MCR 2013_Editia print - Major Companies of Romania

Transcription

MAJOR
COMPANIES
IN ROMANIA
2013
MCR
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2013 EDITION Major Companies in Romania
3
CONTENTS
FROM THE EDITOR
FOREWORD - Tracing the entrepreneurial spirit in Romanian industries
- Bogdan Ion, Country Managing Partner, EY Romania
MCR RANKING METHODOLOGY
TOP 300 MAJOR COMPANIES IN ROMANIA
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
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
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
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
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
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
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79
85
93
97
105
115
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
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
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
INDUSTRIAL ENGINEERING
New business models: The merge of manufacturing and services
TOP Industrial engineering
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
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
WOOD, PAPER & FURNITURE
Romanian furniture gets comfy outside
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
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CONTENTS
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
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
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
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
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
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AUTOMOTIVE
Mixed feelings and hampered sales in 2013
- 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
PROFESSIONAL SERVICES
Professional services market beyond 2014
- 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 2012 - 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
BUSINESS SERVICES
Preparing for the better, hoping for the best
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
MEDIA & ADVERTISING
Digital market going strong
- Mihaela Matei, Supervising Associate, Marketing & Communication, EY Romania
TOP Advertising agencies
TOP PR agencies
TOP Media agencies
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
MAJOR
COMPANIES
IN ROMANIA
Edited by:
doingbusiness.ro
General Manager:
Dumitru Ion
Project Manager:
Roxana Neacsu
Project team:
Madalina Athanasiu
Mirela Bobe
Nicolae Ion
Contributors:
Magda Purice
Diana Macovei
Magda Munteanu
DTP & Grafic design:
Marian Caramihai
Sales:
Copyright © 2013
doingbusiness.ro
Strada Prof. Ion Bogdan
nr. 4-6, etaj 4,
sector 1, Bucureşti
Phone: +40 21 528 0408
Fax: +40 21 528 0409
E-mail: offi[email protected]
www.doingbusiness.ro
Printed by
Tipografia Everest 2001
Teodora Danciu
Catalin Luca
Ramona Raicu
Elena Vijoli
Catalin Zafiu
Vasile Sima
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.
Distribution: Major Companies in Romania is distributed for free. Copy available only free
of charge, not for sale.
MCR
7
From the editor
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 2014. 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
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 2014. 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.
MCR
9
MCR Methodology
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 2012.
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
2012. 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.
2013 EDITION Major Companies in Romania 11
74
rank for Romania in overall "Ease of Doing Business"
for 2014 (out of 189 economies)
Top 300 Major Companies
in Romania
See your data for all it’s worth.
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MCR
TOP 300
RANK
COMPANY NAME
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
CANTITATIV
SCOR
CALITATIV
SCOR
COMPANIES WITH ANNUAL TURNOVER MORE THAN 2.5 BLN RON
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
OMV PETROM MARKETING S.R.L.
BRITISH AMERICAN TOBACCO (ROMANIA)
TRADING S.R.L.
ELECTRICA FURNIZARE S.A.
3.963
15,092,697,104
2
253,603,314
4.833
1.350
3.963
6,600,194,988
7
394,479,140
4.833
1.350
3.863
4,441,432,423
13
90,538,488
4.583
1.700
OMV PETROM GAS S.R.L.
SOCIETATEA NATIONALA DE GAZE NATURALE
ROMGAZ S.A.
MOL ROMANIA PETROLEUM PRODUCTS S.R.L.
3.850
3,246,247,190
21
239,414,558
4.917
0.650
3.700
3,842,983,119
18
1,244,049,106
4.250
2.050
3.688
4,147,768,969
16
76,118,480
4.583
1.000
ORANGE ROMANIA S.A.
3.613
4,119,424,689
17
517,785,638
4.250
1.700
VODAFONE ROMANIA S.A.
3.613
3,457,194,964
19
502,157,093
4.250
1.700
OMV PETROM S.A.
3.600
19,510,054,765
1
3,850,620,876
4.000
2.400
MEDIPLUS EXIM S.R.L.
3.588
3,146,688,442
22
62,903,142
4.333
1.350
AUTOMOBILE DACIA S.A.
3.575
12,742,145,319
3
277,239,794
4.083
2.050
KAUFLAND ROMANIA S.C.S.
