace with the latest technical and technological developments. Research and development in plastic processing are equally important for both machinery manufacturers and plastic processors. I expect 2014 will continue to be under the sign of recovery from crises. According to the European Commission, next year we shall see a slight growth of the economic activity of 1.4% at the EU level, respectively of 1.2% in the EURO zone. Still, the unemployment will not be reduced in a significant percentage. The exchange rate between the RON and EUR/USD will probably remain at the same level of Unfortunately, the EU funds absorption will still be low, unless the whole mechanism for applying and collecting the funds is improved. At Livingjumbo Industry, we first felt the crisis in December The first semester of 2009 was characterized by a decrease in sales of the big bags compared with the same period of 2008, but the company's business has suffered particularly between March and June. Overall, the evolution of our company has remained in line with the national and European trends. Because of the general economic climate, we had less renewed commercial contracts than in 2008, as customers stopped taking medium and long term financial risks. There were several strategic decisions that allowed us to keep on track and not follow the numerous businesses that went bankrupt during 2009 and First of all, we decided to maintain the number of our employees despite a severe reduction of orders. Production is not easy and qualified workers are one of our most important assets. Secondly, we intensified our marketing efforts in search of new customers that were meant to replace the ones that did not survive the crises. Thirdly, we decided to increase our capacity by investing in new technologies that allowed us to obtain economies of scale and reduce costs (electricity, labor, etc.). Last, but least, we increased our financial discipline, paying greater attention to our receivables and selecting new customers carefully. In spite of the quite high technology-related costs, competition is very tough in our industry, no matter if players are coming from Fast East (India, China, Vietnam, etc.) or from Europe. This is why for a labor intensive segment, such as the big bags production, the continuous increase of salary levels in Romania represents a challenge for companies that need to remain competitive. Unfortunately, we don t have much bargaining power in front of our suppliers of main raw materials polypropylene and polyethylene granules, so the manpower costs can make the difference for the end-user when selecting a big bag supplier. Of course, quality of products and the delivery terms are almost as important as the price. This is why we implemented the integrated management system Quality Environment Food Safety and we are always in a continuous improvement program. Don't manage - lead change before you have to are the inspirational words of Jack Welch the famous General Electric CEO that guided me in the 7 years and 6 months since I have been working as a General Manager in Livingjumbo Industry S.A. Coming back to the packaging industry, innovation is the key word. No matter we speak about plastic packaging (flexible or rigid), or about board, metal, glass or other packaging, most of the efforts of all the R&D departments are directed to recyclability or use of recycled material, weight decrease, renewable or bio-based materials and compostable materials. The plastic packaging industry first started to focus on innovation in the 50s. Since 1976, plastic has become the most used material in the world. Innovations in plastic packaging frequently help reduce the amount of raw materials used to pack food and consumer goods. This often results in lighter packaging, less fuel to transport products, reducing use of natural resources, fewer greenhouse gas emissions, less waste in conclusion, a lighter environmental footprint. I recommend to all the professionals in the packaging industry to be pro-active when it comes to the customer s needs, to not forget that the customer is the essence of the existence of a business. I also recommend to stay in touch with the latest technological developments and to be one step in front of the competition.
49 2013 EDITION Major Companies in Romania 49 MANUFACTURE OF BASIC CHEMICALS RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER PROFIT/LOSS NO OF RANKING EMPLOYEES CONTACT 1 AZOMURES SA ,829,333, ,049,442 2,623 Tg. Mures, MURES 2 OLTCHIM SA ,442, ,443,477 3,318 Ramnicu Valcea, VALCEA REGIA AUTONOMA PENTRU ACTIVITATI Drobeta Turnu 3 NUCLEARE RA ,841, ,578,621 3,653 Severin, MEHEDINTI 4 REDOXIM SRL ,142, ,345, Diroda, TIMIS 5 CHIMCOMPLEX SA BORZESTI ,984, ,228, UZINELE SODICE GOVORA - CIECH CHEMICAL Ramnicu Valcea, 6 GROUP SA ,935, ,718, VALCEA 7 BIO FUEL ENERGY SRL ,803, , Zimnicea, TELEORMAN 8 D PLAST-EFTEC RO SRL ,139, ,068, Budeasa Mare, ARGES 9 ALCHIMEX SA ,375, ,849, ENERGY BIO CHEMICALS SA ,071, ,398, AMURCO SRL ,222, ,835, Bacau, BACAU 12 EGGER TECHNOLOGIA SRL ,157, ,285, VIROMET SA ,259, ,960, Victoria, BRASOV 14 COMBINATUL DE INGRASAMINTE CHIMICE SA ,145, , Navodari, CONSTANTA 15 CHEMGAS HOLDING CORPORATION SRL ,124, ,737, Slobozia, IALOMITA 16 BIOROMOIL SRL ,694, ,140, QUALICAPS ROMANIA SRL ,227, ,200, TRUST LF TRADE SRL ,715, , Focsani, VRANCEA 19 DONAU CHEM SRL ,264, ,093 1,042 Turnu Magurele, TELEORMAN 20 PRIO BIOCOMBUSTIBIL SRL ,766, ,411, WHOLESALE OF CHEMICAL PRODUCTS RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 COMFERT SRL ,524, ,769, Bacau, BACAU 2 BAYER SRL ,077, ,218, ALCEDO SRL ,276, ,658, AGROTEX SRL ,275, ,577, Carei, SATU MARE 5 AGRIUM-AGROPORT ROMANIA SA ,938, , BIZ SOLUTIONS SRL ,436, , DOLJ 7 AZOCHIM SRL ,997, ,157, Calugareni, GIURGIU 8 SYNGENTA AGRO SRL ,072, ,905, MAKHTESHIM AGAN MAROM SRL ,876, ,405, Voluntari, ILFOV 10 TIMAC AGRO ROMANIA SRL ,682, ,986, MARIA INVEST HOLDING SRL ,756, ,941, Chirnogi, CALARASI 12 DEN BRAVEN ROMANIA COMEX SRL ,889, ,334, BRENNTAG SRL ,780, ,741, Chiajna, ILFOV 14 TERRA AGRO INVEST SRL ,492, ,388, ARCHIM FERTIL SRL ,922, ,578, Vladimirescu, ARAD 16 LINZER AGRO TRADE ROMANIA SRL ,986, ,677, BASF SRL ,090, ,425, SIKA ROMANIA SRL ,968, ,566, Brasov, BRASOV 19 CHEMIROL AGRO SRL ,142, ,341, Arad, ARAD 20 ORBIT POLYMERS SRL ,322, ,361, KWIZDA AGRO ROMANIA SRL ,585, ,024, SOLEXIM POLYMERS SRL ,566, ,079, CHEMARK ROM SRL ,594, ,270, Brasov, BRASOV 24 MESSER ROMANIA GAZ SRL ,320, ,218, GLISSANDO SRL ,055, ,208, Timisoara, TIMIS
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50 MCR CHEMICALS MANUFACTURE OF RUBBER AND PLASTIC PRODUCTS RANK COMPANY NAME MCR SCORING WASTE MANAGEMENT & RECYCLING RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER ANNUAL TURNOVER TURNOVER RANKING TURNOVER RANKING PROFIT/LOSS PROFIT/LOSS NO OF EMPLOYEES NO OF EMPLOYEES CONTACT 1 GREENFIBER INTERNATIONAL SA ,923, ,308, Buzau, BUZAU 2 ARTEGO SA ,230, ,699,944 1,257 Targu Jiu, GORJ 3 PLASTOR SA ,437, ,403, Oradea, BIHOR 4 CONTITECH THERMOPOL ROMANIA SRL ,514, ,410, Nadab, ARAD 5 PHOENIX MECANO PLASTIC SRL ,132, ,028, Sibiu, SIBIU 6 ROMPETROL PETROCHEMICALS SRL ,167, ,786,653 - Navodari, CONSTANTA 7 STAR EAST PET SRL ,185, ,192, Brasov, BRASOV 8 VITAFOAM ROMANIA SRL ,718, ,383, Ludus, Mures 9 VALROM INDUSTRIE SRL ,234, ,964, AQUATOR SA ,031, , Buzau, BUZAU 11 PUROLITE SRL ,352, ,174, ROMCARBON SA ,533, , Buzau, BUZAU 13 EUROFOAM SRL ,956, ,278, Selimbar, SIBIU 14 GEALAN ROMANIA SRL ,212, ,479, PET STAR HOLDING SRL ,764, ,095, Slobozia, IALOMITA 16 GREIF FLEXIBLES ROMANIA SRL ,418, ,847, Botosani, BOTOSANI 17 TERAPLAST SA ,544, ,979, Bistrita, BISTRITA- NASAUD 18 VALEO LIGHTING INJECTION SA ,950, ,564, Girmata, TIMIS 19 HUTCHINSON SRL ,489, ,469, CASA NOASTRA SRL ,437, ,363, CONTACT 1 REMAT SA ,178, ,005, Calarasi, CALARASI 2 REMATHOLDING CO SRL ,848, ,739, IONESCOM COLECT SRL ,060, ,168, Constanta, CONSTANTA 4 METALIMPEX ROMANIA SRL ,751, ,026, Argeselu, ARGES 5 SILNEF MG SRL ,094, , Brasov, BRASOV 6 ALBA BALKAN RECYCLING SRL ,689, ,046, METAL GROUP COMIMPEX SRL ,007, ,158, REMAT MG SA ,460, , Arad, ARAD 9 REMAT BRASOV SA ,583, , Brasov, BRASOV 10 REMAT SCHOLZ SA ,338, ,224, TEHNOINVEST & CO RECYCLING SRL ,338, ,201, Brasov, BRASOV 12 ENERGROM SA ,892, ,050, ANGHEL NG SRL ,595, , Sendreni, GALATI 14 KIRAZOGLU CORPORATION SRL ,956, , Agigea Sud, CONSTANTA 15 GREENTECH SA ,857, ,475, Buzau, BUZAU 16 ROMRECYCLING SRL ,198, ,014, COMPANIA ROMPREST SERVICE SA ,267, ,353,613 2, REMAT BUCURESTI SUD SA ,500, ,512, NEW COMPANY RECYCLING SRL ,260, ,439, Drobeta-Turnu Severin, MEHEDINTI 20 REMATINVEST SRL ,922, ,910, Cluj-Napoca, CLUJ 21 REMAT SA ,247, ,524, Iasi, IASI 22 SUPERCOM SA ,804, ,385,811 1, METAL HOUSE CO SRL ,354, , Constanta, CONSTANTA 24 ROSAL GRUP SRL ,433, ,316,623 1, SIDEROM STEEL SRL ,526, ,954, REMAT SCHOLZ FILIALA OLTENIA SRL ,093, ,421, Drobeta-Turnu Severin, MEHEDINTI 27 URBAN SA ,728, ,755,517 2,237 Ramnicu Valcea, VALCEA
51 2013 EDITION Major Companies in Romania 51 MANUFACTURE OF PAINTS, VARNISHES AND SIMILAR COATINGS, PRINTING INKS AND MASTICS RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 KOBER SRL ,194, ,053, Dumbrava Rosie, NEAMT 2 CHIMTITAN SRL ,836, ,579, AZUR SA ,158, , Timisoara, TIMIS 4 AXM PROD 93 SRL ,533, ,864, POLICOLOR SA ,197, ,087, FABRYO CORPORATION SRL ,488, ,207, ILFOV 7 DEUTEK SA ,985, ,143, DILOIL CHIM SRL ,350, , SENTOSA IMPEX SRL ,494, ,784, Cluj-Napoca, CLUJ 10 METALBAC & FARBE SA ,054, ,541, Magura, BACAU 11 NUBIOLA ROMANIA SRL ,911, ,791, EUROINK ROMANIA SRL ,262, , SWARCO VICAS SA ,521, , Targoviste, DAMBOVITA 14 VADOVA SRL ,116, , VALCEA 15 HELIOS TRADING CO SRL ,207, , ILFOV 16 SARCOM SRL ,505, ,822, VALCEA 17 DRUCKFARBEN ROMANIA SRL ,496, ,063, Magurele, ILFOV 18 DAW BENTA ROMANIA SRL ,011, ,640, Sancraiul de Mures, MURES 19 NATIONAL PAINTS FACTORIES COMPANY SA ,461, , Miroslava, IASI 20 IZOCOLOR 92 PROD SRL ,561, , CHEMPRO CHEMICALS SRL ,585, , Ramnicu Valcea, VALCEA
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53 2013 EDITION Major Companies in Romania % increase in local pharmacy retail market in 2012, the first 10 players represent approximately 48% of total sales, related to 38% in 2011 Pharmaceuticals MANUFACTURE OF BASIC PHARMACEUTICALS WHOLESALE OF PHARMACEUTICALS RETAIL TRADE OF PHARMACEUTICALS
54 MCR PHARMACEUTICALS The pharmaceutical retail battlef ield Bogdan Ţenu, Senior Manager Transaction Advisory, EY Romania Atena Miţucă, Consultant Transaction Advisory, EY Romania MARKET OVERVIEW - PHARMACY RETAIL KEEPS ON CLIMBING Despite past predictions describing a totally bleak future, based on specific features of underfunding and a much disputed claw-back mechanism, local pharmacy retail kept the upward trend in 2012, increasing by 2.6%. Amongst noticeable trends observed in the previous year, we can note the continuous growth of the over-the-counter (OTC) segment (6.5% in 2012 compared to 8.4% in 2011) and the constant, long-term issue encountered by retail players: payment terms causing severe lack of liquidity. The slower growth was based on the decreasing consumer purchasing power, whilst the latter issue is currently dealt with. Otherwise, the local pharmaceutical market is rather fragmented, largely import-oriented, in search for high returns and continues to rank below the average for European countries in terms of investments in R&D, with EUR 218 million in Last year was rather one of stagnation for the pharmaceutical sector in Romania, as the increase was more tempered than those recorded in the past is forecasted to bring brighter prospects, as the removal of some of the claw-back tax inefficiencies would reduce costs incurred by the industry specifically, the computation principle according to which the tax was applied to a post-vat price was eliminated based on its unconstitutional nature. Figure 1. Sales Evolution in Pharma Retail EURm 2,500 2,000 1,500 1, Source: Cegedim. 1,682 2,045 2,216 2, When it comes to identifying a pattern within the local market, it helps to look atthe Central and Eastern European (CEE) Pharma industry, as value growth in Romanian retail is, similar to countries in the region, mainly driven by the OTC segment 2. However, when looking to the value of medicines sold, the prescription-drug segment accounts for approximately 84% and was increasing at a rapid pace until 2011 (i.e. 31.6% in 2010 compared to only 8.3% in 2011), when it was surpassed in growth rate by the OTC section (namely, 8.4% compared to 8.3%). According to a PMR 3 analysis, accelerated development of the local market is forecasted for , the main potential drivers being: a lower OTC spending per capita within the CEE countries, revealing a considerable growth potential, government policy focusing on cheap medicines and expansion of pharmacy chains. Figure 2. Annual Change in OTC and RX Sales Q OTC Sales 0% 5% 10% 15% 20% 25% 30% 35% y-o-y change Source: Cegedim. *RX represents the prescription-drug segment. RX Sales The local pharmacy retail is comprised of large chain groups, highly dependent on price regulated operations for RX products, with 83% of total sales being generated by the prescription business in In line with the entire sector, the pharmaceutical retailers did not undergo any significant transformations during 2012, except for already long-term struggle with public administration in order to combat long payment terms and continuing the classic battle for market share. The first issue has somehow been tackled as the Directive 2011/7/EU, which reduces payment terms to 60 days, was transposed into national law starting with March 2013 (enforcing Law no.72/2013). However, it appears to be a long road ahead for 1 -in-cercetare-in-medicina-cu-218-milioane-euro Romania Pharmaceutical Report, Intellinews, May PMR is a British American company concentrated on providing market information related to CEE and other emerging countries.
55 2013 EDITION Major Companies in Romania 55 public and local authorities to comply with this task, taking into consideration the past difficulties in respecting the payment terms valid before March 2013, which could go up to 210 days. UNCERTAIN PROSPECTS - MORE CHAINS BY BREAKING THE CHAINS? The number of pharmacy units has continually grown since However, the pace has recently slowed down, as large chains shifted focus on business consolidation, being cautious in approaching new expansion opportunities. Meanwhile, independent pharmacies (owned by independent pharmacist and not part of a chain) are continually trying to survive in a market dominated by developing chains which have started to absorb these self-reliant stores as part of their expansion strategies. On the regulatory side, it all seems quiet, as the removal of the demographic criterion, which restricts the number of units to a volume related to the number of citizens, has been postponed until Figure 3. Evolution of Pharmacy Units in Romania , ,000 2,000 3,000 4,000 5,000 6,000 7,000 Number of units Source: Romania National Institute of Statistics. THE TOP PLAYERS SHARPEN THE WAR IN PHARMA 5,897 6,127 6,682 6,506 6,969 A major aspect ruling the pharmaceutical retail market is the game played by top competitors for survival and prosperity. In recent years, the competition amongst pharmacy chains in Figure 4. Top 10 Retail Players in Pharma in 2012 Number of units Catena Sensiblu Net Turnover Dona Ropharma Number of units Help Net Farma Belladonna Farmaciile Remedia* Gedeon Richter Farmacia Centrofarm Reteta Source: Ministry of Finance, Ziarul Financiar, Romania Pharmaceutical Report Intellinews (May 2013). *For Farmaciile Remedia, we considered the net turnover of its wholesale owner - Farmaceutica Remedia SA, as we could not trace the individual net turnover for the pharmacy chain. EURm Romania strongly increased as a consequence of higher drug consumption and increased health awareness of the population. The current trend is concentration of the market, as the first 10 players represent approximately 48% of total sales in 2012, relative to 38% in PERFORMANCE AND EXPANSION Owned by a local entrepreneur, Catena has outpaced former market leader Sensiblu in 2012, with 12.5% of total sales, relative to 10.8%, represented by Sensiblu share. Focusing on buying rationale in the pharmaceutical sector and highly aware of the Romanian consumer behaviour, which, due to low GDP/capita, is usually settling for cheaper alternatives, the retailer continued with the same low-pricing policy and went on with its robust expansion plans, opening 150 units in Best sector performer in 2011, Sensiblu acquired 90 units of rival City Pharma in 2012 in order to strengthen its leading position. Following its strategic move, in 2012 the chain experienced a net loss of EUR 14 million, while opponent Catena recorded the highest performance in the sector, with EUR 8 million net profit. PRICING AND BRAND BUILDING STRATEGIES While Catena is focusing on low priced medicines, acting as a big discounter, Sensiblu is targeting premium opportunities, as first chain to have introduced loyalty cards on the local market. Both players are currently offering discount cards in order to gain consumer loyalty. For instance, the potential discounts granted in Catena chain range between 3% and 22%, whereas Sensiblu clients may receive either a 10% direct discount or up to a 12% price reduction after accumulating a set number of points. When it comes to brand building strategies, the first two performers are quite comparable. Since 2004, the retailer belonging to A&D Pharma has developed the largest portfolio of own brands on the market, covering areas such as: anti allergy detergents (Dermalin), hair, body and skin care (Herbosophy), personal hygiene (Sensiblu), dermato-cosmetic (Oxyance) and feminine hygiene (Imacul eau). Similarly, in 2005 Catena launched Naturalis private brand, comprising beauty care, skin care and nutritional products. PHARMACY RETAIL CONTINUE TO INNOVATE Perspectives appear to be bright for the Romanian retail, as players already started implementing innovative strategies, such as ordering on-line with picking-up in-store developed by Catena, the launch of a mobile application to identify pharmacies and products by Dona chain and the introduction of the drive-in concept by Centrofarm. In order to survive in such a competitive market, players will need to improve their strategic thinking and, as long as the regulatory environment eases, increasing competition would be a certain benefit for Romanian consumers.
56 MCR PHARMACEUTICALS MANUFACTURE OF BASIC PHARMACEUTICALS RANK COMPANY NAME MCR SCORING RETAIL TRADE OF PHARMACEUTICALS RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER ANNUAL TURNOVER TURNOVER RANKING TURNOVER RANKING PROFIT/LOSS PROFIT/LOSS NO OF EMPLOYEES NO OF EMPLOYEES CONTACT 1 EUROPHARM SA ,464, ,336, Brasov, BRASOV 2 ANTIBIOTICE SA ,731, ,110,836 1,465 Iasi, IASI 3 PFIZER ROMANIA SRL ,062, ,935, TERAPIA SA ,499, ,879, Cluj-Napoca, CLUJ 5 BIOFARM SA ,970, ,036, SANDOZ SRL ,180, ,703, Targu Mures, MURES 7 ZENTIVA SA ,491, ,362, HOFIGAL EXPORT IMPORT SA ,247, ,190, FITERMAN PHARMA SRL ,338, ,883, Iasi, IASI 10 ROMVAC COMPANY SA ,844, ,403, Voluntari, ILFOV 11 BIOTEHNOS SA ,809, ,177, Otopeni, ILFOV 12 ARENA GROUP SA ,849, ,642, PASTEUR - FILIALA FILIPESTI SRL ,220, ,000, PRAHOVA 14 INFOMED FLUIDS SRL ,665, ,690, MAGISTRA C&C SRL ,333, ,485, Constanta, CONSTANTA 16 GEDEON RICHTER ROMANIA SA ,146, ,246, Targu Mures, MURES 17 SWISSCAPS ROMANIA SRL ,597, ,773, Cornu, PRAHOVA 18 BBRAUN PHARMACEUTICALS SA ,218, ,529, Timisoara, TIMIS 19 SINDAN - PHARMA SRL ,071, ,479, ROMPHARM COMPANY SRL ,669, ,045, Otopeni, ILFOV 21 FERROSAN SRL ,712, ,523, Cluj Napoca, CLUJ CONTACT 1 SENSIBLU SRL ,090,217, ,513,725 2,567 Mogosoaia, ILFOV 2 HELP NET FARMA SA ,074, ,872,942 1,228 3 VILEUS MED-COM SRL ,306, ,596, CATENA HYGEIA SRL ,416, ,247, SIEPCOFAR SA ,508, ,180,467 1,301 ILFOV 6 ROPHARMA SA ,590, ,687, Brasov, BRASOV 7 GENERAL CONCEPT PHARM SRL ,606, ,030,543 - Magurele, ILFOV 8 MED-SERV UNITED SRL ,658, ,166, BELLADONNA TRADE PHARM SRL ,968, ,767 - Magurele, ILFOV 10 FARMACEUTICA ARGESFARM SA ,653, ,507, NEWS QUALITY PHARMA SRL ,052, ,562, Buzau, BUZAU 12 MC SERV TOUR SRL ,687, ,233, HERMES PHARMA SA ,944, ,455, CENTROFARM SA ,866, ,768, VERDAN FARM SRL ,959, , URGENT FARM SRL ,436, ,365, REMEDIUM FARM SRL ,395, ,547, Cluj-Napoca, CLUJ 18 SIBPHARMAMED SRL ,158, ,139, Sibiu, SIBIU 19 GEDEON RICHTER FARMACIA SA ,240, ,316, Corunca, MURES 20 MINI-FARM SRL ,948, , Babadag, TULCEA 21 PASSIFLORA COM SRL ,669, ,330, FARMACIA ACSADEMIA SRL ,636, ,384, FARMACIA ALISSA RETAIL SRL ,712, , PHARMA VISION SRL ,789, ,752, GENERAL TRADE PHARM SRL ,480, ,885 - Magurele, ILFOV 26 DALIFARM SRL ,214, , Craiova, DOLJ
57 2013 EDITION Major Companies in Romania 57 WHOLESALE OF PHARMACEUTICALS RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 MEDIPLUS EXIM SRL ,146,688, ,903, Mogosoaia, ILFOV 2 FARMEXPERT DCI SA ,053,874, ,369, FARMEXIM SA ,122,009, ,346, POLISANO SRL ,311,577, ,132, Sibiu, SIBIU 5 ROCHE ROMANIA SRL ,300,199, ,535, SANOFI-AVENTIS ROMANIA SRL ,969, ,151, FILDAS TRADING SRL ,115,265, ,082, EUROPHARM HOLDING SA ,511, ,706, Brasov, BRASOV 9 ADM FARM SRL ,210, ,080, Pantelimon, ILFOV 10 ACTAVIS SRL ,494, ,284, GLAXOSMITHKLINE CONSUMER HEALTHCARE SRL ,355, ,406, BOEHRINGER INGELHEIM RCV GMBH & CO KG VIENA SUCURSALA BUCURESTI ,126, ,651, TEVA PHARMACEUTICALS SRL ,634, ,815, FRESENIUS MEDICAL CARE ROMANIA SRL ,447, ,864, SERMEDIC SRL ,585, ,280, PICARA TRADING SRL ,699, ,109, SERVIER PHARMA SRL ,719, ,902, A & D PHARMA MARKETING & SALES SERVICES SRL ,593, ,075, Mogosoaia, ILFOV 19 FARMACEUTICA REMEDIA SA ,446, ,553, Deva, HUNEDOARA 20 ROMASTRU TRADING SRL ,445, ,541, ANGELINI PHARMACEUTICALS ROMANIA SRL ,920, ,212, BBRAUN MEDICAL SRL ,030, ,070, Remetea Mare, TIMIS 23 SDS INTER PHARMA SRL ,114, ,307, BIO EEL SRL ,321, ,137, Targu Mures, MURES 25 PHARMAFARM SA ,268, ,354, Cluj-Napoca, CLUJ 26 FARMAVET SA ,274, , A & G MED TRADING SRL ,369, ,900, PHARMA POINT SRL ,579, ,887,895 5 Pantelimon, ILFOV 29 MERCK SHARP & DOHME ROMANIA SRL ,003, ,594, NOVARTIS PHARMA SERVICES ROMANIA SRL ,616, ,689, FARMACOM SA ,776, ,905, Brasov, BRASOV 32 KRKA ROMANIA SRL ,415, ,194, PHARMA SA ,017, ,848, Iasi, IASI 34 MEDICINE WAREHOUSE SRL ,862, ,270, MEDIMFARM SA ,059, , SANDOZ PHARMA SERVICES SRL ,466, , SOF MEDICA SRL ,985, ,234, ALCON ROMANIA SRL ,898, , JOHNSON & JOHNSON ROMANIA SRL ,774, ,342, GLENMARK PHARMACEUTICALS SRL ,047, , EGIS ROMPHARMA SRL ,346, ,611 8 Cluj-Napoca, CLUJ 42 GEMEDICA SRL ,730, ,274, ROMED 93 EXPORT IMPORT SRL ,138, , A & A MEDICAL SRL ,294, ,675,
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59 2013 EDITION Major Companies in Romania 59 60% of the total production cost represents raw material cost EU help ceramic producers with 5-year anti-dumping duties Glass & Ceramics MANUFACTURE OF GLASS AND GLASS PRODUCTS MANUFACTURE OF CERAMIC PRODUCTS
60 MCR GLASS & CERAMICS EU takes drastic measures to protect local producers Magda Munteanu, Freelance Journalist and Photographer WHILE GAS PRICE INCREASES CAUSE CONCERN TO GLASS AND CERAMICS PRODUCERS, THE EUROPEAN UNION GIVES THEM A HELPING HAND BY IMPOSING HIGH DUTIES ON CHINESE IMPORTS Glass producers, whose evolution is highly dependent on the macro-financial climate, still face the negative effects of the economic recession. At the European Union level, the industry continued its decline, yet at a slower pace: 8% in 2012, compared to 15% y/y in However, the first rays of sunshine have started to appear. The industrial production in the sector increased by 2% y/y in Europe and by 1.1% in the Euro zone in August 2012, for the third month in a raw, according to Eurostat data. In the mid run, the sector is likely to stabilize and then to increase, based on the gradual relaunch and higher investments in the EU economy. I expect a medium growth of 1.5% to 3% for the European glass industry in 2014, said Andrei Radulescu, senior investment analyst at SSIF Broker. The analyst forecasts growth rhythms for the industry of even 5% to 7% in 2015 and 2016, as long as the Eurozone avoids another crisis wave and enters a new economic cycle. In Romania, the industry s main concern refers to high gas-related costs. Starting with January 2014, gas price is expected to be 57% higher compared to the previous year. Household glassware producers are the most affected by the increasing prices of raw materials such as gas and electricity, which count for up to 50% of their total production costs. If raw material costs exceed 60% of the total production costs, a factory can no longer survive. Annual gas price increases amount to 10-14%. This causes us major difficulties, as it is our main raw material and we have an annual gas consumption of 2.5mn cubic meters, said Adela Ferentz, general manager at Vitrometan Medias, one of the leading European producers of handmade and mouth blown glassware and lead crystal products. The company employs 230 people and is owned by the German firm DERU Glaswarenvertrieb GmbH, which invested around EUR 6mn in upgrading its production facilities. The industry representatives ask for a change in the law, which would spread the gas price increase over several years. The other problem the industry faces is the lack of qualified workforce, as there are no training schools in the sector. In spite of higher raw materials costs, producers like Vitrometan maintained their 2011 prices. We didn t want to risk losing our clients. But, as our production costs continue to grow, we might be forced to increase prices, said Ferentz. Apart from this issue, the sales and orders levels have remained relatively stable. The exception is the lighting products, where demand has decreased because Italy, its most important client, was affected by the financial crisis. For the other products, the main markets for export are Germany, Great Britain, France and Italy. If in 2011, countries like Belgium and Austria placed a lot of orders, in 2012 the newcomers were Slovakia, Denmark and Greece. This year, clients from the Middle East have started to show interest in the Romanian glass products. Demand of glass packaging, which depends mostly on local consumption of beverages, such as wine, champagne and beer, and of jar-based products, is slowly picking up. The largest increases were for beer, beverages and mineral water packaging, as the beverages market has become more mature. The largest producer in this sector, Stirom Bucharest, owned by the Greek company Yioula Glassworks, has ambitious development plans, in spite of poorer financial results. The company s net turnover decreased by 2.1% y/y in 2012, down to EUR 45.3mn (RON 201.5mn), while its profit was 31.8% smaller y/y, down to EUR 3.06mn (RON 13.6mn). Stirom plans to invest EUR 38mn in improving its energy consumption, out of which EUR 11.8mn will be supported by non-refundable European funds. I expect the next years will be difficult for the glass industry because of the announced gas price increases, said its general manager Spiros Vamvakas. The company increased its prices by 7% to 10% because of higher costs with raw materials, energy and gas. It produces 110,000 tons of glass per year. Last year, it exported 55mn units (EUR 6mn in value) to countries such as
61 2013 EDITION Major Companies in Romania 61 Hungary, Turkey, Bulgaria, Italy, Greece, Austria, Republic of Moldova, Georgia and Slovakia. It expects exports of 65mn units this year, worth EUR 7mn. Stirom has 59% market share for glass packing and 33% for household glassware. In the first segment, it competes with glass producers from Bulgaria, Moldova and the Czech Republic, while for the latter it competes mainly with imports from China and Turkey. Its owner, Yioula Glassworks, has other six glass factories in Greece, Bulgaria and Ukraine. value of the duties went down to %. The European Union is China's biggest trading partner, as ceramic tableware and kitchenware imports from China totaled EUR 728mn in Price indices for glass and ceramics production (%; 201=100) UNEXPECTED HELP FOR CERAMICS PRODUCERS The ceramics sector received a huge aid from the European Union this year. In mid-may, the EU imposed five-year anti-dumping duties on China's domestic ceramic products. The tariffs range from 13.1 percent to 36.1 percent and are targeted at imports of Chinese plates and other table and kitchenware. Large retailers made inventories with Chinese products before the EU applied its antidumping measures. This had a direct effect on us, as our orders have decreased at the end of 2012, said Aurelian Voia, general manager at Cesiro, one of the largest household ceramic producers in Europe. Its major clients are Ikea, Carrefour and Tesco. Source: INS. Glass and porcelain products (mn euro) I think the EU measures will be a success and that s why we decided to increase our production capacity by 20% this year, said Voia. The company produced 42.6mn pieces last year, compared to 40.1mn in More than 85% of its production goes to export, to countries such as France, Italy and Holland. The tough decision of the European Union came as a necessity for the problems which began in 2005, when the European countries liberalized the access of such products on their markets. The result was an avalanche of Chinese imports, which count for more than 65% of the total products sold in the EU, compared to the 22% in The average export prices from China were some 70% lower than the average 2011 prices of all other countries exporting to the EU. Source: Romania s National Export Strategy. GDP vs. Glass industry in the Euro Area (%,yoy) In an attempt to limit the negative effects of these imports on the local production, certain countries such as Colombia, Indonesia and Argentina have instituted anti-dumping measures against Chinese imports. The European Commission accused a series of Chinese companies of dumping, or selling products at unfairly low prices. In February 2012, it started an anti-dumping proceeding concerning imports of ceramic tableware and kitchenware from China. It is currently investigating 30 dumping and subsidies cases, 19 of them involving China In November, it suggested imposing import duties of up to 58.8% on Chinese ceramics, to redress the balance with locally produced tableware. Most EU states rejected the proposals, so the -5 GDP Manufacture of glass and glass products (rhs) Source: Eurostat, SSIF Broker. -20
62 MCR GLASS & CERAMICS MANUFACTURE OF GLASS AND GLASS PRODUCTS RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 STIROM SA ,440, ,462, TC ROM GLASS SRL ,678, ,038, GECSAT SA ,901, , Tarnaveni, MURES 4 CRISTAL BRAD SERVICE SRL ,686, ,442, DAFERMANN SRL ,310, ,074, Bacau, BACAU 6 GEROM SA ,919, ,035, Buzau, BUZAU 7 GLASSCORP SA ,680, ,860, Buzau, BUZAU 8 MILLEFIORI SRL ,632, , Arad, ARAD 9 DELTA GLASS SRL ,001, , PIETTA GLASS WORKING SRL ,847, ,037, Valenii de Munte, PRAHOVA 11 FABRICA DE STICLA AVRIG SA ,552, , Avrig, SIBIU 12 LIPOPLAST SRL ,683, , Timisoara, TIMIS 13 LUSTIC INVEST SA ,414, ,067, Brasov, BRASOV 14 GECSATHERM SA ,597, , Tarnaveni, MURES 15 STICLA TURDA SA ,018, ,901, Turda, CLUJ 16 WEST CO IMPEX SRL ,059, , Zalau, SALAJ 17 SPECTRUM INDUSTRIES SRL ,730, , VISPESTI PROD SRL ,806, , UNION GLASS SRL ,960, , Carei, SATU MARE MANUFACTURE OF CERAMIC PRODUCTS RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 LASSELSBERGER SA ,846, ,702, LAZAR SRL ,799, ,447, Reghin, MURES 3 REGATA SRL ,080, ,754, Targoviste, DAMBOVITA 4 PREMIER COM SRL ,919, , Slobozia, IALOMITA 5 MONDIAL SA ,177, ,656, Lugoj, TIMIS 6 ARCOROM SRL ,686, , Otopeni, ILFOV 7 SANOTECHNIK COM RUMANIEN SRL ,111, ,058, Snagov, ILFOV 8 SANEX SA ,442, , Cluj-Napoca, CLUJ 9 SICERAM SA ,493, ,673,932 - Sighisoara, MURES 10 APULUM SA ,241, , Alba Iulia, ALBA 11 CERSANIT ROMANIA SA ,967, ,262, Roman, NEAMT 12 CERAMICA SA IASI ,955, ,211, Iasi, IASI 13 HELIOS SA ,371, , CESIRO SA ,006, ,593,132 1,533 Sighisoara, MURES 15 ROCA OBIECTE SANITARE SRL ,502, ,364, YALCO ROMANIA SRL ,636, , KAI CERAMICS SRL ,414, ,131, SAWA SA ,882, , Cluj-Napoca, CLUJ 19 IPEC SA ,576, ,290,898 - Alba Iulia, ALBA 20 ELECTROCERAMICA SA ,937, ,036, Turda, CLUJ 21 PIASTRELLE SRL ,047, ,356, Timisoara, TIMIS
63 2013 EDITION Major Companies in Romania 63 50% decrease of the Romanian iron and steel production, from 10.2 million tons in 2007 to 5.1 million tons in 2012 Metal PRIMARY METAL MANUFACTURING MANUFACTURE OF METAL PRODUCTS WHOLESALE OF METALS AND METAL ORES
64 MCR METAL The meltdown of the iron & steel industry Horiana Istodor, Senior Manager Transaction Advisory, EY Romania Adrian Netea, Consultant Transaction Advisory, EY Romania CHANGING TIDES Even though iron and steel represents a crucial branch of the local metallurgy industry, the global crisis revealed Romania s vulnerability on external markets. The iron and steel production in Romania recorded a dramatic decline of 50% in the last 5 years, decreasing from 10.2 million tonnes in 2007 to 5.1 million in 2012, while the number of employees declined, but only by a fifth over the same period. Romania, which in 1989 was the sixth largest steel producer in Europe, has recently lost three places in the ranking of iron and steel producing countries in Europe. After 1990, the domestic consumption of steel dropped dramatically to about 2.6 million tonnes in 2012, from 8 million tonnes in As a consequence, for the first time in 2012, Romania was no longer included in the World Steel Association ranking of iron and steel producing countries. The effects of the global economic and financial crisis were strongly felt in 2009, when country s GDP contracted by 7.1 %. Even though the world production of iron and steel decreased by 5.3% in 2009, Romania registered a steep 45.8% decrease in just one year. In 2010, Romania s iron and steel production recovered its losses from 2009, producing 5.4 million tonnes of iron and steel, with 1.1 million tonnes (26%) more than in The production growth was due, to some extent, to the implementation of the Romanian metallurgy restructuring programs according to the European Union s requirements, which led to modernization of several steel companies. Figure 1. Romania s Iron & Steel Production vs. GDP Evolution Despite the 2010 growth, the production of iron and steel registered a small decline in 2011 and 2012, of 1.1% and 6.2% respectively. Because of the iron and steel industry privatization that took place over the past 20 years, a number of metallurgy groups decided to invest in Romania, and now they dominate the local industry. The most important ones are ArcelorMittal, Mechel, TMK and Tenaris, which add to almost 87% of the sector s turnover, employing 82% of the industry s workforce. An analysis made by Ziarul Financiar business daily on the major steel production plants in recent years shows that the main cause for steel production decrease was the low production at the plant in Galati owned by ArcelorMittal (formerly named Sidex). By 2011, the production of steel at AcelorMittal Galati was reduced by 57% compared to According to the company s representatives, the significant decrease in the plant s production was due to a lower demand for metal products and the strong competition exerted by producers in countries that are not part of the European Union, where energy costs are less than half compared to those of ArcelorMittal Galati. CHINA, THE FIERCE COMPETITOR Worldwide, the production of iron and steel reached a record of 2,611 million tonnes in 2012, outperforming the 2011 level by 1.5%. China increased its production by 3.9% and retained its leadership position, yielding 52.2% of the global output, at 1,363 million tonnes of iron and steel. Production in Japan remained flat at 189 million tonnes, representing a 7.2% market share. Figure 2. Evolution of World Iron & Steel Production 30.0% 3,000,000 Y-o-Y Change Steel production ('000 tonnes) 2,500,000 2,000,000 1,500,000 1,000, , % 10.0% 0.0% -10.0% -20.0% -30.0% -40.0% -50.0% Romania Iron & Steel Y-o-Y World Iron & Steel Y-o-Y Romanian GDP Y-o-Y World US Japan China Eu (27) Source: National Institute of Statistics, World Steel Association, EY analysis. Source: World Steel Association, EY analysis.
65 2013 EDITION Major Companies in Romania 65 The United States held the third position, producing 122 million tonnes, up 3.6% and accounting for 4.6% of the total global output. Production in Europe, which accounts for 10% of total production, was gloomy, declining by 4%. Global steel demand is expected to improve gradually in 2013 compared to 2012 levels, driven by emerging and developing economies. Adding to the pressure on steelmakers profitability is China s growing capacity, which is denting steel prices around the world. After a decade of rapid expansion, Chinese firms are now responsible for more than half of global production. The incredible growth is primarily driven by government pro-growth policies and large investments in infrastructure. In the United States the increase in production is supported by the Federal Reserve attempts to sustain the US economy, a strong momentum in the automotive sector and recovery of the construction market. World steel industries are now undergoing a restructuring phase with all sorts of mergers and acquisitions taking place all around the world. The key market players are subjected to fierce competition from the new companies from developing economies. Figure 3: Y-o-Y change of major producers of iron and steel Y-o-Y Change 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% % % % % % GOING FORWARD World US Japan India China Eu (27) Source: World Steel Association, EY analysis. In Romania, the automotive and the construction industry continues to exert a strong influence on the metallurgy industry. The investments of Renault and Ford increased the country's car production by 36% in the first half of 2013, and for the first time in history, Romania managed to outdo Belgium automobile production. This sector is expected to continue to increase, following a recent increase in capacity at Ford's Craiova plant. BMI also forecasts positive figures for the Romanian automotive production between 2013 and 2017 that should have a positive influence in sustaining growth for the iron and steel industry. In contrast, the construction sector, which is also of great importance to the steel industry, has registered one of the most significant falls during the crisis years. The poor performance registered since 2009 has had a damaging effect on the production of steel construction products. For 2013, BMI expects a real growth of 1.9% in the construction industry, which means a return to growth after a 0.9% contraction in Over the period , Romania's construction market is expected to further expand at an annual rate of 3.2%. The employee productivity was also hit particularly hard by the decrease in orders. In 2009 it dropped to 96 tonnes of crude steel per employee, representing a 42% decrease compared to 2007, when the highest level was recorded. On top of this, the steel industry is now facing skills shortages, as qualified workers started to migrate to other parts of the EU in search of higher pay and better employment opportunities. This will bring companies face to face with a fundamental choice of investing in technologies and skills or to further cut down jobs. As previously mentioned, the biggest impact on the local metallurgical industry comes from high energy prices, which represents two-fifths of steelmakers operating costs. Since the renewable energy tax and the cogeneration tax will continue to increase from year to year, it is estimated that by 2015 these will lead to an increase in energy prices of minimum 50%. Because of this, earlier this year, the metallurgy sector requested the Ministry of Economy to modify the legislation in order to enable them to conclude long-term contracts in the electricity and natural gas sector under more favorable conditions. All major countries that registered an increase in production of iron and steel had the government support, which is why legislative measures should be the first step for the metallurgy sector recovery in Romania as well. The recovery can only be driven by innovation, improving energy efficiencies and increasing demand for key products. The industry requires a new political strategy that comprises lowering the tax on reinvested profit, applying a differentiated tax on profits made from export and creating fiscal facilities in order to enable companies to lower their costs to a European level. Joint venture projects with regional neighbours, such as the bridge at Vidin-Calafat, linking Bulgaria and Romania, will improve trade relations and increase country s export potential. Because steel is closely linked to many other downstream industrial sectors, positive growth in the autos and construction industry should also lift up the iron and steel industry. The importance of iron and steel industry is in no doubt. Last year, the metallurgical companies have covered 11% of the country s exports. Therefore, the Romanian economy benefits from having some of the world s biggest steel producers, but, without government support, the increase in energy prices will continue to put further pressure on margins and may force further temporary closures of plants, or in the worst-case scenario force the steel companies to look to other countries with cheaper energy prices.
