Henkel's Romanian subsidiary ranked 7th last year among thegroup's companies, posting the biggest EBIT in Central and EasternEurope, where the German producer operates on 32 markets.
Liviu Sfrija, chairman of Henkel Romania, is betting on a marketshare and consumption increase in order to bring the group bigprofits over the next few years.
In Romania, the company recorded an over 10% EBIT margin,according to the Henkel manager. The producer of Persil and Purdetergents reported a 571 million-RON (135 million-euro) turnoverlast year, down 3% against 2008, with the adhesives division(Loctite, Moment) accounting for half the turnover. The otherdivisions of Henkel Romania are the detergent and the cosmeticsdivision (Taft, Palette).
"It's a lottery whether we will preserve our position in 2010 ornot. If no economic disasters occur, we may achieve it," Sfrijasays.
But how will the company deal with the pressure on low prices?In the food industry, for instance, it caused small producers tobecome insolvent."
"The price is close to becoming the only criterion when choosinga product. Producers' response is to cut prices, but this is notnecessarily reflected in the profit. There are market segmentswhere, if you come up with cheaper products, you can boostconsumption, which saves the profit," says the Henkel manager.
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