3.575
6,438,372,297
8
274,507,498
4.083
2.050
SELGROS CASH & CARRY S.R.L.
3.550
3,426,331,788
20
68,597,173
4.167
1.700
CARREFOUR ROMANIA S.A.
3.513
4,288,398,196
15
104,710,446
4.000
2.050
ARCELORMITTAL GALATI S.A.
COMPANIA NATIONALA DE TRANSPORT AL
ENERGIEI ELECTRICE TRANSELECTRICA SA
real,- HYPERMARKET ROMANIA S.R.L.
3.388
5,418,682,167
11
-231,066,763
3.833
2.050
3.388
2,719,196,000
25
47,976,000
3.833
2.050
3.263
2,898,670,491
23
-73,524,283
3.667
2.050
INTERAGRO S.A.
3.250
2,808,818,455
24
202,252,332
4.000
1.000
E.ON ENERGIE ROMANIA S.A.
3.213
5,257,350,295
12
-32,597,692
3.833
1.350
GDF SUEZ ENERGY ROMANIA S.A.
3.213
4,315,829,716
14
209,555,220
3.833
1.350
PETROTEL - LUKOIL S.A.
3.150
6,933,476,358
6
-274,444,325
3.750
1.350
ROMPETROL RAFINARE S.A.
3.113
12,323,113,339
4
297,653,500
3.583
1.700
ROMPETROL DOWNSTREAM S.R.L.
3.113
8,155,062,334
5
-150,017,505
3.583
1.700
LUKOIL ROMANIA S.R.L.
3.050
6,030,862,944
9
-223,080,093
3.500
1.700
RENAULT INDUSTRIE ROUMANIE S.R.L.
3.038
5,431,278,375
10
-19,821,845
3.833
0.650
46
92,225,679
4.833
1.700
COMPANIES WITH ANNUAL TURNOVER FROM 1.0 BLN RON TO 2.5 BLN RON
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
ARCTIC S.A.
4.050
1,372,278,937
PHILIP MORRIS TRADING S.R.L.
3.963
2,281,851,765
8
17,986,737
4.833
1.350
COFICAB EASTERN EUROPE S.R.L.
3.963
1,218,249,074
56
76,274,150
4.833
1.350
DELPHI PACKARD ROMANIA S.R.L.
3.950
1,703,187,728
30
42,549,021
4.583
2.050
HEINEKEN ROMANIA S.A.
3.925
1,180,982,710
58
185,532,896
4.667
1.700
DEDEMAN S.R.L.
3.888
2,410,570,736
4
258,767,227
4.500
2.050
RENAULT COMMERCIAL ROUMANIE S.R.L.
3.875
1,392,502,732
44
33,327,070
4.833
1.000
DISTRIGAZ SUD RETELE S.R.L.
3.863
1,025,701,645
71
108,765,289
4.583
1.700
SAMSUNG ELECTRONICS ROMANIA SRL
3.813
2,378,875,657
6
63,169,015
4.750
1.000
ENEL ENERGIE MUNTENIA S.A.
3.813
2,069,364,349
13
72,388,714
4.750
1.000
AUTOLIV ROMANIA S.R.L.
3.800
1,894,716,682
22
129,830,704
4.500
1.700
HOLZINDUSTRIE SCHWEIGHOFER S.R.L.
3.800
1,816,739,799
26
340,611,321
4.500
1.700
SILCOTUB S.A.
3.800
1,666,747,158
32
231,057,199
4.500
1.700
ENEL ENERGIE S.A.
3.775
2,066,949,724
14
331,250,198
4.583
1.350
MEGA IMAGE S.R.L.
3.763
1,757,017,878
28
46,722,111
4.333
2.050
PORSCHE ROMANIA S.R.L.
3.750
1,609,520,847
34
103,543,762
4.667
1.000
TINMAR - IND S.A.
3.750
1,387,536,296
45
30,271,565
4.667
1.000
SAS VISUAL ANALYTICS
Picture hidden trends coming into plain sight.
MCR
TOP 300
RANK COMPANY NAME
18
PROFI ROM FOOD S.R.L.
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
CANTITATIV
SCOR
CALITATIV
SCOR
3.738
1,155,745,855
59
13,138,974
4.417
1.700
19
J.T. INTERNATIONAL (ROMANIA) S.R.L.