66 MCR METAL PRIMARY METAL MANUFACTURING RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 SILCOTUB SA ,666,747, ,057,199 1,480 Zalau, SALAJ 2 ARCELORMITTAL GALATI SA ,418,682, ,066,763 7,936 3 ALRO SA ,081,764, ,270,970 2,512 4 ARCELORMITTAL TUBULAR PRODUCTS ROMAN SA ,413, ,901,231 1,125 Roman, NEAMT 5 TMK - RESITA SA ,629, ,635, Resita, CARAS- SEVERIN 6 TMK ARTROM SA ,074, ,493,632 1,183 7 ALUM SA ,972, ,462, Tulcea, TULCEA 8 DUCTIL STEEL SA ,642, ,962,687 1,314 Buzau, BUZAU 9 VIMETCO EXTRUSION SRL ,281, ,893, ARCELORMITTAL TUBULAR PRODUCTS GALATI SRL ,956, ,644, LF METALURGICA ENGINEERING 1928 SRL ,757, ,724 1 Buzau, BUZAU 12 CROMSTEEL INDUSTRIES SA ,673, ,129, Targoviste, DAMBOVITA 13 DAN STEEL GROUP BECLEAN SA ,279, ,206, Beclean, BISTRITA-NASAUD 14 HOEGANAES CORPORATION EUROPE SA ,777, ,718, Buzau, BUZAU 15 ARCELORMITTAL HUNEDOARA SA ,597, ,612, Hunedoara, HUNEDOARA 16 UPRUC CTR SA ,697, ,295, Fagaras, BRASOV 17 EURO ALIAJ SRL ,405, ,128 7 Brasov, BRASOV 18 SAPA PROFILES SRL ,028, , Chisineu-Cris, ARAD 19 MAIRON TUBES SRL ,713, ,033, SATURN SA ,639, ,220, Alba Iulia, ALBA 21 HAMMERER ALUMINIUM INDUSTRIES SANTANA SRL ,486, , Santana, ARAD 22 UNIVERSAL ALLOY CORPORATION EUROPE SRL ,529, ,341, Dumbravita, MARAMURES 23 ARCELORMITTAL TUBULAR PRODUCTS IASI SA ,921, ,513,569 - Iasi, IASI 24 BECOTEK METAL SRL ,242, ,310, Ghimbav, BRASOV 25 ELMET INTERNATIONAL SRL ,052, ,971, Bacau,BACAU 26 PRODNEF COM SRL ,212, , INDUSTRIA SÂRMEI CÂMPIA TURZII SA ,366, ,745,043 1,606 Campia Turzii, CLUJ 28 FONDAL INTERNATIONAL SRL ,815, ,434, Letcani, IASI 29 TECHNOSTEEL LBR SRL ,592, , Iasi, IASI 30 DOOSAN IMGB SA ,640, ,026, OTELINOX SA ,127, ,127, Targoviste, DAMBOVITA 32 LAMINORUL SA ,569, ,643, Braila, BRAILA 33 ERDEMIR-ROMANIA SRL ,050, ,755, Targoviste, DAMBOVITA 34 DONALAM SRL ,677, , Calarasi, CALARASI 35 EUCASTING RO SRL ,905, ,550, Geamana, Localitate: Bradu, ARGES 36 DELTA ALUMINIU SRL ,576, , ZIMTUB SA ,498, , Zimnicea, TELEORMAN 38 ALMET SA ,418, , Navodari, CONSTANTA 39 CIE MATRICON SA ,765, ,731, Targu Mures, MURES 40 COZMIRCOM SA ,941, , Baia Sprie, MARAMURES 41 FERAL SRL ,911, ,189, Tulcea, TULCEA 42 AMORELLI EXPORT IMPORT SRL ,600, , Brasov, BRASOV 43 TURNATORIA CENTRALA ORION SA ,766, ,885, Campina, PRAHOVA 44 INTFOR SA ,878, ,199, METALSIL PROD SRL ,493, , Brasov, BRASOV
67 2013 EDITION Major Companies in Romania 67 MANUFACTURE OF METAL PRODUCTS RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 BAMESA OTEL SA ,827, ,733, Topoloveni, ARGES 2 CAN-PACK ROMANIA SRL ,941, ,569, CORD ROMANIA SRL ,595, ,012, TUREX SA ,461, ,076 - Buzau, BUZAU 5 PROFILAND STEEL SRL ,503, ,632, GIC NOSAG METAL SRL ,365, ,955, Bradu, ARGES 7 VILMAR SA ,805, ,590, Ramnicu-Valcea, VALCEA 8 AROMET SA ,681, ,574, Buzau, BUZAU 9 DUCTIL SA ,003, ,559, Buzau, BUZAU 10 CONFIND SRL ,307, ,372,871 1,298 Campina, PRAHOVA 11 ISOPAN EST SRL ,278, ,847, ROMTEM SA ,344, ,096, Buzau, BUZAU 13 ELDON SRL ,588, ,768, Prejmer, BRASOV 14 ELECTROCARBON SA ,522, ,274, TEHNIC GRUP MC SRL ,094, ,170 1 Buzau, BUZAU 16 ELSID SA ,266, ,747, Titu, DAMBOVITA 17 NIMET SRL ,165, ,517, Lazuri, Comisani, DAMBOVITA 18 FIERCTC SIBEL SRL ,847, ,510, UZINGRUP VEST SRL ,375, , Hunedoara, HUNEDOARA 20 FAIST MEKATRONIC SRL ,880, ,522, Oradea, BIHOR 21 PROCEMA - INSTITUT DE CERCETARE, PROIECTARE SI PRODUCTIE EXPERIMENTALA IN DOMENIUL CONSTRUCTIILOR SI AL ,328, ,188, MATERIALELOR DE CONSTRUCTII SA 22 ARMAX GAZ SA ,659, , Medias, SIBIU 23 GORMET SRL ,976, ,876, Cluj-Napoca, CLUJ ASSA ABLOY ENTRANCE SYSTEMS Hunedoara, 24 PRODUCTION ROMANIA SRL ,639, , HUNEDOARA 25 MEGAPROFIL SRL ,866, , Buzias, TIMIS 26 UL SA ,784, ,914, Medias, SIBIU 27 DOLADELA COMPANY SRL ,868, ,872, HECKLER ROMANIA SRL ,462, , Selimbar, SIBIU 29 BOG'ART STEEL SRL ,134, , FAIST METALWORKING SRL ,887, ,445, Bors,BIHOR 31 BILKA STEEL SRL ,199, ,131, Brasov, BRASOV 32 PROINVEST GROUP SRL ,938, ,040, Pascani, IASI 33 METABET CF SA ,240, ,308, ESTROM CONSULTING SRL ,720, , METALICPLAS IMPEX SRL ,527, ,898, Dej, CLUJ 36 LINDAB SRL ,135, , ILFOV 37 MIRO SA ,796, , Bistrita, BISTRITA-NASAUD 38 MARTIFER CONSTRUCTII SRL ,295, ,324, FORJA NEPTUN SRL ,439, , Baicoi, PRAHOVA 40 PLASTSISTEM SA ,685, , Crainimat, Comuna Sieu-Magherus, BISTRITA-NASAUD 41 MGS PREFABRICATE SRL ,264, ,071, TOPANEL PRODUCTION PANELS SA ,626, , Ramnicu Valcea, VALCEA 43 VULCAN SA ,737, ,521, GRUPPO RAGAINI ROMANIA SRL ,983, ,394,
68 MCR METAL WHOLESALE OF METALS AND METAL ORES RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 MAIRON GALATI SA ,135,910, ,303, MECHEL SERVICE ROMANIA SRL ,389, ,790, METALROM SRL ,925, , MIRAS INTERNATIONAL SA ,408, ,029, BAUROM CONSTRUCT SRL ,744, ,038, MELINDA-IMPEX STEEL SA ,794, ,100, Odorheiu Secuiesc, HARGHITA 7 COMTECH CO SRL ,695, ,528, FULGER INDUSTRIAL DYNAMIC SRL ,178, , ARCELORMITTAL DISTRIBUTION ROMANIA SRL ,763, ,285, DAN STEEL GROUP NEGRESTI OAS SA ,830, ,369, MARE 11 FRANKSTAHL ROMANIA SRL ,449, , TEHNOINVEST TRADE SRL ,260, , ITALINOX ROMANIA SRL ,503, , EUROPE METAL TRADE SRL ,214, , Constanta, CONSTANTA 15 THYSSENKRUPP MATERIALS ROMANIA SRL ,604, ,145, TURBO TUB SRL ,003, ,482, ADIMET SA ,192, , Iasi, IASI 18 ALUMIL ROM INDUSTRY SA ,511, ,185, IZOMETAL - MAGELLAN SRL ,420, ,450, Timisoara, TIMIS 20 PROSIDER INTERNATIONAL TRADING SRL ,504, ,151, STEELMET ROMANIA SA ,150, , CLEMANS SRL ,100, ,580, Bascov, ARGES 23 METALTRADE INTERNATIONAL SRL ,735, ,032, METALICPLAS DISTRIBUTION SRL ,066, , Dej, CLUJ 25 SIDMA ROMANIA SRL ,093, ,248, Caldararu, ILFOV
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71 2013 EDITION Major Companies in Romania 71 20% increase in exports of vehicles, vessels and associated transport equipment in the first 4 months of 2013 compared to the same period of 2012 Machinery MANUFACTURE OF MACHINERY, INDUSTRIAL EQUIPMENT, SHIPS AND AIRCRAFT WHOLESALE OF MACHINERY, INDUSTRIAL EQUIPMENT, SHIPS AND AIRCRAFT
72 MCR MACHINERY Export demand, layoffs and cost cutting Viorica Lungu, Consultant Transaction Advisory, EY Romania MARKET OVERVIEW Starting with 2010, the production value of machinery and equipment manufacture followed the same trend as intermediate consumption. This enabled machinery producers to better anticipate the demand on the market. Meanwhile, the production of motor vehicles, trailers and semi-trailers was more or less stable. The production of transport equipment significantly decreased in 2010 by 5%-22%, depending on the specific category of the transport machines, same as the consumption. The decrease continued thus in May 2013, the production of machinery and equipment recording a lower value by 2% compared to May 2012, while producer prices increased by 1.2%. In terms of machinery and equipment trade, the value of export and import continuously increased within a similar trend until 2013, when according to preliminary data provided by the Department of Foreign Trade and International Relations, the exports of vehicles, vessels and associated transport equipment increased by 20% in the first four months of 2013 compared to the same period in In the mean time, imports of these products fell by 10%. A simple lending process for export production and issuance of bank guarantees for participation in international tenders would enable the increase of Romanians producer competitiveness on international markets. If the tendency will follow the same trajectory, it would enable Romania to finally get rid of the collocation Import Country and consolidate its position on cross-border markets. Unfortunately, less favorable results can be observed in the machinery industry staffing. In the first six months of this year, 479 employees working in this industry have lost their jobs. The National Agency for Unemployment s Top 10 layoffs areas in the first half of 2013 reveals that machinery manufacturing is placed on the seventh position in the chart. Electroputere, a manufacturer of high power transformers, looks at laying off between 150 and 200 employees until October 2013 in order to streamline its costs. The company also reported losses of about RON 13 million in the first quarter of According to national business daily Ziarul Financiar, another player, UCM Resiţa, an engine and metallurgical producer, which used to have 14,000 employees before 1989, now has no more than 1,600 employees. The process of personnel reduction doesn t stop here. By October of 2013, 200 additional employees might need to look for another job. The massive restructuring plan and the current insolvency of UCM Resita were caused by a significant decrease in orders from their main customer Hidroelectrica. Amid Hidroelectrica s restructuring, which has seen its orders reduced to a third in 2013, UCM s business crashed three times in the first half of 2013 to RON 26 million. Losses reached RON 27.3 million, while cumulated debts stood at RON 859 million (EUR 200 million). ROMANIAN WARSHIP A NEW TOPIC OF INTEREST FOR FOREIGN INVESTORS According to data provided by The National Statistics Institute (INS), net investments value in this industry decreased since 2008, but quickly rebounded. In 2011, nearly RON 954 million were invested in the manufacture of machinery and equipment, an impressing increase of 234% from The tendency continued further in the first quarter of 2013, when net investments in machinery including vehicles recorded an increase of 15% compared to the same period of the prior year, also reaching 7% in the total share of net investments. This year brought possibilities of new partnerships between Peru and Romania regarding warship manufacturing. The Peruvians are considering the Damen shipyard for an upcoming warship order. The leader of Peru pointed out that Romania has greatly advanced in terms of technology and defense, becoming a new topic of interest for Peru. Damen Shipyard Galati has an exntensive experience, already holding several contracts for the construction of 7 warships for the Dutch Navy, with the last ship being delivered in July This order represents the most complex project at Damen for the past decades, with an estimated contract value of EUR 290 million. Also, another
73 2013 EDITION Major Companies in Romania 73 shipyard producer, the Norwegian manufacturer Vary Holdings Limited, received an order of EUR 100 million. Construction will take place in Tulcea, Romania. RAILWAY AND AIRCRAFT MACHINERY WAITING FOR A CHANCE FROM ABROAD While in the 1980s Romania stood in the World s Top 10 equipment producers and was one of the largest exporters of railway freight cars in the world, the chances of regaining its position are very slim. Potential to revive the segment might present itself in 2014 through the partnership with Peru, which is also interested in Romania s potential for producing railway equipment. Astra Vagoane Calatori Arad was the winner of a bid organized in Brazil and will deliver a first batch of coaches worth over USD 100 million. There are also opportunities on the Turkmenistan and Iraqi markets, and Astra has already submitted manufacturing bids for coaches, tram linings and automotive manufacturing in these countries. The need for high tech technologies and properly qualified labor force places Romania in a very modest position regarding aircraft manufacturing potential. Only a few producers of aircraft equipment operate on the local market. However, their disappointing historical financial performance demonstrates the difficulty for Romanian producers to make a leap in this industry. Regarding this year s tendencies, Romania might expect foreign investors to show interest for its aircraft equipment producing capacities. This is proven by the fact that all three major phases of the aircraft components production process planned by Universal Alloy Corporation Europe Ltd (UACE) will be concentrated in Dumbravita, Romania. The loan in amount of EUR 25 million given by EBRD to the UACE is meant to boost Romania's presence in the global aerospace industry and support the development of machine components production, surface treatment and assembly. In addition, this will lead to an increase in the efficiency of UACE operations, as well as enable the development of engineering skills in the area. Taking into consideration the small opportunities that have arisen for some of the mentioned players, it would seem that the machinery industry could register a positive evolution in the upcoming years. However, in the current market conditions, still affected by the crisis, the forecast is for a new year without salary increases, followed by synergies and by further cost reductions. Insufficient funding for companies in the sector and the entry of cross-border players will force Romanian machinery producers to face difficulties in obtaining new orders, respectively to increase their revenues. Avioane Craiova registered a loss of RON 9,1 million and RON 84 million of short term debt in The business of another aircraft equipment producer, IAR Ghimbav, also plummeted in the recent years. If in 2008 the company s turnover was GBP 203 million, in 2012 the sales decreased to GBP 41.6 million. Even Romaero, which reported a turnover increase by 15.9% in 2012, ended last year with a loss. In terms of profitable companies, Aerostar Bacau, specialized in manufacturing aircraft parts and in aircraft maintenance, actually recorded a profit increase of 6% in the first half of 2013 compared to the first half of The positive results represent a consequence of export sales, while the sales of the company inside the country have decreased. Romanian news wires, such as Mediafax, mentioned that Aersotar became dependent on external demand. However, Aerostar had a better evolution than other local players in the aircraft manufacturing industry.
74 MCR Opinion Industry 4.0 Connecting everything RADU GARBEA, Managing Director KAESER KOMPRESSOREN Romania We witness nowadays the fourth industrial revolution, Industry 4.0, where machines tools, people, information and resources are fully connected in cyber-physical systems. The interconnection of all systems and people all along the operational flow enables, on one hand, keeping a clear image on the industrial activities and the factors impacting these operations. Such factor is the energy saving. Saving energy actions impact our business strategy on a short, medium and long term but, in the same time, it also represents a major aspect considered by consumers. The energy consumption should be kept under control, this is a fact and, lately, I observed an increased interest for this matter while the approach towards energy saving is positive. For instance, in 2012, more and more clients expressed their opinion towards energy saving and environment-friendly solutions. Therefore, we implemented technical solutions in order to generate more efficiency for our operations. Practically, we SAVING ENERGY ACTIONS IMPACT OUR BUSINESS STRATEGY ON A SHORT, MEDIUM AND LONG TERM BUT, IN THE SAME TIME, IT ALSO REPRESENTS A MAJOR ASPECT CONSIDERED BY CONSUMERS. integrated heat recovery systems even in existing installation, not only in the new delivered concepts. For several years, we have connected the compressors in order to communicate the operating date via M2M (machine-to-machine) by generating reports. Data can be analysed in real time and, the most important thing, it enables deciding on the most appropriate action in short time. ENERGY SAVING SOLUTIONS IN SIGHT Nowadays more consumers are aware about the impact that compressed air systems have on the environment as they also produce a very expensive form of energy. Unfortunately, few important users of compressed air systems and big industrial players take into account the environment impact of these equipments. Considering the fact that investment cost for a compressed air system is only about 25 percent from the total life cost, we focused even more in creating the most efficient configurations based on the very economic single components. Furthermore, having the most effective (and therefore the most elaborated) products is not enough for achieving the best possible result. The complete system must fit to the actual air demand of our customers. ANTICIPATING THE FUTURE Predictive maintenance is another important aspect to be considered in daily activities, in order to minimise the unexpected costs impacting the customers. Therefore, in 2012, a major part of our operations targeted the service solutions. We have 13 service and maintenance engineers and technicians on the field backed up by a strong indoor support team. For 2013, we expect to have a moderate increased T/O in 2013 and to keep our profitability rate on a positive level. But the most important target is to keep our team PREDICTIVE MAINTENANCE IS ANOTHER IMPORTANT ASPECT TO BE CONSIDERED IN DAILY ACTIVITIES, IN ORDER TO MINIMISE THE UNEXPECTED COSTS. strong and to service our customers in a proper manner. Another aspect to be considered is related to the auction practice. Currently, the auction methodology and procedures might include a certain specification without considering energy saving and environment- oriented solutions. In this case, there is nothing to do; in most of such cases, an inefficient product will be selected and even worse, a cheap solution will be chosen. Fortunately, the market will dictate the further expectations in terms of purchasing industrial equipments solutions and, step by step, the cost-effective, modern and environment-oriented solutions will gain ground. Of course, in terms of doing business, 2012 was a difficult year especially for construction companies, representing a major part of our consumers, the lack of investments all over the economy, the fall of real estate field and, overall, the low new business and expansions, delivered the premises to crossing another difficult year. Also, the fact that macro economy data didn t post a visible evolution this year, reflected in business environment, didn t help to the economy landscape. Such context pushed our company, as supplier for industrial equipments to adjust to the current context and find proper solutions to meet the demands of our clients.
75 2012 EDITION Major Companies in Romania 75 MANUFACTURE OF MACHINERY, INDUSTRIAL EQUIPMENT, SHIPS AND AIRCRAFT RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 CAMERON ROMANIA SRL ,638, ,200, Campina, PRAHOVA 2 STX RO OFFSHORE TULCEA SA ,801, ,906,095 2,872 Tulcea, TULCEA 3 SCHAEFFLER ROMANIA SRL ,427,843, ,122,935 3,498 BRASOV 4 SANTIERUL NAVAL DAMEN GALATI SA ,406, ,097,206 1,870 5 EMERSON SRL ,826, ,237,979 1,313 Cluj-Napoca, CLUJ 6 GRUP ROMET SA ,541, , Buzau, BUZAU 7 TIMKEN ROMANIA SA ,023, ,165, ROMBAT SA ,046, ,366, Bistrita, BISTRITA-NASAUD 9 MECHROM INDUSTRY SRL ,842, ,858, AEROSTAR SA ,912, ,068,186 1,272 Bacau, BACAU 11 STX OSV BRAILA SA ,776, ,254,299 1,838 Braila, BRAILA 12 ECOFOREST SA ,425, ,409, Buzau, BUZAU 13 EUROCOPTER ROMANIA SA ,375, ,549, Ghimbav, BRASOV 14 EMERSON PROCESS MANAGEMENT ROMANIA SRL ,084, ,132, DAEWOO MANGALIA-HEAVY INDUSTRIES SA ,178, ,982,313 2,728 Mangalia, CONSTANTA 16 UNISON ENGINE COMPONENTS - BUCHAREST SA ,974, ,827, ELECTROPRECIZIA SA ,960, ,292, Sacele, BRASOV 18 IG WATTEEUW ROMANIA SRL ,680, ,987, Iasi, IASI 19 DPR DRAXLMAIER PROCESE DE PRODUCTIE ROMANIA SRL ,939, ,665, Timisoara, TIMIS 20 HIDROSERV BISTRITA SA ,783, ,567, Piatra Neamt, NEAMT 21 KOYO ROMANIA SA ,529, ,320,891 1,378 Alexandria, TELEORMAN 22 SANTIERUL NAVAL CONSTANTA SA ,751, ,848,909 1,366 Constanta, CONSTANTA 23 RULMENTI SA ,639, ,602,340 2,321 Barlad, VASLUI 24 PREMIUM AEROTEC SRL ,630, ,715, Ghimbav, BRASOV 25 ASTRA VAGOANE ARAD SA ,655, ,710,278 1,173 Arad, ARAD 26 MASCHIO-GASPARDO ROMANIA SRL ,298, ,638, Chisineu-Cris, ARAD 27 GENERAL TURBO SA ,988, ,573, RIG SERVICE SA ,385, ,930, Constanta, CONSTANTA 29 UNIO SA ,716, , Satu Mare, SATU MARE 30 SOCIETATEA COMERCIALA DE REPARAT MATERIAL RULANT REVA SA ,046, ,326, Simeria, HUNEDOARA 31 BOSCH REXROTH SRL ,324, ,312, Blaj, ALBA 32 VOESTALPINE VAE APCAROM SA ,490, ,309, Buzau, BUZAU 33 STABILUS ROMANIA SRL ,000, ,730, Sanpetru, BRASOV 34 ASTRA RAIL INDUSTRIES SRL ,576, ,919,273 1,687 Arad, ARAD 35 NTN-SNR RULMENTI SRL ,342, ,047, Sibiu, SIBIU 36 POPECI UTILAJ GREU SA ,504, ,791, Craiova, DOLJ 37 FEPA SA ,110, ,178, Barlad, VASLUI 38 ROMAERO SA ,777, ,695, ASTRA VAGOANE CALATORI SA ,560, ,348, Arad, ARAD 40 TOTALGAZ INDUSTRIE SRL ,184, , Iasi, IASI 41 SEVERNAV SA ,685, , Drobeta-Turnu Severin, MEHEDINTI 42 SMR SA ,007, , Bals, OLT 43 DANEX CONSULT SRL ,751, , ELECTROPUTERE VFU PA{CANI SA ,036, ,128, Pascani, IASI 45 UPETROM 1 MAI SA ,186, ,296,
76 MCR MACHINERY WHOLESALE OF MACHINERY, INDUSTRIAL EQUIPMENT, SHIPS AND AIRCRAFT RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 IPSO SRL ,143, ,241, Mogosoaia, ILFOV 2 ECHIPCOMER TRADE COMPANY SRL ,736, ,304 3 SIEMENS SRL ,783, ,356, MEWI IMPORT EXPORT AGRAR INDUSTRIETECHNIK SRL ,330, ,351, DAAS IMPEX SRL ,265, ,963, VA INTERTRADING AUSTRIA SRL ,397, , ANDREAS STIHL MOTOUNELTE SRL ,133, ,289, Otopeni, ILFOV 8 WILO ROMANIA SRL ,938, ,603, Chiajna, ILFOV 9 VAILLANT GROUP ROMANIA SRL ,185, ,872, MINEX ROMANIA SRL ,441, ,585, INDUSTRIAL MDTRADING SRL ,193, ,560, SANDVIK SRL ,509, , AGRIROM IMPEX SRL ,112, , UZINSIDER TECHNO SA ,738, ,079, ATLAS COPCO ROMANIA SRL ,466, ,261, Otopeni, ILFOV 16 DUTCH MARINE TRADING DESIGN SA ,125, ,925, HUSQVARNA PADURE & GRADINA SRL ,391, ,574, HEPA PROIECT SRL ,917, , Birlad, VASLUI 19 ABB SRL ,421, , KAESER KOMPRESSOREN SRL ,593, ,983, WIRTGEN ROMANIA SRL ,394, ,320, Otopeni, ILFOV 22 PROENERG SA ,613, ,925, GRUNDFOS POMPE ROMANIA SRL ,596, , HAUSER SRL ,160, ,886, STRAALTECHNIEK MINEX INTERNATIONAL SRL ,532, ,764, FERROLI ROMANIA SRL ,482, ,753, AGROCOMERT HOLDING SA ,235, ,171, Timisoara, TIMIS 28 IRCAT-CO SRL ,907, ,597, Ciorogarla,ILFOV 29 GENERAL LEASING SA ,863, ,318, MAP - MASINI AGRICOLE PERFORMANTE SRL ,877, , Cernica, ILFOV 31 MECRO SYSTEM SRL ,597, ,818, NHR AGROPARTNERS SRL ,120, , Otopeni, ILFOV 33 NITECH SRL ,146, ,568, TOYOTA MATERIAL HANDLING ROMANIA SRL ,833, , ITACO INTERNATIONAL SRL ,323, ,568, COM GAZ SA ,357, ,813, DOLSCH IMPORT - EXPORT SRL ,128, , SYSCOM - 18 SRL ,100, , APROV SA ,059, ,252, Medias, SIBIU 40 ISIS DEVELOPMENT SRL ,170, , FRESCO PROIECT SRL ,489, ,457, Pantelimon, ILFOV - -
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79 2013 EDITION Major Companies in Romania increase of Technical Consumer Goods market over the first half of 2012, reaching a value of EUR 699 mln Electric & Electronic Equipment MANUFACTURE OF ELECTRICAL AND ELECTRONIC EQUIPMENT TRADE OF ELECTRICAL AND ELECTRONIC EQUIPMENT MANUFACTURE OF DOMESTIC APPLIANCES
80 MCR ELECTRIC & ELECTRONIC EQUIPMENT The sway of a technology-aware consumer Magda Purice - Freelance Journalist The half year facts show that telecom segment drives the technical consumer goods market forward, along with the sales of major domestic appliances. Though, the decrease comes from sectors such as photo market, office equipment and consumer electronics. The latest research of GfK Temax Romania show that Technical Consumer Goods (TCG) market followed the trend set in the first quarter, showing a slight increase of 4.7 percent in Q when compared to the same quarter of The first six months of the year brought about an increase of 4.3 percent over the first half of 2012, reaching a value of EUR 699 million. The study has been developed for Q and states that the largest segment was the Telecommunication (Telco) sector, with a total value of EUR 99 million, and it was also the one to generate the most important increase of value, that of 17 percent, when compared to Q Another notable growth was the one registered by the major domestic appliances (MDA) sector, 4.9 percent over the same quarter of the last year in terms of value, the first quarter of increase for the sector since The Photo market showed a double-digit decrease of 25.5 percent, while the Office Equipment with 8.8 percent decrease and consumer electronics with 5.2 percent downsize were the only sectors to record negative evolutions. study, with the non-subsidized value being estimated at around EUR 99 million. The smart phone segment was the main driver, while the feature phones market continued to decline. The periodically launched smart phones in the last year stood for a 58 percent increase in the total smart phones market in Romania, while the mobile phones registered a decrease of 29 percent within this segment. Also, the telecom market that has been defined by the significant news of 4G licenses bid organized one year ago and in July this year, the telecom market regulatory body ANCOM (Romanian National Authority for Management and Regulation in Communications) announced it has handed in the licenses for the use of the radio spectrum valid until 2029 to operators Orange Romania, Vodafone Romania, Cosmote Romania, RCS&RDS and 2K Telecom. Based on current trend, Romania registers one of the more dynamic and competitive telecom market in South Eastern Europe, with a penetration that has reached 115 percent only for active subscriptions. Just to compare, the fixed telephony penetration rate per 100 inhabitants (computed as the ratio between the total amount of access lines and the number of inhabitants in Romania) was 24.6 percent in 2012, whereas the fixed telephony penetration rate per 100 households was 54.2 percent. THE SMART PHONES CONQUEST IN TELECOM Telecom sectors saw a 17 percent in Q2 of 2013 compared with the same period of previous year, according to GfK Mobile Telephony Market estimations for SE region (Greece, Bulgaria, Romania & Serbia) Market value (EUR million) (F) 2014 (F) Total market Southeastern Europe Total market Southeastern Europe / IT Total market Southeastern Europe / Telco Total market Southeastern Europe / Mobile Services Total market Southeastern Europe / Mobile Data services Source: msensis, EITO, BMI, Wireless Intelligence. According to data provided by National Authority for Management and Regulation in Communications (ANCOM), the revenues obtained from the provision of electronic communications networks and services in 2013 s first half amounted to RON 7.48 billion, up by 3.5 percent as compared to 2012 s same period. In the same time, fixed telephone and leased line services registered revenue decreases of approx. 11 percent compared to the first semester of 2011, down to RON 745 million and, respectively, RON 133 million.
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81 2013 EDITION Major Companies in Romania 81 INFORMATION TECHNOLOGY: MEDIA TABLETS ARE COOL Directly linked to the smart phones market, the IT market recorded a slight growth of 2.7 percent in the second quarter of 2013, when compared to the same period of the previous year, summing EUR 88 million, the GfK study reads. According to their results, media tablets doubled in value and grew more than threefold in volume. In comparison, the mobile computing segment slightly decreased in the second quarter of 2013 compared to the same period of the previous year. The largest declines on this segment has been registered by desk computers, monitors and webcams, while keyboards and pointing devices are still looked for on shelves. PHOTO MARKET DISPLAYS FOGGY RESULTS A picture is worth a thousand words. But how worthy is now the photo market and how does it fight with the smart phones invasion? The study show that each year, the sales for entry level compact photo cameras decrease by 10 percent. Globally, the sales for photo cameras lost 25 percent in April and may this year, compared with the same period of last year while on locale market, according to retail representatives, the mainstream photo cameras decreases by 10 percent each year. Currently, Romanians take pictures with photo cameras. Moreover, according to GfK Temax study, after the peak of Christmas and Black Friday sales, Q2 of this year brought a sudden decrease of 25.5 percent on this segment. But not only the entry level compacts saw decrease, also the high end compacts and DSLRs contributed to the decline of this segment. GfK TEMAX Romania Report Q KEEN ON HOUSEHOLD Both major and small domestic appliances registered increases at half year, a 4.9 percent increase for MDA and 8.7 percent increase for small appliances. The total market is Major IT&C retailers in Romania estimated at EUR 97 million, with major domestic appliances taking two thirds of the pie. The main growth drivers within the MDA market remain the built-in appliances such as ovens and hobs, as well as dishwashers, hoods and freezers which showed double digit increase rates in this second quarter. In consumer electronics department, a decline in value of 5.2 percent has been registered in Q2 of 2013 and amounted to EUR 52 million worth market in Romania. For the first time in the last two years, the panel TV and plasma segment declined heavily while LCDs remained at a stable sales volume. RETAIL NEVER SLEEPS Q Q Q Q Q / Q / Q Q Q segment value mln. EUR mln. EUR mln. EUR mln. EUR +/-% mln. EUR +/-% Consumer Electronic (CE) % % Photo (Ph) % % Major Domestic Appliances (MDA) % % Small Domestic Appliances (SDA) % % Information Technology (IT) % % Telecommunication (TC) % % Office Equipment & Consumables (OE) % % GfK TEMAX % % There are few names that race for the heart of Romanian consumer and some of them have seen interesting shape changes in the last years, especially since the buyer became more price-conscious. Besides the restructuring of retail networks, by opening new stores and shutting down locations that doesn t work anymore, the retailers optimize more and more the online sales capabilities. There is no Retailer Store network in 2013 Turnover in 2012 (mln. EUR) estimated value Altex (including Media Galaxy) mln Domo mln Flanco mln emag online store 1 showroom mln Source: Company available data. Turnover in 2011 (mln. EUR) surprise that, in the mind of Romanian consumer, the online store emag competes with the other retailers such as Altex, Flanco or Domo. This year, emag, controlled by South Africa based internet group Naspers announced a structure-oriented deal as its affiliated marketing platform Profitshare was taken over by the company Conversion Marketing, where emag owns the majority of shares. Conversion Marketing already integrated other online retailers such as PCfun, ElectroFun, Flanco, La Redoute and Noon Copenhagen. Also, Profitshare, an internal affiliated marketing program of emag has been shut down and transfer the accounts of user to the new owner, which will run it under the name Profitshare 2.0. Also, Domo changes its shareholder structure, following a board decision agreed on December last year. The new owner is a fund based in Lichtenstein.
82 MCR ELECTRIC & ELECTRONIC EQUIPMENT MANUFACTURE OF ELECTRICAL AND ELECTRONIC EQUIPMENT RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 COFICAB EASTERN EUROPE SRL ,218,249, ,274, Arad, ARAD 2 EATON ELECTRO PRODUCTIE SRL ,422, ,273,148 1,749 Sarbi, MARAMURES 3 LEONI WIRING SYSTEMS ARAD SRL ,955, ,916,284 3,618 Arad, ARAD 4 AEM SA ,910, ,056,827 1,315 Timisoara, TIMIS 5 MARQUARDT SCHALTSYSTEME SCS ,590, ,317,547 1,099 Sibiu, SIBIU 6 PRYSMIAN CABLURI SI SISTEME SA ,971, ,095, ICME ECAB SA ,695, ,462, STEINEL ELECTRONIC SRL ,407, ,123, ELECTROMAGNETICA SA ,968, ,955, ZES ZOLLNER ELECTRONIC SRL ,851, ,951, Curtea de Arges, ARGES Satu Mare, SATU MARE 11 HARTING ROMANIA MANUFACTURING SCS ,039, ,560, Sibiu, SIBIU 12 SIMEA SIBIU SRL ,476, ,103, Sibiu, SIBIU 13 KUHNKE PRODUCTION ROMANIA SRL ,631, ,209, Sibiu, SIBIU 14 FRIGOGLASS ROMANIA SRL ,821, ,748, Timisoara, TIMIS 15 SYSTRONICS SRL ,391, ,882, Arad, ARAD 16 ROMCAB SA ,928, ,856, Targu Mures, MURES 17 FLEXTRONICS ROMANIA SRL ,817, ,055,476 2,646 Timisoara, TIMIS 18 CUMMINS GENERATOR TECHNOLOGIES ROMANIA SA ,117, ,665, Craiova, DOLJ 19 ASKOLL ROMANIA SRL ,077, ,510, ELECTRO-ALFA INTERNATIONAL SRL ,644, ,259, Botosani, BOTOSANI 21 HONEYWELL LIFE SAFETY ROMANIA SRL ,688, , Lugoj, TIMIS 22 MIELE TEHNICA SRL ,648, ,063, Feldioara, BRASOV 23 SOCIETATEA COMERCIALA PENTRU SERVICII DE MENTENANTA A RETELEI ELECTRICE DE ,335, ,996, Craiova, DOLJ TRANSPORT 'SMART' SA 24 COOPER INDUSTRIES ROMANIA SRL ,535, ,674, Arad, ARAD 25 ELECTRO SISTEM SRL ,110, ,112, Baia Mare, MARAMURES 26 HANNA INSTRUMENTS SRL ,190, ,196, Nusfalau, SALAJ 27 ELSACO ELECTRONIC SRL ,668, ,593, Botosani, BOTOSANI 28 EXIMPROD GRUP SRL ,038, ,152, Buzau, BUZAU 29 WEIDMULLER INTERFACE ROMANIA SRL ,816, ,552, MARAMURES 30 IPROEB SA ,032, , Bistrita, BISTRITA-NASAUD 31 ELECTROPRECIZIA ELECTRICAL MOTORS SRL ,194, ,797,983 - Sacele, BRASOV 32 ELECTROPUTERE SA ,917, ,548,844 1,116 Craiova, DOLJ 33 ENERGOBIT PROD SRL ,958, ,051, Jibou, SALAJ 34 CABLETEAM SRL ,718, , Sighisoara, MURES 35 ELBA SA ,643, ,006, Timisoara, TIMIS 36 CONNECTRONICS ROMANIA SRL ,408, ,134, Oradea, BIHOR 37 PLEXUS SERVICES RO SRL ,589, ,381, DUCATI ENERGIA ROMANIA SA ,725, ,735, Busteni, PRAHOVA 39 ISOVOLTA SA ,119, ,755, RCB ELECTRO 97 SA ,265, , Bistrita, BISTRITA-NASAUD 41 EVEREL ROMANIA SRL ,685, , Lipova, ARAD 42 EKR-ELEKTROKONTAKT ROMANIA SRL ,746, ,175 2,001 Santana, ARAD 43 ELECTROPLAST SA ,529, , Bistrita, BISTRITA-NASAUD 44 SHINHEUNG ELECTRONICS SRL ,022, ,748, Oradea, BIHOR
83 2013 EDITION Major Companies in Romania 83 TRADE OF ELECTRICAL AND ELECTRONIC EQUIPMENT RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 SAMSUNG ELECTRONICS ROMANIA SRL ,378,875, ,169, Voluntari, ILFOV 2 ALTEX ROMANIA SRL ,132,228, ,329,921 1,659 Piatra Neamt, NEAMT 3 GERSIM IMPEX SRL ,328, ,102, FLANCO RETAIL SA ,224, , Voluntari, ILFOV 5 MOBILE DISTRIBUTION SRL ,099, ,528, Cluj-Napoca, CLUJ 6 SCHNEIDER ELECTRIC ROMANIA SRL ,918, ,474, EURO GSM 2000 SRL ,253, ,748, Cluj-Napoca, CLUJ 8 WHIRLPOOL ROMANIA SRL ,530, ,042, LG ELECTRONICS ROMANIA SRL ,505, ,707, ELBI ELECTRIC & LIGHTING SRL ,019, ,059, Bragadiru, ILFOV 11 HUAWEI TECHNOLOGIES SRL ,049, ,009, MARELVI IMPEX SRL ,922, ,618, B&K ELECTRO SYSTEM SRL ,726, ,623, Baia Mare, MARAMURES 14 SECPRAL COM SRL ,903, ,157, Cluj-Napoca, CLUJ 15 PHILIPS ROMANIA SRL ,031, , ENERGOTECH SA ,041, ,427, OBERTHUR TECHNOLOGIES ROMANIA SRL ,193, ,678, VORTEX INTERNATIONAL SRL ,693, ,151, EL&CAB BIZZ SRL ,973, ,285, PAYPOINT SERVICES SRL ,760, , GOMAR LUX SA ,885, , Viisoara, BISTRITA-NASAUD 22 GENCO TRADE SRL ,151, ,774, AVITECH CO SRL ,807, , Voluntari, ILFOV 24 TOP TECH SRL ,409, , Carcea, DOLJ 25 CONSOLIGHT COM SRL ,974, , BSH ELECTROCASNICE SRL ,153, , ECAS ELECTRO SRL ,538, , CHORUS MARKETING AND DISTRIBUTION SRL ,963, ,395, ADICOM GLOBAL TRADE SRL ,684, ,344, BANESTO SRL ,524, , Piatra Neamt, NEAMT 31 HAT GROUP CO ROMANIA SA , , NEXTELEKOM SRL ,569 - Timisoara, TIMIS 33 MONDO PLAST SRL ,660, , GENTRADE COM SRL , ,367 1 MANUFACTURE OF DOMESTIC APPLIANCES RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES Bocsa, CARAS-SEVERIN CONTACT 1 ARCTIC SA ,372,278, ,225,679 2,457 2 ELECTROARGES SA ,116, ,145, Curtea de Arges, ARGES 3 ZOPPAS INDUSTRIES ROMANIA SRL ,357, ,756,776 2,496 Sannicolau Mare, TIMIS 4 SOGECO ROMANIA SRL ,465, ,095, TEHNOTON SA ,247, ,238, Iasi, IASI 6 HT EST DIVISION SRL ,156, , Pecica, ARAD 7 METALICA SA ,330, , Oradea, BIHOR 8 TECNOWIND EAST EUROPE SRL ,911, , Arad, ARAD
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85 2013 EDITION Major Companies in Romania mln - amounted the total mobile subscriptions in the first quarter of 2013, representing a penetration rate of 129%, with a gain of 189,000 subscribers, according to BMI IT & C TELECOMMUNICATIONS COMMUNICATION EQUIPMENT COMPUTER PROGRAMMING, CONSULTANCY AND RELATED ACTIVITIES MANUFACTURE AND SALE OF COMPUTERS AND PERIPHERAL EQUIPMENT
86 MCR IT & C Clash of the telecom titans: the battle continues Mirela Calotă, Manager - Transaction Advisory, EY Romania MARKET OVERVIEW Last year, we discussed an important event in the telecom market, the spectrum, as well as the beginning of a new phase for the wireless data market. This year, important actions are yet again taking place in the market. The Romanian telecom market proves to be as exciting as always and developments in the wireless data market provide endless innovative opportunities for consumers. We have witnessed the three largest operators take substantial measures, with Orange being the first operator to launch LTE services in October The company offered download speeds of 75 Mbps and upload speeds of 37.5 Mbps in Bucharest. Taking advantage of its pole position, Orange also offered two-year contracts with no data usage caps for the first six months. In keeping with the trend of appealing to consumers with better service, Vodafone immediately followed Orange in November 2012, offering speeds of up to 75 Mbps in 10 cities and granting three months free services for new subscribers. Furthermore, Cosmote launched LTE in May 2013, covering Bucharest, Otopeni, Ploiesti, Cluj, Iasi, Sinaia, Busteni and Predeal. Additionally, this year we have witnessed some action for mobile virtual network operators (MVNOs). Enigma Systems (rebranded Runex Telecom) is the first to express the intention of aiming to provide value-added services and focus on niche markets. Similarly, an interesting move is also expected from UPC, which could extend its already existing packages to offer quad-play services. Another interesting move came from Orange, which plans to enter satellite pay TV services and already took steps in obtaining the approval from State authorities. We have seen action and commitment from all major operators, but it is evident that challenges are existent. In a statement, Vodafone Group s CEO mentioned that the tough macroeconomic and regulatory environment in much of Europe has made revenue growth in the region increasingly challenging. As an example in Romania, starting September 2012, The National Authority for Communications Administration and Regulation (ANCOM) decreased the mobile termination rates to EUC 3.07 per minute a 24% decrease. This aspect will directly impact the operators in terms of investments needed for infrastructure and 4G services. EVOLUTION OF THE MOBILE AND FIXED SECTOR As described above, until May 2013 all three major players launched 4G services. Despite low Average revenue per user
87 2013 EDITION Major Companies in Romania 87 (ARPU) and price constraints which govern the Romanian telecom industry, Romania still has higher penetration rates: according to BMI, in the first quarter of 2013, total mobile subscriptions amounted to million, which translates into a penetration rate of 129%, with a gain of 189,000 subscribers. Concerning net subscriber losses, Orange and Cosmote both reported net subscriber losses. On the contrary, Vodafone increased its net subscribers, attracting the lost subscribers from the two competitors. The growth, however, was mainly related to the prepaid segment and is somehow limited. Despite Vodafone s increased subscriptions, no significant changes occurred in the market share split between the major operators, as evident in the chart below. Orange still leads the market in subscriptions. Vodafone, the second largest operator, has attracted new customers in the prepaid segment. A decreasing trend is expected of the fixed line segment and is mainly due to fixed mobile substitution, price constraints and unfavorable Voice over IP (VoIP) offers which attract consumers away from traditional fixed lines. EVOLUTION OF THE MOBILE PHONE SUBSCRIBERS AND THE MAIN TELEPHONE LINES IN SERVICE Although we may expect to see higher revenues in the area of 4G LTE services, the increased use of smartphones could indicate IP substitutions of voice and SMS services, thus reducing traditional sources of revenue. Revenue cannibalization in the mobile sector has been driven by VoiP, but the appearance of applications such as Viber and WhatsApp has put pressure on SMS as both apps are intensively used by youth smartphone users. Also, in the enterprise market, instant messaging is finding favor as an alternative to that boosts productivity. Figure1. Market Share in Q Figure 2. Evolution till 2012 and Forecasts till 2017 DigiMobil 35,000 10% 29,760 30,000 27,782 27,435 27,489 27,556 27,640 27,741 27,859 Cosmote 23% Orange 37% 25,000 20,000 15,000 10,000 5,000 3,890 4,040 4,002 3,912 3,861 3,807 3,770 3,748 0 FY10 FY11 FY12E FY13F FY14F FY15F FY16F FY17F Vodafone 30% In terms of ARPUs, which are among the lowest in CEE, Vodafone recorded the highest ARPU in the last quarter of 2012, i.e. EUR 7.0, whilst Orange reported an ARPU of EUR 6.6 and Cosmote an ARPU of EUR 5.1. We hope to see improvements in the ARPUs resulting from better economic conditions, additional services brought to the market and 4G services which could trigger increased revenues. No. of mobile phone subscribers ('000) No. of main telephone lines in service ('000) Ultimately, what does the future evolution of the telecom market look like? The answer depends on the economic environment, the purchase power of consumers, and the impact of regulatory changes. Nevertheless, we can and should remain optimistic, since growth scenarios such as machine to machine and the enterprise market may appear in the horizon, giving reason to be hopeful about the market s potential.
