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Unisistem counts on direct distribution to construction sites

Unisistem counts on direct distribution to construction sites

Unisistem Grup, a construction materials distributor controlled by Stoicea family, expects its turnover to rise by around 20% this year, to 12m euros, because of the expansion of services to builders, generating 80% of the company's sales.
Dan Stoicea, the general manager of Unisistem Grup, bets on the direct distribution of construction materials to construction firms' sites for the following years, this way avoiding the onslaught of major international DIY networks that is harming small retailers' businesses.
Unisistem Grup works with around 12,000 construction firms to which it delivers complete packages of construction materials, and it plans to increase its number of customers in the following years.
"We are mainly targeting medium and large construction firms, but also workers who set up their own construction firms. We're less interested in the retail segment because this sector is going to be dominated by DIY in the following years," states Stoicea.
According to him, around 400 small stores specialised in the distribution of construction materials have disappeared in the past three years, with the number of such stores currently amounting to 800.
Even though the share of retail activities in Unisistem Grup's turnover has doubled in the past three years, to around 20%, the group's investments will be aimed at the sector of builders. "We will further develop services aimed at builders by expanding our car fleet and the extending the operating hours at warehouses until 10 or 11 p.m.," explains Stoicea.
The company currently has 20 vehicles of 3.5 tonnes delivering materials directly to constructors' sites, and is to double its fleet by the end of 2009.
Unisistem Grup is made up of LIV International and Unisistem Construct companies, owning 10 warehouses and three logistic centres in Bucharest and Craiova.
Unisistem Construct, set up in 1997, is held by Stoicea family and by a Dutch shareholder and distributes plasterboard manufactured by Austria's Knauf group.
Stoicea says he has received several takeover bids from investment funds, which he has rejected so far.
The group's main rivals on the segment of distribution to builders are Arabesque and Baduc, while the group competes with major retail networks in retail.

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