3.713
2,476,816,675
2
8,172,062
4.500
1.350
20
REGIA NATIONALA A PADURILOR - ROMSILVA R.A.
3.700
1,296,656,577
50
58,929,364
4.250
2.050
21
AZOMURES S.A.
3.675
1,829,333,521
25
244,049,442
4.333
1.700
22
ROMANIA HYPERMARCHE S.A.
3.613
1,461,578,882
40
24,556,054
4.250
1.700
23
BILLA ROMANIA S.R.L.
3.613
1,266,573,573
53
3,654,503
4.250
1.700
24
OSCAR DOWNSTREAM S.R.L.
3.600
2,467,509,493
3
30,243,051
4.583
0.650
25
CONTINENTAL AUTOMOTIVE PRODUCTS S.R.L.
3.600
2,376,683,119
7
398,362,841
4.583
0.650
26
CEZ VANZARE S.A.
3.600
1,560,517,471
36
134,989,194
4.583
0.650
27
PROCTER & GAMBLE DISTRIBUTION S.R.L.
3.600
1,254,784,218
54
20,076,377
4.583
0.650
28
COCA-COLA HBC ROMANIA S.R.L.
3.550
1,939,420,892
20
148,409,857
4.167
1.700
29
FARMEXPERT D.C.I. S.A.
3.525
2,053,874,075
16
86,369,568
4.250
1.350
30
STRABAG S.R.L.
3.463
1,403,884,345
43
5,268,795
4.167
1.350
31
3.463
1,122,009,797
63
12,346,319
4.167
1.350
3.450
1,327,987,233
47
329,305,243
3.917
2.050
33
FARMEXIM S.A.
SOCIETATEA NATIONALA DE TRANSPORT GAZE
NATURALE - TRANSGAZ S.A.
MICHELIN ROMANIA S.A.
3.425
2,126,820,954
10
35,009,410
4.000
1.700
34
DELPHI DIESEL SYSTEMS ROMANIA SRL
3.425
1,849,217,306
24
121,508,865
4.000
1.700
35
COMPANIA NATIONALA "LOTERIA ROMANA" S.A.
3.425
1,002,015,748
72
36,748,513
4.000
1.700
36
POLISANO S.R.L.
3.400
1,311,577,962
48
28,132,938
4.083
1.350
37
MAIRON GALATI S.A.
3.400
1,135,910,629
60
24,303,276
4.083
1.350
38
ROCHE ROMANIA S.R.L.
3.375
1,300,199,666
49
4,535,360
4.167
1.000
39
AUCHAN ROMANIA S.A.
3.363
1,973,757,257
18
3,298,867
3.917
1.700
40 ALTEX ROMANIA S.R.L.
3.363
1,132,228,072
62
12,329,921
3.917
1.700
41
3.325
1,111,726,009
65
144,645,337
3.750
2.050
3.300
1,940,513,702
19
43,829,091
3.833
1.700
43
44 PIRELLI TYRES ROMANIA S.R.L.
3.300
1,927,506,664
21
-6,586,180
3.833
1.700
3.300
1,521,577,921
39
60,019,499
3.833
1.700
AGRANA ROMANIA S.A.
45
46 JT INTERNATIONAL MANUFACTURING S.A.
3.300
1,223,059,099
55
115,130
3.833
1.700
3.275
1,813,264,206
27
8,211,518
3.917
1.350
47
SOCIETATEA COMPLEXUL ENERGETIC OLTENIA S.A.
3.263
2,236,654,705
9
118,328,802
3.667
2.050
48 ALRO S.A.
3.263
2,081,764,001
12
155,270,970
3.667
2.050
49 SOCIETATEA NATIONALA NUCLEARELECTRICA S.A.
3.263
1,653,156,406
33
34,469,000
3.667
2.050
50
ELECTROCENTRALE BUCURESTI S.A.
3.238
2,093,864,650
11
67,569,722
3.750
1.700
51
ARABESQUE S.R.L.
3.238
1,564,021,757
35
42,590,841
3.750
1.700
52
TAKATA ROMANIA S.R.L.
3.238
1,545,861,999
37
-7,103,649
3.750
1.700
32
42
COMPANIA NATIONALA DE CAI FERATE CFR S.A.