88 MCR Opinion JEAN-FRANÇOIS FALLACHER, CEO Orange Romania Turning smarter and faster technologies into affordable and accessible ones At Orange we are at the heart of the digital world. With the intelligence of our networks and the passion and talent of our people, we listen to our customers and bring them the best that the digital world has to offer. From the business point of view 2013 was a busy year for us. The first half of this year marked an important milestone we entered the TV market by offering high quality multiscreen television. We are offering not only a classical TV service, but also TV for smartphones or tablets. In fact, we just launched Orange TV Go, that allows our clients to access the same content that they see on TV on their tablet or smartphone. And we believe this is the future trend: people will watch more and more TV in different ways, on multiple devices, anytime, anywhere, on the move. Another important moment of 2013 is the development and deployment of 4G network. In 2012 we launched this latest technology, which is the wireless motorway that enables us to access internet content with very high speed and no network latency. We recently extended the 4G coverage to the entire area of Bucharest, besides Prahova valley, and will continue to extend starting April 2014, as soon as the spectrum frequencies we invested in, last year, are available. This year we also consolidated our position as market leader, in terms of market and value share with more than new customer joining Orange. In terms of revenues, the first 9 month of 2013 confirmed the positive financial performance, continuing the recovery trend from the end of This means that, next year, we will continue investing in our network quality, with a focus on 4G, in enriching our portfolio of personalized products and services and in the way we interact with our customers. The biggest challenge we face, in this dynamic and challenging market, is the strong regulatory pressure with the upcoming decrease of inter-operator rates. Still, we are looking ahead, focusing on our customer expectations and on deliver on our strategy build around offering innovative services, segmented propositions and a high level of customer satisfaction. Our aim is to make the technology affordable and accessible to all our customers, on all devices. The experience of the last years confirmed us that very important for every telecom operator is the care towards its customers. That is why delivering on customers expectations will be a key driver of customer satisfaction and loyalty in the coming year. Romania is a fast evolving market. Technologies are changing fast, so are our customers, that s why we need to adapt ourselves constantly. In the future it will be more and more about communication between devices. There are a lot of ways our industry can grow and a lot of new technologies arriving on the market. One way of looking at the future is to look at the past. Ten years ago, in the 2000s, we were still using those gray phones with a few buttons and all we could do was send sms. If we look at what we are doing now with the devices and the communication tools we have around us, I m not sure if we could have imagined that ten years ago. We expect that, in the next years, this trend will only be accelerated. We see this already happening with the richness of devices that we are selling with our shop, such has health monitoring, sport accessories and many more on the way. In terms of investments, every year, 10% to 15% of our turnover is invested in improving and developing our network. We already refreshed our network in the rural areas and, at this moment, we are refreshing it in the urban areas. Next year, the main focus will be on developing the 4G. The level of this investment will heavily depend on the level of the Termination rates that will be decided by the regulatory authorithy ANCOM. Another of our key investments will go into training our colleagues in the shops and customer care centers to help newcomer customers get into this new digital world. New customers buying smartphones for the first time need guidance and help and we want to be the Digital Coach of our customers. We will continue to invest and develop Orange TV and Orange TV Go. In the next period we will concentrate on developing the service and extend the channel grid.
89 2013 EDITION Major Companies in Romania 89 TELECOMMUNICATIONS RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER PROFIT/LOSS NO OF RANKING EMPLOYEES CONTACT 1 ORANGE ROMANIA SA ,119,424, ,785,638 2,798 2 VODAFONE ROMANIA SA ,457,194, ,157,093 2,685 3 COSMOTE ROMANIAN MOBILE TELECOMMUNICATIONS SA ,940,513, ,829,091 1,275 4 RCS & RDS SA ,047,044, ,152,045 8,845 5 SOCIETATEA COMERCIALA PENTRU SERVICII DE TELECOMUNICATII SI TEHNOLOGIA INFORMATIEI IN RETELE ELECTRICE DE ,867, ,614, TRANSPORT TELETRANS SA 6 NOBEL ROMANIA SRL ,971, ,221, NET TEAM SRL ,632, ,068, UPC ROMANIA SRL ,796, ,580,076 1,594 9 SOCIETATEA NATIONALA DE RADIOCOMUNICATII SA ,144, ,910,017 1, RADCOM SRL ,857, ,196, EAD TELECOM SRL ,349, ,142, Brasov, BRASOV 12 ORSAM TELECOM SRL ,540, , VOXLINE COMMUNICATION SRL ,095, , MEDIA SAT SA ,905, ,040, BT GLOBAL SERVICES LIMITED LONDRA SUCURSALA BUCURESTI ,406, , GMB COMPUTERS SRL ,264, ,139, Constanta, CONSTANTA 17 COMBRIDGE SRL ,423, ,559, NET-CONNECT INTERNET SRL ,379, ,197, MEDIATEL DATA SRL ,398, , DIGITAL CABLE SYSTEMS SA ,797, ,217,961 1, INES GROUP SRL ,538, ,575, D & D COMPANY SRL ,199, , NOKIA SIEMENS NETWORKS ROMANIA SRL ,960, ,090, IDILIS SRL ,759, , MIRA TELECOM SRL ,942, , TELECOMUNICATII CFR SA ,107, ,082,373 1, DIRECT ONE SA ,887, ,299, PRIME TELECOM SRL ,120, , ACCESSNET INTERNATIONAL SRL ,714, , K TELECOM SRL ,001, ,328, EQUANT ROMANIA SA ,992, ,647, VOXILITY SRL ,829, , NEXTGEN COMMUNICATIONS SRL ,656, ,833, GTS TELECOM SRL ,916, ,396, EUROWEB ROMANIA SA ,537, ,928, ROKURA SRL ,755, , FOCUS SAT ROMANIA SRL ,169, ,444, MARCTEL - SIT SRL ,403, ,311, TELEMOBIL SA ,296, ,128, ATLAS TELECOM INTERACTIVE SRL ,218, ,826 - Oradea, BIHOR
90 MCR IT & C COMMUNICATION EQUIPMENT RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 KATHREIN ROMANIA SRL ,747, ,777,468 1,014 Timisoara, TIMIS 2 ALCATEL - LUCENT ROMANIA SA ,144, ,616,928 1,459 Timisoara, TIMIS 3 HR FRANCHISING SRL ,270, ,544, Cluj Napoca, CLUJ 4 GDS MANUFACTURING SERVICES SA ,960, , Arad, ARAD 5 ASGO TELECOM SA ,863, ,646, GERMANOS TELECOM ROMANIA SA ,576, ,810,559 1,052 7 CELLULAR ONE SRL ,148, ,155, Braila, BRAILA 8 COSMOS MOBILE SRL ,924, ,057, ROMKATEL SRL ,259, ,922, FELIX TELECOM SRL ,798, ,104, ROBEST COM SRL ,718, , Carcea, DOLJ 12 ARSIS TRADING SRL ,129, , CISCO SYSTEMS ROMANIA SRL ,760, ,191, VOX CARRIER SRL ,539, , ILEX COM SRL ,792, ,219, Craiova, DOLJ 16 LESSOR SRL ,239, ,502 4 Piatra-Neamt, NEAMT 17 CENTRUL PENTRU SERVICII DE RADIOCOMUNICATII SRL ,925, ,438, DELTATEL SRL ,409, ,427, Timisoara, TIMIS 19 FRONTAL COMMUNICATION SRL ,387, , Otopeni, ILFOV 20 TELELINK SERVICES ROMANIA SRL ,800, , BRITCOM DIRECT SRL ,690, , INTERACTIVE SYSTEMS & BUSINESS CONSULTING SRL ,889, ,950, ECCO GROUP DEVELOPMENT SRL ,758, , UNIVERSAL CARD SYSTEMS SA ,892, , ROHDE & SCHWARZ TOPEX SA ,432, , SIMPLUS INVEST SRL ,852, , NOKIA ROMANIA SRL ,545, , Cluj-Napoca, CLUJ 28 ADVANCED TECHNOLOGIES SRL ,920, , AVENIR TELECOM SA ,150, ,057, STAR PRINT TRADE CO SRL ,429, ,431, MOBILIS SRL ,007, , Iasi, IASI 32 MCS COMMUNICATIONS SRL ,375, ,455, ACCORD 93 SRL ,925, ,062,197 7
91 2013 EDITION Major Companies in Romania 91 COMPUTER PROGRAMMING, CONSULTANCY AND RELATED ACTIVITIES RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 IBM ROMANIA SRL ,374, ,461,119 1,072 2 UTI SYSTEMS SA ,782, ,156,717 1,505 3 SAP ROMANIA SRL ,486, ,772, COMPUTER GENERATED SOLUTIONS ROMANIA SRL ,252, ,509,732 2,313 5 IQUEST TECHNOLOGIES SRL ,368, ,802, Cluj-Napoca, CLUJ 6 MICROSOFT ROMANIA SRL ,490, ,201, SIVECO ROMANIA SA ,253, ,486,751 1, &1 INTERNET DEVELOPMENT SRL ,735, ,596, IXIA SRL ,081, ,539, MISYS INTERNATIONAL FINANCIAL SYSTEMS SRL ,008, ,625, TEAMNET INTERNATIONAL SA ,655, ,163, EVOLINE SRL ,902, ,005, Cluj-Napoca, CLUJ 13 ORACLE ROMANIA SRL ,661, ,842,862 2, EBS ROMANIA SRL ,240, ,792, Cluj-Napoca, CLUJ 15 UBISOFT SRL ,890, ,875, GAMELOFT ROMANIA SRL ,826, ,652, TSE DEVELOPMENT ROMANIA SRL ,700, ,253, Cluj-Napoca, CLUJ 18 ROMSYS SRL ,965, ,437, CRYS COMPUTERS SRL ,395, ,330, ENDAVA ROMANIA SRL ,634, ,398, Cluj-Napoca, CLUJ 21 NOVENSYS CORPORATION SRL ,643, ,420, SIMULTEC SRL ,085, ,661, INFORMATION BUSINESS CONSULTING SA ,163, ,355, TEAMNET BUSINESS SERVICES SRL ,129, , PENTALOG ROMANIA SRL ,611, ,942, INFINEON TECHNOLOGIES ROMANIA & CO SCS ,474, ,434, CRESCENDO INTERNATIONAL SRL ,528, ,906, S & T ROMANIA SRL ,168, ,897, NET BRINEL SA ,983, ,658, Cluj-Napoca, CLUJ 30 BITDEFENDER SRL ,935, , INTRAROM SA ,407, , LUXOFT PROFESSIONAL ROMANIA SRL ,306, ,665, METRO SYSTEMS ROMANIA SRL ,274, ,405, Voluntari, ILFOV 34 STAR STORAGE SRL ,302, ,058, ATOS IT SOLUTIONS AND SERVICES SRL ,264, ,079, PRINTEC GROUP ROMANIA SRL ,750, ,573, TEAMNET SOLUTIONS INTERNATIONAL SRL ,322, , ETA-2U SRL ,092, ,649, Timisoara, TIMIS 39 SOFTWIN SRL ,267, ,320, FREESCALE SEMICONDUCTOR ROMANIA SRL ,556, , ASESOFT INTERNATIONAL SA ,772, , SYSCO SRL ,346, ,768, BRODOS ROMANIA SRL ,767, , XOR-IT SYSTEMS SRL ,646, ,532, TOTALSOFT SA ,213, ,414, Voluntari, ILFOV 46 EON IT ROMANIA SRL ,524, ,305, Iasi, IASI 47 SOFTWARE DEVELOPMENT & CONSULTING SRL ,233, , Otopeni, ILFOV 48 KAPSCH SRL ,557, , ROMSOFT SRL ,271, , Ramnicu Valcea, VALCEA
92 MCR IT & C MANUFACTURE AND SALE OF COMPUTERS AND PERIPHERAL EQUIPMENTS RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 CELESTICA ( ROMANIA ) SRL ,728,543, ,648,800 1,013 Bors, BIHOR 2 BENCHMARK ELECTRONICS ROMANIA SRL ,109, ,006, Ghimbav, BRASOV 3 DANTE INTERNATIONAL SA ,110, , Voluntari, ILFOV 4 ASESOFT DISTRIBUTION SRL ,403, ,468, HEWLETT - PACKARD ROMANIA SRL ,599, ,457,121-6 ASSECO SEE SRL ,303, ,723, FIT DISTRIBUTION SRL ,914, , Q'NET INTERNATIONAL SRL ,927, ,587, PRODUCTON SRL ,826, ,897, AGIS COMPUTER SRL ,821, ,790, Cluj-Napoca, CLUJ 11 SKIN MEDIA SRL ,569, ,190, ASBIS ROMANIA SRL ,414, ,030, GINO ELECTRONICS SRL ,499, ,350 2 Dumbravita, TIMIS INTEGRATED ROMANIAN INFORMATION 14 SYSTEMS SA ,975, , TONERFILL ROMANIA SRL ,324, ,299, Oltenita, CALARASI 16 DESPEC ROMANIA SRL ,244, ,201, MB DISTRIBUTION SRL ,954, ,074, EVOLUTION PREST SYSTEMS SRL ,637, , NEODIGITAL SRL ,512, ,764, Cluj-Napoca, CLUJ 20 SCOP COMPUTERS SRL ,501, ,711, XEROX ROMANIA ECHIPAMENTE SI SERVICII SA ,311, ,680, SYSTEM PLUS SRL ,751, , ELKOTECH ROMANIA SA ,987, , GEMINI SP SRL ,343, ,665, MITCRIS SRL ,602, , Oradea, BIHOR 26 ROYAL COMPUTERS SRL ,787, ,534, OMNILOGIC SRL ,384, ,171, Otopeni, ILFOV 28 LASTING SYSTEM SRL ,772, ,934, Timisoara, TIMIS 29 DIM SOFT SRL ,851, ,931, GRUPUL INDUSTRIAL GIR SA ,472, ,859, RTC PROFFICE EXPERIENCE SA ,222, ,261, KONICA MINOLTA BUSINESS SOLUTIONS ROMANIA SRL ,029, , ATLAS CORPORATION SRL ,953, ,369, TREND IMPORT EXPORT SRL ,226, , GMN DISTRIBUTIE SRL ,404, ,273, GAPI SRL ,095 1 Timisoara, TIMIS
93 2013 EDITION Major Companies in Romania 93 7GE-signed turbines for Tulcea wind park Industrial Engineering
94 MCR INDUSTRIAL ENGINEERING New business models: The merge of manufacturing and services Magda Purice - Freelance Journalist The industrial new revolution brings industry back to Europe and this is a fact shown also by the increasing demand for industrial engineers, a pool that is currently hard to be fulfilled. In Romania also, the increasing number of projects coming from large companies, especially in power and renewable energy sectors, make from industrial engineering one of the most dynamic sectors in the last years. Following companies operations, a conclusion can be tinted: new business models are emerging, that link manufacturing closer to services. GENERAL ELECTRIC SPEEDS ON GREEN General Electric paid this year USD 3.3 billion for taking over the equipment producer Lufkin Industries, operating a production unit also in Romania, at Ploiesti where it has put some EUR 120 million. Lufkin is also a supplier for GE. Also, in May this year, GE announced it has delivered seven turbines of 17.5 MW for Cerna wind park built by Italian company Energia Verde Ventuno at Tulcea. GE announced that the contract included 10-year valid service and maintenance equipments, worth USD 30 million. The wind park will deliver green energy for around 7,000 households. Worldwide, following data as of 2012, GE delivered turbines exceeding 2 GW installed capacity worldwide, an amount of green energy ready to serve some 1.4 million households in 14 European countries and five on other continents and summing over 7 million hours of commercial operation. Within a regional tour including Turkey and Poland, John Rice, Vice Chairman of GE said, regarding GE operations in Romania: The sectors we are considering for a potential investment in Romania are energy, healthcare and transportation. We acknowledge the quality of employees and the smooth transition of power from one administration to the next. Government stability, transparency and a level playing field to compete with other companies are the determining factors for us to make an investment here. TRACTEBEL ENGINEERING GETS ACTIVE IN DOBROGEA AREA The latest published project of Tractebel Engineering, the business unit of GDF SUEZ Energy Services refers to a 50 MW wind park to be developed at Chirnogeni, in the Dobrogea area, for which the company acts as the owner s engineer for the construction, a project commissioned by power company Electrica. Tractebel Engineering has been present in Romania since 1997, following the 85 percent take-over of Trapec. The company initially focused on infrastructure projects, but the services portfolio was rapidly broadened to include power projects. These currently represent 55% of the business. ADREM INVEST SEIZES NEW HORIZONS At the beginning of this year, Adrem Invest announced the signing of new contracts for industrial engineering exceeding EUR 25 million with companies in China, South Korea and Uzbekistan. Following these contracts, Adrem Invest marks the entering on new markets and consolidates its presence in Asia, Africa and Unites States of America. According to company data, Adrem Invest delivers turnkey engineering projects, the contracts of China being the largest that have been signed. Last year, the company announced that, through its process engineering division the first division of the Romanian company, established in 1992, it signed this year a contract for the largest facility for degassing of liquid steel in the world and the project is being done for a Chinese company, with deadline in September this year. Adrian Bodea, president of Adrem invest said that he estimates the company s turnover will be attained 50 percent from exports only. ROMENERGO GETS EUR 6 MILLION FOLLOWING BOND ISSUING AT MID YEAR In June this year, Romanian regional investment fund SIF Crisana-Banat (SIF1.RO) said it bought 1.54 million bonds issued by energy contractor Romenergo for 27 million lei (EUR6.06 million). According to investment company data, t he bonds will mature in 4 years and were issued at an interest rate of 8%. Romenergo holds a 4.5 percent stake in SIF1, being one of its main shareholders. Also, following a release issued by SIF Banat-Crisana to Bucharest Stock Exchange (BSE), chairman of the Board of Romenergo, El Lakis Najib El, Lebanese citizen, was appointed provisional member of SIF Banat-Crisana CA (SIF1) a vacancy since the latest ordinary general meeting concluded in April this year, when only six out of seven seats in shareholding were occupied after a vote of shareholders. ROMELECTRO SEES TOP MANAGEMENT CHANGES THIS YEAR In May this year, Romanian company Romelectro that specializes in complex turnkey projects for energy and environment, announced the appointment of Cosmin Turcu
95 2013 EDITION Major Companies in Romania 95 at the helm of the group. The manager, 43 years old, comes to leadership Romelectro after over 16 years of experience in the energy industry, having worked in various management positions in Rompetrol Group. He replaces Gafita Viorel, who was general manager of Romelectro for 18 years, will manage the regional development in as Chairman of the Board of Directors of Romelectro Group. At the beginning of this year, Gafita announced the company s plans to be involved in projects carried abroad, participating to tenders summing investment objectives estimated at USD 400 million. Locally, the company, whose returns have exceeded EUR 80 million last year, runs five ongoing projects in the fields of environmental and thermoelectric (to be delivered in ) and the three objectives of transport and distribution of electrical energy Transelectrica, which are to be completed in the same period. Romelectro is a company with 100 percent Romanian shareholding (13 shareholders), specializing in complex turnkey projects for energy and environment. Romelectro is the majority shareholder of three companies with Romanian capital, ISPE, CELPI, Electromontaj Carpathian Sibiu. Together, the four group companies Romelectro exceed 1,200 employees and makes EUR 100 million turnover. INDUSTRIAL ENGINEERING RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER PROFIT/LOSS NO OF RANKING EMPLOYEES CONTACT 1 RENAULT TECHNOLOGIE ROUMANIE SRL ,158, ,863,488 2,106 Voluntari, ILFOV 2 GENERAL ELECTRIC INTERNATIONAL INC - WILMINGTON SUCURSALA ROMANIA ,942, ,908, FOSTER WHEELER ITALIANA SRL CORSICO SUCURSALA PLOIESTI ROMANIA ,254, ,793,704-4 ROMELECTRO SA ,269, ,122, ALEWIJNSE MARINE GALATI SA ,713, ,646, JCR - CHRISTOF CONSULTING SRL ,460, ,432, Brazii de Sus, PRAHOVA 7 IMUC SA ,028, ,862, Bradu, ARGES 8 TIAB SA ,671, ,156, ROMINSERV SRL ,678, ,646, KRAFTANLAGEN ROMANIA SRL ,336, , ADREM INVEST SRL ,473, ,862, VEOLIA WATER SOLUTIONS & TECHNOLOGIES ROMANIA SRL ,622, ,729, KREMSMUELLER ROMANIA SRL ,722, ,664, IPIP SA ,052, ,547, TMUCB SA ,127, ,371,582 1, IMSAT SA ,561, ,088 1, MOLDOCOR SA ,783, ,405, Piatra Neamt, NEAMT 18 TRACTEBEL ENGINEERING SA ,217, ,164, TOTAL ENERGY BUSINESS SA ,254, ,385, ISAF-SOCIETATE DE SEMNALIZARI SI AUTOMATIZARI FEROVIARE SA ,532, ,943, METROUL SA ,352, ,799, COMAU ROMANIA SRL ,147, ,025, Oradea, BIHOR 23 MARTIFER ENERGIA RO SRL ,300, ,240, CONSITRANS SRL ,500, ,476, ENERECO SPA FANO SUCURSALA BUCURESTI ,231, ,316, SEARCH CORPORATION SRL ,884, ,585, INSTITUTUL DE STUDII SI PROIECTARI ENERGETICE SA ,106, , ROMENERGO SA ,649, ,955, INOCSA INGENIERIA, SL SPANIA FILIALA ROMANIA SRL ,300, ,444, GSE PROIECTE TURNKEY SRL ,409, ,317, INDUSTRIAL ENGINEERING AND CONTRACTING RO SRL ,573, ,767, SNAMPROGETTI ROMANIA SRL ,343, ,181, IPTANA SA ,229, ,142, PROIMSAT SA ,775, ,864, Ramnicu Valcea, VALCEA
96
97 2013 EDITION Major Companies in Romania % increase, to USD 4.2 billion, in Romanian transportation infrastructure industry represents 1/3rd of total construction market value Constructions CONSTRUCTION OF RESIDENTIAL & INDUSTRIAL BUILDINGS BUILDING MATERIALS CONSTRUCTION OF ROADS, RAILWAYS, BRIDGES AND TUNNELS CONSTRUCTION OF UTILITY PROJECTS FOR FLUIDS AND RELATED SERVICES HYDRO-TECHNICAL CONSTRUCTIONS MANUFACTURE OF EQUIPMENT FOR CONSTRUCTION INDUSTRY CONSTRUCTION OF ELECTRIC SITES ELECTRICAL, PLUMBING AND OTHER CONSTRUCTION INSTALLATION ACTIVITIES
98 MCR CONSTRUCTIONS Road construction and transportation status quo Roxana Todiroae, Senior Consultant - Transaction Advisory, EY Romania MARKET OVERVIEW A good transportation infrastructure and a wide network of motorways are sources of competitive advantage and are essential in attracting foreign investments and sustaining local and international trade and other connected sectors (e.g. constructions / real estate). Yet, Romania is currently lagging behind these infrastructure chapters as compared to peers. As in other sectors, this could set the impulse for a larger pace of growth starting from a very low basis and also offer an environment for more attractive investor returns than those of developed markets. Covering a strategic view on the needed infrastructure developments and directions a nation-wide transportation master-plan is currently in progress, coupled with the intention of drafting a major port s master-plan. Structurally unchanged from year 2012, the road transportation dominates the transportation infrastructure (circa 85% of total infrastructure industry value), followed at a distance by port harbors, water infrastructure and airports. Figure 1. Expected Structure of Romanian Transportation Infrastructure in 2013 Romanian transportation infrastructure industry value - circa 1/3rd of total construction market value - is expected to close year 2013 with USD 4.2 billion, up 2.5% compared to year 2012 and 0.3% faster than estimated GDP evolution, but still lagging behind the 5.2 billion pre-crisis levels. CHANGE OF AUTHORITY STRUCTURE Starting 2013, the Department for infrastructure projects and foreign investment (DIPFI) a separate structure within the Romanian Government deals with the projects of national interest, including motorways. The National Company for Motorways and National Roads (CNADNR) is functioning under the coordination of DIPFI. EXISTING MOTORWAY NETWORK Romania has a motorway network of 550 km (529 km under CNADNR administration and the remainder under Bucharest municipality). Compared with the country area ( sq km and 900 km from East to West) and peers network, the Figure 2. Historical Timeline - Total Motorway KM Under Exploitation 3% 12% 0% 85% Roads and bridges infrastructure (% sector size in total infrastructure) Railways infrastructure Airports infrastructure Ports harbours and waterways infrastructure Year 2012 closed with 529 km under CNADNR administration (550 km, if including a Bucharest administered segment) A1 A2, bridge Preceding year (no. of km) 42 (Years of start of operations) Reference or current year (no. of launched motorway km) Source: Business Monitor Online (BMO), National Statistics Institute (INSSE). Source: Competition Council. Sector Investigation.
99 2013 EDITION Major Companies in Romania 99 current level is rather low. Romania is one of last countries in Europe in terms of motorways density over 1000 sq km (1.5 km/ 1,000 sq m, 23 times less than the European average of 35 km/ 1,000 sq m (EuroStat 2011 statistics, latest available in September 2013). As pointed out by a Competition Council report, the distance from Constanta- Romania to Mako Hungary (the 1st motorway towards Western Europe) is of circa 900 km and requires circa 14 hours of driving through Romania, although circa 44% of the distance is covered by existing Romanian motorways. The same driving time can be made on average from Mako to the Rotterdam port 1,600 km, leaving a substantial room for improvement on the side of the local infrastructure. In terms of cost efficiency during construction, the same source points out in an August 2013 report that the historical average cost of constructing one km of Romanian motorway in lowland areas, with no geotechnical difficulties, is three times larger than similar purpose expenditure in Bulgaria. However, it is not sure that the source factored into its analysis the life cycle profile of the infrastructure. TRENDS AND TENDENCIES For the next 3 years Romania is poised to experience a slightly larger growth than other Eastern European countries, with an estimated peak of 4.2% year on year real growth in Following an unsuccessful concession attempt in years , for the first time during the Romanian market economy (i.e. during the past 24 years) three motorway projects are tendered in parallel via concession structures (design, build, operate, finance and maintain): (1) Comarnic-Brasov green field project 58 km, (2) a mix of a brown-field project, A1, A2 existing motorway sections totaling 300 km and with a traffic history connected together by a green-field section the South Bucharest Ring Road 48 km, and (3) Craiova-Pitesti motorway green field project 121 km. The motorways are expected to be tolled. Notably, each project has its own performance ratios, potential solutions for capital expenditure, operation, maintenance and life cycle profiles, types of benefits/ advantages, traffic profiles. Although there are challenges, it is important that these projects reach financial close and this should be considered as a forefront objective, influencing the future developments of the motorways sector in 2014 and on. Figure 3. Roads and Bridges Infrastructure % year on year estimated real growth Romania Czech Republic Source: BMO, INSSE Poland Hungary Bulgaria Ukraine (Real value estimated year on year percentage growth) 1.0
100 MCR CONSTRUCTIONS CONSTRUCTION OF RESIDENTIAL & INDUSTRIAL BUILDINGS RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER PROFIT/LOSS NO OF RANKING EMPLOYEES CONTACT 1 STRABAG SRL ,403,884, ,268, CONSTRUCTII ERBASU SA ,822, ,179, STRABAG AG AUSTRIA SUCURSALA BUCURESTI ROMANIA ,401, ,361,303-4 ASTALDI SPA ITALIA SUCURSALA ROMANIA BUCURESTI ,591, ,487, CON-A SRL ,814, ,354,860 - Selimbar, SIBIU 6 VEGA 93 SRL ,784, ,261 1,748 7 AEDIFICIA CARPATI SA ,084, ,967, HOCHTIEF CONSTRUCTION AG ESSEN SUCURSALA BUCURESTI ,800, ,062, ROTARY CONSTRUCTII SRL ,071, ,319, COLLINI LAVORI SPA TRENTO SUCURSALA BUCURESTI ,773, ,126, SOCIETATEA COMERCIALA DE CONSTRUCTII NAPOCA SA ,846, ,163, Cluj-Napoca, CLUJ 12 BOG`ART SRL ,018, ,793,573 - ALPINE BAU GMBH AUSTRIA SUCURSALA 13 MOGOSOAIA ,908, ,146,390 - Mogosoaia, ILFOV 14 SELINA SRL ,753, ,575, Oradea, BIHOR 15 PAB ROMANIA SRL ,244, ,275, Arad, ARAD 16 ACOMIN SA ,210, ,565, Cluj-Napoca, CLUJ 17 BUILD CORP SRL ,399, ,338, Iasi, IASI 18 ALPINE SA ,243, ,428, Mogosoaia, ILFOV 19 APOLODOR COM IMPEX SRL ,562, , PORR CONSTRUCT SRL ,080, , TRANSIM GRUP SRL ,434, , BUILDING MATERIALS RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 HENKEL ROMANIA SRL ,989, ,576, CARPATCEMENT HOLDING SA ,945, ,524, LAFARGE CIMENT (ROMANIA) SA ,878, ,619, HOLCIM ROMANIA SA ,750, ,762, SAINT-GOBAIN CONSTRUCTION PRODUCTS ROMANIA SRL ,056, ,690, MITLIV EXIM SRL ,920, ,993, Craiova, DOLJ 7 TRADO AVANGARD COMMERCE SRL ,897, ,992 - Simleul Silvaniei, SALAJ 8 CARMEUSE HOLDING SRL ,515, ,210, Brasov, BRASOV 9 RUSTRANS SRL ,217, ,305, Margineni, BACAU 10 APLAST TRADING SRL ,629, ,138, ADEPLAST SA ,445, ,730, Oradea, BIHOR 12 DAMILA SRL ,169, ,084, Ramnicu-Valcea, VALCEA 13 ANDAMI COMP SRL ,414, ,714, LAFARGE AGREGATE BETOANE SA ,617, ,205, BAUMIT ROMANIA COM SRL ,811, ,531, WIENERBERGER - SISTEME DE CARAMIZI SRL ,336, ,133, HOCHTIEF TRADE SOLUTIONS LIMITED HONG KONG SUCURSALA BUCURESTI ,105, ,129, MENATWORK EST PREFABRICATE SRL ,064, ,309, RUUKKI ROMANIA SRL ,451, ,965, MACON SRL ,006, ,751, Deva, HUNEDOARA
101 2013 EDITION Major Companies in Romania 101 CONSTRUCTION OF ROADS, RAILWAYS, BRIDGES AND TUNNELS RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 TEHNOSTRADE SRL ,761, ,510,148 1,364 Bacau, BACAU 2 SPEDITION UMB SRL ,762, ,399, Bacau, BACAU 3 STRACO GRUP SRL ,556, ,347, VIAROM CONSTRUCT SA ,419, ,024, TEHNOLOGICA RADION SRL ,013, ,486,255 2,161 6 DELTA ANTREPRIZA DE CONSTRUCTII SI MONTAJ 93 SRL ,606, ,186,828 1,509 7 ROMAIRPORT SRL ROMA SUCURSALA BUCURESTI ,674, ,869, MAX BOEGL ROMANIA SRL ,873, ,264, EURO CONSTRUCT TRADING 98 SRL ,900, ,318, DIFERIT SRL ,280, ,819, Cluj-Napoca, CLUJ 11 TECHNOCER SRL ,591, ,444, Nadrag, TIMIS 12 NEMAR EDIL-CONSTRUCT SRL ,000, ,327, TIRRENA SCAVI CONDOTTE COSSI GIE ,195, Sannicoara, CLUJ ANTREPRIZA DE REPARATII SI LUCRARI 14 A R L CLUJ SA ,851, ,581, Cluj-Napoca, CLUJ 15 CAST SRL ,191, ,759, TEL DRUM SA ,603, ,575, Alexandria, TELEORMAN 17 IMPREGILO SPA MILANO-SUCURSALA SIBIU ,404, ,791, Sibiu, SIBIU 18 ASTALDI SPA ITALIA SUCURSALA GHEORGHE PETRASCU BUCURESTI ,421, ,532, CONFORT SA ,701, ,374, Timisoara, TIMIS 20 TANCRAD SRL ,346, ,015, SOCIETATEA DE CONSTRUCTII IN TRANSPORTURI BUCURESTI SA ,176, , TIRRENA SCAVI SPA ITALIA SUCURSALA CLUJ ,088, ,448, Sannicoara, CLUJ 23 VECTRA SERVICE SRL ,575, ,339 1,100 Brasov, BRASOV 24 SHAPIR STRUCTURES SRL ,200, ,176, FCC CONSTRUCCION SA BARCELONA SUCURSALA BUCURESTI ,446, , PA & CO INTERNATIONAL SRL ,758, ,029, Oituz, BACAU 27 TEMIX CONSTRUCT SRL ,182, ,568,041 - CONSTRUCTION OF ELECTRIC SITES RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER PROFIT/LOSS NO OF RANKING EMPLOYEES CONTACT 1 METKA BRAZI SRL ,621, ,488, ELCOMEX - IEA SA ,448, ,921, Cernavoda, CONSTANTA 3 SOCIETATEA COMERCIALA FILIALA DE INTRETINERE SI SERVICII ENERGETICE ,369, ,233,646 3,658 ELECTRICA SERV SA 4 ELECTROMONTAJ SA ,175, ,929,843 1,362 5 ELECTROGRUP SA ,998, ,953, Cluj-Napoca, CLUJ 6 CAMUSAT ROM-TELECOMUNICATII SRL ,398, ,118, ELECTROECHIPAMENT INDUSTRIAL SRL ,670, ,495, Resita, CARAS-SEVERIN 8 SALVATI EST SRL ,736, ,139, EGNATIA ROM SRL ,405, ,652, SERVICII ENERGETICE MUNTENIA SA ,780, ,321, SERVICII ENERGETICE OLTENIA SA ,830, ,149, Craiova, DOLJ 12 AQUA TRANS EDILITAR SRL ,144, ,122, Bacau, BACAU 13 ELECTRA TAJ SRL ,078, , TELEMONTAJ EDILITAR SRL ,921, , Bacau, BACAU
102 MCR CONSTRUCTIONS CONSTRUCTION OF UTILITY PROJECTS FOR FLUIDS AND RELATED SERVICES RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 GRUP SERVICII PETROLIERE SA ,037, ,596, Constanta, CONSTANTA 2 PROSPECTIUNI SA ,358, ,295,121 1,784 3 WEATHERFORD INTERNATIONAL EASTERN EUROPE SRL ,214, ,056, INSPET SA ,028, ,904, IREM SERVICII SRL ,597, ,871, ROMPETROL WELL SERVICES SA ,677, ,053, WEATHERFORD ATLAS GIP SA ,544, ,978, ANVERGO SRL ,560, ,226, Targu Mures, MURES 9 PETROSTAR SA ,772, ,414, ERBASU EDIL CONSTRUCT SA ,128, ,867, COMESAD RO SA ,048, ,957, CDI OILFIELD SERVICES SRL ,626, ,707, M I PETROGAS SERVICES ROMANIA SRL ,707, ,284, PETROCONST SA ,429, ,424, Constanta, CONSTANTA 15 GEPROCON SA ,462, ,373, Iasi, IASI 16 GRUP 4 INSTALATII SA ,140, , Cluj-Napoca, CLUJ 17 IRIDEX GROUP CONSTRUCTII SRL ,992, ,191, Voluntari, ILFOV 18 ERG TERMROM SA ,504, , ACVATOT SRL ,863, , CONDMAG SA ,849, ,824, Brasov, BRASOV MANUFACTURE OF EQUIPMENT FOR CONSTRUCTION INDUSTRY RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER PROFIT/LOSS NO OF RANKING EMPLOYEES CONTACT 1 MAKITA EU SRL ,598, ,193, COMELF SA ,587, ,862,535 1,064 Bistrita, BISTRITA-NASAUD 3 BERGERAT MONNOYEUR SRL ,007, ,990, Mogosoaia, ILFOV 4 SCHINDLER ROMANIA SRL ,466, ,346, TERRA ROMANIA UTILAJE DE CONSTRUCTII SRL ,592, ,113, Tunari, ILFOV 6 SMITH - CONFIND SRL ,955, ,569,153 2 Campina, PRAHOVA 7 ELMAS SRL ,124, ,758, Brasov, BRASOV 8 UPET SA ,309, ,019, Targoviste, DAMBOVITA 9 LIEBHERR-ROMANIA SRL ,510, ,147, Otopeni, ILFOV 10 GRUPUL REPARATII INDUSTRIALE SI MONTAJ EXCAVATOARE X SRL ,624, , Targu Jiu, GORJ 11 TRUSTUL PENTRU SERVICII CU UTILAJE DIVERSE SA ,241, ,273, Rovinari,GORJ 12 AUTOGRUPM RO SRL ,500, , Arad, ARAD 13 UMT SA ,431, ,694, Timisoara, TIMIS 14 MARCOM RMC 94 SRL ,879, ,532, Otopeni, ILFOV 15 IFMA SA ,019, , FELBERMAYR ROMANIA SRL ,431, ,023, ILFOV 17 LOEDIGE MACHINE SRL ,513, , Brasov, BRASOV 18 PROMEX SA ,982, ,697, Braila, BRAILA 19 PROMPT SA ,138, ,
103 2013 EDITION Major Companies in Romania 103 ELECTRICAL, PLUMBING AND OTHER CONSTRUCTION INSTALLATION ACTIVITIES RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 ENERGOBIT SRL ,831, ,076, Cluj-Napoca, CLUJ 2 ENERGOMONTAJ SA ,460, ,948,346 3,363 3 ROMSTAL IMEX SRL ,967, ,300, BLACK SEA SUPPLIERS SRL ,583, , Constanta, CONSTANTA 5 LUXTEN LIGHTING COMPANY SA ,492, ,385, LJG BUILDING SOLUTIONS ALPHA SRL ,093, ,491, DAS SRL ,872, ,071, Iasi, IASI 8 HONEST GENERAL TRADING SRL ,491, ,356, SECPRAL PRO INSTALATII SRL ,207, ,396, Cluj-Napoca, CLUJ 10 VERTA TEL SRL ,358, , LEOPOLD JORDAN GMBH SRL WIEN SUCURSALA BUCURESTI ,636, ,791, VIESSMANN SRL ,959, ,587, Ghimbav, BRASOV 13 MELINDA IMPEX INSTAL SA ,933, ,184, Odorheiu Secuiesc, HARGHITA 14 BRODRENE DAHL SRL ,217, ,593, Tulcea, TULCEA 15 RADEL & HAHN SRL ,321, ,236, Sag, TIMIS 16 TECHNOVA INVEST SRL ,129, , Oradea, BIHOR 17 TRUSTUL DE INSTALATII MONTAJ SI CONSTRUCTII SA ,034, , Cluj-Napoca, CLUJ HYDRO - TECHNICAL CONSTRUCTIONS ANNUAL TURNOVER TURNOVER PROFIT/LOSS NO OF RANK COMPANY NAME MCR SCORING RANKING EMPLOYEES 1 HIDROCONSTRUCTIA SA ,555, ,438,989 5,478 CONTACT 2 LESCACI COM SRL ,807, ,445, SATU MARE 3 HIDROTRAN SRL ,841, , Miercurea Ciuc, HARGHITA 4 REPCON SA ,572, , Oradea, BIHOR 5 SOCOT SA ,333, , Targu Mures, MURES 6 CONSTRUCTII HIDROTEHNICE IASI SA ,660, ,389, Iasi, IASI 7 TRANS CARPAT SRL ,740, , ANDRITZ HYDRO GMBH VIENA - SUCURSALA Drobeta-Turnu 8 PORTILE DE FIER II SRL ,050, ,049,324 7 Severin, MEHEDINTI 9 ARGOS SA ,113, , Cernavoda, CONSTANTA 10 CLIF SA ,741, , Constanta, CONSTANTA 11 MIF SA ,103, ,323 Sangeorgiu de Mures, 104 MURES 12 DRAGOS CONSTRUCT GRUP SRL ,984, , Bascov, ARGES 13 SUPERQUATRO GRUP SRL ,262, ,548, HIDROTERRA SA ,751, , Slobozia Sucevei, SUCEAVA 15 VOITH SIEMENS HYDRO POWER GENERATION SRL HEIDENHEIM, GERMANIA SUCURSALA ,917, ,636, BUCURESTI GENERATION 16 APASCO SA ,835, , Maneciu, PRAHOVA 17 VIDELI SRL ,495, , Satu Mare, SATU MARE 18 BENY ALEX SRL ,988, , SATU MARE 19 CONTEHNO SRL ,480, , Oradea, BIHOR 20 ECOLOGIC CONSTRUCT SRL ,202, , Oradea, BIHOR 21 ANDRITZ HYDRO GMBH RAVENSBURG - SUCURSALA PORTILE DE FIER II SRL ,878, , Gogosu, MEHEDINTI 22 CONSIR SA ,887, , Siret, SUCEAVA
104
105 2013 EDITION Major Companies in Romania million EUR total transaction volume in the first half of 2013, from which 42% is related to offices, 40% to shopping centers and 10% to logistics. Real Estate REAL ESTATE EVALUATION COMPANIES REAL ESTATE AGENCIES REAL ESTATE PROJECT DEVELOPERS PROPERTY & FACILITY MANAGEMENT REAL ESTATE ASSET MANAGERS
106 MCR REAL ESTATE On the road to recovery? Liana Bulgaru, Senior Consultant - Transaction Advisory, EY Romania MARKET OVERVIEW Despite optimistic predictions, the Romanian economy witnessed a period of stagnation in 2012, mainly influenced by negative external factors. The Romanian economy is expected to grow at 1.7% in real terms in 2013, alongside a growing activity in the construction market (estimated at 4.7% in 2013 by BMI). It therefore appears that an increase in pipeline dynamism could help in stimulating the real estate sector, which has been strongly affected by the global economic recession in However, the Romanian real estate market has registered signs of recovery in 2013 and this could be a sign that the bottom of the cycle has been overcome. The office segment has been the most active, although the number of transactions and rent levels have tremendously decreased compared to prior years. Unlike , the market remains favorable to the tenants nowadays, which have options to relocate and renegotiate. The segment appears to give the start to the revival of the market and could be followed by other sectors as well, through the delivery of 72,000 sqm GLA Floreasca City Center, Sky Tower and West Gate building 5. Another 63,000 sqm are expected to be delivered until the end of the year, according to market sources. In the first half of 2013, out of the total EUR 79 million transaction volume, 42% related to offices, 40% to shopping centers and 10% to logistics. FINANICIAL HURDLES CONTINUE The Romanian real estate market is still characterized by lack of liquidity, as a consequence of restrictive lending conditions by local banks. Location and concept of the project are decisive in assessing the quality and finance access, thus prime projects do not suffer significant funding restrictions. Banks are highly selective about new loans and choose predominantly borrowers with whom they have long-standing relationships. As commercial banks are more reluctant to exposing themselves to credit risks, nontraditional lenders and insurance companies are emerging in Europe as an alternative to bank lending. As a result, many companies consider converging to real estate investment trusts (REITs). In Romania, NEPI is the first fund listed on Bucharest Stock Exchange s REIT s section. The fund has been very active in the last years in Romania and other CEE countries, with total assets of EUR 600 million in Romania and about 50% of their portfolio concentrated in retail property. Another active investor on the Romanian market which has drawn 10% of the direct foreign investments in Romania in the first months Figure 1. Investment Volume and Number of Transactions ( ) 1, EUR mln 1, No. of Transactions H H H H H H H H H H H H H H H H H1 Investment Volume Number of Transactions Source: CBRE Romanian Investment Market Overview for H
107 2013 EDITION Major Companies in Romania 107 of 2013 is Ioannis Papalekas, whose fund s investment have been focused on distressed properties and arbitrage opportunities. OFFICES MARKET GOES GREEN In a tenants market, the green costly efficient office buildings are gaining field and this trend will continue along with the increase in energy prices, considering the long-term environment impact as well. The first park offices from the Romanian local market, West Gate and Novo Park, owned by Liviu Tudor and endowed with the BREEAM certification are not an exception to the continuous attention granted to the ecosystems. lenders to establish common grounds for accepting manageable project risk. Best properties in very good locations are currently targeted by investors. They are offering higher yields than other CEE countries, which makes Romania very attractive for further investments. The retail segment has registered a decrease in yield down to 8.5% from 8.75% in only half a year due to strong investors demand. In the long run, Romania still provides a promising potential in the real estate sector. The combination of a large population with low urban rates shows a great development potential for all real estate areas. LOOKING FORWARD It is predicted that, while more companies are facing fundamental problems, this will increase opportunities for distressed investors. Real estate transactions are expected to increase in the future as a number of vendors (mainly financial institutions) are now willing to exit from their holdings. The lack of confidence from banks has left little room for speculative property developments, preventing many new projects to start. Under the current circumstances, it is paramount for developers and
108 MCR Opinion When shopping centers become civic centers GEORGIOS ARGENTOPOULOS, CEO, Alltrom Real Estate Group 2013 added one more year to those of crisis. Simply, all market players had to work harder to maintain their metrics. The well-placed and managed sites survived, while those not adhering to the new era faced even more problems. At the same time, we also noticed certain new institutional players entering the market. Their know-how and experience can only be beneficial for a market moving towards the post crisis equilibrium. I do not expect major movements during I do expect however, a higher demand from individuals, as prices reached their bottom, combined with the relative safety that real estate has to offer in a largely unstable investment environment. We shall not witness major investments, as our local market does not have the type of projects that will attract those investors currently active in our industry and in the region. In terms of major trends, I believe that we will see a gradual return of investments in manageable size real estate, given its low risk profile. On the negative side and, probably, the single most important problem the sector has been facing, is the absence of the banking support. This is not only expressed by lack of or expensive financing, but also through numerous other time-consuming and inefficient administrative processes. On the positive side, this period presented an opportunity to investors, developers, operators and service providers to put their house in order, sort out cost base, employ new strategies and direct their business in a focused manner on their respective area of expertise. In our courtyard, we employ different strategies for each real estate segment in which we operate. For the retail segment (eg. Baneasa Mall), our strategy is focused on innovation. There is a three-fold implementation through introducing new retail concepts, enhancing the entertainment propositions within the center, and shifting to new marketing methodologies aiming at creating experience; we do that by employing all the new technologies. For the commercial segment (eg office buildings and logistics), our strategy is focused on improving operations and cost efficiency. The market and demand equilibrium has resulted into significantly low rentals. Of course, location and accessibility differentiate each asset enormously. We adapted our rental levels and we have on-going projects to improve costs. For the residential segment, our strategy is to simply wait, as long as the banking sector remains practically unreachable for the vast majority of potential buyers. At the same time, we have our plans and designs ready to be implemented when we see a shift in market signals. I strongly believe that technology will be the most important change driver in our sector. This is true for all businesses. Technology is the base for innovation. Systems to monitor traffic, online channels to understand consumer behavior and interaction, operating platforms for energy efficiency are some examples of new technologies that can drive innovation. Mobile devices and social media are good examples. On one hand, they have changed the shoppers perspective, establishing word of mouth as the most influential factor. On the other hand, they have altered the catchment area of a center as they create loyalty far beyond proximity. Innovation is not the only business model to follow and certainly not applicable to all segments. We believe that innovation is applicable to the retail segment and it does provide better results. A shopping center is turning into a civic center. Innovative approaches allow you to view this business as one about many million people getting together in one place rather than just bricks and windows. In return, this opens up new revenue routes in addition to the traditional ones such as rentals. Nice example is the case of our alternative content proposals in our cinemas (theaters, shows, operas, conferences, etc) and also our media sales (off-screen and on-screen advertising), through which we have established significant new streams of income. The recent past has taught us that no one can predict properly in this era. I believe that the evolutions in the European political front will drive forward the major European economies and Romania will follow. The focus point is the banking sector, which can either lift markets up or destroy them if the issues of this industry are not properly addressed in due time. I personally expect 2014 to be better than 2013, as we are very close to a turning point after 4-5 years of cumulative crisis. This progress will not be sharp and I do not expect it to significantly alter the business environment, but it will allow for an increased consumer confidence which, in turn, will fuel our business activity.
