After having developed one of the biggest paint and varnish businesses on the market, Guzu Chim (now Fabryo), Daniel Guzu announced he would invest more than 4 million euros in the wine industry, which has a high growth potential.
Daniel Guzu, 37, has bought approximately 80 hectares of vineyard in his native Vrancea county since last year.
He intends to buy some more land in the Panciu region, where he wants to build a wine cellar and a mansion.
"I've bought land from a number of owners in the region and I will continue to buy until I've added another 40 hectares to the current area," Daniel Guzu told ZIARUL FINANCIAR. He explained that that the acquisition of land had cost him some 800,000 euros.
Daniel Guzu had been planning to enter the wine market for quite a while. He became the majority shareholder in the biggest wine retailer on the Romanian market, Vinexpert last year.
"I have a great passion for wine and this is why I decided to invest in this sector. I chose the Vrancea region because this is where I was born," he added.
"We anticipate starting production in the autumn of next year," Daniel Guzu said.
He founded paint and varnish maker Guzu Chim, currently Fabryo Corporation, the third-largest paint manufacturer on the domestic market, of which it holds a share of 18%, company data shows.
Swedish investment fund Oresa Ventures bought 49% in Guzu Chim from Daniel Guzu and two other minority shareholders this spring. However, Guzu retained the controlling interests.
The deal was valued at 9 million euros, an amount that includes money collected from the sale of shares and the capital inflow for the company's development. Guzu Chim has recently changed name to Fabryo Corporation, which expects 34 million-euro turnover this year. Daniel Guzu's partner in the Vinexpert business is Catalin Paduraru, a former shareholder of a wine distribution company, who has since left and decided to apply himself exclusively to Vinexpert.
The company owns four stores, three in Bucharest and one in Brasov. Another two stores, one of which online, will open by the end of the year. The new stores should help Vinexpert's turnover exceed one million euros this year.
The businessman is entering a market that has a high growth potential.
Though low in value, about 350 million euros in 2005, the local wine market continues to have growth potential, as investments in this sector increase. Wine consumption in Romania is half of what it was during the two world wars.
Businessman Jean Valvis, the owner of the LaDorna group, one of the biggest players in the dairy industry bought 500 hectares of vineyard in Domeniile Samburesti in Olt County. He announced a 7 or 8 million-euro investment to enter the premium wine market. Valvis said he was planning to relaunch the production of Cabernet Sauvignon of Samburesti.
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