COSMOTE ROMANIAN MOBILE
TELECOMMUNICATIONS S.A.
REWE (ROMANIA) S.R.L.
53
FILDAS TRADING S.R.L.
3.213
1,115,265,491
64
25,082,158
3.833
1.350
54
KRONOSPAN SEBES S.A.
3.213
1,073,407,412
68
-1,522,367
3.833
1.350
1.700
55
CELESTICA ( ROMANIA ) SRL
3.175
1,728,543,405
29
-11,648,800
3.667
56
CONTINENTAL AUTOMOTIVE SYSTEMS S.R.L.
3.175
1,526,272,339
38
-124,430,969
3.667
1.700
57
SENSIBLU S.R.L.
3.175
1,090,217,856
67
-63,513,725
3.667
1.700
58
RCS & RDS S.A.
COMPANIA NATIONALA DE AUTOSTRAZI SI
DRUMURI NATIONALE DIN ROMANIA S.A.
3.138
2,047,044,743
17
88,152,045
3.500
2.050
3.138
1,064,952,650
69
174,139,571
3.500
2.050
59
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
CANTITATIV
SCOR
CALITATIV
SCOR
C. TOEPFER INTERNATIONAL
60 ALFRED
(ROMANIA) S.R.L.
3.125
1,890,825,490
23
-18,320,962
3.833
1.000
61
BUNGE ROMANIA S.R.L.
3.125
1,132,502,159
61
-42,885,140
3.833
1.000
62
CONTINENTAL AUTOMOTIVE ROMANIA S.R.L.
3.113
1,420,700,351
42
-113,611,255
3.583
1.700
63 JOHNSON CONTROLS ROMANIA S.R.L.
NATIONALA DE TRANSPORTURI
64 COMPANIA
AERIENE ROMANE TAROM S.A.
3.113
1,295,437,947
51
-91,185,056
3.583
1.700
3.113
1,048,339,557
70
-230,617,520
3.583
1.700
65
3.075
1,205,532,168
57
-52,061,179
3.417
2.050
66 CARGILL AGRICULTURA S.R.L.
3.063
2,057,112,179
15
29,852,901
3.750
1.000
67
SCHAEFFLER ROMANIA S.R.L.
3.050
1,427,843,294
41
-26,122,935
3.500
1.700
68
URSUS BREWERIES S.A.
SOCIETATEA COMERCIALA DE PRODUCERE
A ENERGIEI ELECTRICE IN HIDROCENTRALE
HIDROELECTRICA S.A.
SOCIETATEA NATIONALA DE TRANSPORT
FEROVIAR DE CALATORI CFR CALATORI S.A.
REGIA AUTONOMA DE DISTRIBUTIE A ENERGIEI
TERMICE BUCURESTI R.A.D.E.T. R.A.
FORD ROMANIA S.A.
3.050
1,283,124,027
52
-10,329,704
3.500
1.700
3.013
2,402,785,281
5
-508,010,530
3.333
2.050
2.950
1,668,976,646
31
-992,207,335
3.250
2.050
2.925
1,099,350,639
66
-290,472,875
3.333
1.700
2.738
2,479,148,106
1
-480,681,010
3.083
1.700
RANK
69
70
71
72
COMPANY NAME
COMPANIA NATIONALA POSTA ROMANA S.A.
COMPANIES WITH ANNUAL TURNOVER LESS THAN 1.0 BLN RON
1
HENKEL ROMANIA S.R.L.
3.650
606,989,685
83
45,576,673
4.417
1.350
2
EATON ELECTRO PRODUCTIE S.R.L.
3.613
831,422,836
25
34,273,148
4.250
1.700
3
YAZAKI ROMANIA S.R.L.
3.550
743,212,832
47
15,422,864
4.167
1.700
4
PORSCHE INTER AUTO ROMANIA S.R.L.
3.525
694,338,184
58
9,606,040
4.250
1.350
5
METKA BRAZI SRL
3.513
504,621,998
118
17,488,497
4.500
0.550
6
HELLA ROMANIA S.R.L.
3.488
723,299,726
49
45,040,552
4.083
1.700
7
CONTITECH ROMANIA S.R.L.
3.488
689,122,632
59
116,568,484
4.083
1.700
8
WIEE ROMANIA S.R.L.