109 2013 EDITION Major Companies in Romania 109 REAL ESTATE AGENCIES RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 PRIME PROPERTY ADVISERS SRL ,546, ,988, EHL REAL ESTATE ROMANIA SRL ,955, ,418,227-3 CONADI IMOB CONSTRUCT SRL ,540, , REGATTA SRL , , ESOP CONSULTING SRL ,172, , DTZ ECHINOX CONSULTING SRL ,603, , COLLIERS INTERNATIONAL SRL ,355, , BNP PARIBAS REAL ESTATE ADVISORY SA ,803, , LONGBRIDGE CONSULTING SRL ,432, , WINTERHILL (ROMANIA) SRL ,394, , MEDIA CITY SRL ,156, , CUSHMAN & WAKEFIELD ROMANIA SRL ,052, ,930, IMOINVEST CO SRL ,779, ,130,319 3 Arad, ARAD 14 BLACKSHIRE CONSULTING SRL ,647, , CBAR MANAGEMENT SRL , , CBRE REAL ESTATE CONSULTANCY SRL ,794, ,041, EVEREST MANAGEMENT GROUP SRL ,569, ,525 3 REAL ESTATE PROJECT DEVELOPERS RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 RE PROJECT DEVELOPMENT SRL ,096, ,495, IULIUS MANAGEMENT CENTER SRL ,368, ,597, Iasi, IASI 3 PRIMAVERA DEVELOPMENT SRL ,115, ,714, NIRO INVESTMENT SA ,740, ,517, SYNERGY INVEST SRL ,681, ,287, Gilia, Dambovita 6 BETHALAND INVEST SA ,425, ,384,739 - Cluj Napoca, CLUJ 7 CONARG SA ,648, ,600, KESZ EPITO ES SZERELO ZRT SZEGED SUCURSALA CLUJ NAPOCA ,495, , Cluj Napoca, CLUJ 9 ANCHOR GRUP SA ,819, ,141, REWE PROJEKTENTWICKLUNG ROMANIA SRL ,196, ,823, WILLBROOK MANAGEMENT INTERNATIONAL SRL ,291, ,359, RO NATURSTEIN SRL ,430, ,406, GREENLAKE DEVELOPMENT SRL ,211, ,344, IMOTRUST SA ,075, ,786, Arad, ARAD 15 OPUS LAND DEVELOPMENT SA ,036, ,997, ILFOV 16 BOC REAL PROPERTY SRL ,681, ,418, ROMFELT REAL ESTATE SA ,036, ,673, CONARG REAL ESTATE SRL ,308, ,093, ITALIAN-ROMANIAN INDUSTRIAL DEVELOPMENT ENTERPRISE - IRIDE SA ,765, ,228, SOCIETATE DEZVOLTARE COMERCIAL SUDULUI (SDCS) SRL ,093, ,820, INTERMED CONSULTING & MANAGEMENT SRL ,452, ,791, PROPRIETATI IMOBILIARE LAR SRL ,499, ,209, ANCHOR REAL ESTATE DEVELOPMENT SRL ,830, ,670, AMW IMOBILIARE SRL ,653, Suceava, SUCEAVA 25 HERCESA IMOBILIARA SRL ,277, ,340, PORTLAND ROMANIA INDUSTRIAL ONE SRL ,802, ,190, ALPHA PROPERTY DEVELOPMENT SRL ,017, ,442,037 5
110 MCR REAL ESTATE PROPERTY & FACILITY MANAGEMENT RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES 1 MT & T PROPERTY MANAGEMENT SRL ,165, ,905, CONTACT 2 ISS FACILITY SERVICES SRL ,081, ,440,437 1,733 3 BUILDING SUPPORT SERVICES SRL ,376, ,526, ROMPREST SERVICII INTEGRATE SRL ,374, ,491,829 1,119 Otopeni, ILFOV 5 THE FACILITY MAINTENANCE COMPANY SRL ,163, , CORAL CONSTRUCT ,508, ,411, ATALIAN ROMANIA ,380, , P DUSSMANN SERV ROMANIA SRL ,654, ,785, REAL ESTATE ASSET MANAGERS RANK COMPANY NAME MCR SCORING 1 CA IMMO REAL ESTATE MANAGEMENT ROMANIA SRL ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES ,303, ,228, EQUEST INVESTMENTS SRL ,895, , CONTACT 3 BILLA INVEST CONSTRUCT SRL ,162, ,707,197-4 METEX BIG SA ,267, ,408, PRACTIC SA - member of ALLTROM REAL ESTATE GROUP ,319, ,623, OPERA CENTER ONE SRL ,509, ,286,924-7 METROPOLIS INVESTITII IMOBILIARE SRL ,661, ,747,036 8 BANEASA BUSINESS & TECHNOLOGY PARK SA - member of ALLTROM REAL ESTATE GROUP ,328, , PORSCHE IMMOBILIEN SRL ,562, ,048, Voluntari, ILFOV 10 RETAIL GROUP SRL ,293, , WEST GATE SRL ,394, ,989, OASIS SRL ,536, , Sibiu, SIBIU 13 PVN ROMANIA SRL ,032, ,083, EUROPOLIS PARK BUCHAREST ALPHA SRL ,667, ,608, IULIUS GROUP SRL ,202, ,541,849 1 Iasi, IASI 16 NEPI INVESTMENT MANAGEMENT SA ,516, , TRI INVESTMENTS ERPF SRL ,403, ,425, BCR REAL ESTATE MANAGEMENT SRL ,079, ,997, BUCURESTI MALL DEVELOPMENT AND MANAGEMENT SRL ,816, ,450, FLOREASCA BUSINESS PARK SRL ,176, , COCOR SA ,191, ,221, METROPOLIS GRUP SRL ,753, ,244, Bistrita, BISTRITA-NASAUD 23 MERCUREAL SRL ,129, ,660,726 1 Timisoara, TIMIS 24 PLAZA MALL DEVELOPMENT AND MANAGEMENT SRL ,391, ,387,191 1
111 WDP ROMANIA Company name: WDP DEVELOPMENT RO S.R.L. Contact: 1 Baia de Arama Street, , sector 2, Bucharest Phone: Fax: Website: Members of the board: TONY DE PAUW - CEO JOOST UWENTS - CEO JEROEN BIERMANS - Managing Partner Top management: JEROEN BIERMANS - Managing Partner VALENTIN ST~NCIULESCU - Business Development Manager Financial information: Registered capital 34,411,260 RON (2009) Company profile: WDP (Warehouses De Pauw) is the market leader in Benelux and a major global player through its efficient customized services of development, letting and management of logistical and industrial properties, with a portfolio of approx. 2 million square meters of warehouses, distribution centers and industrial spaces in Europe. In Romania, on an overall area of approx 200 hectares, WDP is developing a strategic portfolio of 10 logistic and industrial parks (that grant land and building tax payment exemptions for tenants), with direct access or close to the highways and main roads. The company secured also a financing line for future developments in Romania from the European Investment Bank and, depending on the size of the project, can follow the client in areas in which it is not yet active. WDP is present near Bucharest (Corbii Mari with access to Bucharest - Pite[ti highway, Fundulea and S`rule[ti with access to Bucharest Constan]a highway), near Pite[ti (Oarja with access to A1 highway), in Bra[ov (Codlea), near Ploie[ti (Arice[tii Rahtivani with access to DN72 and P`ule[ti, both of them with easy access to DN1 and the future Bucharest - Bra[ov highway). Nearby Constan]a, two industrial parks will also be developed: Mihail Kog`lniceanu (access to International Airport and E60) and Agigea (access to the container loading terminal and Danube - Black Sea canal). WDP timely delivered in 2011 two production facilities of approx 14,000 sqm for Roechling Automotive and HP Pelzer Pimsa, within the Industrial Park in Oarja, Arge[, on Pan European Corridor IV, close to automotive manufacturers (and their suppliers) Dacia Renault and Ford and started in 2013 the development of its Industrial Park Codlea (Brasov). These buildings are compliant with all specifications agreed with the client and the quality and conditions of a state-of-the-art warehouse and production space, according to WDP s approach regarding its developments worldwide. Besides this, WDP developed two solar parks close to Bucharest (Fundulea and Sarulesti) of approx MW. Our involvement in renewable energy and BREEAM certified projects has two main root causes: on one side, WDP as an organization is interested in contributing to sustainable regional development in Romania and on the other side to offer our clients lower maintenance costs and a very atractive price for the produced green energy, which under the current market conditions is an important asset in front of our competitors. WDP is a flexible company with top quality logistic & production spaces The company proves its flexibility through its willingness to adjust A Class facilities to the expectations of its potential customers (built to suit projects) who seek to efficiently use their space, may it be ambient or refrigerated, with special contamination regime, for ADR goods or specific warehouse or production halls. WDP is a transparent stock exchange company with great financial clout. Joining forces with WDP means choosing a long term relationship. Companies can keep on focusing on their core business, WDP takes care of their real estate. In such a competitive market environment, WDP is driven by the one stop shop principle: built-to-suit, financing, development, construction, facility and property management. In short, everything about WDP is added value. Time after time, the result is warehouses with brains. Shareholders: Warehouses De Pauw Comm. Va, Belgium: 51% JB Top Pro Invest SRL, Romania: 49% Certificates / Inducements: BREEAM certificates Environment - friendliness buildings Green energy Photovoltaic panels Fiscal facilities Ownership: Private-owned: 100% Romanian: 49% Foreign: 51% Brands: WDP, Warehouses with brains
112 MCR Opinion The chance of economic revival lies in re-financing ADRIAN CRIVII, FRICS, MAA, CEO Darian DRS SA It has been 5 years since the resounding bankruptcy of the famous investment bank Lehman Brothers, which triggered the global financial crisis and continues to erode the real estate industry and to exert a negative influence on the value of assets all around the globe. The uncertain situation of the European economy, seriously marred by the global sovereign debt, and signals launched by the Federal Reserve regarding its withdrawal of financial support through purchase of bonds will influence global developments negatively. This negative influence is already visible in the significant decrease of economic growth in Asia, particularly in China, which used to be the one true steering force of world economy. There are important banking institutions exposed in crisis-stricken areas, which have been bailed out by infusions of public capital. But their weakness will be enhanced by the new regulatory standard of the Third Basel Accord (Basel III). This new capital requirement will constitute a new shock and of course will exert highly unpredictable effects on financing the economy and especially SMEs. In Romania, foreign direct investments and portfolio investments, as well as migrant remittances sent by Romanian workers have been decreasing constantly in the past few years, a trend which does not seem likely to change despite the beginning of a new election cycle. The above mentioned aspects confirm the lack of appetite for investments in emerging markets, intensified by a diminishing exposure in Romania of European financial institutions with local subsidiaries, thus having a negative influence on efforts towards bottoming out of the crisis. The Romanian banking system, quite steady although in its early stages of consolidation, faces an increase of bad debts at a rate which considerably influences profitability and discourages the process of interest rate reduction, with considerable effects on the economy. The real estate market is practically frozen, private and public constructions are decreasing, investors target very few projects or development sites in adjacent areas and a lot of public projects are on hold, partly because of extended blockage in European funding. In Romania, the value of real estate has continued to drop in the past 12 months, but quite moderately, with more pressure in terms of development sites, their value having decreased by 5% over the last year. The chronic financial crisis, which influenced both the global and, to a larger extent, the local economy, has also had negative effects on the consulting and valuation market. In the field of real estate consulting major companies went through a rough time between , a period which dramatically decreased their turnover and profitability. A period of consolidation and restructuring followed naturally, and with it a realignment of priorities towards still functional areas, developing new products and services but on a much smaller scale. Legislative changes in regulating valuation, changes in fiscal legislation and unlocking of farmland transactions would open new market sectors. The future of consulting resides in innovation, creativity and useful services rendered to increasingly more demanding clients at more competitive prices. The chance of economic revival, implicitly boosting the real estate industry and consulting, lies in re-financing. This is possible through accessing European funding for the budget of , eliminating financial losses in economy, financial transparency in using public funding and investment efficiency.
113 2013 EDITION Major Companies in Romania 113 REAL ESTATE EVALUATION COMPANIES RANK COMPANY NAME ANNUAL TURNOVER ANNUAL TURNOVER (2011 RON) ANNUAL TURNOVER GROWTH % PROFIT/LOSS CONTACT 1 DARIAN DRS 13,637,732 12,842, % 3,348,070 Cluj Napoca 2 PRIME PROPERTY ADVISERS - KNIGHT FRANK 11,546,506 3,886, % 1,988,355 3 ROMCONTROL 11,389,946 11,586, % 13,468 4 FAIRVALUE CONSULTING 4,120,398 3,444, % 1,068,969 5 R.E.A.G. REAL ESTATE ADVISORY GROUP SRL 2,341,874 4,944, % -876,879 6 PARKER LEWIS & ASSOCIATES 1,326,972 1,709, % 4,257 7 CBAR RESEARCH & VALUATION ADVISORS (COLDWELL BANKER AFFILIATES) 1,277,718 1,031, % 245,378 8 EVAL CORP 671, , % -119,400 9 GBF VALUATION & RESEARCH 594,084 1,046, % 44, COHISPANIA CONSULTING 591, , % 29,585
114
115 2013 EDITION Major Companies in Romania billion EUR worth local furniture production in 2012, Romania, the 13th largest furniture exporters worldwide Wood, Paper & Furniture MANUFACTURE OF FURNITURE RETAIL TRADE OF FURNITURE, CARPETS AND LIGHTING EQUIPMENT MANUFACTURE OF WOOD AND WOODEN PRODUCTS MANUFACTURE OF PAPER AND PAPER PRODUCTS
116 MCR WOOD, PAPER & FURNITURE Romanian furniture gets comfy outside Magda Purice - Freelance Journalist Last years have imposed an ineffable truth about the furniture market dynamic in Romania: the producers grow their businesses exclusively from exports. Official data state that currently, Romania ranks 13th among world s furniture exporters. Exports maintained Romanian furniture industry at a decent growth pace, whilst internal consumption downsized yearly. In 2012, local producers exported an average of 4.6 percent up to previous year. The markets fond of Romanian craft are Russia, Ukraine, UK, Israel, United States, Canada and Arab Emirates. Regarding the local production, the market saw an increase of 2.7 percent in 2012 and reached EUR 1.83 billion, according to data of Romanian Furniture Manufacturers Association (APMR). For the first quarter of 2013, the increase has been calculated at 11 percent year on year and the obvious gap is determined by the increasing demands on external markets. Hence, Q1 of 2013 stated a 14.8 percent growth of furniture exports and the estimations are to reach 13.2 percent by yearend. In the same time, local production decreased in comparable terms, with 10.8 percent. THE LOCAL LANDSCAPE The largest Romanian producers are well-know names, as they consolidated their market share and brand awareness in the last decade. Some of them share the same strategy, heavily targeting exports, but not all of them. For instance, Lemet, a large retail network of Romanian furniture owned by businessman Alexandru Rizea targets mainly the local market, same as Casa Rusu brand produced by Rus Savitar Romanian company. The managers said that not only the downsized purchase power of Romanian consumers contributed to a local contracted market, but also the prize hikes registered for raw materials. But brands as Mobexpert of Dan Sucu, Elvila, managed by Viorel Catarama and Aramis Invest, managed by Vladimir Iacob would rather look for the outside markets. Still, local or foreign, retailers forecasted increases in their yearly turnover for For instance, Casa Rusu plans a boost of percent this year from EUR 27 million stated in The same increase is planned by Lemet, with a turnover of EUR 47 million attained in The increases will come following the retail expansion, as Casa Rusu plans to boost the 13-stores and 11 franchise network by 8 new outlets while Lemet plans 15 new openings this year. Moving forward towards the high-end zone, Camelia Sucu, owner of Class Living doesn t expect much to happen on internal market in the luxury segment. She puts the opinion in the perspective of a larger context of macroeconomic level where significant changes will not be seen this year. Her solution to neutralize the idle market is to address the premium niche. By Class Living, she comes on the market with concept products and design pieces for a small, but distinct and a more reachable and measurable segment. A segment that works in direct link with business dynamic is the niche of office furniture. This market shows positive signs in the last year, after a period of contraction, due to the Table 1. Roundwood Production Romania m 3 geotime EU (27 countries) Euro area (changing composition) EU (28 countries) n/a Average Europe Romania Source: Eurostat Short Description: Roundwood production (the term is used as a synonymous term for 'removals') comprise all quantities of wood removed from the forest and other wooded land or other felling site during a certain period of time. It is reported in cubic metres underbark (i.e excluding bark).
117 2013 EDITION Major Companies in Romania 117 reduced budgets and cut off operations of companies. But, the recovery trend of 2012 seems to consolidate in 2013 as seen by managers of Corporate Office Solutions company, the largest local player in this niche. According to the company estimates, the office furniture market in Romania is expected to reach EUR million by yearend, registering a 25 percent increase compared with To compare, this market was estimated at around EUR million in Either it is about the couches, chairs, kitchen furniture or concept accessories, the furniture market in Romania provides work for 55,000 employees, according to data of Romanian Furniture Manufacturers Association (APMR). THE NUMBERS COME FROM OUTSIDE Following this year s International Trade Fair for Furniture, Equipment and Accessories, Bucharest 2013 (BIFE-SIM), APMR s chairwoman Aurica Sereny stated that Romania ranks the 13th among world s furniture exporters, is the 28th big furniture maker, and it comes the 48th as furniture purchase. Also, data showed that Romania s furniture imports are worth EUR million this year, whereas the exports value amounts to EUR billion. The discrepancy between the vales is given, according to analysis of Sereny, the local consumption is low and in line with the purchase power of THE WOOD TRAVELS OUTSIDE According to official data, EU countries record 178 million hectares of forests and other wooded land, representing about 42 percent of its land area. About 133 million hectares or 32 percent of the EU's land area is covered by forests used for wood supply. In Romania, according to available data, there are 6.5 million hectares of forests covering 27.3 of Romania s total area. In the last tw2o centuries, Romania lost 2 million hectares of forest. With a strong tradition in wood processing, Romania exported in 2012 an estimated amount of 4.49 tones of wood, more than twice the value recorded a decade ago, according to data of the National Statistical Institute. The largest importers for Romanian wood are countries as Austria, Italy, Hungary, Germany, Egypt, Turkey, Greece, but also Saudi Arabia, China, Japan and UAE. In Romania, the top of largest foreign wood exporters is still dominated by companies owned by Austrian and Turkey groups, like: Holzindustrie Schweighofer, Kronospan România, Egger Romania and Kastamonu Romania. They amounted to an aggregated turnover exceeding EUR 860 million, according to published data on the Minister of Finance. The largest company of this ranking is the Austrian Table 2. Top wood exporters Romania (2012 available data) Company Turnover 2012 No. of Employees Production facilities Holzindustrie Schweighofer 500 mln 2,500 4 plants (Sebes, Radauti, Comanesti, Siret) Egger Romania 200 mln plant at Radauti Kronospan Romania 104 mln plants at Brasov, Sebes, logistic center at Constanta Kastamonu România (Former Prolemn) 80 mln production lines at Reghin Losan Romania 26.5 mln production facility at Brasov Source: Companies data mainstream consumers. They would rather look to retail networks and big discounters for furniture coming from Turkey or China. Ikea or Kika are also strong foreign retailers on local market. The price-oriented Romanian consumers spent, according to official data, EUR 758 million on furniture in 2012, down 2.3 percent on the previous year. company Holzindustrie Schweighofer, with a turnover of EUR 375 million in With 4 production units operated on the Romanian market, three of them located in Eastern Romania, they usually export in Asia. The company also announced a new investment worth EUR 150 million for a new production unit in Covasna county.
118 MCR WOOD, PAPER & FURNITURE MANUFACTURE OF WOOD AND WOODEN PRODUCTS RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 HOLZINDUSTRIE SCHWEIGHOFER SRL ,816,739, ,611,321 1,313 Sebes, ALBA 2 EGGER ROMANIA SRL ,763, ,969, KRONOSPAN SEBES SA ,073,407, ,522, Sebes, ALBA 4 SIMPE SRL ,266, ,175, Sebes, ALBA 5 KASTAMONU ROMANIA SA ,320, ,099, Reghin, MURES 6 HOLZINDUSTRIE SCHWEIGHOFER BACO SRL ,197, ,778, AVIVA SRL ,182, ,334, Baia Mare, MARAMURES 8 EGGER ENERGIA SRL ,749, ,434, LOSAN ROMANIA SRL ,605, ,178, Brasov, BRASOV 10 KRONOSPAN ROMANIA SRL ,717, ,059, Brasov, BRASOV 11 UNIROM SA ,415, ,225, Buzau, BUZAU 12 SILVANIA INTERNATIONAL PROD SRL ,483, , Lunca Ilvei, BISTRITA NASAUD 13 RGHOLZ COMPANY SRL ,744, , Viseul de Sus, MARAMURES 14 ALREDIA SRL ,848, , Aiud, ALBA 15 BARLINEK ROMANIA SA ,034, ,898, FORESTAR SA ,396, ,473, Tarcau, NEAMT 17 FORESTCOV SRL ,449, , Valeni,VALCEA 18 KARELIA - UPOFLOOR SRL ,720, ,193, Satulung, MARAMURES 19 VITRAROM SRL ,551, , Lunca Calnicului, BRASOV 20 WERZALIT LEMN TECH SCS ,659, , Lugoj, TIMIS 21 DEKO RAME SRL ,714, , Miercurea Sibiului, SIBIU 22 JF FURNIR SRL ,914, ,394, Brasov, BRASOV 23 RICH FOREST SRL ,032, , VIMAN WOOD SRL ,925, ,394 8 Bulz, BIHOR MANUFACTURE OF PAPER AND PAPER PRODUCTS RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER PROFIT/LOSS NO OF RANKING EMPLOYEES CONTACT 1 ROMCARTON SA ,806, ,709, DUNAPACK RAMBOX PRODIMPEX SRL ,437, , Sfantu Gheorghe, COVASNA 3 RONDOCARTON SRL ,622, ,938, Sannicoara/Apahida, CLUJ 4 VRANCART SA ,279, ,249,901 1,070 Adjud, VRANCEA 5 ECOPAPER SA ,575, ,176, AVERY DENNISON SRL ,952, ,021, PEHART TEC SA ,479, ,669, TIGER SOMES IMPEX SA ,933, ,041, Dej, CLUJ 9 ROMPRIX EXIM SRL ,751, ,375, Pantelimon, ILFOV 10 VALMIR SERVICE SRL ,723, , MAYR MELNHOF PACKAGING ROMANIA SRL ,056, ,750, Blejoi, PRAHOVA 12 ABC-IMPEX SRL ,944, ,276, Odorheiu Secuiesc, HARGHITA 13 PENTAROM SRL ,744, ,539, Campulung, ARGES 14 AMBRO SA ,373, ,343, Suceava, SUCEAVA 15 ECOPACK SA ,813, ,322, Ghimbav, BRASOV 16 COMCEH SA ,413, ,050, Calarasi, CALARASI 17 THIMM PACKAGING SRL ,150, ,292, Sura Mica, SIBIU 18 PETROCART SA ,476, , Piatra Neamt, NEAMT 19 BARLETA SRL ,617, , Bacau, BACAU 20 DENTAS ROMANIA SRL ,859, ,870, DAMBOVITA 21 SEGEZHA PACKAGING SRL ,494, ,101, DS SMITH PACKAGING ROMANIA SRL ,826, ,111, Timisoara, TIMIS 23 VPK PACKAGING SRL ,250, ,716, Salonta, BIHOR 24 BUDAVAL RO SRL ,889, ,133 7 Jucu de Mijloc, Localitate: Jucu, CLUJ
119 2013 EDITION Major Companies in Romania 119 MANUFACTURE OF FURNITURE RANK COMPANY NAME MCR SCORING RETAIL TRADE OF FURNITURE, CARPETS AND LIGHTING EQUIPMENT RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER ANNUAL TURNOVER TURNOVER RANKING TURNOVER RANKING PROFIT/LOSS PROFIT/LOSS NO OF EMPLOYEES NO OF EMPLOYEES CONTACT 1 ARAMIS INVEST SRL ,910, ,192,882 2,909 Baia Mare, MARAMURES 2 ITALSOFA ROMANIA SRL ,003, ,083,911 1,447 Baia Mare, MARAMURES 3 ADA FABRICA DE MOBILA SRL ,072, ,447, Salonta, BIHOR 4 PARISOT GREEN SOFA SRL ,936, ,511, Oradea, BIHOR 5 PLIMOB SA ,951, ,925,389 1,433 MARAMURES 6 COTTA INTERNATIONAL SRL ,974, ,417, Arad, ARAD 7 TAPARO SRL ,592, ,466, Borcut, MARAMURES 8 MOBILIER GENERAL ARAD MGA SRL ,913, ,939, Arad, ARAD 9 COUNTRY ELEMENTS SRL ,487, ,356, Satu Mare, SATU MARE 10 ECOLOR SRL ,556, ,019, Jucu, CLUJ 11 FUTURE SRL ,109, ,129,478 - Otopeni, ILFOV 12 RUS-SAVITAR SRL ,068, ,419, SAVINI DUE SRL ,071, ,446, Sebes, ALBA 14 SORTILEMN SA ,979, ,447,117 1,017 Gherla, CLUJ 15 GAMMET 2000 SRL ,782, ,268, Lugoj, TIMIS 16 DITRE INTERNATIONAL SRL ,758, ,488, Arad, ARAD 17 POLIPOL MOBILA SRL ,828, ,707, Foieni, SATU MARE 18 TOP DESIGN FURNITURE SRL ,643, ,219, Mediesu Aurit, SATU MARE 19 TRANSVAL MOB SA ,873, ,325, MARAMURES 20 LEMET SRL ,928, ,776, Campina, PRAHOVA 21 ITALROM LEATHER SRL ,676, ,618, NIKMOB SA ,783, , Nehoiu,BUZAU 23 ELVILA SA ,148, ,380,106 1, MOBILA SOVATA SRL ,434, ,959, Sovata, MURES CONTACT 1 MOBEXPERT BANEASA SRL ,861, ,329, IKEA ROMANIA SRL ,351, ,982, M & D RETAIL PIPERA SRL ,082, ,393, CASA DI ADRIANO SRL ,205, , PROGES SRL ,401, ,500, Oradea, BIHOR 6 CASA RUSU SRL ,255, , Dumbravita, TIMIS 7 PHYLOSOPHY DESIGN SRL ,365, , MOBEXPERT PANTELIMON SRL ,124, , MOBEXPERT MILITARI SRL ,560, , MOBILIER OVO DESIGN SRL ,157, , MOBEXPERT BRASOV SRL ,168, , Brasov, BRASOV 12 POLTERGEIST SRL ,689, , Timisoara, TIMIS 13 KIKA MOBILIER SRL ,501, ,401, MOBEXPERT IASI SRL ,312, ,965, Iasi, IASI 15 MOBEXPERT BERCENI SRL ,003, ,713, ROMATEX SA ,875, ,254, Otopeni, ILFOV 17 SORTEM COM SRL ,850, ,988, Roman, NEAMT 18 2B GROUP SRL ,895, , Regin, MURES 19 ROMEUR SRL ,280, ,278, Oradea, BIHOR 20 VENUS MOB SRL ,489, , Nanov, TELEORMAN 21 FURNITURE DESIGN DISTRIBUTION SRL ,047, ,807,204 34
120 Manufacturer for ready to wear garments
121 2013 EDITION Major Companies in Romania % y/y dropped the exports of textiles, wearing apparel and leather goods to nearly EUR 5.2 bn in 2012 Textile & Leather PREPARATION OF TEXTILE FIBERS AND TEXTILES MANUFACTURE MANUFACTURE OF WEARING APPAREL RETAIL TRADE OF CLOTHING IN SPECIALISED STORES MANUFACTURE OF FOOTWEAR AND LEATHER GOODS RETAIL TRADE OF FOOTWEAR AND LEATHER GOODS
122 MCR TEXTILE & LEATHER Textile output slows down abruptly in 2012, production of clothing apparel slides in negative area Diana Macovei, Freelance Analyst The production of textiles slowed down abruptly in 2012, when it increased by a mere 1.5% y/y from the 10.5% y/y rise recorded in 2011, according to our calculations based on revised official statistics. The textile output recorded positive annual performance for the third year in a row, but remained however by 4.9% below the 2008 level. After the double-digit plunge in 2009, the industry started picking up, but the pace tempered in 2012, as the activity in the sector was negatively affected by diminishing external and local demand, which added to overall adverse market circumstances. Some producers managed to offset the overall declining demand by refocusing towards niche areas, such as industrial textiles. The clothing apparel production slid in the negative area last year, when it dropped by 2.2% y/y, after having inched up by 1.7% y/y in Textile product manufacturing in (monthly output indices, 2010=100, unadjusted) The clothing production in 2012 was roughly at the same level as in 2009, when the industry s output witnessed 25.5% y/y annual plunge. The companies are facing shrinking demand and smaller producers and exporters particularly are struggling with tighter time frames for completing small orders. Only few of the apparel producers have developed own brands and are present in the retail chains with clothing lines, as most of them continue to focus on orders under lohn system. EXPORTS OF TEXTILES, CLOTHING, FOOTWEAR SHRINK 1.6% Y/Y TO EUR 5.2BN IN 2012 The exports of textiles, wearing apparel and leather goods dropped by 1.6% y/y to nearly EUR 5.2bn in 2012, as the sector was affected by shrinking external demand, in the context of the Exports of textiles, wearing apparel, leather goods in (EUR mn) Jan Feb Mar May Jun Jul Aug Sep Oct Nov Dec Clothing apparel manufacturing in (monthly output indices, 2010=100, undjausted) % 5, , Imports of textiles, wearing apparel, leather goods in (EUR mn) Exports (EUR mn) y/y, in % Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec % 4, , Exports (EUR mn) y/y, in % Source: Statistics office. Source: Department for External Trade.
123 2013 EDITION Major Companies in Romania 123 global economic crisis. The share of the sector s exports also diminished to 11.5% of total exports in 2012, from 11.7% in The trade balance remained positive, at about the same level in the past two years (EUR 408.4mn in 2011 versus EUR 408.8mn in 2012), according to data from the Department for External Trade. Imports dropped by a similar annual figure, to nearly EUR 4.8bn, in 2012, accounting for 8.7% of the country s imports last year. Textiles, apparel, footwear foreign trade in Selective indicators by product type (EUR mn) Articles of apparel, accessories, knit or crochet (code 61) Export % of total EU 27 export 2.1% 2.1% 2.1% Import % of total EU 27 import 0.6% 0.6% 0.6% Articles of apparel, accessories, not knit or crochet (code 62) Export 1, , ,862.0 % of total EU 27 export 4.0% 4.2% 4.1% Import % of total EU 27 import 0.6% 0.7% 0.7% Footwear, gaiters and the like, parts thereof (code 64) Export 1, , ,255.0 % of total EU 27 footwear exports 4.3% 4.5% 4.1% Import % of total EU 27 footwear imports 1.5% 1.7% 1.5% Source: Own selections, calculations based on European Commission, Eurostat data. Major export destinations in for apparel, not knit (% of total exports) accounted for 2.1% and respectively 4.1% of the EU27 total exports value in 2012, roughly the same level as in the previous year, according to our calculations based on European Commission and Eurostat statistics. Exports of footwear, gaiters and similar products, on the other hand, dropped more abruptly, by 7.2% y/y to nearly EUR 1.3bn in 2012, accounting for 4.1% of EU27 total footwear exports last year. The Romanian footwear producers export in over 150 countries and project some 5% y/y advance of external deliveries this year, according to projections of producers association Sfera Factor. Italy remained the top export destination for major textile, apparel and footwear products in It accounted for 57.1% of footwear exports, 40.3% of total knitted textiles and 21.6% of total not knitted textiles in Other top destinations for textiles and apparel in 2012 were Austria and the United Kingdom, while footwear top 3 export destinations included Austria and Germany. Interestingly, even though China is cited as being among the top import countries for textiles, clothing and footwear, the country actually ranked 4th and 5th among import countries for the major categories last year. The top import source was Italy, while other major partners were Germany, Austria, Spain and Slovakia. YET TEXTILES INDUSTRY REMAINS ATTRACTIVE FOR FOREIGN INVESTORS 47.4% 49.6% 9.1% 2.7% 3.2% 23.2% 9.9% 21.6% 15.4% 17.9% Italy Germany United Kingdom France others The foreign direct investments in textiles, apparel and leather industry advanced by 4.5% y/y to EUR 834mn in 2012, thus showing that the country remained attractive for foreign investors. The amount is at about the same level as in 2010 and above the EUR 717mn recorded in 2009, but the sector s share in total FDI stock maintained at 1.4% in except 2010, when the share was slightly higher, at 1.6%, according to data from the central bank. Major export destinations for footwear in (% of total exports) 5.1% 5.6% 6.1% 5.6% 7.3% 8.0% 7.8% 8.3% 15.5% 14.9% 58.7% 57.1% Italy Austria Germany France Slovakia Others Source: European Commission, Eurostat; *inner circle 2011, outer circle The exports performance however varies widely across market segments. Exports of knitted or crocheted apparel declined marginally by 0.9% y/y in 2012, while exports of apparel not knitted inched up by 0.2% y/y last year. The two segments Foreign Direct Investments in textiles, apparel and leather industry in (EUR mn) FDI in textiles, apparel and leather industry y/y, in % -9.7% 16.5% -4.4% 4.5% % in total FDI stock 1.4% 1.6% 1.4% 1.4% Source: Central bank. DOMESTIC HOUSEHOLD SPENDING ON CLOTHING REMAINS AT LOW LEVEL IN 2012, YET RETAILERS MOVE ON WITH CHAIN EXPANSION Monthly household spending on clothing and footwear accounted for 5% of total household spending in 2012, or RON 80 (EUR 18.1). The share in total household spending remained the same as in 2011, but the stake diminished considerably from 5.4% in 2010 and 6% in The statistics regarding the turnover of retail trade with clothing, footwear and leather products shows no encouraging performance in The index returned in the negative area in 2012, after three years of positive annual performance, according to our calculations based on the revised and rebased official
124 MCR TEXTILE & LEATHER statistical series. Thus, the turnover index in the sector dropped by 17.5% y/y in 2012, following the 6.1% y/y advance in Even though the household spending on clothing and footwear maintained at low level in 2012 and the retail turnover in the sector dropped at double-digit annual pace, the specialised retail chains moved on with expansion last year and in 2013, taking advantage of the more advantageous leasing terms and shopping centre expansion. Particularly international clothing chains consolidated their position on the market, as they benefited of support from parent companies to back their expansion. On the other hand, Romanian apparel retailers are facing increasing difficulties and many of them filed for insolvency. The international retailers managed to alleviate the declining sales per store by enlarging their chains, but local companies could not secure financing for similar moves. Household spending on clothing and footwear in (monthly spending per household) LOCAL PRODUCERS FACE SUPPLY DETERRENTS, RISING COSTS, QUALIFIED LABOUR FORCE SHORTAGE The companies in the textile industry continue to face problems regarding the raw material supply, rising production costs driven by higher energy prices, and the lack of qualified labour force, which add to diminishing external and domestic demand. The raw materials are imported, thus the exchange rate volatility impacting on the companies acquisition costs. Most of the companies in the industry are small and medium-sized and thus more vulnerable to adverse market developments. The number of insolvencies in the sector reached 837 in full year 2012 and 364 in H1/2013, according to a study of credit risk firm Coface. Considering the stipulations of the new insolvency bill endorsed by the government in October 2013, the textiles industry will predictably record a rising number of bankruptcies in 2013 and Source: Own calculations, based on official statistics. Turnover indices for retail trade with clothing, footwear and leather products in (monthly, undjusted, 2010=100) RON EUR Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: Statistics office. On the footwear market, Romanian companies continue to have a strong foothold. The major footwear retailers, some of whom are also producers, continued to account for the largest market share. Furthermore, the footwear producers started expanding abroad their retail chains. One example is Romanian footwear producer and retailer Musette, which plans to enter German and UK markets this year. The company already operates stores in Bulgaria, Austria, France, Israel and the USA. The number of companies active in textiles and wearing apparel manufacturing continued on downward path in , according to the latest official statistics available. The number of companies in textiles manufacturing reached 1,317 at end-2011, from 1,770 in Of the total number, 23 companies have over 250 employees, while 93 have between 50 to 249 employees. In the segment of wearing apparel manufacturing, the number of companies dropped to 4,111 at end-2011, from 5,867 in Of the total, 128 are large companies and 594 medium-sized.
