Paint and varnish manufacturer Dufa Romania budgeted a 20% growth in turnover for this year.
"Last year saw investments in marketing, distribution and new products. In 2006, we will take investments in these sectors further, but we will also earmark 4 million euros for the company''s production and logistic capacities," Bruno Negoita, the general manager of Dufa Romania, told Ziarul Financiar.
The new logistic and warehousing capacities will allow for doubling the production volume, according to the company''s representatives.
In 2005, the company derived turnover revolving around 17 million euros, about 23% higher year-on-year. Investment fund Advent International last June took over Dufa paint producer, with the total value of the deal put at about 18 million euros, a sum also including investments worth 15 million euros. The amount included, beside the core activity, namely paint and varnish production, dividends resulting from the 2004 financial year.
"The company''s takeover by Advent International did not bring major changes at the level of management and in terms of the firm''s policy. The management team was confirmed by the new owner for the following period as well," Negoita stated.
Dufa Romania was established in 1997 by the German group Meffert AG, which created a paint and varnish distribution joint venture together with a group of Romanian investors.
Prior to the takeover of the entire stock, Meffert owned 50% in Dufa Romania, while Marius Ivan, the general manager of Henkel Bautechnik Romania, held 40%, and Liviu Stan, the former general manager of Dufa , 10%.
"The number of employees has been rising since the company was taken over by Advent International. Between June 2005 and the end of last year, the number of employees surged by over 10%. By the end of March, we estimate we will have 130 employees," says Negoita.
At present, the company sells paint and varnish only on the Romanian market, where it owns a market share of 21%, in line with its own estimations. "In 2006, we will consider export opportunities to neighbouring countries and we will launch export activities," states Negoita.
This year, Dufa will introduce some new products onto the market and will add to its production capacities some goods that are currently imported from Germany. Thus, 95% of sales will come from domestic production. Water-based paints for interior and exterior walls account for the largest proportion of turnover.
The decorative paint market will this year reach a value of around 90-95 million euros, 8-10% more than last year, in line with data presented by the company.
catalin.lupoaie@zf.ro
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