3.475
922,193,327
6
50,523,430
4.417
0.650
9
KRAFT FOODS ROMANIA S.A.
3.463
578,630,198
91
26,619,159
4.167
1.350
10
TRW AUTOMOTIVE SAFETY SYSTEMS S.R.L.
3.425
886,361,772
14
9,409,407
4.000
1.700
11
3.363
869,864,698
17
206,283,901
3.917
1.700
3.363
720,196,151
52
87,148,792
3.917
1.700
13
ENEL DISTRIBUTIE MUNTENIA S.A.
FILIALA DE DISTRIBUTIE A ENERGIEI ELECTRICE
"ELECTRICA DISTRIBUTIE MUNTENIA NORD" S.A.
TEHNOSTRADE S.R.L.
3.363
549,761,129
103
73,510,148
3.917
1.700
14
ARELCO DISTRIBUTIE S.R.L.
3.350
794,723,145
35
9,007,402
4.250
0.650
15
SANOFI-AVENTIS ROMANIA S.R.L.
3.313
952,969,626
3
42,151,558
4.083
1.000
16
BENROM S.R.L.
3.313
590,431,849
87
41,522,793
4.083
1.000
12
17
TOYOTA ROMANIA S.R.L.
3.313
555,476,459
99
3,434,991
4.083
1.000
18
E.ON MOLDOVA DISTRIBUTIE S.A.
3.300
665,605,346
65
71,344,771
3.833
1.700
19
KATHREIN ROMANIA S.R.L.
3.300
362,747,052
190
30,777,468
3.833
1.700
20
CAMERON ROMANIA S.R.L.
3.275
894,638,349
12
162,200,442
3.917
1.350
21
EGGER ROMANIA S.R.L.
3.275
869,763,051
18
69,969,637
3.917
1.350
22
BRISEGROUP S.R.L.
3.250
822,428,891
28
24,533,603
4.000
1.000
23
CEZ DISTRIBUTIE S.A.
3.238
829,749,728
26
85,956,471
3.750
1.700
24
INTERBRANDS MARKETING & DISTRIBUTION SA
3.238
659,741,101
66
9,388,153
3.750
1.700
25
RENAULT TECHNOLOGIE ROUMANIE S.R.L.
3.238
583,158,869
90
22,863,488
3.750
1.700
26
ALPIQ ROMENERGIE S.R.L.
3.225
821,896,821
29
26,636,475
4.083
0.650
MCR
TOP 300
RANK COMPANY NAME
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
CANTITATIV
SCOR
CALITATIV
SCOR
27
TRANSENERGO COM S.A.
3.225
722,570,242
50
10,374,852
4.083
0.650
28
3.175
666,912,331
63
118,135,449
3.667
1.700
3.175
603,162,327
84
167,228,325
3.667
1.700
30
APA NOVA BUCURESTI S.A.
SOCIETATEA COMERCIALA ENEL DISTRIBUTIE
BANAT S.A.
ALPIQ ROMINDUSTRIES S.R.L.
3.163
769,657,904
41
1,820,399
4.000
0.650
31
CARPATCEMENT HOLDING S.A.
3.150
807,945,334
33
152,524,608
3.750
1.350
32
COMFERT S.R.L.
3.150
571,524,897
92
11,769,303
3.750
1.350
33
IPSO S.R.L.
3.150
383,143,665
178
23,241,431
3.750
1.350
34
ARCELORMITTAL TUBULAR PRODUCTS ROMAN S.A.
3.138
826,413,602
27
26,901,231
3.500
2.050
35
ECHIPCOMER? TRADE COMPANY SRL
3.138
454,736,041
146
61,304
4.000
0.550
36
MERCEDES-BENZ ROMANIA S.R.L.
3.125
806,467,551
34
15,377,724
3.833
1.000
37
REMAT S.A.
3.125
734,178,425
48
7,005,365
3.833
1.000
38
BAMESA OTEL S.A.
3.125
502,827,362
121
31,733,940
3.833
1.000
39
ENERGOBIT S.R.L.
ADMINISTRATIA ROMANA A SERVICIILOR DE TRAFIC
AERIAN ROMATSA R.A.
SMITHFIELD FERME S.R.L.