125 2013 EDITION Major Companies in Romania 125 MANUFACTURE OF WEARING APPAREL RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 BENROM SRL ,431, ,522, Miercurea Sibiului, SIBIU 2 ROSKO TEXTIL SRL ,704, ,492,235 1,201 3 FORMENS SRL ,529, ,027, Botosani, BOTOSANI 4 COINDU ROMANIA SRL ,617, ,013, IC COMPANYS ROMANIA SRL ,318, ,044, PANDORA PROD SRL ,443, ,483, Focsani, VRANCEA 7 PRODUCTIE ZARAH MODEN SRL ,699, ,587, Targu Secuiesc, COVASNA 8 NORADA SA ,762, ,868, Odorheiu Secuiesc, HARGHITA 9 TIME INTERNATIONAL TRADING SRL ,852, ,784,054 1, ARIES TEXTILE SRL ,578, ,487, Arad, ARAD 11 BIANCOSPINO SRL ,772, ,189, Breaza, PRAHOVA 12 ALISON HAYES (ROMANIA) SRL ,021, ,682,934 1,300 Urziceni, IALOMITA 13 CONFECTII BARLAD SA ,050, ,224, Barlad, VASLUI 14 TRANSILVANIAN TROUSERS COMPANY SA ,212, ,537, VERSO CORPORATION SRL ,478, ,540, IKOS - CONF SA ,632, ,525,812 1,229 Sf Gheorghe, COVASNA Odorheiu - Secuiesc, HARGHITA 17 ARTIFEX SRL ,025, ,891, Focsani, VRANCEA 18 EUROTEX COMPANY SRL ,585, ,602, Targu Frumos, IASI 19 KOSMOS TRE SRL ,868, ,222, Alba Iulia, ALBA 20 UNICONFEX EXIM SRL ,537, ,575, PANCARPROD SRL ,868, , Vaslui, VASLUI 22 BIG CONF SRL ,120, ,087, Botosani, BOTOSANI 23 BRAICONF SA ,277, ,904, Braila, BRAILA 24 NEW-FASHION SA ,016, ,610, Targu Secuiesc, COVASNA 25 COTTONTEX SRL ,326, ,746, Timisoara, TIMIS 26 PAOLA CONFECTII SRL ,465, ,308, Titu, DAMBOVITA 27 MAGREB KNITWEAR EAST SA ,848, ,861, Cluj-Napoca, CLUJ 28 TEBA BRAD INDUSTRY SRL ,337, ,543, Brad, HUNEDOARA 29 TANEX SRL ,714, ,769, INCOM-VRANCO SA ,877, , Focsani, VRANCEA 31 STEILMANN ROMANIA SRL ,326, ,102, ROMANITA SA ,374, ,996 - Caracal, OLT 33 SONOMA SRL ,427, ,203, Bacau, BACAU 34 BLAZER SRL ,799, , Braila, BRAILA 35 BETACOM PROD SRL ,591, , OZTASAR SRL ,321, ,211, JOLIDON IMPORT EXPORT SRL ,252, ,911,834 1,088 Cluj-Napoca, CLUJ 38 ADESGO SA ,166, , IMPERIAL SA ,935, ,052, Turnu Magurele, TELEORMAN 40 FRANCESCA INDUSTRIES SA ,102, , STAFF COLLECTION SRL ,143, ,747, CORSSA SRL ,049, ,236, MAGLIERIE CRISTIAN IMPEX SRL ,092, , Calafat, DOLJ 44 ROULEAU - GUICHARD ROUMANIE SRL ,127, ,397, Sacele, BRASOV
126 MCR TEXTILE & LEATHER PREPARATION OF TEXTILE FIBRES AND TEXTILES MANUFACTURE ANNUAL TURNOVER TURNOVER PROFIT/LOSS NO OF RANK COMPANY NAME MCR SCORING RANKING EMPLOYEES 1 RIFIL SA ,401, ,752, INTEX SA ,940, ,810, COATS ODORHEI SRL ,351, ,623, SUN GARDEN ROMANIA SRL ,587, ,859, EUROPEAN INTERIOR SRL ,447, ,377, ITALTEXTIL SARATA SRL ,916, ,613, CONTACT Nasaud, BISTRITA- NASAUD Odorheiu-Secuiesc, HARGHITA Sat Pucioasa, DAMBOVITA Sarata, BISTRITA- NASAUD 7 COATS ROMANIA IMPEX SRL ,415, ,254, INDUSTRIA FILATI BUZAU SRL ,717, ,005, Buzau, BUZAU 9 TREVERTEX SRL ,119, ,559, YARNEA SRL ,149, , CARREMAN ROMANIA SRL ,343, ,389, Botosani, BOTOSANI 12 TE-ROX PROD SRL ,480, ,670, Pascani, IASI 13 MONOTEX SRL ,861, ,494, Sighisoara, MURES 14 AX PERPETUUM IMPEX SRL ,421, ,106, Cluj-Napoca, CLUJ 15 ROLANA TEX SRL ,232, ,620, Botosani, BOTOSANI 16 MARTELLI EUROPE SRL ,574, ,664, Buzau, BUZAU 17 FILECA INDUSTRY SA ,031, , Beclean, BISTRITA- NASAUD 18 ROMTEXTIL SA ,948, , Constanta, CONSTANTA 19 MINET SA ,005, ,860, Ramnicu Valcea, VALCEA 20 AMANN ROMANIA SRL ,957, , Harman, BRASOV 21 UCO TESATURA SRL ,931, , Giurgiu, GIURGIU 22 SEFAR SRL ,971, , Sighisoara, MURES 23 DOROTEX SRL ,031, ,031, Dorohoi, BOTOSANI RETAIL TRADE OF CLOTHING IN SPECIALISED STORES RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 ZARA BUCURESTI SRL ,471, ,366, PEEK & CLOPPENBURG SRL ,358, ,168, H&M HENNES & MAURITZ SRL ,949, ,550, C&A MODA RETAIL SRL ,484, ,496, BERSHKA CARPATI SRL ,635, ,944, MASSIMO DUTTI RO SRL ,139, ,216, PULL & BEAR RO SRL ,899, ,517, STRADIVARIUS RO SRL ,537, ,041, EMPORIO COM SRL ,509, ,058, Constanta, CONSTANTA 10 RENANIA TRADE SRL ,370, ,669, Targu Mures, MURES 11 ROUMASPORT SRL ,062, , M - FASHION COM SRL ,552, ,070, Otopeni, ILFOV 13 PEERAJ BRANDS INTERNATIONAL SRL ,087, ,186, NYER ROMANIA SRL ,369, ,086, Cluj-Napoca, CLUJ 15 TAKKO FASHION INTERNATIONAL SRL ,520, ,762, SONYA MOD SA ,751, , MIROGLIO ROMANIA SRL ,627, ,857, MARKS & SPENCER MARINOPOULOS ROMANIA SA ,146, ,402, SOLMAR TRADING GRUP SRL ,752, ,095, LPP FASHION DISTRIBUITOR SRL ,380, ,620, SPRIDER STORES SRL ,847, ,237, HIGH FASHION CONCEPT SRL ,745, ,523, KENVELO ROMANIA SRL ,899, ,961, PUMA SPORTS ROMANIA SRL ,846, ,262, Voluntari, ILFOV
127 2013 EDITION Major Companies in Romania 127 MANUFACTURE OF FOOTWEAR AND LEATHER GOODS RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER PROFIT/LOSS NO OF RANKING EMPLOYEES CONTACT 1 RIEKER ROMANIA SRL ,631, ,748, Lugoj, TIMIS 2 ARA SHOES ROMANIA SRL ,794, ,620,977 1,523 Valea Lui Mihai, BIHOR 3 LLOYD SHOES ROMANIA SRL ,163, ,468, Valea Lui Mihai, BIHOR 4 RAFFAELLO SHOES FACTORY SRL ,865, , ALPINA SHOE PRODUCTION SRL ,206, ,268, Reghin, MURES 6 BIHORE SRL ,486, , Oradea, BIHOR 7 REROPAM SRL ,060, ,414, Bors, BIHOR 8 TRICOSTAR SRL ,563, ,179, Oradea, BIHOR 9 CALZATURIFICIO SKANDIA SA SAN BIAGIO DI CALLALTA TREVISO-ITALIA SUCURSALA ,568, ,730,266 - Brasov, BRASOV BRASOV-ROMANIA 10 CLASS SHOE SRL ,320, ,542, Cluj-Napoca, CLUJ 11 SOMAREST SRL ,062, ,774, Cisnadie, SIBIU 12 BELLARMA SRL ,589, ,500, Sibiu, SIBIU 13 REKORD SRL ,116, ,320, Alba Iulia, ALBA 14 STAR INTERNATIONAL SRL ,408, ,384, SIR SAFETY SRL ,426, ,349, Bacau, BACAU 16 CFS-COMPONENTS FOR SHOES SRL ,410, ,587, Ghisoda, TIMIS 17 COSTE SHOES SRL ,482, ,902,453 - Arad, ARAD 18 ROMIPEL SRL ,634, ,998, Sibiu, SIBIU 19 RO ALTO GRADIMENTO SRL ,607, , Timisoara, TIMIS 20 PROGRESS SA ,773, , Brasov, BRASOV 21 KROMO PIELMO COM SRL ,895, , Topliceni, BUZAU 22 MUSETTE EXIM SRL ,750, ,599, GLOBAL FASHION SRL ,479, , Sibiu, SIBIU 24 DTR DRAXLMAIER SISTEME TEHNICE ROMANIA SRL ,064, ,461, Codlea, BRASOV RETAIL TRADE OF FOOTWEAR AND LEATHER GOODS RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 DEICHMANN COMERCIALIZARE INCALTAMINTE SRL ,783, ,056, ADIDAS ROMANIA SRL ,290, ,260, LEONARDO SRL ,761, ,714,323 1,108 Oradea, BIHOR 4 BENVENUTI SRL ,531, ,609, Oradea, BIHOR 5 OTTER - DISTRIBUTION SRL ,202, ,359, Chiajna, ILFOV 6 ELMEC ROMANIA SRL ,399, ,983, HERVIS SPORTS AND FASHION SRL ,139, ,714, Voluntari, ILFOV 8 LEATHER & SHOE SRL ,999, , Sibiu, SIBIU 9 E-QUATION SRL , ,628 1 Sebes, ALBA
128
129 2013 EDITION Major Companies in Romania % drop in agricultural production in 2012, cereals for grain dropped by 39.1% Agriculture GROWING AND TRADING AGRICULTURAL RAW MATERIALS GROWING AND TRADING FRUIT AND VEGETABLES FARMING AND MEAT PROCESSING
130 MCR AGRICULTURE Volatile on weather conditions Raluca Stoica, Consultant - Transaction Advisory, EY Romania MARKET OVERVIEW As demonstrated by the agricultural production volatility recorded in the previous years, agriculture continues to be a key factor in the GDP evolution of the country, since Romania remains amongst the top ten European economies in terms of total agricultural land area. Agricultural land, as a share of Romania`s land area, accounts for almost 58%, outbalancing EU-27 average by 14%, whereas the ratio of arable land per inhabitant reaching 0.41 ha is- almost double the EU-27 average. From Romania`s total land area of approximately 23.8 million ha, 13.9 million ha are land usable for agriculture out of which only 9 ha million are arable land. According to the National Institute of Statistics 1, in 2012 the agricultural production fell by 16% compared to the previous year, with crop production significantly declining (by approx. 26% y-o-y), due to severe weather conditions such as drought and floods that have taken their toll on grain crops. Production of cereals for grain dropped by 39.1% compared to the previous year (12.7 million tonnes compared to 20.8 million tonnes in 2011). The decrease is attributable to lower yields (i.e. average production per hectare) for each type of cereal. As opposed to the negative evolution of crops Figure 1: Agricultural Production Source: Eurostat. production, the highly dynamic livestock component has improved by 8%, being mainly driven by an increase in the domestic consumption (supported by the Romanian per capita income growth with 5% in 2011 and 2% in 2012). MAJOR DEALS IN AGRICULTURE With respect to last year s market deals in agriculture, we note the joint-venture between Bunge and Prior Foods, amounting to a value between EUR 15 million and EUR 20 million and the acquisitions of Pambac and Zaharul Ludus, the latter ones being equal in value (EUR 10 million). The most unexpected transaction, though, was the sale of several brands belonging to giant Cargill, including Untdelemn de la Bunica and Olpo, to Expur part of French group Sofiproteol. Due to land fragmentation, small value M&A and land concession transactions are encouraged within the agricultural sector. Almost 50% of the arable land in Romania is worked by holdings under 10 ha (small farms), which usually are poorly endowed while the top 50 agricultural holdings in Romania cover less than 5% of the total arable land as observable in table 1. LOOKING FORWARD The current economic situation on the domestic market presents a series of factors and trends that could be taken into consideration, as follows: the cut in VAT rate for bakery products starting with Q aimed at reducing tax evasion and the overall grey segment of the grain and bakery industry; the Government proposed measures aimed at reducing tax evasion in agriculture which may include the restriction of shops through which bakery products are sold, in order to allow for more effective tax
131 2013 EDITION Major Companies in Romania 131 Table 1. Deals in Agriculture in 2013 Source: Ziarul Financiar Top Tranzactii controls; grain prices are expected to increase throughout in spite of the good 2013 yields. Table 2. Structure of Agricultural Holdings On the long term, the 20-year-old problem of land fragmentation (over half of the entire agricultural area being divided in plots smaller than 10 Source: Eurostat. ha) is considered to be one of the main factors affecting productivity on the local market, by not allowing for a full scale deployment of modern agricultural techniques. The issue is expected to subside at a more noticeable pace in front of the ever increasing number of small and mid-sized associations. As the land plots are passed-down to a generation less likely to move from cities to rural areas and more likely to agree to a sale or long term lease. 1
132 MCR AGRICULTURE GROWING AND TRADING AGRICULTURAL RAW MATERIALS RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER PROFIT/LOSS NO OF RANKING EMPLOYEES CONTACT 1 INTERAGRO SA ,808,818, ,252, BRISEGROUP SRL ,428, ,533, Constanta, CONSTANTA 3 ALFRED C TOEPFER INTERNATIONAL (ROMANIA) SRL ,890,825, ,320, CARGILL AGRICULTURA SRL ,057,112, ,852, ARDEALUL TRADING SRL ,168, ,816, Carei, SATU MARE 6 AGRICOVER SRL ,341, ,272, Voluntari, ILFOV 7 INTERAGRO SRL ,193, ,266, Zimnicea, TELEORMAN 8 TCE 3 BRAZI SRL ,181, ,757, Piatra Neamt, NEAMT 9 BUNGE DANUBE TRADING SRL ,913, ,591,973 - Buzau, BUZAU 10 POPASUL TREBES SRL ,698, ,792, Margineni, Bacau 11 PIONEER HI-BRED ROMANIA SRL ,622, ,024, Sindrilita, ILFOV 12 AMEROPA GRAINS SA ,371, ,568, Constanta, CONSTANTA 13 AGRO-CHIRNOGI SA ,397, ,836, Chirnogi, CALARASI 14 BARTER TRADING ROMANIA SRL ,463, ,342, Agigea, CONSTANTA 15 NOVA COMERT SRL ,707, ,464,334 4 Constanta, CONSTANTA 16 MERIDIAN SRL ,084, ,287,426 4 Constanta, CONSTANTA 17 CARCO GRUP SRL ,352, ,040,106 5 Constanta, CONSTANTA 18 NIDERA ROMANIA SRL ,840, ,028, TOTALAGRO SA ,050, , Posta Calnau, BUZAU 20 MONSANTO ROMANIA SRL ,328, ,758, COMCEREAL SA ,767, ,548, Vaslui, VASLUI 22 PROMAT COMIMPEX SRL ,726, ,273, Tasnad, SATU MARE 23 CEREALCOM DOLJ SA ,279, ,261, Segarcea, DOLJ 24 PLANTAGRO-COM SRL ,846, ,555, Vaslui, VASLUI 25 GLENCORE PROTEIN ROMANIA SRL ,677, ,740, COMCEREAL SA ,873, ,643, Focsani, VRANCEA 27 CHS AGRITRADE ROMANIA SRL ,477, ,944, PIONEER HI - BRED SEEDS AGRO SRL ,066, ,702, Sindrilita, ILFOV 29 ROMSILOZ CEREALE SRL ,075, ,197, AGRIGROS SRL ,242, ,011, Timisoara, TIMIS 31 CHIMAGRI SRL ,999, ,982, Chiscani, BRAILA 32 MARIA CEREALE SRL ,742, ,813, Constanta, CONSTANTA 33 AGROEST SA ,694, , Balta Alba, Buzau 34 AGROGLOBAL SA ,648, , Buzau, BUZAU 35 INTERSNACK ROMANIA SRL ,067, ,204, ATIFCO INTERNATIONAL SA ,608, ,984, AGROSUD SA ,512, ,504 8 Rusetu, Buzau 38 AGROIND CAUACEU SA ,053, ,074, Oradea, BIHOR 39 SOUFFLET MALT ROMANIA SA ,384, ,033, Buzau, BUZAU 40 ROREX TRADER SRL ,702, , Constanta, CONSTANTA 41 KWS SEMINTE SRL ,922, ,961,052 90
133 2013 EDITION Major Companies in Romania 133 FARMING AND MEAT PROCESSING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES RANK COMPANY NAME MCR SCORING CONTACT 1 ELIT SRL ,968, ,219,628 1,096 Cugir, ALBA 2 SMITHFIELD FERME SRL ,598, ,478,812 1,060 Timisoara, TIMIS 3 TRANSAVIA SA ,905, ,729, Oiejdea, ALBA 4 DIANA SRL ,687, ,643, Ramnicu-Valcea, VALCEA 5 SMITHFIELD PROD SRL ,901, ,255, Timisoara, TIMIS 6 ANA & CORNEL SRL ,853, ,394, Mizil, Prahova 7 UNICARM SRL ,869, ,633,050 2,573 8 VEGETAL TRADING SRL ,285, ,234, Braila, BRAILA 9 FOX COM SERV DISTRIBUTION SRL ,918, ,962, CAROLI FOODS GROUP SRL ,576, ,316,602 1, MAREX SA ,852, ,511, Braila, BRAILA 12 AVICOLA CREVEDIA SA ,517, ,139, Crevedia, DAMBOVITA 13 ALDIS SRL ,731, ,009,283 1,003 Calarasi, CALARASI 14 AGRISOL INTERNATIONAL RO SRL ,003, ,092, PRAHOVA 15 FOX COM SERV SRL ,341, ,900, EUROPEAN FRESH FOOD SRL ,630, , DANUBIUS EXCLUSIV SRL ,412, , MARIA TRADING SRL ,010, ,891, Constanta, CONSTANTA 19 PAJO HOLDING SRL ,049, ,985, Mizil, PRAHOVA 20 AGRICOLA INTERNATIONAL SA ,291, ,676 1,755 Bacau, BACAU 21 VIS AGRI SRL ,908, ,306, Com Glodeanu Silistea, BUZAU 22 NUTRICOM SA ,111, ,602, Oltenita, CALARASI 23 CRISTIM 2 PRODCOM SRL ,193, ,682, MAHMUD-IMPEX SRL ,457, , Constanta, CONSTANTA 25 NUTRIENTUL SA ,727, ,883, Palota, BIHOR 26 MEDA PROD 98 SA ,153, , C+C SA ,146, , Resita, CARAS- SEVERIN 28 AVICOLA BUZAU SA ,156, ,684, Buzau, BUZAU 29 FERMA ZOOTEHNICA SRL ,899, , Baia Mare, MARAMURES 30 SERGIANA PRODIMPEX SRL ,210, ,088, Poiana Marului, BRASOV 31 AVICOLA BRASOV SA ,815, , Brasov, BRASOV 32 AGROALIM DISTRIBUTION SRL ,363, ,727, AAYLEX DISTRIBUTION SRL ,780, , AVICARVIL SRL ,483, ,193, CARMOLIMP SRL ,911, , Ucea de Jos, BRASOV 36 RECUNOSTINTA PRODCOM IMPEX SRL ,778, , PRAHOVA 37 AVICOLA MIHAILESTI SRL ,428, ,481, Draganescu, GIURGIU 38 AVICOLA FOCSANI SA ,298, ,719 - Focsani, VRANCEA 39 AAYLEX PROD SRL ,387, ,565, Buzau, BUZAU 40 GEPETO IMPEX SA ,059, , Constanta, CONSTANTA 41 AVE IMPEX SRL ,288, , Satu Mare, SATU MARE 42 GALLI GALLO SRL ,206, , Codlea, BRASOV 43 ANGST RO SRL ,624, ,752, AGROLI GROUP SRL ,754, , Crevedia,GIURGIU 45 SCANDIA FOOD SRL ,140, ,645, Sibiu, SIBIU
134 MCR AGRICULTURE GROWING AND TRADING FRUIT AND VEGETABLES RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES 1 LUCO FRUCHT MARKETING SRL ,827, ,234, FRESH PLAZA SRL ,988, ,274, CONTACT 3 SAMANDAG SRL ,206, ,151, Craiova, DOLJ 4 AKPAROM SRL ,722, ,821, Chiajna, ILFOV 5 LUCIDIUS SRL ,121, , ALFREDO FRESH SRL ,978, , INTERFRUCT SRL ,180, ,006, AGER FRUIT SRL ,208, ,330, Voluntari, ILFOV 9 TOTAL PRODUCE BUCHAREST SRL ,680, , CONTEC FOODS SRL ,699, ,877, Tecuci, GALATI 11 HORTIFRUCT SRL ,444, , OZR FRUIT SRL ,638, , Targu Mures, MURES 13 GLOBAL FOOD 2010 IMPORT-EXPORT SRL ,347, , Pantelimon, ILFOV 14 BARO PROSPER SRL ,470, , AGRICANTUS SRL ,429, ,227, ILFOV ILFOV - Chiajna, ILFOV 16 EFES EXPORT SRL ,541, ,891, Maracineni,ARGES 17 SMT FRUCT SRL ,170, ,979 3 Chiajna, ILFOV 18 LEOSER SA ,073, ,868, ILFOV 19 ENB SRL ,753, , Constanta, CONSTANTA 20 ORLANDO IMPORT - EXPORT 2001 SRL ,590, , Clinceni, ILFOV 21 DOLE ROMANIA SRL , , SEMT INTERNATIONAL FRUCT SA ,857, ,299 6 Chiajna, ILFOV 23 ASIL 2000 TRADING IMPEX SRL ,170, , FLIPPER COMIMPEX SRL ,861, ,145, Tunari, ILFOV 25 GOLDEN FOODS SNACKS SRL ,611, ,487, BELLA INTERNATIONAL SRL ,419, , Oradea, BIHOR 27 ALGIDA CENTER SRL ,599, ,721 69
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137 2013 EDITION Major Companies in Romania % the share private brands held on the Romanian consumption market in 2012, increased from 8% in 2011 FMCG PROCESSING OF TEA AND COFFEE MANUFACTURE OF COCOA, CHOCOLATE AND CONFECTIONERY MANUFACTURE OF SUGAR MANUFACTURE OF CONDIMENTS AND SEASONINGS MANUFACTURE OF VEGETABLE AND ANIMAL OILS AND FATS MANUFACTURE OF DAIRY PRODUCTS MANUFACTURE OF GRAIN MILL PRODUCTS AND STARCHES MANUFACTURE OF WINE FROM GRAPE MANUFACTURE OF BEER MANUFACTURE OF SOFT DRINKS; PRODUCTION OF MINERAL WATERS AND OTHER BOTTLED WATERS DISTILLING, RECTIFYING AND BLENDING OF SPIRITS MANUFACTURE OF TOBACCO PRODUCTS HOME AND PERSONAL CARE
138 MCR FMCG Consumers and retailers still not on the same page Marius Vasilescu, Manager - Transaction Advisory, EY Romania MARKET OVERVIEW Recent news sees retailers announcing the launch of a significant number of convenience stores, as well as expanding in the large commercial areas sector, which appear to follow the trends governing FMGC sector this year. The first half of 2013 has brought increased market share for hypermarkets and discount stores, formats that had the fastest expansion. With these developments, retailers appear to plan carefully for their presence in the markets when the consumption levels will kick back. The BMI report for Q estimates a consumption growth of 23% by 2017, lower than the regional growth, averaged at 39%. These trends are in line with what was projected for FMGC sector for the last year. Thus, it appears that mainly, large retailers will continue to focus on their constant expansion in order for the network to generate opportunities to anticipate and meet new customer need, in order to attract new customers, but also gain loyalty. Considering the latest evolution of the economy and of the retail market in particular, the forecasted trend of new developments looks like a tall order, as this year, an important development in the FMCG market could be the shift to the saturation stage. On the other hand, with the consumption increase being less noticeable than the commercial areas expansion, retailers find themselves in the position to develop new strategies capable of dealing with the demand s specificities and with the constraint that in today s market for a constant consumption in terms of volume, the market would record a decrease in value. In a world where time is becoming more and more essential in any decision making process, a primary concern for retailers should be the proximity of the stores. A potential trend in meeting demand will be to move towards small towns, where the convenience stores format, small sized, can be easily integrated with service and product offerings developed according to these locations. THE PORTRAIT OF A ROMANIAN BUYER An important consideration when drafting development strategies by the retailers is given to the profile of the Romanian consumer. Its most relevant feature continues to be the focus on price, making him a careful shopper, looking for the best deals. The balancing feature to this budget driven behavior is the consumer s (un)willingness towards spending significant time in a shopping experience. As a consequence, the private label segment recorded an increasing demand, due to the lower price compared to the established premium brands, while benefitting from the high notoriety and good image of the private label brands. According to GfK, the share private brands held on the Romanian consumption market increased from 8% in August 2011 to 11% in August It is estimated that the success of the private labels will continue during next year, with the private labels cover an even wider category of products. Apart from private label, another variable that can influence the evolution of consumption in 2013 is the increasing footprint of domestic goods in terms of product-list coverage. The Made in Romania concept is gaining in size and strongly differentiates from other brands in the consumers minds. Moreover, Romanian brands are taking back the top positions in terms of
139 2013 EDITION Major Companies in Romania 139 brand awareness and loyalty because their emotional heritage, that allows them to capitalize on the Romanian values. In order to gain customers loyalty, this year, retailers are expected to continue developing loyalty programs, aimed at increasing the customer s visits to the shops, or boosting its purchase appetite with schemes granting bonus points, immediate discounts or prizes. The actions set to attract new clientele as well as to gain and maintain loyalty of customers lead on short term to increased operational costs and thus lower profit margins. This impact is visible should we assess the profitability levels of the seven most important retail chains: four of them registered a 1% decrease in their gross profit, reaching 33% in 2012, compared to the previous year. ONLINE TRADE, A POSITIVE SOLUTION FOR BOTH CONSUMERS AND RETAILERS Currently, the household spending on for daily use goods is divided almost equally between modern retail channels and the traditional ones. However, looking at the data for the first semester of 2013, it appears that the dynamics of retail expansion can guarantee only an increase in market share of modern retail formats. The concept of impulse shopping has not yet disappeared, but it feels like shopping planning is starting to take a place in buyers lifestyle. This may be one of the reasons why online shopping for FMCG becomes more and more common. Growth factors of this phenomenon include the development of means of communication, variety of ways to order products directly online and access to online trading platforms. There is still a fairly large distance between technologies adopted by retailers in Western Europe and those in Romania. Online commerce is developing in smaller steps, but customers interest for this type of shopping is moving up. In the digital space, the focus stays on the online platform, translated into a wide range of gadgets that customers use: mobile phones, laptops or tablets. The technology had already had an important impact in the retail business through extensive use of mobile platforms, both for back-end activities (logistics, inventory management, sales, customer relations) and in the front-end, directly (selling mobile terminals, mobile payments) and indirectly (mobile platforms used by couriers and other service providers). Still, retailers and FMCG manufacturers do not use intensively and at the full capacity' online shopping on social networks and mobile commerce site, for example. Should this shopping method gain more and more affiliates, it will extend its presence in the retail market and it will influence the retail operating model. ROMANIA, A HOTSPOT FOR FOREIGN INVESTORS? Last year, slight recovery of the economy determined intense activity of several foreign investors for real estate opportunities under the vision of continuing spending habits for food and drink segments. In fact, investments have made this past year lucrative for emerging markets. Companies like Nestlé have capitalized on the opportunities presented by such markets 40% of Nestlé s sales are in emerging markets such as Romania. While the number of hypermarkets and cash and carry stores remained relatively constant, the number of supermarkets and discount stores grew at a rapid pace in recent years. However, by July 2013 only three players (i.e. Mega Image, Carrefour and Profi) expanded aggressively, representing 71 out of 84 openings. Lidl and Penny Market expansion slowed down during Based on ZF estimates, a total of 1,081 stores and investments of up to EUR 60 million were registered by July 2013.This is yet another sign that these operators expect an increase in consumer appetite. Certain categories of retail business continued to expand due to significant increases in turnover recorded in the last couple of years: food segment (supermarkets, hyper and mini-market), fast food units (KFC, McDonald's, Subway, Shawarma Dristor ), fashion (H & M, Inditex, Takko ) and shoes - medium category (CCC, Deichmann, Otter, Clarks etc). Another form of business development, visible in the FMCG sector in 2013, is consolidation through mergers and acquisitions. Besides the synergies factor, weighting a lot under unstable market conditions, consolidation processes tend to constantly involve human resources restructuring, which has been a sensitive subject in the last years. LOOKING FORWARD Slow increase in consumption per capita may lead to operational difficulties for some players in the market that may try to consolidate or face bankruptcy or insolvency, while other retail chains will continue to develop aggressively. It appears that important moves will be changing the retail market in the years to come. Creativity may be one of the keys to success: new service opportunities or hard discounters willing to meet customers in a creative and enjoyable environment both online and in conventional stores may. Implementing and adapting the strategies used in the developed markets and being patient in educating the customer towards these new instruments should be the next trend, where the retailer moves towards to customer and tries to adapt and accommodate its needs rather than sitting in expectancy until the consumption will reach pleasing levels.
140 MCR Opinion Betting on Quality MARIUS MELESTEU, General Manager Strauss South Central Europe Coffee is the world's second most valuable traded commodity, behind only petroleum. There are approximately 25 million farmers and coffee workers in over 50 countries involved in producing coffee around the world. The last Strauss consumer study relieved that a regular Romanian consumer is drinking 1.6l liquids daily and the coffee acquires a share of 18% of it (ISRA-Last Day Consumption-2013). Ranking the second place after water, with around 298ml daily consumption, coffee is a very important category and consumers are accustomed to expect and claim-quality. Romanian coffee consumers are not driven by impulse. It s enough to have a visit at a hypermarket to observe the habit in front of the shelves. They are looking for freshness, checking the expiring date. They are looking into claims/benefits and they are open for new assortments. Usually they buy more than a coffee category and there is an important overlapping between roast& ground coffee and mixes. They are loyal to the brand but they are harsh when the product did not deliver the same satisfaction as before. There is a clear trend, that of people buying less often but in bigger quantities, therefore keeping the same quality or upgrading the quality becomes a must for all the coffee producers. There are tough times for coffee manufacturers and some things are not depending on companies. Retail pressure for better commercial conditions, increasing raw materials and utility prices, owners growing targets are putting a lot of pressure on products quality and sometimes technology cannot compensate the coffee sourcing. This is a time when Romanian consumers are looking for products that are not making any compromises on Quality. There is a well-known expression in Romania: I cannot afford to buy cheap things. When we talk about quality coffee what exactly does that mean? It means care and attention throughout every step of the process until it reaches the consumers hand. Quality of the crop, transportation and warehousing, quality control before and after roasting, roasting process and speedy packaging, the quality of packaging, all are factors that are direct influencing the quality of the coffee that reaches the consumers houses. Quality coffee is care and attention to the product from farmer to cup. One missed step along the way can result in loss of quality. Quality means also external control. Companies are sending samples to International Quality Institutions in order to first, be checked, and second to have a benchmark versus the other big producers. Institutions like OKO-TEST, DLG or SUSTAINABLE HARVEST or RAIN FOREST ALLIANCE are only part of the institutions/certificates that are used like endorsers for companies to reinforce their interest and preoccupation for keeping and upgrading the Quality of the coffee products. Despite of the so called trends of cheap& fast& convenience, Romanian coffee consumers are demanding for Quality in order to improve their coffee moments. As a coffee company, we need to be aligned on their requests to keep the line! ROMANIAN CONSUMERS ARE LOOKING FOR PRODUCTS THAT ARE NOT MAKING ANY COMPROMISES ON QUALITY.
141 2013 EDITION Major Companies in Romania 141 PROCESSING OF TEA AND COFFEE RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES 1 CAFEA FORTUNA SRL ,898, ,367, PRO SOFT SRL ,582, ,518, LABORATOARELE FARES BIO VITAL SRL ,133, ,424, STRAUSS ROMANIA SRL ,347, ,949, PANFOODS ROMANIA SRL ,144, ,459, TCHIBO BRANDS SRL ,965, , DUO SRL ,642, , MERIDIAN CC SRL ,809, , ALKA CO SRL ,721, ,468, CONTACT ILFOV Brasov, BRASOV HUNEDOARA Constanta, CONSTANTA Orsova, MEHEDINTI MANUFACTURE OF CONDIMENTS AND SEASONINGS RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER PROFIT/LOSS NO OF RANKING EMPLOYEES 1 SOCIETATEA NATIONALA A SARII SA ,036, ,781,362 1,870 2 DR OETKER RO SRL ,510, ,266,996 - CONTACT Curtea de Arges, ARGES 3 KAMIS - CONDIMENTE SRL ,198, ,470, SUPREMIA GRUP SRL ,412, ,751, Alba Iulia, ALBA 5 PACOVIS ROMANIA SRL ,425, , Targul Mures, MURES 6 KOTANYI CONDIMENTE SRL ,803, , ALEX & COMP SRL ,322, , Vanatori, GALATI 8 DOHLER ROMANIA SRL ,981, ,253, Chiajna, ILFOV 9 FUCHS CONDIMENTE RO SRL ,845, , Curtea de Arges, ARGES 10 COMPANIA INDIILOR ORIENTALE PROD SRL ,919, ,129, ION MOS SRL ,922, ,868, Chiajna, ILFOV 12 CONDIMENTE ROMANIA SRL ,387, , MANUFACTURE OF TOBACCO PRODUCTS RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER PROFIT/LOSS NO OF RANKING EMPLOYEES CONTACT 1 BRITISH AMERICAN TOBACCO (ROMANIA) TRADING SRL ,600,194, ,479, PHILIP MORRIS TRADING SRL ,281,851, ,986, Otopeni, ILFOV 3 JT INTERNATIONAL (ROMANIA) SRL ,476,816, ,172, JT INTERNATIONAL MANUFACTURING SA ,813,264, ,211, LUZAN LOGISTIC SRL ,167, ,418, Targu Jiu, GORJ 6 SHARK GROUP SRL ,318, , PAMIMAI DISTRIBUTION SRL ,361, , PHILIP MORRIS ROMANIA SRL ,566, ,916, Otopeni, ILFOV 9 BRITISH - AMERICAN TOBACCO ROMANIA INVESTMENT SRL ,580, ,955, HTS HONGTA SERVICES SRL ,975, , CHINA TOBACCO INTERNATIONAL Pantelimon, 11 DISTRIBUTION SRL ,871, ,686, ILFOV 12 M TABAC SRL ,150, , Miercurea Ciuc, HARGHITA
142 MCR FMCG DISTRIBUTORS OF COCOA, CHOCOLATE AND CONFECTIONERY PRODUCTS RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER PROFIT/LOSS NO OF RANKING EMPLOYEES CONTACT 1 KRAFT FOODS ROMANIA SA ,630, ,619, Ghimbav, BRASOV 2 INTERBRANDS MARKETING & DISTRIBUTION SA ,741, ,388,153 1,948 3 NESTLE ROMANIA SRL ,734, ,507,312 1,021 4 STAR FOODS EM SRL ,572, ,892, MARS ROMANIA SRL ,983, ,313, FREE MARKET PRODCOM SRL ,032, ,268, T&O PRODCOM SRL ,033, ,935, WRIGLEY ROMANIA SRL ,665, ,852, SECA DISTRIBUTION SRL ,733, ,748, Hunedoara, HUNEDOARA PRAHOVA 10 RESCO SA ,350, ,557, Arad, ARAD 11 FERRERO ROMANIA SRL ,887, ,398, CHIPITA ROMANIA SRL ,941, , Clinceni, ILFOV 13 DRIM DANIEL SRL ,673, , Maracineni, ARGES 14 DE SILVA EXCLUSIV SRL ,907, ,714, CROCO SRL ,064, ,866, Bacau, BACAU 16 TOP GEL PROD SRL ,361, ,324, Carcea, DOLJ 17 OVERSEAS GROUP IMPEX SRL ,912, ,584, NORDIC IMPORT EXPORT CO SRL ,478, , DOBROGEA GRUP SA ,983, ,657 - Constanta, CONSTANTA 20 ECUATOR SRL ,069, , SUCEAVA 21 HEIDI CHOCOLAT SA ,556, ,757, Pantelimon, ILFOV 22 BEST FOODS PRODUCTIONS SRL ,388, ,396, LEKKERLAND CONVENIENCE Chiajna, 23 DISTRIBUTIE SRL ,195, ,782, ILFOV 24 SAFF TRADING SRL ,808, , Carcea, DOLJ 25 ALPIN 57 LUX SRL ,474, ,921, Sebes, ALBA 26 ROMPAK SRL ,723, ,729, Pascani, IASI 27 CARAVELLE IMPEX SRL ,326, ,559 5 Giurgiu, GIURGIU 28 ELAN-TRIO SRL ,398, , Odorheiul Secuiesc, HARGHITA 29 PHOENIXY SRL ,288, ,366, Baicoi, PRAHOVA 30 KANDIA DULCE SA ,801, ,537, NARDO TRADING CO SRL ,586, ,214, BETTY ICE SRL ,809, , Suceava, SUCEAVA 33 ALKA TRADING CO SRL ,602, ,289, TECSA BUSINESS SRL ,876, , LIDO GIRBEA SRL ,927, ,480, PRAHOVA 36 PURATOS PROD SRL ,297, , Tunari, ILFOV 37 BOEMA SRL ,873, ,681, Sibiu, SIBIU
143 2013 EDITION Major Companies in Romania 143 MANUFACTURE OF DAIRY PRODUCTS RANK COMPANY NAME MCR SCORING 1 DANONE - PRODUCTIE SI DISTRIBUTIE DE PRODUSE ALIMENTARE SRL MANUFACTURE OF SUGAR RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER ANNUAL TURNOVER TURNOVER RANKING TURNOVER RANKING PROFIT/LOSS PROFIT/LOSS NO OF EMPLOYEES ,400, ,890, NO OF EMPLOYEES CONTACT 2 ALBALACT SA ,844, ,320, Galda de Jos, Localitatea Oiejdea, ALBA 3 WHITELAND IMPORT EXPORT SRL ,242, ,077, NAPOLACT SA ,502, ,094, Cluj-Napoca, CLUJ 5 ALMERA INTERNATIONAL SRL ,876, ,779, HOCHLAND ROMANIA SRL ,444, ,011, Sighisoara, MURES 7 FRIESLANDCAMPINA ROMANIA SA ,116, ,970, Satu Mare, SATU MARE 8 DELACO DISTRIBUTION SA ,408, ,558, Codlea, BRASOV 9 DORNA LACTATE SA ,010, ,372, Vatra Dornei, SUCEAVA 10 KALLAS - PAPADOPOULOS ROMANIA SRL ,980, , Mogosoaia,ILFOV 11 INDLACTO MURES SRL ,297, ,118, Targu Mures, MURES 12 SOLE MIZO ROMANIA SRL ,267, ,469, Timisoara, TIMIS 13 GORDON-PROD SRL ,928, ,541, Lupeni, HARGHITA 14 LACTO-SOLOMONESCU SRL ,318, ,014, SIMULTAN SRL ,471, ,583, Faget, TIMIS 16 LACTO FOOD SRL ,271, , Sofronea, ARAD 17 COVALACT SA ,526, ,088, Sfantu Gheorghe, COVASNA 18 NORDEX FOOD RO SRL ,929, ,591, Campulung, ARGES 19 DORNA SA ,652, , Vatra Dornei, SUCEAVA 20 INDUSTRIALIZAREA LAPTELUI MURES SA ,054, ,183, Targu Mures, MURES 21 OLYMPUS ,381, , Halchiu, BRASOV 22 FIVE CONTINENTS GROUP SRL ,641, ,298, LACTATE NATURA SA ,799, , Targoviste, DAMBOVITA 24 CARMO-LACT PROD SRL ,339, , Monor, BISTRITA-NASAUD 25 PRIMULACT SA ,777, , Miercurea-Ciuc, HARGHITA 26 LACTALIS ROMANIA SRL ,426, ,274,167 5 Vatra-Dornei, SUCEAVA 27 MULLER DAIRY RO SRL ,706, ,053, Bragadiru, ILFOV 28 ILVAS SA ,008, , Vaslui, VASLUI 29 PRODLACTA SA ,175, ,051, Brasov, BRASOV 30 TONELI HOLDING SRL ,348, ,638, DANONE BABY NUTRITION ROMANIA SRL ,770, ,980, SANLACTA SA ,502, , Santana de Mures, MURES 33 RARAUL SA ,329, ,638, Campulung Moldovenesc, SUCEAVA 34 TRM - TNUVA ROMANIA MILK SRL ,281, ,104,524 4 CONTACT 1 AGRANA ROMANIA SA ,223,059, , ZAHARUL ORADEA SA ,115, ,830, Oradea, BIHOR 3 ZAHARUL LUDUS SA ,634, ,583, Ludus, MURES 4 AGRANA BUZAU SRL ,649, , Buzau, BUZAU 5 ZAHARCOM SRL ,390, ,829,345 3 Ludus, MURES 6 ZAHAR CORABIA SA ,274, ,523, Corabia, OLT 7 LEMARCO CRISTAL SRL ,829, ,006, Urziceni, IALOMITA 8 AGRANA TANDAREI SRL ,569, ,727 - Tandarei,IALOMITA 9 FABRICA DE ZAHAR BOD SA ,338, ,483, Bod, BRASOV 10 LEMARCO SA ,713, ,085, ZAHAR CALARASI SA ,313, ,290, Calarasi, CALARASI 12 ZAMUR TARGU MURES SA ,912, ,689, Targu-Mures, MURES 13 ZAHARUL LIESTI SA ,384, ,302,831 36
144 MCR FMCG MANUFACTURE OF GRAIN MILL PRODUCTS AND STARCHES RANK COMPANY NAME MCR SCORING MANUFACTURE OF VEGETABLE AND ANIMAL OILS AND FATS RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER ANNUAL TURNOVER TURNOVER RANKING TURNOVER RANKING PROFIT/LOSS PROFIT/LOSS NO OF EMPLOYEES NO OF EMPLOYEES CONTACT 1 VEL PITAR SA ,373, ,775 2,687 Ramnicu Valcea, VALCEA 2 TITAN SA ,727, ,325, Pantelimon, ILFOV 3 TRANS AGAPE SRL ,566, ,638, Sibiu, SIBIU 4 SAPTE SPICE SA ,835, ,078, Ramnicu Valcea, VALCEA 5 PAMBAC SA ,977, , Bacau, BACAU 6 PAN GROUP SA ,868, , Craiova, DOLJ 7 SAM MILLS SRL ,976, ,018, MOARA CIBIN SA ,462, , Sibiu, SIBIU 9 BOROMIR PROD SA ,064, ,928, Buzau, BUZAU 10 BOROMIR IND SRL ,874, , Ramnicu Valcea, VALCEA 11 MP BANEASA - MOARA SA ,415, , OLTINA IMPEX PROD COM SRL ,087, ,237, EUROPAN SRL ,845, , Sarmasag, SALAJ 14 PLEVNEI SA ,431, , RISO SCOTTI DANUBIO SRL ,872, , Otopeni, ILFOV 16 HARMOPAN SA ,142, ,110, Miercurea Ciuc, HARGHITA 17 LUJERUL SA ,291, , PANGRAM SA ,733, ,240, Resita, CARAS-SEVERIN 19 DELTAPAN SA ,168, , Tulcea, TULCEA 20 MORARIT-PANIFICATIE BANEASA SA ,152, , MOPAN SA ,702, , Vaslui, VASLUI 22 ANA PAN SA ,179, , FORNETTI ROMANIA SRL ,042, ,700, Satchinez, TIMIS 24 DOBRE SI FIII SRL ,560, , Constanta, CONSTANTA 25 GALMOPAN SA ,848, ,386, DEMOPAN SA ,232, ,391, COMPAN SA ,665, ,953, Iasi, IASI 28 RO-CREDO SRL ,827, ,365, Constanta, CONSTANTA 29 ABO MILL SA ,265, ,196, Zalau, SALAJ CONTACT 1 BUNGE ROMANIA SRL ,132,502, ,885, Buzau, BUZAU 2 EXPUR SA ,823, ,979, Urziceni, IALOMITA 3 UNILEVER SOUTH CENTRAL EUROPE SA ,524, ,910, PRUTUL SA ,972, ,621, CARGILL OILS SA ,765, ,965, ARDEALUL SA ,481, ,151, Carei, SATU MARE 7 PRIO EXTRACTIE SRL ,697, ,232,555-8 ARGUS SA ,512, ,962, Constanta, CONSTANTA 9 ULEROM SA ,929, , Vaslui, VASLUI 10 ORKLA FOODS ROMANIA SA ,056, ,774,
145 2013 EDITION Major Companies in Romania 145 MANUFACTURE OF WINE FROM GRAPE RANK COMPANY NAME MCR SCORING MANUFACTURE OF BEER RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER ANNUAL TURNOVER TURNOVER RANKING TURNOVER RANKING PROFIT/LOSS PROFIT/LOSS NO OF EMPLOYEES NO OF EMPLOYEES CONTACT 1 JIDVEI SRL FILIALA ALBA ,731, ,943, Jidvei, ALBA 2 COTNARI SA ,378, ,581, Cotnari, IASI 3 CRAMELE RECAS SA ,016, ,767, Recas, TIMIS 4 CASA DE VINURI COTNARI SA ,172, ,295,114 8 Cotnari,IASI 5 VINCON VRANCEA SA ,280, ,303, Focsani, VRANCEA 6 MURFATLAR ROMANIA SA ,829, , Murfatlar, CONSTANTA 7 ZAREA SA ,279, ,054, VINO BIANCO SRL ,362, ,775 3 Bacau, BACAU 9 ROVIT SA ,790, , Valea Calugareasca, PRAHOVA 10 ANGELLI SPUMANTE & APERITIVE SRL ,953, , AGROINDUSTRIALA BUCIUM SA ,072, , Iasi, IASI 12 VINARTE SA ,579, , TOHANI SA ,439, , CASA DE VINURI ZORESTI SA ,975, , VINEXPORT TRADE-MARK SA ,814, ,148,448 - Comuna Gura Vadului, PRAHOVA Focsani, VRANCEA 16 SPEED SRL -CASA DE VINURI HUSI ,947, , Husi, VASLUI 17 CRAMELE HALEWOOD SA ,710, ,876, DOMENIILE VITICOLE TOHANI SRL ,490, , Gura-Vadului, PRAHOVA 19 VINEXPORT SA ,891, ,910, Focsani, VRANCEA 20 VINIA SA ,024, ,812, Iasi, IASI 21 VERITAS PANCIU SA ,575, ,435, VINTON SRL ,681, , CARL REH WINERY SRL ,292, ,451, Panciu, VRANCEA CONTACT 1 HEINEKEN ROMANIA SA ,180,982, ,532,896 1,222 2 URSUS BREWERIES SA ,283,124, ,329,704 1,416 3 CARLSROM BEVERAGE CO SRL ,874, ,933, UNITED ROMANIAN BREWERIES BEREPROD SRL ,897, ,686, Pantelimon, ILFOV 5 BERGENBIER SA ,307, ,104, BERMAS SA ,912, ,581, Scheia, SUCEAVA 7 ALBRAU PROD SA ,214, , MARTENS SA ,608, , ALBRAU GRUP SRL , ,566,454 -
146 MCR FMCG MANUFACTURE OF SOFT DRINKS; PRODUCTION OF MINERAL WATERS AND OTHER BOTTLED WATERS RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 COCA-COLA HBC ROMANIA SRL ,939,420, ,409,857 1,642 Voluntari, ILFOV 2 ROMAQUA GROUP SA ,826, ,125,517 1,948 Borsec, HARGHITA 3 QUADRANT AMROQ BEVERAGES SRL ,559, ,278, LA FANTANA SRL ,211, ,440, TYMBARK MASPEX ROMANIA SRL ,538, ,357, Valenii de Munte, PRAHOVA 6 AQUADOR SRL ,436, ,438, RIO BUCOVINA SRL ,140, ,981, RED BULL ROMANIA SRL ,064, ,836, MINERAL QUANTUM SRL ,465, ,626, Sancraieni, HARGHITA 10 PERLA HARGHITEI SA ,907, ,854, Sancraieni, HARGHITA 11 CUMPANA 1993 SRL ,247, ,305, AGRANA JUICE ROMANIA VASLUI SRL ,086, ,028, Vaslui, VASLUI 13 APEMIN TUSNAD SA ,620, ,560, Tusnadu Nou, HARGHITA 14 APEMIN ZIZIN SA ,799, , Zizin, BRASOV 15 TIOSS COMMERCE SRL ,388, , Dumbravita, TIMIS 16 ALCONOR COMPANY SRL ,850, , Carei, SATU MARE 17 PARMALAT ROMANIA SA ,828, ,856, Tunari, ILFOV 18 CARPATHIAN SPRINGS SA ,589, , VatraDornei, SUCEAVA 19 RAUCH ROMANIA SRL ,532, ,893, AZUGA WATERS SRL ,553, ,915, Azuga, PRAHOVA DISTILLING, RECTIFYING AND BLENDING OF SPIRITS ANNUAL TURNOVER TURNOVER PROFIT/LOSS NO OF RANK COMPANY NAME MCR SCORING CONTACT RANKING EMPLOYEES 1 FAREL IMPEX SRL ,263, ,229, Acatari, MURES 2 MIRUNA INTERNATIONAL IMPEX SRL ,105, ,079, BDG IMPORT SRL ,465, ,329, EXCELSIOR SRL ,712, ,107, Resita, CARAS- SEVERIN Constanta, CONSTANTA 5 ALCOPROD SERVICE SA ,476, ,217, Urziceni, IALOMITA 6 GRANDDIS SRL ,199, , Caldararu, ILFOV 7 PRODVINALCO SA ,516, ,759, Cluj-Napoca, CLUJ 8 PERNOD RICARD ROMANIA SRL ,863, , TOP MARKET COMIMPEX SRL ,913, ,372, Cluj-Napoca, CLUJ 10 OTED GRUP SA ,909, , Iasi, IASI 11 RODISTRIB SRL ,323, ,923, Focsani, VRANCEA 12 ANTONY GROSS EXIM SRL ,155, , PRODALCOM SA ,782, , Botosani, BOTOSANI 14 DEFEL COM SRL ,006, , Suceava, SUCEAVA 15 LERIDA INTERNATIONAL SRL ,544, , ALEXANDRION GRUP ROMANIA SRL ,682, ,610, Otopeni, ILFOV
147 2013 EDITION Major Companies in Romania 147 HOME AND PERSONAL CARE RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 PROCTER & GAMBLE DISTRIBUTION SRL ,254,784, ,076, AVON COSMETICS (ROMANIA) SRL ,080, ,436, RECKITT BENCKISER ROMANIA SRL ,507, ,261, L OREAL ROMANIA SRL ,775, ,898, BEIERSDORF ROMANIA SRL ,539, ,628, SCA HYGIENE PRODUCTS SRL ,471, ,806, SARANTIS ROMANIA SA ,674, ,835, ILFOV 8 COSMETICS ORIFLAME ROMANIA SRL ,108, ,416, DETERGENTI SA ,426, ,228, Timisoara, TIMIS 10 JOHNSON WAX SRL ,518, ,293, FARMEC SA ,886, ,981, Cluj-Napoca, CLUJ 12 SIDE TRADING SRL ,578, ,829, Timisoara, TIMIS 13 COLGATE-PALMOLIVE (ROMANIA) SRL ,198, ,726, PROFESSIONAL BRANDS MARKETING & 14 DISTRIBUTION SRL ,080, ,845, PROCTER & GAMBLE MARKETING ROMANIA SRL ,003, ,598, GEOLAILA COMIMPEX SRL ,670, ,446, AMWAY ROMANIA MARKETING SRL ,783, ,651, SUPERFOOD COMPANY SRL ,700, ,022, Pantelimon, ILFOV 19 INTERSTAR CHIM SA ,715, ,058, FOREVER LIVING PRODUCTS ROMANIA SRL ,627, ,069, EVERET ROMANIA DISTRIBUTION SRL ,013, , SANO ROMANIA SRL ,550, ,191, Pantelimon, ILFOV 23 COS 2000 DISTRIBUTION SRL ,792, , Brasov, BRASOV 24 YVES ROCHER ROMANIA SRL ,098, , BELLA ROMANIA IMPEX SRL ,930, ,002, Clinceni, Sat Olteni, ILFOV 26 CLEOPATRA CENTER SRL ,627, , Barlad, VASLUI 27 GNV OMEGA TRADING SRL ,863, ,168, Voluntari, Ilfov 28 POINT DISTRIBUTION GRUP SRL ,273, , Vanatori, GALATI 29 LA-RO IMPEX 2001 SRL ,051, , COTY COSMETICS ROMANIA SRL ,705, , FICOSOTA SINTEZ ROMANIA SRL ,184, , TOTAL DISTRIBUTION GROUP & LOGISTICS SRL ,438, ,585, UNILEVER ROMANIA SA ,616, ,810, ROLICOM IMPORT EXPORT SRL ,912, , Cluj-Napoca, CLUJ
148
149 2013 EDITION Major Companies in Romania % increase of the national retail turnover for food, beverages and tobacco in 2012, while the non-food sales grew by a mere 1.9% Trade CASH & CARRY HYPERMARKETS SUPERMARKETS DO-IT-YOURSELF DISCOUNT MALLS & SHOPPING CENTERS
150 MCR TRADE Forward through the slow-pacing economy Alexandra Bulei, Senior Consultant - Transaction Advisory, EY Romania MARKET OVERVIEW 2012 was far from being a dull year for the Romanian trade sector. The insolvency of Mic.ro, the takeover of Emag and the sale of the East European Real Hypermarkets were just a few of the events that reshaped the local market. Retailers continue to face a challenging environment considering that the national retail turnover for food, beverages and tobacco (FB&T) increased by only 2.9% in 2012 while the non food sales grew by a mere 1.9% (adjusted series for working days and seasonality) year on year. The results published for the first half of 2013 did not bring much good news to the market either, as the FB&T turnover rose by a marginal 0.5% whereas the non food by 2.3% compared to the first half of the previous year (adjusted series). Meantime, the National Bank of Romania reported an annual rate of inflation of 5.25% for the first quarter 1. In 2013, most of the large hypermarkets and supermarket chains reported increases in sales, Mega Image leading the top with a 44% growth year over year. Given the current situation of the market, profit margins were still below the levels reported during the boom years. EVENTS THAT RESHAPED THE ROMANIAN TRADE LANDSCAPE It appears that the convenience stores market was unusually active during First of all, in February, the Bucharest court allowed the insolvency of Mic.ro the chain of convenience stores, controlled by Dinu Patriciu. The company had been accumulating debt towards suppliers for several months, which in turn stopped deliveries of merchandise to the stores 2. On the other side, the Mega Image supermarkets, part of the Delhaize Group, adopted a strong expansion strategy. According to company reports, the main driver of this extension was the launch of the Shop & Go convenience store format in While the chain concluded the previous year with 105 stores, they almost doubled the figure in 2012 to 193 outlets. All these led to the fact that, for the first time in Romania, the sales figure of a supermarket chain, namely Mega Image, surpassed that of a hypermarket network (Cora). Besides Delhaize, the Metro group also became involved in the Romanian convenience stores sector. In March 2012, Metro Cash & Carry Romania launched the LaDoiPasi franchise, a program through which the company provides training and advice regarding the product mix and prices. In exchange, the retailers purchase their merchandise from the Metro stores. According to company reports, the Romanian LaDoiPasi program counted approximately 500 independent retailers 4 at the end of last year also saw the largest transaction of the Romanian online retail. The South African group, Naspers, purchased 70% of the shares of the largest Romanian online retailer, Emag. The sale was concluded in July 5. Towards the year end, the sale of Real s Eastern Europe Operations was announced, with Groupe Auchan designated as the buyer that would take over the operations in Romania, Russia Poland, and Ukraine. The acquisition was subsequently approved by the Romanian Competition Council in the summer of LARGE RETAILERS TESTING THE ONLINE ENVIRONMENT The Romanian retail sector is starting to show an increasing interest towards online sales. Besides the online supermarkets that have been delivering groceries to consumers for the last several years, some large retailers have also launched their own electronic outlets (Metro Cash & Cary and Carrefour). One of the effects of online grocery shopping might be the reduction of impulse purchases. This is due to the fact that the clients are able to choose the products they want to visualize, as opposed to the classic store where they pass through most of the departments before reaching the cash registers Delhaize Group Company Report, Metro Group Company Report, html 6
151 2013 EDITION Major Companies in Romania 151 MODERN RETAIL INVESTING FURTHER Modern retail continued to consolidate its share of the fast moving consumer goods (FMCG) household consumption market, reaching 50% in the last quarter of 2012, according to a GFK study 7. Replacing more and more the traditional retail with its more modern version could prove to be, for the moment, the solution for large chains (all this to the detriment of small businesses and local entrepreneurs). The national retail stock continued to increase in As previously mentioned, Mega Image followed an aggressive expansion strategy. Other large retailers present on the market like Lidl, Kaufland, Profi, or Carrefour Market also opened new outlets. The expansion continued in During the first four months alone, close to 50 new modern retail outlets have been opened all over the country 8. According to a CBRE study the national retail stock increased by 150,000 m 2 during 2012, reaching a total of 2.7 million m 2, 30% of which located in Bucharest. At the end of the year there was an average of 127 m 2 of retail space per 1,000 inhabitants, whereas Bucharest benefitted of 416 m 2 /1000 people 9. Considering that the European average lies at around 350 m 2 / capita 10 (according to Colliers), there may be room for potential expansion outside the capital city. On the other hand, the large rural population of Romania may prove to be a hindrance to moving close to the European average. Although some modern retail facilities have been opened in several villages located in counties like Ilfov, Prahova and Giurgiu, the rural areas have been rather neglected so far by large retailers. Retailer brands continued their increase in popularity, accounting for 12% out of the total sales of consumer goods according to a GfK study 11. The evolution is significant considering that in 2007, at the beginning of the economic downturn, the market share of these products was only 2%. However, there is still room for growth given the fact that in Switzerland and Spain more than 50% of all products sold are retailer branded, according to the data published by the Private Label Manufacturers Association s International Council 12. the moment, the percentage of nonperforming loans keeps growing (Romania occupied the 3 rd place in EU at the end of ), which suggests that loans will not be easily granted in the future. Regarding the other driver of consumption during the boom years, the average net salary s real growth was only 0.8% compared to December All in all, the conditions that fueled the retail boom in the previous years are not likely to be replicated over the medium term. Moreover, the social and demographic phenomena described below may influence the consumption patterns and growth rates in the years to come. SOCIAL AND DEMOGRAPHIC FACTORS THAT SHOULD BE CONSIDERED BY RETAILERS OVER THE LONGER TERM Retailers should be aware of the health issues that are becoming more common in our country. The prevalence of modern diseases like diabetes, obesity, depression and heart disease are influencing the shopping behavior of the average consumer. People are becoming more interested in healthier types of food and they are increasingly informed about the products they purchase. Over the longer term the local demographics should be taken into consideration by all retailers. The population of Romania is slowly ageing and decreasing. This may imply a lower future disposable income as people get older, correlated with higher social costs per capita as the active population decreases. One of the new social phenomena that may affect consumption growth is the unusually high percentage of high school students that do not pass the baccalaureate examination. Many of these young people face the prospect of low paid jobs, unemployment or emigration. The obvious implication for the retail sector is that they will spend less money in Romania compared to the previous generations of young people that succeeded to finish their education. All things considered, interesting trends are to be expected from the Romanian trade sector in the years to come. CONSUMPTION GROWTH PROSPECTS Everybody is hoping for the revival of the economy. For Romania, the IMF has projected in the April Word Economic Outlook, a real GDP growth of 1.6% in 2013 and 2% for the following year, whereas the consumer prices are expected to rise by 4.6% in 2013 and 2.9% in The accelerated growth of the retail sector that took place during the boom years was correlated with an increase in credit availability and the growth of disposable income. At Romania Retail Market View, H2 2012, CBRE Global Research and Consulting
152 MCR TRADE CASH & CARRY ANNUAL TURNOVER TURNOVER PROFIT/LOSS NO OF RANK COMPANY NAME MCR SCORING CONTACT RANKING EMPLOYEES 1 SELGROS CASH & CARRY SRL ,426,331, ,597,173 4,343 Brasov, BRASOV HYPERMARKETS RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER PROFIT/LOSS NO OF RANKING EMPLOYEES 1 ROMANIA HYPERMARCHE SA ,461,578, ,556,054 3,972 2 KAUFLAND ROMANIA SCS ,438,372, ,507,498 11,947 3 CARREFOUR ROMANIA SA ,288,398, ,710,446 6,896 4 AUCHAN ROMANIA SA ,973,757, ,298,867 4,073 5 real,- HYPERMARKET ROMANIA SRL ,898,670, ,524,283 5,336 CONTACT SUPERMARKETS RANK COMPANY NAME MCR SCORING DO IT YOURSELF RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER ANNUAL TURNOVER TURNOVER RANKING TURNOVER RANKING PROFIT/LOSS PROFIT/LOSS NO OF EMPLOYEES NO OF EMPLOYEES CONTACT 1 MEGA IMAGE SRL ,757,017, ,722,111 5,693 2 PROFI ROM FOOD SRL ,155,745, ,138,974 3,313 Timisoara, TIMIS 3 BILLA ROMANIA SRL ,266,573, ,654,503 3,009 4 ARTIMA SA ,186, ,872 1,881 Chiajna, ILFOV 5 PALAS COM SRL ,151, ,669, Targu Mures, MURES 6 ANNABELLA SRL ,776, ,623, Ramnicu Valcea, VALCEA 7 SUCCES NIC COM SRL ,427, ,341,837 1,523 Targu Jiu, GORJ 8 KONSTA SPLENDID SRL ,708, ,696, Medias, SIBIU 9 BERLIN SRL ,513, , Barlad, VASLUI 10 DIANA COM SRL ,629, , Ramnicu Valcea, VALCEA 11 SEPHORA MARINOPOULOS ROMANIA SA ,524, ,200, ZANFIR SNC ,432, , Focsani, VRANCEA 13 ELECTROUNIVERS SRL ,799, ,105, DACIA SA ,277, ,009, Alba Iulia, ALBA 15 TREI G RETAIL BEIUS SRL ,386, , Oradea, BIHOR 16 GENERAL NIC IMPORT-EXPORT SRL ,830, ,898, DM DROGERIE MARKT SRL ,238, ,368, Timisoara, TIMIS 18 DANEMAR COMPANY SRL ,218, , Babeni, VALCEA 19 DARINA COM SRL ,042, , Targu Mures, MURES 20 ALFA BETA SRL ,177, , Constanta, CONSTANTA 21 RAIMAN SRL ,237, , Craiova, DOLJ 22 CDE R INTEREX SA ,626, ,155, IMPEX CRIS TIM SRL ,655, , ADIVIN95 SRL ,495, , Constanta, CONSTANTA CONTACT 1 DEDEMAN SRL ,410,570, ,767,227 5,711 Bacau, BACAU 2 ARABESQUE SRL ,564,021, ,590,841 2,468 3 AMBIENT SA ,086, ,278,538 1,505 Sibiu, SIBIU 4 BRICOSTORE ROMANIA SA ,986, ,478,186 1,573 5 PRAKTIKER ROMANIA SRL ,507, ,836,096 1,744 Voluntari, ILFOV 6 BAUMAX ROMANIA SRL ,864, ,483,861 1,165 7 HORNBACH CENTRALA SRL ,220, ,360, ARTSANI COM SRL ,328, ,050, OBI ROMANIA SRL ,295, ,606, Oradea, BIHOR 10 TIGER AMIRA COM SRL ,555, ,383, Oradea, BIHOR 11 BRICO EXPERT SA ,417, ,359,
153 2013 EDITION Major Companies in Romania 153 DISCOUNT RANK COMPANY NAME MCR SCORING MALLS & SHOPING CENTERS ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 REWE (ROMANIA) SRL ,927,506, ,586,180 2,735 2 MINIMAX DISCOUNT SRL ,101, ,227, Voluntari, ILFOV RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER PROFIT/LOSS NO OF RANKING EMPLOYEES CONTACT 1 BANEASA DEVELOPMENTS SRL - member of ALLTROM REAL ESTATE GROUP ,059, ,169, COTROCENI PARK SA ,903, ,220, CITY PARK MANAGEMENT SRL ,827, , Constanta, CONSTANTA 4 WIN MAGAZIN SA ,040, ,379,585-5 UNIREA SHOPPING CENTER SA ,861, ,811, LAND DEVELOPMENT PROIECT SRL ,633, ,462,662-7 IULIUS MALL CLUJ SRL ,364, ,659,672 1 Cluj-Napoca, CLUJ 8 ARENA CITY CENTER SRL ,350, ,467, Bacau, BACAU 9 ARMONIA CENTER ARAD SRL ,461, ,534, IULIUS MALL SUCEAVA SRL ,668, ,727, Suceava, SUCEAVA 11 IULIUS MALL TIMISOARA SRL ,386, ,645,970 2 Timisoara, TIMIS 12 SUCEAVA SHOPPING CITY SRL ,093, ,993,447 - Suceava, SUCEAVA 13 VITANTIS SRL ,771, ,117, RIVER PLAZA MALL SRL ,017, ,762,340 - Ramnicu Valcea, VALCEA 15 COMETEX SA ,341, ,660, Suceava, SUCEAVA 16 TOMIS SA ,451, ,237, Constanta, CONSTANTA DISTRIBUTION COMPANIES RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 HACHETTE DISTRIBUTION SERVICES INMEDIO SRL ,553, ,628, MARATHON DISTRIBUTION GROUP SRL ,926, ,809, PUNCTUAL COMIMPEX SRL ,746, ,735, Cluj-Napoca, CLUJ 4 AFI TOTAL DISTRIBUTION SRL ,605, ,196, ELGEKA - FERFELIS ROMANIA SA ,642, ,411, AMIGO & INTERCOST SRL ,081, ,425, Odorheiu Secuiesc, HARGHITA 7 LICURICI IMPEX SRL ,271, ,474, MACROMEX SRL ,213, ,947, HEINRIG DISTRIBUTION SRL ,376, ,148, XIMENA DISTRIBUTIE SRL ,644, , Braila, BRAILA 11 VENUS DISTRIBUTION SRL ,715, ,044, Sindrilita, ILFOV 12 TOTAL DISTRIBUTION GROUP ARGES SRL ,797, , FRANCISC DISTRIBUTION SRL ,526, ,873, DOVA & PORUT SRL ,473, ,994, Alexandria, TELEORMAN 15 CARMISTIN SRL ,455, ,410, Mizil, PRAHOVA 16 CENTRAL MORENI SRL ,749, ,867, Razvad, DAMBOVITA 17 PP DISTRIBUTORS - ROMANIA SRL ,925, ,041, VLASE DISTRIBUTION SRL ,943, , Gheorghe Lazar, IALOMITA 19 MERSEL COMPANY SRL ,639, ,929, MADCONT IMPEX SRL ,342, , DENIMPEX SRL ,190, , Targoviste, DAMBOVITA 22 NISTOR COMPANY SRL ,320, , Arad, PECICA 23 HANSA DISTRIBUTION SA ,978, ,120, SAVCOM SRL ,410, , Scheia, SUCEAVA 25 PARMAFOOD GROUP DISTRIBUTION SRL ,016, , GROUP QUEEN MONACO SRL ,129, , TOP BRANDS DISTRIBUTION SRL ,523, ,123, Otopeni, ILFOV
154 DB Schenker Rail Romania SRL Delea Noua Nr. 3, Bucharest, Romania Tel.: +40 (0) Fax: +40 (0)
155 2013 EDITION Major Companies in Romania % represents the road freight of total freight in Romania, according to BMI 2.4% is the forecast growth for 2013 of the road haulage volumes Transport & Cargo ROAD TRANSPORT RAIL TRANSPORT AIR TRANSPORT MARITIME & RIVER TRANSPORT FREIGHT TRANSPORT POSTAL AND COURIER ACTIVITIES
156 MCR TRANSPORT & CARGO One down, two to go Mihaela Mihai, Senior Consultant - Transaction Advisory, EY Romania Even though the slowdowns and postponements of the privatizations in the transportation and cargo industry are not surprising anymore, events indicate that the process would take much longer than expected. In the CSE picture, Romania is not the only country where privatizations incurred important delays. Fortunately, the Romanian Ministry of Transport signed the privatization contract for CFR Marfa with the Romanian railways operator, Grup Feroviar Roman (GFR), which keeps the door opened to the international lenders. ROMANIAN NATIONAL POST COMPANY AND TAROM, NOT READY FOR SALE Romanian National Post Company, the largest operator on the couriers market, got an unfavorable verdict from investors. There were no entities interested in acquiring the tender book and a new deadline for submitting the non-bidding offers was set for 30 June In the meantime, efforts are been made to increase the Company s attractiveness by reducing the number of employees, rescheduling the debt to the State budget and requesting the European Commission to approve the conversion of a debt to the State budget of RON 242 million (EUR 55 million) to equity. The announced sale of 20% of Tarom shares was also postponed for when the flight airline operator becomes more attractive for investors. Tarom went through an extended conflict between CEO Christian Edouard Heinzmann and the Board of Directors, led by Dan Pascariu. As a result, the CEO s mandate will end in November, three years earlier than agreed. Tarom managed though to improve its result, reporting a loss of RON 63 million (EUR 14.3 million) in the first half of 2013, down from loss of RON 120 million (EUR 27.3 million) in the same period in ANOTHER ATTEMPT TO SELL THE RAILWAY FREIGHT OPERATORS IN THE CSE Under European Union (EU) and International Monetary Fund (IMF) pressure, several privatizations of the railway freight operators in the CSE were expected to be finalized in Whereas Hungary went through this process five years ago, in 2013 we could still find on the sale list the state-owned railway freight operators from Bulgaria, Romania, Croatia or Greece. Privatization of this sector was also on the agenda of other countries in the region, like Slovakia. In practice, the road to privatization was long in some countries, being subject to the lack of interest from investors, political willingness or public resistance. In Bulgaria, the privatization of the state-owned freight railway carrier, BDZ, was cancelled by mid-year 2013, after four investors were expected to place bids. The new plan announced by the Bulgarian government for BDZ, which has been on the sale list for a couple of years, is to be restructured making use of a debt-to-equity swap by the end of Its major creditor will acquire assets of BGN 97 million (around EUR 49.6 million), which will reduce the debt of BDZ by the same amount. Afterwards, the privatization of BDZ is expected to be initiated again by mid Croatia accepted the bid of GFR, for 75% HZ Cargo stake, for a price of EUR 60 million. GFR also acquired 51% stake in the Romanian Railways Company's (CFR) Freight Division - CFR Marfa for EUR 202 million. The privatization of CFR Marfa was also one of the preconditions for a new EUR 4 billion Stand-By Arrangement with IMF and EU. Poland, considered to be a successful story in the CSE, is also going through the privatization of its rail freight operator, PKP Cargo. In 2011, the Polish government decided to sell 50% plus-one-share stake to a strategic buyer through the issuance of new shares and the sale of stake owned by Polish state. However in 2012, the privatization strategy changed in favor of a stock exchange sale, rather than of a specific investor, and currently awaits the Ministry of Transport's decision on it. Poland has taken an important step towards privatization at the end of August 2013, when PKP Cargo entered into an agreement with the labor unions in that concern. The sale value is expected to be placed at around PLN 2 billion (around EUR 470 million), and would be the largest IPO on Warsaw Stock Exchange in With a rolling stock more than twice the size of CFR Marfa (2,502 locomotives and 65,453 wagons), PKP Cargo revenue in 2012 exceeded PLN 54 billion (EUR 12.9 billion), while its net profit remained at PLN 267 million (EUR 63.8 million). ROAD FREIGHT CONTIUES TO DOMINATE THE SECTOR Road freight is expected to continue dominating the transport sector in Romania and according to BMI, accounts for 67.7% of the total freight in Romania in According DB Schenker Rail Romania SRL Delea Noua Nr. 3, Bucharest, Romania Tel.: +40 (0) Fax: +40 (0)
157 2013 EDITION Major Companies in Romania 157 to the same source, the sector is projected to record the strongest growth y-o-y out of road, rail and inland waterway in 2013, with road haulage volumes forecasted to expand by 2.4% to reach million tones, in line with macroeconomic growth. By 2017, the road haulage volumes are forecasted to expand by 17.9%, reaching million tones. On the other hand, EU s policy regarding pollution should not be ignored and congestion in transport that is threatening the road s share in the transport sector. The likeliest to benefit from this will be the rail freight, which is projected to account for 20.9% of the total freight carried in Romania in 2017, up from 15% in Figure 1. Romania Road Freight ( ) 400, , , , , , ,000 50,000 0 Source: BMI e 2013f 2014f 2015f 2016f 2017f Road freight, '000 tonnes - % change y-o-y DB Schenker Rail Romania SRL Delea Noua Nr. 3, Bucharest, Romania Tel.: +40 (0) Fax: +40 (0)
158 MCR Opinion EDUARD IANCU, CEO DB Schenker Rail Romania Infrastructure, precondition for the development of railway Since 2007, the EU market has been fully open for rail freight, which marked the beginning of a new stage of development for Romania. The measure had a strong impact on the local market, leading to increased competition between the players and therefore of the quality level of service as well as an accurate settlement of the prices. Romania had, in this context, a privileged position. Our country has an extensive railway infrastructure, which offered the transport operators the advantage of easily covering the whole country and to operate on a variety of different routes. At the same time, Romania has a unique geographical position. It was and remains a true link passage between Western Europe and Turkey and further, Middle East or Asia. Rail operators can therefore take advantage of new opportunities in the transit transports, this beeing a very important aspect of our strategy. DB Schenker Rail Romania is part of European Group DB Schenker and thus can take advantage of existing network and partnerships with other companies in the group and external partners of road and inland waterway transport to be able to offer customers a complex offer of pan-european transport. Increasingly, customers want to select a single reliable partner to provide transport services that they need in all markets in which they operate, and this trend appears slowly also on the local market. The scale of the operations that DB Schenker Rail can performe is an important competitive advantage and helps to clearly differentiate the company in the market. The huge potential of our country for transit transports is still, unfortunately, restricted by the local railway infrastructure. The average velocity of a freight train is only half of the average from the Western European countries. Certainly, in the coming years, upgrading the infrastructure should be one of the main points on the agenda of all players in the market and also of the authorities in the field. A strong infrastructure is a vital prerequisite towards the development of the local market.the year whose end we are approaching, was once again marked by a contraction of the transport market. In particular in the railway area, we still see the consequences of the crisis that has not spared Romania, even if they were not as dramatic as in other countries. Customers with large volumes of freight to be transported search, in this moment, more efficient solution in terms of cost and, in particular, high quality service. The efficiency that can be offered, the security and accuracy are characteristics that weighs heavily when any company choses its rail provider and the Romanian market should be more accountable and increase the usual quality of the services. DB Schenker Rail is convinced of the high potential of growth of the local market for rail transport, in line with the development that we expect in the entire region. Therefore, we are determined to continue to invest in developing our business locally, to work with Romanian companies for all maintenance services for the locomotives and wagons from our fleet and harness business opportunities in various industries. All in order to actively contribute to the development of the Romania market and bringing it and bringing it to the level that we believe it deserves. DB Schenker Rail Romania SRL Delea Noua Nr. 3, Bucharest, Romania Tel.: +40 (0) Fax: +40 (0)
159 2013 EDITION Major Companies in Romania 159 ROAD TRANSPORT RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER PROFIT/LOSS NO OF RANKING EMPLOYEES 1 AQUILA PART PROD COM SRL ,899, ,360,976 1,765 2 DUVENBECK LOGISTIK SRL ,374, ,446, REGIA AUTONOMA DE TRANSPORT BUCURESTI RA ,666, ,949 4 HAVI LOGISTICS SRL ,795, , TRANS BITUM SRL ,129, ,926, ALPHA CONSTRUCT SISTEM SA ,493, ,790, GEFCO ROMANIA SRL ,619, ,602, GEOFY TRANS SRL ,097, , CONTACT Drobeta Turnu Severin, MEHEDINTI Constanta, CONSTANTA 9 H ESSERS SRL ,899, , Oradea, BIHOR 10 TRANSPECO LOGISTICS & DISTRIBUTION SA ,039, ,893, ATLASSIB SRL ,752, ,837,561 1,412 Sibiu, SIBIU 12 DIANTHUS COMPANY SRL ,011, ,161, Geamana, ARGES 13 TRANSMEC RO SRL ,218, ,506, Cluj Napoca, CLUJ 14 HOEDLMAYR-LAZAR ROMANIA SRL ,059, ,921, Bascov, ARGES 15 WABERER`S ROMANIA SA ,909, ,167, TOTAL N S A SRL ,032, ,806, Saliste, SIBIU 17 CARRION EXPEDITION SRL ,403, , Cluj-Napoca, CLUJ 18 HARTLTRANS ROMANIA SRL ,961, ,085, Timisoara, TIMIS 19 CHINA SHIPPING (ROMANIA) AGENCY CO LTD SRL ,926, ,444, TOURING EUROPABUS ROMANIA SRL ,365, , HOLLEMAN SPECIAL TRANSPORT & PROJECT CARGO SRL ,960, ,776, INTERNATIONAL LAZAR COMPANY SRL ,573, ,590, Bascov, ARGES 23 TIR EXPRESS SRL ,866, , Timisoara, TIMIS 24 CIPCOS MAR COMPLEX SRL ,971, ,225, Albota, ARGES 25 TRANS CAR SRL ,395, ,140, Sibiu, SIBIU 26 TRANSCONDOR SA ,837, , Arad, ARAD 27 DUNCA EXPEDITII SA ,940, ,567, Dumbravta, TIMIS 28 TRANSPORTURI DACIA SA ,906, ,038, Mioveni,ARGES 29 TRANSEXPED AGRO SRL ,376, ,334 - Vadeni, BRAILA 30 REGIA AUTONOMA DE TRANSPORT TIMISOARA ,412, ,340, Timisoara, TIMIS 31 CARPAT CEMTRANS SRL ,922, , EDY INTERNATIONAL SPEDITION SA ,645, ,378, Brad, HUNEDOARA 33 ASTALROM SA ,907, ,575, Calarasi, CALARASI 34 LOGISTIC E VAN WIJK SRL ,391, ,635, Sannicoara, Com Apahida, CLUJ 35 DUMAGAS TRANSPORT SA ,384, ,232, Podari, Sat Braniste, DOLJ 36 REGIA AUTONOMA DE TRANSPORT URBAN DE CALATORI CLUJ NAPOCA RA ,777, ,942 1,449 Cluj-Napoca, CLUJ 37 REGIA AUTONOMA DE TRANSPORT PUBLIC PLOIESTI RA ,541, ,183,791 1, INT TRANSPORTE POPOVICI SRL ,258, ,742, Sfantu Gheorghe, COVASNA 39 AGETAPS SRL ,219, , Brasov, BRASOV 40 REGIA AUTONOMA DE TRANSPORT PUBLIC IASI RA ,909, ,487,830 1,390 Iasi, IASI 41 VECTOR SPEDITION SRL ,083, , Slobozia, IALOMITA 42 FRIGOEXPRES SA ,313, ,899, Oradea, BIHOR DB Schenker Rail Romania SRL Delea Noua Nr. 3, Bucharest, Romania Tel.: +40 (0) Fax: +40 (0)
160 MCR TRANSPORT & CARGO MARITIME & RIVER TRANSPORT ANNUAL TURNOVER TURNOVER PROFIT/LOSS NO OF RANK COMPANY NAME MCR SCORING CONTACT RANKING EMPLOYEES 1 CONSTANTA SOUTH CONTAINER TERMINAL SRL ,249, ,184, Agigea, CONSTANTA 2 TOMINI TRADING SRL ,408, ,894, Constanta, CONSTANTA 3 COMVEX SA ,205, ,771, Constanta, CONSTANTA 4 MSC ROMANIA SHIPPING SRL ,820, ,118, SARGEANT MARINE ROMANIA SRL ,293, , Constanta, CONSTANTA 6 COMPANIA DE NAVIGATIE FLUVIALA ROMANA NAVROM SA ,563, , OIL TERMINAL SA ,512, ,105 1,096 Constanta, CONSTANTA 8 KAPITAL LEADING TRANSPORT SRL ,061, , VADECO SRL ,576, ,494, Constanta, CONSTANTA 10 CHIMPEX SA ,412, ,034, Constanta, CONSTANTA 11 SOCEP SA ,193, ,231, Constanta, CONSTANTA 12 TEAM LOGISTIC SPECIALISTS SRL ,533, ,033, COMPANIA NATIONALA ADMINISTRATIA CANALELOR NAVIGABILE SA ,170, ,836, Agigea, CONSTANTA 14 REGIA AUTONOMA ADMINISTRATIA FLUVIALA A DUNARII DE JOS GALATI RA ,552, ROMAR SHIPPING AGENCY SRL ,952, , Constanta, CONSTANTA 16 NORTH STAR SHIPPING SRL ,026, ,763, Constanta, CONSTANTA 17 MIDIA MARINE TERMINAL SRL ,249, ,098, Navodari, CONSTANTA 18 GRUP SERVICII PETROLIERE SHIPYARD SRL ,094, ,821, Constanta, CONSTANTA 19 UNITED SHIPPING AGENCY SRL ,900, ,545, Constanta, CONSTANTA 20 MINMETAL SA ,326, ,194, Constanta, CONSTANTA 21 DG PETROL SRL ,205, ,370, PORTO NAV GROUP SRL ,476, ,648 - Constanta, CONSTANTA RAIL TRANSPORT RANK COMPANY NAME MCR SCORING DB Schenker Rail Romania SRL Delea Noua Nr. 3, Bucharest, Romania Tel.: +40 (0) Fax: +40 (0) ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 COMPANIA NATIONALA DE CAI FERATE CFR SA ,111,726, ,645,337 22,905 2 SOCIETATEA NATIONALA DE TRANSPORT FEROVIAR DE CALATORI CFR CALATORI SA ,668,976, ,207,335 13,645 3 GRUP FEROVIAR ROMAN SA ,683, ,824,601 2,368 4 SOCIETATEA NATIONALA DE TRANSPORT FEROVIAR DE MARFA - CFR MARFA - SA ,399, ,086,569 8,411 5 UNICOM TRANZIT SA ,266, ,639, Voluntari, ILFOV 6 METROREX SA ,247, ,302,066 4,158 7 ROFERSPED SA ,544, , TRANSFEROVIAR GRUP SA ,275, ,351, Cluj Napoca, CLUJ 9 TRANSFER INTERNATIONAL SPEDITION SRL ,402, ,695, REGIOTRANS SRL ,490, ,315, RAIL FORCE SRL ,597, ,896, Brasov, BRASOV 12 DB SCHENKER RAIL ROMANIA SRL ,293, ,925, Timisoara, TIMIS 13 UNIFERTRANS SA ,589, ,454, Voluntari, ILFOV 14 TRANS EXPEDITION FEROVIAR SRL ,860, , GRAMPET SA ,425, ,842, SERVTRANS INVEST SA ,767, ,334,
161 2013 EDITION Major Companies in Romania 161 AIR TRANSPORT RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 COMPANIA NATIONALA DE TRANSPORTURI AERIENE ROMANE TAROM SA ,048,339, ,617,520 2,173 Otopeni, ILFOV 2 ADMINISTRATIA ROMANA A SERVICIILOR DE TRAFIC AERIAN ROMATSA RA ,129, ,424,206 1,519 3 COMPANIA NATIONALA AEROPORTURI BUCURESTI SA ,519, ,125,339 1,174 Otopeni, ILFOV 4 LUFTHANSA CARGO AG - GERMANIA - KELSTERBACH - SA SUCURSALA ROMANIA ,689, ,404,535 3 Otopeni, ILFOV 5 GLOBE GROUND ROMANIA SRL ,406, ,115, Otopeni, ILFOV 6 REGIONAL AIR SERVICES SRL ,475, ,822, Tuzla, CONSTANTA 7 CARPATAIR SA ,820, ,411, Ghiroda, TIMIS 8 REGIONAL AIR SUPORT SRL ,123, ,012, AUTORITATEA AERONAUTICA CIVILA ROMANA RA ,908, ,128, SOCIETATEA NATIONALA AEROPORTUL INTERNATIONAL TIMISOARA - TRAIAN VUIA SA ,241, ,209, Timisoara, TIMIS 11 SOCIETATEA NATIONALA AEROPORTUL Mihail Kogalniceanu, INTERNATIONAL MIHAIL KOGALNICEANU ,195, ,393, CONSTANTA CONSTANTA SA 12 MEDALLION AIR SRL ,354, ,433, JETRAN AIR SRL ,056, , EUROJET ROMANIA SRL ,330, ,297, COMPANIA ROMANA DE AVIATIE ROMAVIA RA ,190, ,258, AEROPORTUL CLUJ NAPOCA RA ,436, Cluj-Napoca, CLUJ 17 ION TIRIAC AIR SA ,838, ,658, Otopeni, ILFOV
162 MCR TRANSPORT & CARGO FREIGHT TRANSPORT RANK COMPANY NAME MCR SCORING DB Schenker Rail Romania SRL Delea Noua Nr. 3, Bucharest, Romania Tel.: +40 (0) Fax: +40 (0) ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 SCHENKER ROMTRANS SA ,220, ,624,920 1,115 2 TTS (TRANSPORT TRADE SERVICES) SA ,813, ,519, DSV SOLUTIONS SRL ,981, ,387, Otopeni, ILFOV 4 KUEHNE + NAGEL ROMANIA SRL ,071, ,936, Joita, GIURGIU 5 DHL LOGISTICS SRL ,573, ,763, KLG EUROPE LOGISTICS SRL ,433, ,786, GOPET ROMANIA SRL ,430, , CALBERSON ROMANIA SA ,015, , Chiajna, ILFOV 9 NDL FRIGO LOGISTICS SRL ,986, , M&M MILITZER & MUNCH ROMANIA SRL ,200, , INTERNATIONAL BUSINESS TRANSPORT SA ,703, ,865, GEBRUDER WEISS SRL ,861, ,054, TIBBETT RETAIL SERVICES SRL ,334, ,203, Chiajna, ILFOV 14 LAGERMAX AUTOTRANSPORT SRL ,905, ,697, ALL CARGO EXPRES SRL ,362, ,400, Ghisoda, TIMIS 16 KARL HEINZ DIETRICH INTERNATIONAL EXPED SRL ,115, ,733, Otopeni, ILFOV 17 ROMEXPED GROUP SRL ,627, ,274, CARGO-PARTNER EXPEDITII SRL ,877, ,571, TIBBETT LOGISTICS SRL ,214, ,014, H ESSERS TRANSPORT SRL ,315, , Oradea, BIHOR 21 PANALPINA ROMANIA SRL ,006, ,548, EXPRESS - INTERFRACHT ROMANIA SRL ,671, ,800, Otopeni, ILFOV POSTAL AND COURIER ACTIVITIES RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 COMPANIA NATIONALA POSTA ROMANA SA ,205,532, ,061,179 31,046 2 DHL INTERNATIONAL ROMANIA SRL ,113, ,133, FAN COURIER EXPRESS SRL ,724, ,868,482 1,189 4 POSTMASTER SRL ,802, ,671,629 1,302 5 TNT ROMANIA SRL ,210, ,309, UPS ROMANIA SRL ,979, ,257, INTERNATIONAL ROMEXPRESS SERVICE LTD SRL ,833, ,770, Otopeni, ILFOV 8 CARGUS INTERNATIONAL SRL ,301, ,604, FULL DISTRIBUTION SERVICES SRL ,888, , Sfantu Gheorghe, COVASNA 10 GLS GENERAL LOGISTICS SYSTEMS ROMANIA SRL ,067, ,594, Sibiu, SIBIU 11 NEMO PROD COM IMPEX SRL ,194, ,741, URGENT CURIER SRL ,618, ,471, POSTA ATLASSIB CURIER RAPID SRL ,057, ,743, Sibiu, SIBIU 14 DYNAMIC PARCEL DISTRIBUTION SA ,385, ,598, INBOX MARKETING SRL ,847, , OTTO EXPEDITII SRL ,975, ,142, TOTAL POST SERVICES SRL ,155, ,179, Voluntari, ILFOV 18 INFODIREKT SRL ,143, ,409 4 Piatra Neamt, NEAMT 19 WORLD MEDIATRANS SRL ,566, , Timisoara, TIMIS 20 SPRINT CURIER EXPRESRL ,259, ,
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165 2013 EDITION Major Companies in Romania ,000 passenger cars to be produced in 2013, positioning Romania on the 9th place in Europe Automotive Industry PRODUCERS & IMPORTERS CAR DEALERS AUTOMOTIVE PARTS PRODUCERS AUTOMOTIVE PARTS DISTRIBUTORS
166 MCR AUTOMOTIVE INDUSTRY Mixed feelings and hampered sales in 2013 Liviu Rusu, Senior Consultant - Transaction Advisory, EY Romania The most obvious proof of the precarious state of the European car market has been revealed in June 2013, when sales of new cars in the EU have fallen to a minimum of the last 17 years against the lingering effects of the recession and high unemployment rate. In line with the continental phenomenon, the Romanian automotive industry has recorded the third highest decrease among the EU states according to the European Automobile Manufacturers Association (ACEA). According to BMI International, the actual figures for 2012 have revealed that passenger car sales declined by 23.7%, to 72,179 units, with the same trend being expected for Over the following years up to 2017, although a steady recovery is expected in volumes, the annual sales will remain below the 2007 peak. EXISITING TRENDS CONTINUE TO HAMPER SALES Similar to 2012 evolution, the actual figures for passenger car sales in the first 6 months of 2013 have depicted a decrease by 19.4% y-o-y, to reach 28,694 units. Although local demand for domestic was significantly different from the one for foreign vehicles (with 9,527 units of domestic cars sold vs. 26,421 imported vehicles sold in H1 2013), their trends from H to the corresponding 2013 period were highly alike. Figure 1. Sales of Passenger Cars by Brand Specifically, the local passenger car sales have decreased by 19.8% (i.e. from 9,527 units in H to 7,640 units in H1 2013), while the imported passenger car sales recorded fell by 19.4% (i.e. from 26,421 units in H to 21,324 units in H1 2013). Dacia maintained its dominant position on the local market in terms of passenger vehicles sold, with 13% of total sales (i.e. 3,713 units) in the first half of Despite its output, the Romanian company recorded a 12.5% decrease in units sold compared to the same period in Opel was the only brand that recorded a slight increase in sales, reaching 756 units sold in H as compared to 728 units in H When it comes to split passenger car sales by model, Dacia Logan keeps its leading position in H1 2013, with 3,713 units sold, despite decreasing by 23% compared to the 2012 corresponding period. The following players by market share, also owned by Dacia, recorded opposite trends. If the runner-up Dacia Duster sold 2,092 units in H1 2013, decreasing by 23% vs. H1 2012, the one that went in the third place Dacia Sandero soared to 1,583 units in H1 2013, representing a 92% increase against the same period in The light commercial vehicles segment recorded a decrease in volume of 14.1% in H vs. the same period of 2011, to reach Figure 2. Sales of LCV by Brand 21% 29% 5% 4% 4% 6% 21% 3% 3% 6% 3% 4% 5% 6% 6% 8% 12% 9% 10% 10% 10% 15% Dacia Volkswagen Skoda Renault Ford Hyundai Opel Toyota Peugeot Audi Other Dacia Ford Renault Volkswagen Mercedes Benz Fiat Peugeot Citroen Toyota
167 2013 EDITION Major Companies in Romania 167 4,524 units. Top seed in 2013 was Dacia Doker Van, a new model that hit the market in the current year winning the first position from Ford Transit, a 2012 former leader. As opposed to declining volumes of new cars sold, used passenger car sales have significantly increased in 2013, by approximately 36%. According to a local site (automarket.ro), over the first six months of 2013, imports of used cars amounted to 101,735 units, whereas transactions with second-hand cars registered in Romania accounted for approximately 97,486 units. THE REGULATORY FRAMEWORK GOES THROUGH CHANGES Even though the Romanian Government has introduced a new environmental tax for used cars starting 1 January 2013, the population is increasingly turning to the used car market, which is considered a cheaper alternative. In order to discourage the used cars market, OUG 9/2013 replaced the initial registration with an environmental tax based on which the imported cars and cars already registered in Romania, but older than 2007, are subject to environmental tax at the fist resale. The dwindling trend in sales of new cars in the current year is also explained by the shrinkage of Rabla program funds. Precisely, if in 2011 a number of 116,641 old cars were dismantled with 39,216 new cars being purchased, in 2012, 44,857 units were dismantled, but only 15,149 new cars were acquired. For the present year, the Romanian Government allocated only 20,000 vouchers worth RON 6,500 each, leading to the following consideration: the project is beneficial, yet insufficient, taking into account the current demand and the approximately 2.5 million cars aged more than 10 years still on the road. In spite of a considerable decrease in total vouchers, the volume of idle ones advanced mainly due to the fact that the program started late in June Thus, the voucher holders have a limited period of 45 days to submit it to the dealers or producers enrolled in the governmental project. Figure 3. Sale of Passenger Cars by Month (2013 vs. 2012) Units 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 January February March April May June refreshment of Dacia s range of models with the New Dacia Logan, New Dacia Duster and Dacia Dokker, and the increasing number of units produced in Craiova by Ford. Provided that level is maintained, the local car output could reach 420,000 units in 2013, positioning our country on the 9th place in Europe, ahead of Italy, which is estimated to manufacture 360,000 units during the current year. Market performers as at July 2013 in terms of production were the following: Dacia Sandero with 76,153 units, Dacia Duster with 75,624 units, Dacia Logan with 65,285 units and Ford B-Max with 50,434 units. As for exported units, the highest levels were recorded by Dacia Duster with 74,168 cars, Dacia Sandero with 72,098 cars and Ford B-Max with 50,444 cars. PRODUCTION REMAINS STONG As opposed to car sales evolution, production of passenger cars in Romania has recorded an exponential development in 2013, as follows: during the first six months the industry reached an outcome of 224,759 units, increasing by 44.7% compared to the similar period of the prior year. Prime growth drivers were the
168 MCR Opinion CHRISTIAN VON ALBRICHSFELD, General Manager, Continental Automotive Romania Lean on a lean philosophy As our company is producing automotive components for almost all car manufacturers in the world, we are looking on market developments more globally. In Europe we expect the market to stagnate at the current low level, whereas in other parts of the world, mainly China and North America, we see growth. Due to our innovative product portfolio, high quality and cost competitiveness, our company intends to outgrow the market. We succeeded in doing so during the last years. Innovation is a major key for our success. We are focusing on the megatrends: safety, efficiency, information and network, as well as affordable cars. One of the lighthouse topics that in the end covers at least two of the megatrends is highly automated driving. Continental sees this as an evolutionary process with three major steps in 2016, 2020 and We see at least two major challenges in the coming years. One is the continuing crisis in Europe, which causes markets to stagnate. The other is the unpredictable costs of raw material, which has to be managed. The automotive industry has to bear the burden of developing conventional powertrain systems to outperform with regards to efficiency and Co2 emissions. At the same time, the electro mobility has to be developed with high additional costs for R&D. The strategy we used to overcome the difficulties of the sector was a sound and stable financial position, with a long term finance strategy. We focused on innovation, high quality, diversification of our product portfolio, on reducing all kind of waste. We basically had a lean philosophy. Last not least, we focused on establishing an internal network to link the knowledge of employees of Continental, to foster creative ideas, inventions, innovations and best practice. We call the internal WEB 2.0 solution ConNext. We don t see ourselves as advisers, but a general key success factor in every business is to understand the needs of the customers, be customer oriented. If you add innovative power and if you are able to deliver at a competitive price, with no compromises in regards to quality, you should be on a way to success. Innovation is the key success factor in our business. We always need to be one step ahead of our competitors, to drive the trends in the market. Examples are highly automated driving as well as clean power including e-mobility. Last year we inaugurated our new office building for R&D in Timisoara, following EUR 20mn investment. This 30,000 square meter building, which accommodates over 2,000 employees, features another important milestone in our history in Romania and it underlines the importance of our engineering and development capabilities for our global customer base. It shows how important Romania is on Continental s map. The divisions of the Automotive Group (Chassis & Safety, Interior, Powertrain) develop and produce innovative software and hardware applications: engine management systems, transmission control units, electronic brake systems, multimedia and radio navigation systems, control units for hybrid vehicles, body controllers, digital tachograph systems, airbag control units and instrument clusters for the automotive industry. The three research & development centers in Timisoara, Sibiu and Iasi and the three plants located in Timisoara, Sibiu and Brasov, represent an investment of approximately EUR 235mn investment in Romania and created more than 5,200 jobs. All 5 divisions of Continental are represented in Romania. We have seven production units and we cooperate in a joint venture in Slatina and in a tire distribution center for Eastern Europe in Sacalaz. We currently employ around people in Romania. With sales of 32.7 billion in 2012, Continental is among the leading automotive suppliers worldwide. As a supplier of brake systems, systems and components for powertrains and chassis, instrumentation, infotainment solutions, vehicle electronics, tires, and technical elastomers, Continental contributes to enhanced driving safety and global climate protection. Continental is also an expert partner in networked automobile communication. Continental currently has approximately 173,000 employees in 46 countries.