3.125
399,831,278
167
54,076,918
3.833
1.000
3.113
707,129,123
54
9,424,206
3.583
1.700
3.113
29
40
41
697,598,893
57
89,478,812
3.583
1.700
3.113
666,086,173
64
3,278,538
3.583
1.700
3.113
571,123,403
93
53,079,013
3.583
1.700
44
AMBIENT S.A.
SOCIETATEA COMERCIALA FILIALA DE
DISTRIBUTIE A ENERGIEI ELECTRICE "ELECTRICA
DISTRIBUTIE TRANSILVANIA NORD" S.A.
LEONI WIRING SYSTEMS ARAD S.R.L.
3.113
567,955,147
94
12,916,284
3.583
1.700
45
STX RO OFFSHORE TULCEA S.A.
3.113
542,801,456
106
9,906,095
3.583
1.700
46 SCHENKER ROMTRANS S.A.
3.113
364,220,002
189
15,624,920
3.583
1.700
47
3.100
616,762,926
80
94,399,901
3.917
0.650
48 TMK - RESITA S.A.
3.088
813,629,181
31
36,635,681
3.667
1.350
49 EUROPHARM S.A.
3.088
463,464,977
141
49,336,953
3.667
1.350
42
43
SPEDITION UMB S.R.L.
50
REMATHOLDING CO. S.R.L.
3.063
602,848,222
85
5,739,190
3.750
1.000
51
BAYER S.R.L.
3.063
509,077,751
114
3,218,628
3.750
1.000
52
E.ON GAZ DISTRIBUTIE S.A.
3.050
744,364,145
46
73,019,676
3.500
1.700
53
3.050
700,186,926
55
355,872
3.500
1.700
3.050
632,835,702
76
45,804,940
3.500
1.700
55
ARTIMA S.A.
DISTRIBUTIE TRANSILVANIA SUD" S.A.
AQUILA PART PROD COM S.R.L.
3.050
526,899,522
111
3,360,976
3.500
1.700
56
ARAMIS INVEST S.R.L.
3.050
505,910,724
117
8,192,882
3.500
1.700
57
IBM ROMANIA S.R.L.
3.050
368,374,500
187
50,461,119
3.500
1.700
58
ROSKO TEXTIL S.R.L.
3.050
348,704,892
200
18,492,235
3.500
1.700
59
EGL GAS & POWER ROMANIA S.A.
54
60 LAFARGE CIMENT (ROMANIA) S.A.
3.038
550,112,255
101
11,333,825
3.833
0.650
3.025
853,878,685
21
163,619,796
3.583
1.350
61
PRUTUL S.A.
3.025
563,972,370
95
5,621,487
3.583
1.350
62
T.M.K. ARTROM S.A.
3.013
910,074,558
11
42,493,632
3.333
2.050
63
AGRICOVER S.R.L.
3.000
910,341,598
10
6,272,059
3.667
1.000
64 ZAHARUL ORADEA S.A.
3.000
667,115,486
62
12,830,036
3.667
1.000
65
3.000
471,444,591
137
36,140,723
3.667
1.000
2.988
763,018,948
44
6,527,468
3.417
1.700
INTERGAZ S.R.L.
66 LEONI WIRING SYSTEMS RO S.R.L.
RANK
COMPANY NAME
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
CANTITATIV
SCOR
CALITATIV
SCOR
3.417
1.700
67
NESTLE ROMANIA SRL
2.988
717,734,304
53
5,507,312
68
MARQUARDT SCHALTSYSTEME SCS
2.988
539,590,857
107
17,317,547
3.417
1.700
69
STRACO GRUP S.R.L.
2.963
872,556,755
16
1,347,780
3.500
1.350
70
INTERAGRO S.R.L.
2.963
851,193,607
22
2,266,724
3.500
1.350
71
DANTE INTERNATIONAL S.A
2.963
685,110,236
61
807,266
3.500
1.350
72
SILNEF M.G. S.R.L.
2.963
550,094,810
102
695,456
3.500
1.350
73
2.963
512,983,227
112
10,086,240
3.500
1.350
2.963
506,400,194
116
9,890,611
3.500
1.350
75
RENAULT MECANIQUE ROUMANIE S.R.L.
DANONE - PRODUCTIE SI DISTRIBUTIE DE
PRODUSE ALIMENTARE S.R.L.
PRYSMIAN CABLURI SI SISTEME S.A.