169 2013 EDITION Major Companies in Romania 169 AUTOMOTIVE PRODUCERS & IMPORTERS RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 PORSCHE ROMANIA SRL ,609,520, ,543, Voluntari, ILFOV 2 AUTOMOBILE DACIA SA ,742,145, ,239,794 13,640 Mioveni, ARGES 3 TOYOTA ROMANIA SRL ,476, ,434, Voluntari, ILFOV 4 MERCEDES-BENZ ROMANIA SRL ,467, ,377, BMW VERTRIEBS GMBH SALZBURG SUCURSALA BUCURESTI ,977, ,275, FORD ROMANIA SA ,479,148, ,681,010 3,745 Craiova, DOLJ 7 PREMIUM AUTO SRL ,079, ,568, HYUNDAI AUTO ROMANIA SRL ,908, ,295, DURA AUTOMOTIVE ROMANIA SRL ,828, ,961, Ghiroda, TIMIS 10 EUROSPORT DHS SA ,872, ,579, Deva, HUNEDOARA 11 TRUST MOTORS SRL ,136, ,235, EVW HOLDING SRL ,266, ,430, Gilau, CLUJ 13 GERMAN TOP TRADING SRL ,649, , VOLVO ROMANIA SRL ,952, , CITROEN ROMANIA SRL ,036, ,853, M CAR TRADING SRL ,710, , KIA ROMAUTO SRL ,445, , AUTO ITALIA IMPEX SRL ,780, ,592, ASTRA BUS SRL ,934, , Arad, ARAD 20 ROMAN SA ,142, ,278, Brasov, BRASOV 21 HONDA TRADING ROMANIA SRL ,413, ,858, SUBARU MOTORS TRADING SRL ,148, ,054, AUTOMOTIVE PARTS DISTRIBUTORS RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER PROFIT/LOSS NO OF RANKING EMPLOYEES CONTACT 1 RENAULT INDUSTRIE ROUMANIE SRL ,431,278, ,821,845 1 Mioveni, ARGES 2 AUTONET IMPORT SRL ,354, ,473, Satu Mare, SATU MARE Alexandria, TELEORMAN 3 AUTOCORA SRL ,847, ,434, GOODYEAR DUNLOP TIRES ROMANIA SRL ,324, ,554, AD AUTO TOTAL SRL ,258, ,192, CONEX DISTRIBUTION SA ,807, ,126, Iasi, IASI 7 AUGSBURG INTERNATIONAL IMPEX SRL ,441, , Chiajna, ILFOV 8 AUTO SOFT SERVICE ROTI SRL ,194, ,500, Fundeni, ILFOV 9 ATP - EXODUS SRL ,213, ,886, Sasar, MARAMURES 10 DINAMIC 92 DISTRIBUTION SRL ,783, ,371,732 - Piatra-Neamt, NEAMT 11 TROST AUTO SERVICE TECHNIK SRL ,640, ,996, BARDI AUTO SRL ,755, ,716, Chiajna, ILFOV 13 NEXXON SRL ,389, ,189, Targu Secuiesc, COVASNA 14 COM DIVERS AUTO RO SA ,517, ,404, Bascov, ARGES 15 INTER CARS ROMANIA SRL ,276, ,065, Cluj-Napoca, CLUJ 16 ELIT ROMANIA PIESE AUTO ORIGINALE SRL ,733, ,462, PROINVEST SRL ,689, ,618, Alexandria, TELEORMAN 18 MATEROM SRL ,754, , DELTA PLUS TRADING SRL ,758, , MARSOROM SRL ,876, , Ernei, MURES 21 IMPAR SRL ,981, , Odorheiu Secuiesc, HARGHITA 22 AUTO GROUP CMB SRL ,127, , Arad, ARAD 23 EUROMASTER TYRE & SERVICES ROMANIA SA ,269, ,014,
170 MCR AUTOMOTIVE INDUSTRY CAR DEALERS RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 RENAULT COMMERCIAL ROUMANIE SRL ,392,502, ,327, PORSCHE INTER AUTO ROMANIA SRL ,338, ,606, Tunari, ILFOV 3 RADACINI MOTORS SRL ,675, ,825, TIRIAC AUTO SA ,495, ,997, MHS TRUCK & BUS SRL ,181, ,306, AUTOMOBILE BAVARIA SRL ,755, ,298, Otopeni, ILFOV 7 EVOBUS ROMANIA SRL ,541, ,940, AVIA MOTORS SRL ,228, ,266, Pantelimon, ILFOV 9 AUTO ALEX SRL ,976, ,099, Moldova Noua, CARAS-SEVERIN 10 SERVICE AUTO SERUS SRL ,967, ,265, AUTOWORLD SRL ,555, ,063, Cluj-Napoca, CLUJ 12 BRADY TRADE SRL ,379, , CEFIN ROMANIA SRL ,220, ,988, SCANIA ROMANIA SRL ,914, ,062, Ciorogarla, ILFOV 15 RMB INTER AUTO SRL ,798, ,969, Cluj-Napoca, CLUJ 16 CASA AUTO SRL ,184, , Iasi, IASI 17 EURIAL INVEST SRL ,660, , EUROSPEED SRL ,067, ,538, Suceava, SUCEAVA 19 CTE TRAILERS SRL ,188, ,229, Ciorogarla, ILFOV 20 AUTO SCHUNN SRL ,838, ,595, Arad, ARAD 21 AUTOKLASS CENTER SRL ,585, ,803, DI - BAS AUTO SRL ,378, , MIDOCAR SRL ,858, ,556, INCHCAPE MOTORS SRL ,733, , Voluntari, ILFOV 25 CYBERNET AUTO CENTER SRL ,090, , Bacau, BACAU 26 IVECO ROMANIA SRL ,149, ,356, NURVIL SRL ,237, , Ramnicu Valcea, VALCEA 28 COLINA MOTORS SRL ,237, ,159, AUTO COBALCESCU SRL ,232, , BUSINESS DEVELOPMENT TEAM SRL ,242, ,186, DELCAR SRL ,891, , Ghimbav, BRASOV 32 EURO TEHNO GROUP SRL ,751, , RMB CASA AUTO TIMISOARA SRL ,129, ,275, Timisoara, TIMIS 34 MIT MOTORS INTERNATIONAL SRL ,431, , DUMATRUCKS SRL ,108, ,397, Podari, DOLJ 36 PROTRUCK CENTER SRL ,775, ,992, Jilava, ILFOV 37 EURO INTER TRADE CORPORATION SRL ,821, ,524, D & C IMPEX SRL ,085, ,730, Oradea, BIHOR 39 TESS SRL ,714, , Ghimbav, BRASOV
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172 MCR AUTOMOTIVE INDUSTRY AUTOMOTIVE PARTS PRODUCERS RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 DELPHI PACKARD ROMANIA SRL ,703,187, ,549,021 9,129 Sannicolau Mare, TIMIS 2 AUTOLIV ROMANIA SRL ,894,716, ,830,704 3,713 Brasov, BRASOV 3 CONTINENTAL AUTOMOTIVE PRODUCTS SRL ,376,683, ,362,841 - Timisoara, TIMIS 4 YAZAKI ROMANIA SRL ,212, ,422,864 3,898 5 HELLA ROMANIA SRL ,299, ,040,552 1,023 Sannicolau Mare, TIMIS 6 CONTITECH ROMANIA SRL ,122, ,568,484 1,556 Timisoara, TIMIS 7 MICHELIN ROMANIA SA ,126,820, ,009,410 2,666 8 DELPHI DIESEL SYSTEMS ROMANIA SRL ,849,217, ,508,865 2,071 Bratuleni, IASI 9 TRW AUTOMOTIVE SAFETY SYSTEMS SRL ,361, ,409,407 2,648 Timisoara, TIMIS 10 PIRELLI TYRES ROMANIA SRL ,521,577, ,019,499 2, TAKATA ROMANIA SRL ,545,861, ,103,649 4,168 Arad, ARAD 12 CONTINENTAL AUTOMOTIVE SYSTEMS SRL ,526,272, ,430,969 1,762 Sibiu, SIBIU 13 LEONI WIRING SYSTEMS PITESTI SRL ,600, ,371,216 1, CONTINENTAL AUTOMOTIVE ROMANIA SRL ,420,700, ,611,255 3,942 Timisoara, TIMIS 15 JOHNSON CONTROLS ROMANIA SRL ,295,437, ,185,056 3,359 Mioveni, ARGES 16 GLOBAL E-BUSINESS OPERATIONS CENTRE SRL ,395, ,760,447 2, PREH ROMANIA SRL ,331, ,968, Ghimbav, BRASOV 18 LEONI WIRING SYSTEMS RO SRL ,018, ,527,468 3,142 Bistrita, BISTRITA- NASAUD 19 RENAULT MECANIQUE ROUMANIE SRL ,983, ,086, Mioveni, ARGES 20 KROMBERG & SCHUBERT ROMANIA SRL ,872, ,928,826 2,056 Timisoara, TIMIS 21 EDUARD HARTMANN ROMANIA SRL ,271, ,697, Cisnadie, BRASOV 22 LISA DRAXLMAIER AUTOPART ROMANIA SRL ,902, ,041,300 3, YAZAKI COMPONENT TECHNOLOGY SRL ,690, ,383, Arad, ARAD 24 SEWS ROMANIA SRL ,448, ,859,236 7,653 Deva, HUNEDOARA 25 HIRSCHMANN ROMANIA SRL ,723, ,927, Sanpaul, MURES 26 MGI COUTIER ROM SRL ,651, ,248, Ghiroda, TIMIS 27 THYSSENKRUPP BILSTEIN COMPA SA ,599, ,910, Sibiu, SIBIU 28 INERGY AUTOMOTIVE SYSTEMS ROMANIA SRL ,998, ,274, ECKERLE AUTOMOTIVE SRL ,654, ,573, Cluj-Napoca, CLUJ 30 DAR DRAXLMAIER AUTOMOTIVE SRL ,351, ,983,089 2,149 Timisoara, TIMIS 31 LEAR CORPORATION ROMANIA SRL ,025, ,880,128 1, NADAB AUTOMOTIVE COMPONENTS SRL ,693, ,739,962 1,225 Nadab, ARAD 33 3M ROMANIA SRL ,825, ,923, DRM DRAXLMAIER ROMANIA SISTEME ELECTRICE SRL ,848, ,189,149 4,547 Satu Mare, SATU MARE 35 ALTUR SA ,147, ,310, COGEME SET RO SRL ,955, ,844, KEY SAFETY SYSTEMS RO SRL ,493, , Ribita, HUNEDOARA 38 ROLEM SRL ,559, ,718, Codlea, BRASOV 39 BRANDL RO SRL ,145, ,907, Sibiu, SIBIU 40 MAHLE COMPONENTE DE MOTOR SRL ,366, ,991, Timisoara, TIMIS 41 CALSONIC KANSEI ROMANIA SRL ,259, ,044, Targoviste, DAMBOVITA 42 FAURECIA SEATING TALMACIU SRL ,488, ,787, Talmaciu, SIBIU 43 STYRIA ARCURI SA ,432, ,982, Sibiu, SIBIU 44 STAR TRANSMISSION CUGIR SRL ,505, ,774, Cugir, ALBA
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175 2013 EDITION Major Companies in Romania signaled the return to a mode of cautious optimism, after 4 years of constant decline in the consultancy sector Forecast for the future: engagements will most probably remain shorter and projects smaller Professional Services LEGAL MANAGEMENT CONSULTING COMPANIES ACCOUNTING, AUDIT, FAS & TAX EXECUTIVE SEARCH, RECRUITMENT AND HR MANAGEMENT TRAINING COMPANIES MARKET RESEARCH COMPANIES BUSINESS PROCESS OUTSOURCING
176 MCR PROFESSIONAL SERVICES Professional services market beyond 2014 Mircea Giurcan, Senior Consultant - Advisory Services, EY Romania BACKGROUND Surprisingly, when the global financial crisis hit in 2008 and the recession began, demand for professional services remained strong. Consulting clients were seeking assistance both from international and local firms in the areas of cost-reduction, performance improvement, and revenue generation. At the same time, companies continued to employ HR firms for talent management and executive succession planning, while generic, but highly qualified, loan staff provided for long periods by consultancy firms remained in high demand. The levels of activity and demand for external advisors were fairly high despite the market turmoil. This was due in part to a lag in which market conditions do not manifest in consultants revenues for about 6 months. It also was due to clients need for advice during this very active and tumultuous period. Demand in the first half of 2008 was slowing but remained positive, and many consultants reported strong earnings in their consulting practices. However, by the end of the year, the situation had changed dramatically. Most firms that until then would hire consultants by the ton went into lock-down mode most halted or postponed any discretionary spending, including on external consultancy. The consulting engagements that continued were long-term projects that already had been funded and any non-discretionary work around compliance or financial reporting (e.g. Implementation of International Financial Reporting Standards for Romanian Banks). The European consulting market contracted by more than 10% the following year, signaling the worst period in the consulting history since the 1930s. And it kept going down: both 2010 and 2011 were years in which the industry exhibited negative growth (a sweeter way of CEOs saying their businesses are sinking). Although 2011 market performance was worse than anticipated, indicating the end of the line for some companies and for others the urge to conclude alliances and strategic partnerships, the 2012 and 2013 figures for Europe got slightly better, from all points of view. In this story Romania didn t behave differently, however the relative immaturity of this market sector (while in the US, consultancy firms existed from the late 19th century and in Europe from the 1920s, the first companies offering advisory services on the local market only opened for business in the last decade of the 20th century) meant that the local firms took the blow harder. Practically in every advisory practice people were axed, as the companies needed to adapt to the new market conditions before they went bust. Only in the second part of 2012 and 2013 things started to look better again, since traditional clients for consultancies (i.e. multinational companies) engaged in activities deemed at increasing both their efficiency and profitability. And this is the perfect time for consultants to do their work. However 2014 AND BEYOND Overall, 2014 has the premises of being a year of positive growth of the consulting sector in all relevant markets, as far as the key players keep track of the following factors: Both potential and traditional consulting recipients will be cautious in spending the global credit crisis has changed the strategic orientation of companies. While in the period the focus was on cost reduction, capital preservation, and survival rather than on growth, 2013 signaled a return to a mode of cautious optimism. Companies are expected to slowly return to growth pursuits through 2014 and will be turning to consultants for expertise and support. However, the spending spree of the pre-2008 period will almost certainly not come back, at least in the foreseeable future; Not only less money, less demand also the consulting market was paralyzed in terms of discretionary activities and new initiatives during the entire period. Even large companies focused on conserving cash, being wary of the future. Now that most EU Member States have emerged from the recession, companies have pent-up demand for consulting work. For the next years engagements will most probably remain shorter and projects smaller; Internal resources are cheapest Consultancy practices as well as many clients have had excess capacity since early Where the business case for using consultants is insufficiently compelling, clients are making more use of their own staff; Even greater emphasis on sustainable, tangible results Although this has been the Achilles heel for consultancies also in the past, clients expectations for solid RoI or shorter payback Creating value. Achieving potential.
177 2013 EDITION Major Companies in Romania 177 periods are steadily increasing. Emphasis is now being put on tangible results, consultancy recipients considering long-term, high fee engagements as too risky. They are more likely to accept short engagements for small, specific needs. As regards, transformation projects, clients tend to phase each initiative into increments of several months each, looking for RoI at each phase (see below); Divide et impera strategy from the side of the clients Large projects will always happen however their implementation shall take place in a phased and mathematical manner. Such an approach has created an environment of more intense competition among consultancies, since each stage may be potentially bid out. It has also led to consultants offering to do one phase for free in exchange for subsequent phases of work. The fact that no consulting company worth considering on the local market has put the lock on its door, somewhat confirms the fact that there is still great hope for the future, in 2014 and beyond, that the Romanian market shall live up to its expectations. RESHAPING THE WAY CONSULTANCY WORKS In his book Managing the Professional Service Firm, David Maister, professor at the Harvard Business School, defines 3 typical types (he s calling them technologies ) of consultancy practices: Brains (expertise) firms, which provide service to clients who wish to retain the smartest kid on the block at almost any cost. These firms typically give their clients new ideas, and help them understand the very way in which they re doing business from a different perspective; Gray-hair (experience) firms, which customize ideas, but rarely are positioned at the cutting edge. Clients of these firms recognize that the problems they themselves face have probably been dealt with by other companies; the client therefore seeks an organization that can offer know-how based on past experience; Procedure (execution) firms, which service clients who know that their problems can be handled by a broad range of firms and who are seeking a professional firm that can give them a prompt start, quick disposition and low cost. An important aspect is that at peak, companies specializing in each technology still exhibit a significant array of strength in all areas of design, service and delivery. Thus, the emphasis on a particular area is the differentiating factor among consulting firms. This emphasis may be shifted by the preference (strengths) of the strategists in the firm, or by the marketplace. In the future, a consulting company shall be truly successful if it manages to provide additional added value in the typical package it offers to its customers. The Romanian business model for consultancies is probably one of the most adequate to this statement, similarly to FMCG promotions in retails stores (e.g. Buy one, get one free, Buy a sandwich and a beverage together and get 20% discount). This is possible by tearing down the typical technologies stated above. In simpler words, the potential client will be more willing to hire a Brains firm, when the consulting company will not only design the new solution, but also contribute to its implementation, or when a Grey-hair firm will not only supervise the implementation of a new tool, but also offer an army of junior consultants to test it and perform data entry. IT S ALL ABOUT PEOPLE In essence, consultants must concomitantly meet 3 requirements: they must be knowledgeable, affordable and flexible. While the 3rd requirement may be relatively easy to meet, the first two are contradicting in nature, and nowhere is this more obvious than on the local market. Typically, consultants with enough experience and sector expertise are expats and they don t come cheap: the time of such a consultant would be valued at no less than EUR 2,000 per day. They are usually senior managers and above, exposed to large advisory engagements across multiple countries, dispatched to Romania to handle a particular area or sector within a consultancy practice (e.g. Power & Utilities). The ways of quickly creating sufficient local expertise in the market would imply some short- and mid-term sacrifices in revenue of the major players: either by exposing a select few of the local consultants to complex international engagements (within the firm s other branches), or ensuring the presence of acknowledged international experts locally, acting as mentors for the local team. Either way, the aim is to increase the skill-set of the local advisory teams, in order to keep them less dependent on expensive international experts. Since no consultancy firm ever complained on the number of well trained candidates for junior positions, the focus for the future is to be put on well trained senior level consultants and project managers, as the backbone of each practice. With the demands of the market steadily growing (at a much steeper pace compared to the funding available), the differentiating factor between advisory firms will be engagement efficiency. Acting with efficiency in mind, will help firms keep the prices down and deliver quality services in the shortest amount of time. Both significant investments in local expertise and flexibility in services offered in the market are strong prerequisites, which will shape the consulting business for the years to come.
178 MCR PROFESSIONAL SERVICES ACCOUNTING, AUDIT, FAS AND TAX RANK COMPANY NAME ANNUAL ANNUAL ANNUAL PROFIT/LOSS NO OF TURNOVER TURNOVER TURNOVER EMPLOYEES (2011 RON) GROWTH % 1 KPMG ROMANIA SRL 116,390, ,563, % 322, PRICEWATERHOUSECOOPERS AUDIT SRL 82,998,673 68,701, % 1,641, BRITISH AMERICAN SHARED SERVICES (EUROPE) SRL 64,808,225 50,948, % 5,550, ERNST & YOUNG ASSURANCE SERVICES SRL 60,780,406 55,752, % 1,376, DELOITTE AUDIT SRL 60,315,683 55,205, % 2,250, ERNST & YOUNG SRL 58,802,537 83,552, % 6,749, PRICEWATERHOUSECOOPERS TAX ADVISORS & ACCOUNTANTS SRL 57,508,992 50,448, % 7,604, KPMG AUDIT SRL 42,488,086 38,057, % 473, DELOITTE CONSULTANTA SRL 26,110,969 23,196, % 293, KPMG TAX SRL 24,886,655 23,453, % 515, BDO AUDIT SRL 22,580,686 20,011, % 2,877, DELOITTE TAX SRL 21,144,756 17,739, % 3,987, TMF ROMANIA SRL 14,927,182 16,110, % 4,383, SOTER SRL 10,655,450 9,607, % 2,296, MAZARS CONSULTING SRL 9,164,854 8,395, % -40, FIN EXPERT CONSULTING SRL 8,443,365 8,417, % 1,003, A&F CLASSIC OFFICE SRL 8,401,314 8,231, % 444, MAZARS ROMANIA SRL 7,647,271 8,380, % 485, BOSCOLO & PARTNERS CONSULTING SRL 7,145,038 5,865, % 2,298, NESTOR NESTOR DICULESCU KINGSTON PETERSEN CONSULTANTA FISCALA SRL 7,105,253 9,035, % 323, RSM SCOT SRL 6,605,548 5,916, % 845, MIDOCAR CONSULTING SRL 6,584,839 16,569, % -7,616, NOERR FINANCE & TAX SRL 6,191,349 4,892, % 1,699, ROEDL & PARTNER OUTSOURCING SRL 5,621,089 4,889, % 215, ACCACE EUROPE SRL 3,998,167 3,240, % -117, ROEDL & PARTNER AUDIT SRL 3,418,530 2,529, % 103, BG CONTA SRL 3,374,044 3,304, % 144, TPA HORWATH AUDIT SRL 3,100, % 323, BAKER TILLY KLITOU AND PARTNERS SRL 2,838,696 3,201, % 231, FIDEXPERT SRL 2,526,907 3,097, % 30, TPA HORWATH TAX SRL 2,052, % 399, TMF ACCOUNTING & PAYROLL SRL 1,775,808 2,267, % -65, CONTACT Creating value. Achieving potential.
179 2013 EDITION Major Companies in Romania 179 MANAGEMENT CONSULTING RANK COMPANY NAME ANNUAL ANNUAL ANNUAL PROFIT/LOSS NO OF TURNOVER TURNOVER TURNOVER EMPLOYEES (2011 RON) GROWTH % CONTACT 1 MCKINSEY & COMPANY SRL 75,372,914 58,091, % 12,118, PRICEWATERHOUSECOOPERS MANAGEMENT CONSULTANTS SRL 41,374,112 24,117, % 4,864, ACCENTURE CENTRAL EUROPE BV AMSTERDAM, OLANDA-SUCURSALA BUCURESTI 36,987,535 41,081, % 1,318, ACTIV EXPERT CONSULTANTA SI SERVICII SA 32,968,857 37,820, % 677,794 4 Buzau, BUZAU 5 PRICEWATERHOUSECOOPERS SERVICII SRL 29,008,022 39,285, % 13,738, AT KEARNEY MANAGEMENT CONSULTING SRL 26,791,504 17,745, % 2,137, ROMCAPITAL INVEST SA 26,442,446 19,766, % 13,908, ROLAND BERGER STRATEGY CONSULTANTS SRL 15,071,507 12,101, % -235, ASCENDIS CONSULTING SRL 13,650,241 14,155, % 2,510, ENSIGHT MANAGEMENT CONSULTING SRL 11,768,413 12,244, % 1,672, HORVATH & PARTNERS MANAGEMENT CONSULTING SRL 11,045,862 29,265, % -193, HAY GROUP MANAGEMENT CONSULTANTS SRL 4,437,606 5,356, % -309, BPI MANAGEMENT CONSULTING ROMANIA SRL 3,817,668 2,930, % 662, CAPITAL PARTNERS SRL 3,481,646 11,849, % -422, TMI TRAINING & CONSULTING SRL 2,897,082 4,241, % 205, TPA HORWATH CONSULT SRL 2,095,460 1,387, % 643, PIERRE AUDOIN CONSULTANTS SRL 1,871,855 1,784, % -27, PLURI CONSULTANTS ROMANIA SRL 780, , % 57, EXECUTIVE SEARCH, RECRUITMENT AND HR MANAGEMENT RANK COMPANY NAME ANNUAL TURNOVER ANNUAL TURNOVER (2011 RON) ANNUAL TURNOVER GROWTH % PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 MANPOWER ROMANIA SRL 166,037, ,360, % 338,115 4,230 2 ADECCO RESURSE UMANE SRL 116,876, ,083, % 1,981,272 4,226 3 TRENKWALDER SRL 95,335,847 90,913, % -2,229,448 3,491 Timisoara, TIMIS 4 ADECCO ROMANIA SRL 66,379,979 48,743, % 2,131, LUGERA & MAKLER SRL 58,393,313 64,587, % 896,823 1,425 6 LUGERA & MAKLER ROMANIA SRL 58,160,471 78,188, % 319,784 1,633 7 APT RESOURCES & SERVICES SRL 51,122,016 43,859, % 43, AGENTIA DE SERVICII PROFESSIONAL SRL 32,297,623 37,566, % 288, GI GROUP STAFFING COMPANY SRL 31,617,691 24,793, % -1,303,448 1, SMARTREE ROMANIA SRL 27,313,895 18,809, % 147, INTERIM PLUS SRL 18,312,763 17,511, % 2,662, ARCFORCE SRL 14,581,282 45,623, % 18,706 4 Craiova, DOLJ 13 AIMS HUMAN CAPITAL ROMANIA SRL 10,200,602 12,047, % 56, PEDERSEN & PARTNERS CONSULTING SRL 3,653,705 4,548, % 255, BARNETT MCCALL RECRUITMENT SRL 3,500,883 5,049, % -1,488, HILL INTERNATIONAL HUMAN RESOURCES CONSULTING ROMANIA LIMITED SRL 2,529,031 3,316, % 99, CONSULTEAM RECRUTARE SI SELECTIE SRL 2,273,989 2,091, % 156, STEIN & PARTNER MANAGEMENT CONSULTING SRL 2,108,871 1,385, % 243, ROYALTY JOBS INTERNATIONAL SRL 1,897,133 1,592, % 68, BIA HUMAN RESOURCE MANAGEMENT SERVICES SRL 1,631,993 1,601, % 294, E-FINANTE MANAGEMENT GRUP SRL 1,604,678 1,777, % 278, LEADERSHIP DEVELOPMENT SOLUTIONS SRL 1,374,042 1,748, % -1,082, DR PENDL & DR PISWANGER ROMANIA SRL 1,101,399 1,469, % 10, STANTON CHASE INTERNATIONAL SRL 1,014, , % -44,775 4
180 MCR PROFESSIONAL SERVICES Loud and clear talkative market Magda Purice - Freelance Journalist Romania reclaims its reign for outsourcing in Europe, following constant upward in international ranking in the last years. With a market estimated in 2012 at more than EUR 200 million representing only call center services, Romania evolves today towards a specialized and sophisticated host for knowledge and business process outsourcing. This year s report conducted by Jones Lang LaSalle, states that Romania is host of all types of outsourcing services, KPO, BPO/ SSC, R&D, call centers. In early stages, Romania was preferred destination for call center type of investment, but soon after, due to the availability of qualified work force, good command of foreign languages, excellent pool of university graduates, proximity to Western Europe, good air connectivity to rest of Europe, were the key drivers to additional shoring services in Romania. At the end of 2012, JLL ranked Romania 9th as outsourcing destination by the number of jobs created by foreign investors in Europe. The report mentioned that between 2008 and 2012 a number of 40 outsourcing projects created 11,438 jobs in Romania. JLL mentioned as largest companies Evaluserve, Genpact as KPO centers (knowledge process outsourcing), Adobe, Freescale, IXIA, EA Games, Intel as R&D centers and HP, Endava, Genpact, IBM, Oracle, Wipro, Accenture, WNs as BPO centers. Most players opened at least one center in Romania and with few exceptions, they hire between 100 and 150 specialists, except call center operators that hire even more. In Europe, Romanian outsourcing market competes with countries as Ukraine, Poland, Belarus, Russia and Hungary. FOLLOW THE STUDENTS: EAGER, SKILLED AND AFFORDABLE The perfect mix between technology skills, multiple IT&C specialization and the availability of large university centers in Romania magnetize large companies as US outsourcing services provider Computer Generated Solutions (CGS). Besides Bucharest and Cluj, other major hubs in Romania are Timisoara, Iasi, Craiova and Brasov. All mentioned cities are also the selected destinations for BPO centers that have been opened either by large companies or by takes over of local companies. Many of Bucharest-based multinationals opened in the last years service centers around the university hubs in Romania, such as: HP, Wipro, Siemens, Bosch that have expanded in Timisoara, IBM's second center has opened up in Brasov, Capgemini set up offices in Iasi, XL World opened operations in Iasi, Bacau and Oradea. Cluj ranks in 100 s worldwide top destinations for outsourcing, with near 250 IT&C companies and an estimated pool for around 5,000 available software engineers. Since 2010, Cluj s software market increased by almost 50 percent. INCREASING PAYROLL OUTSOURCING MARKET Payroll outsourcing market in Romania has increased significantly in the last 5 years, starting at around processed employees in 2007 and has reached around processed employees in The number continued to grow in 2013, with an estimated 15% compared to last year, Bogdan Badea, GM of Accace Romania recently said. According to Accace estimations, payroll outsourcing market has reached over processed employees, an increase of around 15 percent in 2013 over previous years. In the last five years, this segment more than doubled as volume. The main reasons that led to this increase have been: data confidentiality at company level, cost reduction and the additional benefits offered by companies providing such services in payroll area. At local level, companies from various industries choose to outsource their payroll and personnel administration, but the less interested in such services are: public institutions, constructions and HoReCa. In the last years, more and more companies have chosen to outsource the payroll operations, in order to reduce costs and minimize the risk associated with this data. However, according to a research conducted by PayOut Payroll Outsourcing, less than 10 percent of the overall Romanian companies outsourced the payroll and Hr services, while the European average exceeds 20 percent. In Belgium and Denmark, this value exceeds 50 percent. Following the company s calculation, a company with 100 employees can save over EUR 3,500 yearly by outsourcing the payroll operations. YOUR ROMANIAN SPECIALIST HERE, HOW MAY I HELP YOU? The mock-up phrase might be heard right now in more than 200 call centers established in Romania, by smaller or larger companies. Among them, the largest is the US-headquartered CGS, with 3,000 employees in Romania and call centers at Bucharest, Sibiu and Brasov. They estimate the call center services market in Romania at EUR million for this year, an increase of 20 percent over The demand for local workforce
181 2013 EDITION Major Companies in Romania 181 available and specialized for call center s Hello come especially following the needs of US and Western Europe companies, CGS managers said. The clients come from all around the world but mostly, from US, North America and Middle East. For CGS s local call center operations, most of their major outsourcing projects come from US. CGS has 7 years local presence in Romania, since 2002, when acquired Romanian company EasyCall. At the beginning of this year, Polish call center services provider Telbridge leased 640 sqm of office space in Bucharest, marking its establishment on the Romanian market. The Poland based Telbridge specializes in outsourcing of sales processes in business-to-customer and business-to-business sectors. The annual growth for Romanian call center market is estimated at a pace of percent by business consultants of Frost and Sullivan. They also bet on the value of USD 22.5 million for the European contact center market by EXPANSIONS AND NEW ENTRIES IN OUTSOURCING At midyear, Xerox announced the expansion if its BPO services in Romania, following the increasing demand of European clients. The company will hire during this year 400 people to work in Xerox centers from Bucharest and Iasi. They said they would need both inexperienced young people as seniors in fields such as HR services, IT, financial and customer relations services. So far, Xerox expanded its BPO services for two offices based in Iasi, comprising customer care, IT, financial-accounting services, marketing and HR. The company plans to reach 1,500 employees in Iasi by year-end. At the end of last year, Xerox opened its shared services center in Iasi, where it announced it planned to hire 500 people by the end of The company has already recruited 200 specialists for the center, and it plans to hire 300 more by the end of the year. BUSINESS PROCESS OUTSOURCING RANK COMPANY NAME ANNUAL ANNUAL ANNUAL PROFIT/LOSS NO OF TURNOVER TURNOVER TURNOVER EMPLOYEES (2011 RON) GROWTH % CONTACT 1 GENPACT ROMANIA SRL 302,738, ,997, % 36,000,433 1,924 2 S & T ROMANIA SRL 140,168, ,107, % -3,897, COMPUTER GENERATED SOLUTIONS ROMANIA SRL 129,252, ,066, % 21,509,732 2,313 4 WIPRO TECHNOLOGIES SRL 103,795,001 93,100, % 18,846, ACCENTURE SERVICES SRL 48,733,224 41,662, % 3,187, PRINTEC GROUP ROMANIA SRL 45,750,957 59,270, % 7,573, AROBS TRANSILVANIA SOFTWARE SRL 38,581,092 33,599, % 2,132, Cluj-Napoca, CLUJ 8 SPAR BUSINESS IDEAS PROVIDER SRL 17,349,639 16,908, % 559, I Q MANAGEMENT SRL 14,259,758 19,309, % 1,721, IT SIX GLOBAL SERVICES SRL 13,813,966 8,343, % 3,316, Craiova, DOLJ 11 NESS ROMANIA SRL 12,989,816 16,531, % 647, Iasi, IASI 12 BERG COMPUTERS SRL 12,306,082 12,298, % 1,801,525 - Ghiroda, TIMIS 13 EVALUESERVE SRL 8,612,309 7,887, % 763, Cluj-Napoca, CLUJ 14 ARCHITECTED BUSINESS SOLUTIONS SRL 5,764,026 5,602, % 802, TRINITY CORPORATE SERVICES ROMANIA SRL 2,363,286 2,090, % 232,804 22
182 MCR Opinion Business Process Outsourcing - a market in evolution HUGH WATKINS, Managing Director, Trinity Corporate Services, Bucharest 2013 is shaping up to be another year of mediocre growth for Romania, with Foreign Direct Investment at very low levels compared to the growth years of 2003 to Although the figures can change quickly if one big transaction occurs, it seems that 2013 is going to be an even worse year than 2012 as far as foreign investment goes. I feel that there is a huge opportunity for any EU country that really starts to build a business friendly environment: one of the things that has surprised me most about the past five years has been the complete lack of any initiatives in this direction. I am not just talking about Romania, but about my native UK, the Eurozone and the USA as well. It is as if the entire political class is blind to the real needs of business. Whichever country moves first will be in a position to build up an enormous head-start on other countries. In my own company we are seeing continued growth, as we are lucky to be part of the growing outsourcing sector. We expect to see more of the same in With respect to the challenges for the current period, Romanian companies are starved of equity capital, just as they have been for the last twenty years. As a result Romanian business activity has tended to concentrate on less capital intensive activities: services, light industry, retail. Unless foreign capital is available, there is not enough money for heavy duty manufacturing. That is a shame as Romania has good quality human capital in engineering fields. Over the last five years we have also seen a lack of bank financing, and I do not see this situation changing quickly. Bank financing is available to companies with adequate equity and there aren t many of those. Also banks are still trying to mop up the losses they suffered when the real estate bubble burst in Theoretically, EU funds might make up part of the shortfall, but there seem to be real problems in accessing these funds. In any case, it is hard to consider EU funds as being equivalent to equity due to the number and scope of conditions that need to be met before the funds are disbursed. The main challenges thus remain the same as for the last five years: control costs so as to stay profitable, build up equity through retained earnings and conserve cash. With respect to the BPO market, it is estimated that, narrowly defined, it provides jobs to more than 12,000 people in Romania which now ranks in the top ten destinations for companies looking for BPO solutions. However, the total outsourcing market is far larger than this, as it includes domestic companies that are buying in services that were previously performed in-house. As an example, when I came to Romania in 1998, the company where I worked had its own cleaning staff. This is becoming rarer as companies contract with specialized cleaning firms to take care of their offices. I have not seen convincing statistics on this phenomenon, as they would be very difficult to capture. Nonetheless, this trend certainly exists, and can only grow over the coming years. The outsourcing market is in an evolutionary, not revolutionary, phase at present. I do not foresee major changes in the next few years. Newly formed companies will buy in as many services as they can, whilst existing companies will be forced to copy the new business models. The regulatory environment continues to get more and more difficult, pushing companies to go outside for services they might have performed in-house only a few years ago. Companies are certainly open to outsourcing, and may even open up new fields to outsourcing by spinning off existing in-house services into standalone companies that then sell services to the mother company on an outsourcing basis. These companies would subsequently sell to other third parties thus increasing the breadth of the services in outsourcing.
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184 MCR PROFESSIONAL SERVICES Emerging Europe: M&A Report 2012 CMS and DealWatch Political grid-lock dampened M&A growth in 2012; modest growth envisaged for A WAITING GAME In 2012, the M&A market in Romania did not make as strong a comeback as was envisaged at the beginning of the year. It was expected that the appetite for takeovers would be stronger, however (as we predicted) political uncertainty in the run-up to the end of year elections left Romania in political grid-lock and investors waiting to see how politics and in turn the economy and investment landscape, would pan-out. That being said, there were still deals being done on the market and the year was a busy one for our M&A team. The most active sectors were Energy, TMT, Agriculture and Financial Services. The Energy sector in particular with interest in both oil & gas and alternative energy sources bucked the prevailing trend and generated a considerable amount of M&A activity in One of the largest deals signed in Romania in 2012 in the energy sector was the acquisition of majority and minority stakes in the EnergoBit Group, a Romanian supplier of electrical networks to the power sector, by CEE private equity fund Innova Capital, and EBRD, respectively. Other notable deals for our team this year included MetLife s acquisition of Aviva Romania Life and Pensions and the sale of 92.4% stake in MKB Nextebank, the Romania based commercial bank, to a consortium of investors led by PineBridge Investments LLC, the US based asset management firm. We saw a continued increase in strategic investment not surprising given the global economic situation just as we have seen private equity investments diminish due to the lack of debt financing. The Romanian market in 2012 was also driven by restructuring deals, as businesses adapted to new economic pressures and focused on driving revenues. MODEST GROWTH ENVISAGED We are optimistic about There is a sense of relief that the new government, formed after the December general elections, is committed to the continued implementation of economic reforms under the two year IMF standby agreement of March 2011, and has a clear mandate for new standby agreements with both the IMF and EU. These agreements will continue to create a path to sustainable economic growth and give investors greater predictability about the direction in which Romania is headed. The long-awaited privatisations of stated-owned enterprises such as post operator Posta Romana, petrochemical plant Oltchim and the CupruMin copper mine have been on the cards for some time now as part of the privatisation program agreed with the IMF and it seems as if the new government will address the pressing need to reform Romania s state-owned enterprises, either through privatisation or (major) reorganisations starting in Broadly speaking, signifi cant improvements to transport infrastructure in Romania this year, alongside a commitment to accessing EU funds and the introduction of new transparent state-aid schemes, should prove to encourage investment into Romania and move the market forward. Energy and Natural Resources will continue to be an important sector in the coming year, attracting strategic investment. The most attractive sectors for acquisitions in 2013 will be Energy and Natural Resources, TMT, Infrastructure and Agriculture. There has been a recent wave of foreign investors interested in the agricultural sector in Romania and this will certainly continue in There is a great deal of growth potential for Romanian agri-business and heavy investment is needed in this area. Projects are encouraged by both EU and Romanian government subsidies available to support investments in the sector. Restructuring and reorganisation will also continue to be a priority for many companies in All in all, we expect to see modest growth in the M&A market in Romania, picking up momentum as the year goes on. We should however consider the development of the M&A market in Romania in the wider context of the slowing European economy. Romania continues to remain vulnerable given the strong financial ties and trade links we have with the Eurozone and the European economic situation will certainly impact the year(s) ahead. - DealWatch is the leading provider of emerging market M&A information. It offers proprietary interviews and transaction valuations, an unrivalled deal database, forecasting tools, league tables and analyses. It gives M&A professionals tools to get to deals first, and to make better valuation decisions once they get there. DealWatch is part of the Emerging Markets Information Service (EMIS).
185 2013 EDITION Major Companies in Romania 185 LEGAL RANK LEGAL COMPANIES * NO OF LAWYERS ** ADDRESS 1 ANDRA MUSATESCU LAW & INDUSTRIAL PROPERTY OFFICES n/a 2 ANGHEL STABB & PARTNERS BCLAW CRINGUREANU & PARTNERS n/a 4 BAKER TILLY ROMANIA n/a 5 BIRIS GORAN SCPA BOSTINA & ASSOCIATES 82 7 BPV GRIGORESCU STEF~NIC~ BULBOACA & ASOCIATII BUZESCU CA CHSH GILESCU, VALEANU & PARTNERII SCA CERHA HEMPEL SPIEGELFELD HLAWATI CLIFFORD CHANCE BADEA n/a 12 CMS D&B DAVID SI BAIAS DENTONS n/a 15 DLA PIPER DINU SCA DRAGNE & ASOCIATII DRAKOPOULOS LAW FIRM ENESCU & CUC EVERSHEDS LINA & GUIA n/a 20 GIDE LOYRETTE NOUEL n/a 21 HAMMOND, BOGARU AND ASSOCIATES SCPA n/a 22 KINSTELLAR n/a 23 KLC LAW FIRM BRANCH ROMANIA n/a 24 MARARU & MARARU n/a 25 MARES DANILESCU MARES n/a 26 MAZARS - DUNCEA, STEFANESCU & ASOCIATII n/a 27 MCGREGOR & PARTNERS S.C.A MUSAT & ASOCIATII NESTOR NESTOR DICULESCU KINGSTON PETERSEN NOERR PACHIU & ASSOCIATES PELI FILIP PLATIS BAZILESCU LLLP n/a 34 POP PEPA POPOVICI NITU & ASOCIATII RATIU & RATIU n/a 37 REFF & ASSOCIATES n/a 38 RTPR ALLEN & OVERY (RADU TARACILA PADURARI RETEVOESCU SCA IN ASSOCIATION WITH ALLEN & OVERY LLP) RUBIN MEYER DORU & TRANDAFIR, SPCA STOICA {I ASOCIA}II STRATULA MOCANU & ASOCIATII n/a 42 SCHOENHERR SI ASOCIATII SCA n/a 43 TUCA ZBARCEA & ASOCIATII VASILE DELEANU - ATTORNEYS AT LAW n/a 45 VASS LAWYERS n/a 46 VERNON DAVID n/a 47 VILAU & MITEL VOICU & FILIPESCU SCA WHITE & CASE, PACHIU SCA n/a 50 WOLF THEISS ZAMFIRESCU RACOTI PREDOIU ATTORNEYS AT LAW 41 * companies are listed alphabetically; ** source
186 MCR Opinion Political uncertainty, clear communication and investor conf idence NEIL McGREGOR, Managing Partner, McGregor & Partners 2013 has been a year which brought to mind the late 1990s, with many urgent enquiries from investors about the Romanian market and a need to manage their expectations and concerns in the face of uncertainty about the investment climate. In the late 1990s, the cause was the Foreign Investment Ordinance. This year the cause has been the Emergency Ordinance to change the support scheme for renewable energy. The similarities are striking: in each case, some good ideas were rushed into publication, but without the detailed regulations on how to apply them. In each case some unwise ideas were mixed with the good ones and the situation was compounded by a failure to provide early, clear and reasoned explanations to investors of what the government s detailed intentions were. Even the timings of each piece of legislation appear to be similar: after headline measures were introduced by Emergency Ordinance in the first part of each year, we have seen further information emerge over the summer amidst considerable political debate. In the case of the Foreign Investment Ordinance, that sorry story was ended when the application norms were finally published - and the incentive scheme was then totally abolished - at the end of the year. It looks as though greater certainty on renewable energy incentives are also going to need to wait until the end of this year, with parliamentary debate having been postponed from the summer and still not having been completed at the time of writing at the end of October. Different governments have been involved, but the processes have been very similar. In each case a great deal of interest from investors has been raised, leading to many enquiries to us. Our long experience in Romania has been a considerable advantage to us, as the longer view has allowed us to be able to set investors concerns and queries about the renewable energy support scheme in context. We notice that whilst investors are considerably more comfortable about the situation now than they were earlier in the year, investor perception of Romania as a place to do business has been adversely affected by the way the changes to the support scheme have been handled. We reassure them that Romania is still a place to do business. The effect of all of this on our business in 2013 has been to see fewer transactions being completed in energy in particular, and relating to Romania in general. We have been heavily engaged in the recent acquisition of the TIP Trailer Services transport equipment leasing, rental and service solutions business from GE Capital by HNA Group of China, but Romania is only one of the markets in which this business operates. We expect that many of the other M&A transactions in Romania will similarly be part of larger global transactions. An exception to this is likely to be in the Romanian energy sector, where we suspect there will be considerable activity once the changes to the renewable support scheme are clarified. We suspect that there are industry investors who are waiting to enter the market, but who are waiting until there is more certainty about how the support scheme will operate in the future. At the same time, we also believe that many existing investors (and their financers) will have been put under severe pressure by this year s political events and will look to sell their projects as soon as market conditions permit. We have acquired a number of new clients this year, but all of these clients have already been present in the Romanian market. Discussions have been taking place in Bucharest and in London with a number of potential clients who have not yet made the decision to enter the Romanian market, but we hope that they will shortly make the decision to do so. We do not expect any substantial change from the firm s traditional focus on energy, shipping, transport and trade during the coming year, although we do expect to be involved in more conventional energy and natural resources matters. We also expect to see continuing work on capital markets matters and corporate finance. We have advised one of the largest foreign investors in Fondul Proprietatea for a number of years and in 2013 we have been active in issues ranging from corporate governance of Romanian listed companies, minority shareholder rights and the use of depositary receipts by Romanian companies to obtain listings in foreign markets. Hopefully these are signs that the Romanian capital market is beginning to mature.
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188 MCR PROFESSIONAL SERVICES TRAINING COMPANIES ANNUAL ANNUAL ANNUAL PROFIT/LOSS NO OF RANK COMPANY NAME TURNOVER TURNOVER TURNOVER EMPLOYEES (2011 RON) GROWTH % 1 ASCENDIS CONSULTING SRL 13,650,241 14,155, % 2,510, IFPTR SRL 12,351,093 12,827, % -408, ECDL ROMANIA SA 7,979,779 8,960, % 1,651, INSTITUTUL ROMAN DE CERCETARI ECONOMICO-SOCIALE SI SONDAJE - IRECSON SRL 7,861,115 9,423, % 43, CODECS SA 6,337,932 5,341, % -2,113, EUROCOR - INSTITUTUL EUROPEAN DE CURSURI PRIN CORESPONDENTA SRL 6,295,801 7,241, % 271, SOCIETATEA COMERCIALA DE FORMARE A ENERGETICIENILOR DIN ROMANIA SA 5,991,787 7,702, % 105, LEXIS SRL 5,047,569 5,177, % -186, UNITED BUSINESS DEVELOPMENT SRL 4,954,295 6,217, % -570, TREND CONSULT SRL 3,793,774 4,137, % 164, INTERACT BUSINESS COMMUNICATIONS SRL 3,230,281 3,407, % -20, ROLAND GAREIS CONSULTING SRL 2,981,619 3,260, % 42, COMPETITIVE IN BUSINESS & CONSULTING SRL 2,946,828 3,722, % 1,392, TMI TRAINING & CONSULTING SRL 2,897,082 4,241, % 205, IHB LANGUAGE TRAINING CENTER 2,781,305 3,609, % 205, BUSINESS TRAINING ROMANIA SRL 2,702,495 2,769, % 10, HUMAN INVEST SRL 1,763,642 2,361, % -468,177 8 CONTACT Miercurea Ciuc, HARGHITA MARKET RESEARCH COMPANIES RANK COMPANY NAME ANNUAL ANNUAL ANNUAL PROFIT/LOSS NO OF TURNOVER TURNOVER TURNOVER EMPLOYEES (2011 RON) GROWTH % CONTACT 1 IPSOS INTERACTIVE SERVICES SRL 206,330, ,785, % 41,271, GFK ROMANIA - INSTITUT DE CERCETARE DE PIATA SRL 55,255,457 46,790, % 2,101, ACNIELSEN ROMANIA SRL 32,198,313 20,445, % -52, CEGEDIM ROMANIA SRL 26,092,945 23,178, % 3,172, DAEDALUS CONSULTING SRL 15,934,852 15,158, % 1,503, ARMADATA SRL 12,952,037 12,624, % 810, CENTRUL PENTRU STUDIEREA OPINIEI SI PIETII (CSOP) SRL 8,554,692 7,579, % 230, EURODATA MANAGEMENT SRL 7,704,168 8,893, % -39, MERCURY RESEARCH SRL 6,960,653 6,470, % 528, IPSOS RESEARCH SRL 6,610,553 7,905, % -482, ISRA CENTER MARKETING RESEARCH SRL 6,169,140 5,826, % 300, IMAS-MARKETING SI SONDAJE SA 4,806,544 5,813, % -100, CENTRUL DE SOCIOLOGIE URBANA SI REGIONALA - CURS SRL 1,608,427 2,563, % 85, THE GALLUP ORGANIZATION - ROMANIA SRL 1,510,231 4,083, % -1,433, METRO MEDIA TRANSILVANIA STUDII SOCIALE SONDAJE MARKETING SI 1,492,452 1,345, % 53, Cluj-Napoca, CLUJ PUBLICITATE SRL 16 IRSOP MARKET RESEARCH & CONSULTING SRL 1,193,652 1,549, % 23,310 16
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191 2013 EDITION Major Companies in Romania EUR per year savings by outsourcing payroll services for 100-employee company, 9th ranking in Europe for Romania as outsourcing destination by the number of jobs FDI-driven Business Services HOTELS AND SIMILAR ACCOMMODATION TRAVEL AGENCIES SECURITY COMPANIES PRINTING SERVICES
192 MCR BUSINESS SERVICES Preparing for the better, hoping for the best Magda Purice - Freelance Journalist The neighbors are Romanian tourism s best friends, as European countries will continue to stand for the majority of Romania's source market, particularly its regional vicinities in the CEE area. However, visitors do not come uninvited so now it s Romania s move towards them. RICH NEIGHBOR, WELCOME GUEST Data from Romania's National Institute of Statistics, released earlier this year showed that foreign visitor numbers grew by 4.3 percent over 2012, to reach 7,936,700. Moving forward, the specialists of Business Monitor International, the provider of a comprehensive analysis on Romanian tourism expect this trend towards growth to continue. As also highlighted by BMI, tourism in Romania is mostly dependent on rising incomes across the wider Central and Eastern Europe (CEE) region and, within several years, the annual inbound arrivals are estimated to get near 10 million. Countries within Europe will continue to make up majority of Romania's source market, particularly its regional neighbors in the CEE area - such as Hungary, Moldova, Bulgaria and Ukraine - which form the four most important markets for inbound travel. Travel from these countries is facilitated by good air and rail transport links, though long-haul travel would benefit from further expansion. Besides the anticipated inbound increase, BMI also expects outbound travel from Romania to show slow but steady growth throughout the forecast period, to reach close to 15 million in 2017, up from 13.8 million in This growth is based on the gradual improvements expected in the Romanian domestic economy, as more people have disposable income for travel. Considering the hopeful anticipated trends, the hotelier industry will naturally mark a growth, with several hotels marking their entrance on the market. The CEE zone is a promising land for hotelier investments coming from large hotel groups and individual investors. Advantages of Romania s underdeveloped shoreline and the decreasing prices for real estate are some of the reasons to sustain the expectations. A selection of this reasons have been selected below: new properties at a range of locations, reflecting wider growth in the Romanian hotel market. Two years ago, National Institute of statistics counted hotels in Romania, 73 up compared with In 2011, the number of hotels in Romania increased 8 percent compared with 2010 and 14 percent compared with Until 2008, the growth rate on this segment reached an average of 4 percent. By 2017, BMI expects the number of hotels in Romania to reach over 1,490, up from 1,380 in our forecast period to 2017, rising from 4.13mn passengers in 2013, to 4.56mn in International film festival, Bucharest Music Festival, Enescu Festival, and various other cultural events. The country also the CEE, this quarter BMI has given Romania an overall Tourism Industry Risk/Reward rating of 45.61, placing it in 23rd place out of 25 countries in the CEE region. In the case of inns and small hotels, the trend was reversed compared with the evolution on hotels market. In 2009, the number of hospitality units registered as pensions increased 7 percent compared with 2008, but, after the economic turmoil hit stronger, the growth rate diminished to 1 percent in 2010 and even decreased by 2 percent in Against the growing trends in numbers, the occupancy rates of either hotels or smaller hospitality units do not post encouraging figures. For instance, in 2007, the hotels reached a maximum of 42 percent according to Eurostat. The report states that this rate decreased to 29 percent in 2010 and slightly increased in In the case of pensions and similar hospitality facilities, the occupancy rates states at a half, with a maximum of 22 percent registered in 2007 and In 2010, the occupancy rates for pensions were only of 15 percent. A NICHE WORTH INVESTIGATING The beauty of economy is that industries interconnect and influence one another. So it is the case of medical services in
193 2013 EDITION Major Companies in Romania 193 Romania that offer much cheaper solutions compared with other countries, so far. Until this will change, Romanian tourism can find in medical tourism a welcoming money resource and growth engine. However, for this to maintain as trend, Romania needs also a coherent reform for improving the infrastructure and promotion of these health and wellness services. And the niche of medical tourism comes not only from foreign visitors as for Romanians living abroad and seeking to receive medical services less if it, they get to visit Romania and further export the image of what Romanian tourism has to offer. The statistics show that more than 2 million Romanians from abroad come yearly in Romania for treatment and leisure. An Insight Market Solutions assesses Romania's medical tourism market at about EUR 189 million, most of them being represented by spa and wellness services. But, according to official data of BMI, so far, out of the country's 40 national interest spa resorts, only five are certified, with another 10 undergoing the process. Sadly, insolvencies pour in this area, tourism being in the top of the most troubled industries in this respect. According to recent data of for insolvencies after this year s first nine months, out of a total of insolvency files registered since the beginning of this year. HOTEL OPENINGS EXPECT BETTER TIMES A study published by hotel and tourism consultant openings in Romania, following an investment of near 600 million Euro. The big international chains were expected to contribute to this amount, following their expansion strategies all over Romania. For instance, Accor, with a local presence of six hotels, plans to emerge locally with two of its brand portfolio. Also, the brand managers from Marriott and Wyndham announced the opening of Courtyard and respectively, Days Inn. According to a statement of Marriott, the 147-room Courtyard by Marriott Bucharest will operate a tourism-based company owned by the former football player, is expected to open in early Monthly net occupancy rates of bed places, March 2013 Country Occupancy rate (%) EU Austria 51.3 UK 45 France 43.8 Belgium 39.4 Switzerland 38.2 Italy 37.4 Germany 35 Czech Republic 33.5 Norway 32.5 Hungary 29.6 Poland 27.7 Lituania 27.5 Russia 24.7 Bulgaria 22 Romania 18.7 Source: Eurostat. However, due to the often mentioned economic turmoil, since 2998, very few hotelier deals happened on the local market, with the most known and recent, the sale of Ibis Hotel in Sibiu. In November 2011, businessman and hotel with UniCredit Leasing Corporation for the EUR 10 million worth hotel. The following years could state for a dynamic expansion strategy of another high-awareness hotelier brand in Romania, Hilton chain. The company s representatives stated during this year that local market might see around seven new openings countrywide under the Hilton-own brands Hampton, Double Tree and Hilton locations at Bucharest and Sibiu.
194 MCR Opinion JAVIER GARCIA DEL VALLE, CEO Happy Tour The New Age of travel companies Business nowadays, no matter the field of activity, puts a manager in the position of being both actor and spectator of a fast forward play. Everything is developing rapidly, consumer behavior is changing, processes are more complex, requests are higher and our most important job is to find ways to keep the these changes regard both our business-to-consumer attitude, as well as our business-to-business one. We are not only selling a travel package, a plane ticket or booking a hotel room, we are travel consultants. We help our customers to find a travel package (both for business or holidays purposes) suitable to their needs and budget, optimizing it while offering them the necessary advice so that they choose the right option and staying in touch for any request or consultancy during their trip. In the past two years, the behavior of the Romanian tourist in terms of holidays is starting to change. We are facing now a better-informed consumer, which takes more time to choose its holiday destination, who prefers several trips per year rather than just one and with better services included. More and more Romanian tourists book their holidays ahead, taking advantage of the early booking offers. For example, if a family books their summer holiday in January February, they could get up to 45% discount on the travel package. The Romanian traveller is not looking anymore for the cheapest option, but he is seeing the holiday as a well-calculated investment. This, in my opinion, is underlining a more mature vision of traveling. Another challenging environment is in the Corporate Business Trips department as for this kind of services the time of response and the price are the most valued aspects in the decision making guide and help our corporate clients to control their travel expenditure. There are cost-monitoring tools which are nowadays compulsory for any company and which are provided free of charge to corporate clients. It is important to invest in human resources and technology and not to undersize the department although margins in this segment of travel are constantly being reduced. But this is not the only change we are facing; modern Corporate Travel agencies are developing new departments for specialized services, such as the M.I.C.E. department (Meetings, Incentives, Conventions and Events), which is an important complement to the travel offer. These departments handle conferences and events hosting from few to hundreds of participants, with limited or large budgets and, in all cases, with innovative ideas. Their biggest advantage is the ability of a professional team in developing a concept, fulfilling the clients need while using their corporate and/or leisure travel connections to access to better prices, conditions and suppliers. Last but not least, a trend that Happy Tour is proud to have introduced in the Romanian travel industry is the affiliation system for travel agencies across the country. Basically, through this affiliation system, we have had the opportunity to geographically expand our brand by helping small to medium sizes local travel agencies to improve and develop their business. We offer to our Associated Agencies our know-how, tech licenses, special conditions from our partners, and we invest in developing a common business and brand together. counted in more than 92 points of sale located in more than 50 cities all over Romania. We live in a very challenging environment and, as the leader of the travel market in Romania, we have no choice but to adapt to keep fulfilling client s demands while settling the trend of this industry. THE ROMANIAN TRAVELLER IS NOT LOOKING ANYMORE FOR THE CHEAPEST OPTION, BUT HE IS SEEING THE HOLIDAY AS A WELL-CALCULATED INVESTMENT.
195 2013 EDITION Major Companies in Romania 195 TRAVEL AGENCIES RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 PERFECT TOUR SRL ,000, ,047, EXIMTUR SRL ,059, ,766, Cluj-Napoca, CLUJ 3 J INFO TOURS SRL ,304, , WECO TMC SRL ,649, , BUSINESS TRAVEL TURISM SRL ,412, ,409, OLIMPIC INTERNATIONAL TURISM SRL ,152, ,476, PARALELA 45 TURISM SRL ,566, ,699, HOTELAIR SRL ,234, , VOLARO STUDENT ADVENTURE SRL ,837, , HAPPY TOUR SRL ,936, , ACCENT TRAVEL & EVENTS SRL ,863, ,028, ROMANIA TRAVEL PLUS SRL ,303, , AEROTRAVEL SRL ,783, , MANRED INTER SRL ,929, ,883, Constanta, CONSTANTA 15 TRANSILVANIA TRAVEL SA ,778, , PALOMA TOURS SRL ,231, , MAREEA COMTUR SRL ,053, , Deva, HUNEDOARA 18 DANCO PRO COMMUNICATION SRL ,290, , MARSHAL TURISM SRL ,512, , WENS TOUR SRL ,910, , Bistrita, BISTRITA-NASAUD 21 SUNMEDAIR TRAVEL & TOURISM SERVICES SRL ,964, , PROMPT SERVICE TRAVEL COMPANY SRL ,856, , PRESTIGE TOURS INTERNATIONAL SRL ,904, ,793, PARAVION TOUR SRL ,326, ,288, TRANSMIXT SA ,841, , Sibiu,SIBIU SECURITY COMPANIES RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 CASSIDIAN ROMANIA SRL ,829, ,463, INTERGUARD GRUP SRL ,568, ,857,043 1,668 3 SCORSEZE SECURITY INTERNATIONAL SRL ,541, ,423,759 3,060 4 ALISTAR SECURITY SRL ,153, ,464, G4S CASH SOLUTIONS SRL ,865, ,352,111 3,391 6 GRUP EST SECURITY SRL ,510, ,002,793 2,034 Piatra Neamt, NEAMT 7 CONCEPT CONSULT & PROSPECT SRL ,918, ,791, SECURIT FORCE SRL ,947, ,461, ROMPREST SECURITY SRL ,490, , Otopeni, ILFOV 10 G4S SECURE SOLUTIONS SRL ,794, ,516,152 3, CIVITAS PSG SRL ,496, ,058,636 1,552 Craiova, Dolj 12 ZIP ESCORT SRL ,946, ,683,084 1,000 Constanta, CONSTANTA 13 GLOBAL SECURITY SISTEM SA ,349, , TIGER PROTECTOR COMPANY SRL ,254, ,503 1, AGENTIA ROMANA DE SECURITATE SRL ,841, ,472, RASIROM RA ,993, ,103, BGS DIVIZIA DE SECURITATE SRL ,498, ,075 2, SECURITAS SERVICES ROMANIA SRL ,132, ,136,646 2, NEI GUARD SRL ,337, ,286 1,608 Voluntari, ILFOV 20 HELINICK SRL ,011, ,321, ROSEGUR SA ,143, ,917,665 2, GUARD ONE ALARM SYSTEMS SRL ,398, ,
196 MCR BUSINESS SERVICES HOTELS AND SIMILAR ACCOMMODATION RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 ACCOR HOTELS ROMANIA SRL ,174, ,085, ANA HOTELS SA ,830, , PROLEX HOLIDAY SRL ,376, ,108 - Unghieni, NEAMT 4 BALNEOCLIMATERICA SA ,506, ,904, Sovata, MURES 5 SOCIETATEA COMPANIILOR HOTELIERE GRAND SRL ,167, ,269, SIND TOUR TRADING SRL ,837, ,133, CSDR SIND TURISM SRL ,234, ,929, ARO-PALACE SA ,902, , Brasov, BRASOV 9 BUCURESTI TURISM SA ,503, , TURISM FELIX SA ,923, ,948, Baile Felix, BIHOR 11 COMPANIA HOTELIERA INTERCONTINENTAL ROMANIA SA ,585, , VALDOR SRL ,225, ,067, Slanic, PRAHOVA 13 SCORPION PROD SA ,857, , Mamaia, CONSTANTA 14 ALPIN 2003 SRL ,078, ,047, Poiana Brasov, BRASOV 15 CONFORT HOTELS SRL ,217, ,178, PARC HOTELS SA ,308, ,948, DE SILVA RTH SRL ,086, ,289, CALIMANESTI CACIULATA SA ,922, , CONTINENTAL HOTELS SA ,092, ,762, CALEX BUSINESS GRUP SRL ,810, , UNITA TURISM HOLDING SA ,002, ,640, Timisoara, Timis 22 GRAND PLAZA HOTEL SA ,062, ,509, BUCHAREST FINANCIAL PLAZZA SRL ,130, ,490,452 3 PRINTING SERVICES RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 COMPANIA NATIONALA IMPRIMERIA NATIONALA SA ,854, ,446, IMPRIMERIA ARTA GRAFICA SA ,245, ,146, PARAGON ROMANIA SRL ,484, ,892, Otopeni, ILFOV 4 RODATA SRL ,999, ,484, MONITORUL OFICIAL RA ,858, ,767, ASAS (ROMANIA) SRL ,730, , Sat Buciumeni, CALARASI 7 PRINT PACK PROD SRL ,350, , AMMA PRINT SRL ,637, ,537, JMI RO SRL ,883, ,432, Oradea, BIHOR 10 IMPRIMERIA BANCII NATIONALE A ROMANIEI RA ,578, ,177, ROTTAPRINT SRL ,816, , Apahida, CLUJ 12 INFOPRESS GROUP SA ,916, ,816, Odorheiu - Secuiesc, HARGHITA 13 NOVIS CASA DE EDITURA SI TIPOGRAFIE SRL ,432, , Cluj-Napoca, CLUJ 14 TIPOGRAFIA EVEREST 2001 SRL ,472, , EVADIX MPI SRL ,549, , BEST PRINT SERVICES SRL ,445, , COMPANIA NATIONALA A IMPRIMERIILOR CORESI SA ,215, , INFORM LYKOS SA ,238, ,280, ART GROUP INT SRL ,892, , G CANALE & C SRL ,022, ,799, Pantelimon, ILFOV 21 EDS ROMANIA SRL ,990, ,068, CONPHYS SRL ,626, , Ramnicul Valcea, Valcea 23 COMPANIA DE PRODUCTIE INTERTAINMENT SA ,889, ,354, TIPOGRAFIA REAL SRL ,939, , MEGA PRESS HOLDINGS SA ,912, ,337,445 43
197 2013 EDITION Major Companies in Romania million EUR is the estimated value of the local media market for 2013, with online the only channel on an ascending trend - +21% in 2012 Media & Advertising ADVERTISING AGENCIES MEDIA AGENCIES PR AGENCIES
198 MCR MEDIA & ADVERTISING Digital market going strong Mihaela Matei, Supervising Associate - Marketing & Communication, EY Romania Media, advertising & PR industry is estimated at around EUR 800 million in 2012, according to our calculations based on Major Companies data. In USD terms, the market surpassed the 1 billion threshold in The lion part of the market is media & advertising, with more than 90% of the revenues. According to the 2013 edition of the Media Fact Book (by Initiative Media), in 2012 only the media segment reached EUR 303 million, registering a small decrease of 2% compared with 2011, when the market was estimated at roughly EUR 309 million. Initiative Media projects the slowdown to continue in 2013, when the media segment is estimated to reach EUR 295 million. Media budgets were unevenly spread between the media channels, with online the only channel on an ascending trend (+21% in 2012 versus the previous year), with growth being driven by Facebook ads and Google AdWords. This trend is expected to continue in 2013 and Online keeps a well-deserved second place between the preferred channels of sponsors and advertisers, however at a huge distance from the number one channel. TV remains on the first place, with almost 2/3rds of the segment, with EUR 193 million. Figure 1. Evolution of Ad Spend by Media ( ) Top sponsors in the media during 2012 were telecommunication (especially mobile operators) with EUR 39 million, followed by cosmetics, hygienic and hair care in the second place at EUR 36 million, medical & optical products & services dropped from the second place to the third at EUR 30 million, while retailers reached EUR 12 million and beer, chocolate products and other sweet specialties combined reached EUR 46 million. Speaking about the channel with the strongest potential, online media registered a value of EUR 22.4 million in 2012, according to ROADS, the study issued by IAB Romania, which represents only 54% of the estimated sum by Initiative Media, which extends to EUR 41 million in Initiative Media estimated for 2013 a growth of 12%, the online media market possibly stretching to EUR 46 million. When referring to the market potential, we should keep in mind the internet users behavior and how it changes over the years. While the age group registered a decrease of 8% between and the group years old stayed almost constant (+1%), the users over 50+ years old registered a spectacular growth y-o-y: +24%. This could mean that content should tend to reach a more mature and conservative audience. In the same time, users with less than 7 grades or attending vocational school are increasing their internet usage with 30% growth and 19%, respectively. During the same period, , the users with university degree stayed almost constant (-1%). Regarding frequency of use, while daily users decreased by 2%, the several times per week and several times per month users are increasing with 19% and 27%, respectively, which means that new users, most probably in the 50+ age group, do not become daily users of internet Two other factors that show the digitalization of Romanians, frequency of online products/services buying and online banking usage, indicate that the traditional reluctance to buy online starts to fade away: the number of users that sometimes buy online more than doubled in 2012 versus 2011, growing with 122%. In the same period, the frequent users of online banking rose by only 8%. Internet OOH Radio Print TV Source: Initiative Media, MediaFactBook Romania The growing combination of TV and online channels used by brands in advertising campaigns show that advertising
199 2013 EDITION Major Companies in Romania 199 Figure 2. Digital Market Segmentation 2012E 37% 5% 4% On a short to medium term, according to the Entertainment and Media Outlook Report (by PWC) referring to a larger industry, encompassing media and entertainment, the market will register the third highest growth rate in the CEE between 2013 and 2017, starting from USD 2.44 billion in 2012 and reaching USD 3.53 billion at the end of the period. 54% Facebook Display Yahoo Google AdWords Source: : Initiative Media, MediaFactBook Romania agencies should become more adapted to the online medium. According to Initiative media, the growth rate of display ads in 2012 in online can be explained through more engaging and more generous ad formats, doubled by special projects. Even if large groups have digital divisions, there is still a long way to go until most of the growing online potential is capitalized in advertising campaigns. However, the growth for the entire online market can be explained largely not through display ad growth, but through Google AdWords and Facebook ads, the two players that offer ease of use for advertisers and the largest audience. For Romanian publishers not to be crushed by the two giants, they have to be extremely innovative and unite to reach large numbers of views in order to efficiently compete against Google and Facebook. In top ten of advertising agencies by revenues, the traditional McCann Erikson, Leo Burnett, MGA Metro Group, Graffiti/BBDO, Grey Worldwide, Odyssey, FCB Bucharest and Saatchi&Saatchi remained in top.
200 MCR MEDIA & ADVERTISING ADVERTISING AGENCIES RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 BV MCCANN ERICKSON SRL ,984, ,627, GREY WORLDWIDE ROMANIA SRL ,031, ,614, BRANDS TALK ADVERTISING SRL ,196, , MGA METRO GROUP ADVERTISING ROMANIA SRL ,459, , LOWE & PARTNERS SA ,876, , OGILVYACTION ROMANIA SRL ,905, ,009, OGILVY & MATHER ADVERTISING SRL ,765, , LEO BURNETT & TARGET SA ,947, , FCB BUCHAREST SRL ,186, , GREATER AD SRL ,128, , FRONT LINE MARKETING SRL ,836, , AGENTIA DE PUBLICITATE MEDIA CENTER SRL ,558, , GRUPUL PUBLICIS COMMUNICATION 13 SERVICES BUCURE ,556, ,085, SAATCHI & SAATCHI SRL ,924, , MEDIA CONSULTA INTERNATIONAL SRL ,395, ,439, GRAFFITI/BBDO SA ,811, , NEXT ADVERTISING SRL ,167, , VITRINA FELIX MEDIA SA ,168, , Cluj-Napoca, CLUJ 19 DDB BUCURESTI SRL ,757, , ODYSSEY COMMUNICATION SRL , ,031, PR AGENCIES RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES 1 GMP PUBLIC RELATIONS SRL ,475, ,308, GRAYLING SRL ,223, ,205, UNITED MEDIA CORPORATION SRL ,261, , GRAFFITI PUBLIC RELATIONS SRL ,574, ,647, DC COMMUNICATION SRL ,813, ,662, GOLIN HARRIS PUBLIC RELATIONS SA ,922, , FREE COMMUNICATION SRL ,058, , SYNERGY GROUP SRL ,642, , PEPPER COMMUNICATION SRL ,541, , ROGALSKI GRIGORIU PUBLIC RELATIONS SRL ,864, , BDR ASSOCIATES COMMUNICATION GROUP SRL ,689, , ACTION GLOBAL COMMUNICATIONS SRL ,574, , PRAIS CORPORATE COMMUNICATIONS SRL ,700, , PATRU ACE SRL ,135, , ACTIVEPR SRL ,917, , NICOLA &PARTNERS SRL ,316, , MCGUIREWOODS CONSULTING SRL ,869, ,011, MATHER COMMUNICATIONS ROMANIA SRL ,591, , IMAGE PUBLIC RELATIONS SRL ,234, , GAIN CONSULTING SRL ,733, ,883 - CONTACT
201 2013 EDITION Major Companies in Romania 201 MEDIA AGENCIES RANK COMPANY NAME MCR SCORING ANNUAL TURNOVER TURNOVER RANKING PROFIT/LOSS NO OF EMPLOYEES CONTACT 1 STARCOM MEDIAVEST GROUP SRL ,690, ,690, ZENITH MEDIA COMMUNICATIONS SRL ,716, ,141, THE MEDIA PARTNERSHIP SRL ,695, ,296, MEDIA INVESTMENT COMMUNICATION SRL ,930, ,122, MEDIACOM ROMANIA SRL ,793, ,730, CLEAR CHANNEL ROMANIA SRL ,081, ,320, INITIATIVE MEDIA SA ,655, ,230, UNITED MEDIA SERVICES SRL ,967, , OPTIMEDIA SRL ,600, ,938, MEDIA-TIQUE SRL ,700, ,205, MINDSHARE MEDIA SRL ,713, , MEDIAEDGECIA ROMANIA SRL ,831, ,373, MEDIA LINK COMMUNICATION SRL ,729, , BRAND CONNECTION SA ,586, , MERCURY360 COMMUNICATIONS SRL ,733, , MEDIA SERVICE ZAWADA SRL ,307, , BABEL COMMUNICATIONS SRL ,233, , SPOON MEDIA SRL ,762, , HOUSE OF MEDIA SRL ,587, ,785, MEDIA PLANNING GROUP (MPG) ROMANIA SA ,547, , NEW AGE ADVERTISING AGENCY SRL ,861, , Craiova, DOLJ 22 NEWS OUTDOOR ROMANIA SRL ,950, ,529, ZENITH MEDIA SRL , , DBV MEDIA HOUSE SRL ,844, , MEDIA DIRECTION SRL ,765, ,150, CARAT ROMANIA SRL ,405, , NETBRIDGE SERVICES SRL ,554, ,420, CLIR MEDIA GROUP SRL ,451, , APROPO MEDIA SRL ,165, ,480, SPLENDID MEDIA SA , ,485,400 6
202
203 2013 EDITION Major Companies in Romania % of the GDP represents the budget assigned for the healthcare system in 2013, with 0.4% increase compared with 2012 Healthcare MEDICAL CENTERS DENTAL CENTERS
204 MCR HEALTHCARE Scanning the healthcare sector Bogdan Ţenu, Senior Manager Transaction Advisory, EY Romania Atena Miţucă, Consultant Transaction Advisory, EY Romania ALL QUIET ON THE HEALTHCARE FRONT During 2012, the domestic public healthcare system continued to embody underfunding and relatively poor quality (according to IMF Country Report) and to depict the lowest level of spending in Europe 1. Most of the local downsides were still referring to financial imbalances, low spending levels and poor services. However, a step ahead is represented by the on-going computerization process, which encompasses the following: introduction of electronic prescription, implementation of the integrated computer system (i.e. an electronic database comprising patients names, medical staff, hospitals and rendered services) and health card introduction. The entire project, valued at approximately EUR 132 million and mainly financed by European funds, is part of a reorganisation of the health sector. At the beginning (January 2013), this process encountered some barriers, from an operational point of view. Even though pharmacists and family doctors perceived this as a bureaucratic operation, at national level, the platform offers a real time status on the evolution of subscriptions and minimizes the fraud risk for the compensated subscriptions. During the first seven months of 2013, there were 28.1 million electronic prescriptions, out of which 26.4 million issued, and family doctors registered in the system. Expectations are far from being rosy, but not very worrisome either, as most of the specialists foresee a stagnating background in healthcare. Following several years of strong investments ( ), the private healthcare sector is currently lounging around, focusing on consolidation, but enjoying more confidence from population. In spite of fatigue signals revealed recently, the sector is still amongst the most dynamic ones in Romania, with annual growth of 15% in 2009, 10% in 2010 and 20% in In fact, during , Romania ranked third amongst Central Eastern European countries in terms of M&A deals, with 11 transactions closed compared to a performance mark of 50 deals in Poland and 32 finalized projects in Turkey. Currently, the Romanian private system numbers 55 hospitals out of a total of 479 units within the entire Healthcare sector, with a significant potential for further privatisation. Actually, our local system outweighs its counterpart industry in well-developed peers such as Hungary or Slovakia, but is outperformed by healthier sectors in countries like Poland, Czech Republic or Turkey, where local and foreign investments are highly encouraged by the State. For the current year, the local Healthcare sector was allocated EUR 6.2 billion, representing 4.4% of the GDP (i.e. EUR 145 billion) a mark slightly lower than the CEE level average of 6.7% and the one for Western European countries 9.8%. Compared to prior years, the difference is quite noticeable, as in 2012 the relative GDP contribution to Healthcare amounted to 4% (EUR 5.44 billion out of EUR 135 billion) and in 2011 to 5% (i.e. EUR 6.85 billion out of EUR 137 billion) 2. PRIVATE HEALTHCARE INVESTMENTS ARE AT REST Even though the private healthcare market proved to be one of the most dynamic ones during turmoil times, consolidation Figure 1. Private Healthcare Sector in Romania Figure 2. Public/Private Hospitals in CEE in 2012 EURm % % % 14.8% % % % 5.6% f 2013f 2014f 2015f Turnover Annual growth Source: Ziarul Financiar and WHO. 20% 15% 10% 5% 0% Public Private Poland Bulgaria Czech Republic Croatia Estonia Greece Hungary Latvia Lithuania Romania Serbia Slovakia Slovenia 1 IMF Country Report, October Pro East Consulting, Private Healthcare Market in Romania, July Turkey
205 2013 EDITION Major Companies in Romania 205 signs were eventually revealed in 2012, a time when past investments were coming close to maturity. Top ten private healthcare providers amounted to EUR 230 million in terms of investments. The five leading players recorded significant growth due to expansion strategies and ascending market shares, which were achieved based on low income generated by small competitors and on agreements concluded with multinational companies for employees subscriptions. In 2012, the healthcare sector of private ownership, mainly supported via cash and subscriptions paid by patients, reached EUR 500 million, with growth rate of 20% from one period to another 3 and an increasing proportion of urban population being provided at least once with healthcare services shifting from 57% in 2009 to 80% in Out of the total revenue attained in 2012, EUR 45 million were reimbursed by the State. Figure 3. Top healthcare providers in 2012 by turnover (EUR million) MedLife Regina Maria Medicover Sanador Gral Medical Others 62% Source: EY analysis and Ziarul Financiar. As depicted in the chart above, MedLife was the absolute leader of the market in 2012, with a turnover of EUR 59 million, a result of an intensive investment programme started in 2011, which is estimated to be finalised in Financing from the International Finance Corporation and Banca Comerciala Romana enabled the company to expand its operations and also to open other medical units in Bucharest and various cities of Romania. In the first half of 2013, MedLife recorded a 17% revenue growth and is currently planning to open MedLife Genetics, focusing on Genetics and Molecular Biology. Revenues generated by subscriptions represent 30% of MedLife turnover with medium impact on the total business, as per Mr. Marcu, the company s CEO. Second player in 2012, Regina Maria, and insurance company Groupama launched in March 2013 a co-branded health insurance product for Romanian individual, corporate and SME consumers, Asigurarea Medicala Integrala (Complete Medical Insurance) -, an innovative package on the local market which covers all types of services rendered by the healthcare provider. The same strategy, but headed towards another target, was pursued by its main competitor MedLife, % 3% 10% 5% 8% who launched together with insurer Generali a health insurance for up to 64-year old individuals. Both players identified an area with vast potential within the market, taken into consideration the fact that ordinary subscriptions offered by private medical companies do not cover surgery treatments, whilst this type of insurance does. According to its CEO, Regina Maria s growth during 2013 first semester was of 23%, with further one to be generated by new services, recruiting new medical teams and investing in IT. As opposed to its more prominent peers, Medicover opened its first private hospital in 2012, as a result of a EUR 20 million investment, with annual expected return of EUR 4 million, based on a BMI analysis. Its strategic path is not difficult to notice, as such a serious investment requires great deal of recoverability time. Furthermore, according to the company s CEO (Mr. Adrian Purcarea), subsequent moves comprise the hospital s development and increased profitability of the operations located in Romania. Gral Medical, other market performer in 2012, recently opened its first private hospital in Bucharest concentrated on Oncology therapeutic area Oncofort following an investment of up to EUR 7 million. Further expansion plans involve a laboratory centre in Ramnicu Valcea, intended to function as regional hub. Except for opening new medical units, acquisitions were the following strategy pursued by domestic players in order to gain market share. Although the number of transactions in the private healthcare is still low, being an emerging sector, we note the acquisition of Sanostar clinic located in Sibiu by Gral Medical, with whom it actually developed a long lasting trade relation. In 2013, the market almost stagnated in terms of new entrants, with one newcomer - Monza hospital, part of the Italian group Policlinico di Monza -, which foresees EUR 4 million turnover in 2013, expecting to reach the breakeven within 5 years, by spotting EUR 20 million accumulated revenue. Another group announcing its penetration on the Romanian market is Turkish group Bozlu, which is opening a private medical centre towards year-end, following an investment worth EUR 15 million. EXPECTED TRENDS FOR THE COMING YEAR IN ROMANIA - Maturity of investments in private healthcare facilities. - Increasing revenue generated from long-term hospitalisation, as patients would drift from public sector to the private one. - Development of oncology clinics with ambulatory radiotherapy services. - Increasing private medical subscriptions to the detriment of private health insurance. - Concentration on hospitals or medical facilities specialized in one field. - Increase of the supply of services provided by private healthcare. - Modernisation of existing treatment centers.
206 MCR Opinion A strong dentistry market: an illusion or an achievable goal? Dr. OANA TABAN, CEO & Founder DENT ESTET Romanians still lack the culture of maintaining a healthy lifestyle. When it comes to oral health, we still go to the dentist in the final stage of a dental problem, when pain is installed and the treatment requires more complex and expensive procedures. One of the major causes of this alarming situation is the poorly managed health system in Romania and the lack of sustained education. However, the private sector has brought a great contribution to the improvement and optimization of local dental services. CARE FOR YOUR PATIENTS, HELP THE MARKET, BUILD A STRONG BUSINESS The challenge before us is finding the best methods to develop the market and, implicitly, create better and more relevant services for the patients. This is where innovation comes into action and a model worth following for this purpose have been the Western markets. Bringing and adapting new concepts created by the countries where oral hygiene and health education have already surpassed the barriers we are still confronting with today is a valid solution to the problems of our market. This is how your business consolidates and gains credibility but also helps raise the standards of the industry. Higher standards mean a stronger market and also more satisfied patients. WE HAVE SHINY OFFICES AND HIGH-END TECHNOLOGIES, BUT WHAT ABOUT THE OVERALL SERVICES? A trend that I have noticed in recent years is that many clinics introduce ultra-performant technologies and modernize their offices, but still ignore what should be a main priority: the quality of overall services. Starting from unprofessionally handling appointment inquires, omitting to fully inform patients about their dental status and potential treatment solutions to ignoring important internal aspects such as financial, administration and even marketing activities. Now, I am not disapproving with the modernzation of the offices and the new technologies used by doctors, which is a commendable attitude in any sense, but I have to point out the fact that the patient will rate you for the quality of his/her entire experience at the clinic and every little aspect is vital. This is where the American model offers a great deal of inspiration that I have used in the development of DENT ESTET. However, adapting a model that successfully functions on other markets is not all about introducing modern technologies and specializing doctors in the most advanced techniques. Innovation means to adapt new services to the local market and make them relevant for Romanians. The difference of mentalities and behaviour between various countries influences your business strategy and the way you communicate with your patients. What works for Americans might not be perfectly suitable for us and might need adjusting in order to be efficient. THE WORK OF YOUR NON-MEDICAL TEAM IS AS IMPORTANT AS YOUR DOCTORS' WORK A successful business in dentistry is undoubtedly led by the quality of your doctors' work and the quality of their treatment. But investing in the specialization of your medical team is not enough, every member of your team is responsible for how strong your practice is and is seen. Nowadays, most doctors who own their office also manage the administrative and organizational tasks and, in many cases, this generates a disorder inside the practice. Delayed scheduals, lower quality of the treatments and a poor administration of the business are only a few of the consequences. Having a specialized team to handle the internal obligations will determine a noticeable improvement both in the doctor's performance and the overall functioning of the office. This was the insight that gave birth to a new project my team and I are about to launch: the first school for Dental Office Managers in Romania, destined to the non-medical personnel. With the support of the American Association of Dental Office Managers we are able to bring to our country a tool that I believe will completely boost the local dentistry market's value. All in all, Romania still has a great growth potential when it comes to dental services. With the right tools and the right ideas we can contribute to achieving this goal and create a healthier environment.
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