2.963
491,971,267
125
4,095,867
3.500
1.350
76
T.C.E. 3 BRAZI S.R.L.
2.963
461,181,974
143
80,757,699
3.500
1.350
77
CONSTRUCTII ERBASU S.A.
2.963
459,822,636
144
31,179,418
3.500
1.350
78
TRANSAVIA S.A.
2.963
426,905,925
155
33,729,681
3.500
1.350
79 HIDROCONSTRUCTIA S.A.
80 ASESOFT DISTRIBUTION S.R.L.
2.950
623,555,725
79
18,438,989
3.250
2.050
2.938
917,403,768
7
7,468,193
3.583
1.000
81
GRUP ROMET S.A.
2.938
792,541,340
36
-197,591
3.583
1.000
82
2.925
813,683,088
30
28,824,601
3.333
1.700
2.925
555,519,217
98
53,125,339
3.333
1.700
84
GRUP FEROVIAR ROMAN S.A.
COMPANIA NATIONALA AEROPORTURI
BUCURESTI S.A.
HELP NET FARMA S.A.
2.925
375,074,417
182
6,872,942
3.333
1.700
85
EUROPHARM HOLDING S.A.
2.900
915,511,339
8
1,706,129
3.417
1.350
86
SMITHFIELD PROD S.R.L.
2.900
744,901,874
45
15,255,019
3.417
1.350
87
ICME ECAB S.A.
2.900
656,695,834
68
1,462,286
3.417
1.350
88
GERSIM IMPEX S.R.L.
2.900
492,328,020
123
12,102,978
3.750
0.350
89 AVON COSMETICS (ROMANIA) S.R.L.
90 TIMKEN ROMANIA S.A.
2.900
436,080,042
153
38,436,857
3.417
1.350
2.900
378,023,380
180
75,165,408
3.417
1.350
91
STEINEL ELECTRONIC SRL
2.900
370,407,383
186
7,123,000
3.417
1.350
92
AUTONET IMPORT S.R.L.
2.888
584,354,129
89
12,473,032
3.500
1.050
93 PFIZER ROMANIA S.R.L.
94 BRICOSTORE ROMANIA S.A.
2.875
484,062,357
128
25,935,644
3.500
1.000
2.863
640,986,310
73
-14,478,186
3.250
1.700
95
UNICARM S.R.L.
2.863
636,869,685
74
12,633,050
3.250
1.700
96
ELECTROMAGNETICA S.A.
2.863
449,968,727
148
15,955,898
3.250
1.700
97
KROMBERG & SCHUBERT ROMANIA S.R.L.
2.863
414,872,708
160
4,928,826
3.250
1.700
98 PLANOIL S.R.L.
99 VEGETAL TRADING S.R.L.
2.850
773,689,590
40
1,803,910
3.583
0.650
2.850
503,285,598
120
14,234,511
3.583
0.650
100 ENERGY FINANCING TEAM ROMANIA S.R.L.
2.850
378,826,174
179
4,919,335
3.583
0.650
101 EXPUR S.A.
2.838
993,823,696
1
16,979,870
3.333
1.350
102 MECHEL SERVICE ROMANIA S.R.L.
2.838
929,389,068
5
-17,790,537
3.333
1.350
103 GRUP SERVICII PETROLIERE S.A.
104 A.D.M. FARM S.R.L.
2.838
813,037,318
32
143,596,468
3.333
1.350
2.838
768,210,094
42
2,080,818
3.333
1.350
74
83
105 TERAPIA S.A.
106 REGIA AUTONOMA DE TRANSPORT BUCURESTI R.A.
107 FOSTER WHEELER ITALIANA S.R.L.
108 ROMPETROL GAS S.R.L.
2.838
471,499,015
136
96,879,207
3.333
1.350
2.825
698,666,050
56
0
3.083
2.050
2.825
372,254,247
185
18,793,704
3.583
0.550
2.813
912,998,237
9
466,214
3.417
1.000
MCR
TOP 300
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
CANTITATIV
SCOR
CALITATIV
SCOR
109 PRAKTIKER ROMANIA S.R.L.
2.800
649,507,674
71
-71,836,096
3.167
1.700
110 ROMAQUA GROUP S.A.
2.800
600,826,132
86
-1,125,517
3.167
1.700
RANK COMPANY NAME
111 TEHNOLOGICA RADION S.R.L.
2.800
560,013,055
96
4,486,255
3.167
1.700
112 BAUMAX ROMANIA S.R.L.
2.800
545,864,926
104
-98,483,861
3.167
1.700
113 ALUM S.A.
2.800
544,972,607
105
-16,462,958
3.167
1.700
ANTREPRIZA DE CONSTRUCTII SI
114 DELTA
MONTAJ 93 S.R.L.
AG AUSTRIA SUCURSALA
115 STRABAG
BUCURESTI ROMANIA
116 BUNGE DANUBE TRADING SRL
VERTRIEBS GMBH SALZBURG
117 BMW
SUCURSALA BUCURESTI
118 AMEROPA GRAINS S.A.
2.800
502,606,342
122
15,186,828
3.167
1.700
2.788
784,401,062
38
16,361,303
3.500
0.650
2.788
584,913,878
88
-20,591,973
3.500
0.650
2.788
422,977,465
157
12,275,488
3.500
0.650
2.775
884,371,606
15
2,568,596
3.250
1.350
119 UNILEVER SOUTH CENTRAL EUROPE S.A.
2.775
789,524,234
37
-16,910,608
3.250
1.350
120 FLANCO RETAIL SA
2.775
609,224,897
82
259,133
3.250
1.350
121
2.775
420,795,449
159
-148,795
3.250
1.350
122 MAKITA EU S.R.L.
2.775
387,598,107
173
20,193,971
3.250
1.350
HAVI LOGISTICS SRL
123 AGRO-CHIRNOGI S.A.
2.763
657,397,725
67
1,836,239
3.333
1.050
124 LLK LUBRICANTS ROMANIA S.R.L.
2.750
835,098,501
23
-16,531,454
3.333
1.000
125 GASPECO L &D S.A.
2.750
529,108,861
110
-14,518,853
3.333
1.000
126 COMISION TRADE S.R.L.
2.750
492,310,705
124
7,596,002
3.333
1.000
127 DUCTIL STEEL S.A.
2.738
776,642,909
39
-167,962,687
3.083
1.700
128 ENERGOMONTAJ S.A.
2.738
406,460,041
164
3,948,346
3.083
1.700
129 ALBA BALKAN RECYCLING S.R.L.
2.725
346,689,777
203
1,046,942
3.417
0.650
130 ROTTCO CONSULT SRL
2.713
655,528,869
69
171,719
3.500
0.350
131 QUADRANT AMROQ BEVERAGES S.R.L.
2.713
632,559,021
77
-66,278,560
3.167
1.350
132 YAZAKI COMPONENT TECHNOLOGY S.R.L.
2.713
551,690,409
100
-12,383,219
3.167
1.350
133 ROMSTAL IMEX S.R.L.
2.713
534,967,781
109
10,300,307
3.167
1.350
134 ENEL DISTRIBUTIE DOBROGEA S.A.
2.713
480,310,174
131
94,474,591
3.167
1.350
135 CORD ROMANIA S.R.L.
2.713
359,595,866
193
19,012,137
3.167
1.350
2.700
970,399,645
2
-405,086,569
2.917
2.050
2.700
894,448,361
13
-23,859,236
2.917
2.050
2.688
653,371,024
70
15,363,377
3.250
1.000
2.688
642,875,408
72
-156,392,598
3.250
1.000
140 ENI ROMANIA S.R.L.
2.688
611,634,803
81
-11,356,042
3.250
1.000
141 REMAT M.G. S.A.
2.688
413,460,545
161
640,049
3.250
1.000
142 MAX BOEGL ROMANIA S.R.L.
2.688
387,873,211
172
6,264,483
3.250
1.000
143 PETROLEXPORTIMPORT S.A.
2.688
361,578,925
191
1,147,799
3.250
1.000
144 REPOWER FURNIZARE ROMANIA SRL
2.663
509,948,239
113
-11,983,443
3.333
0.650
145 ECOFOREST S.A.
2.663
504,425,534
119
-3,409,198
3.333
0.650
- I BUCHAREST - ELECTRICITY TRADING
146 GEN
AND SALES SRL
2.663
353,332,385
197
1,458,187
3.333
0.650
SpA ITALIA SUCURSALA ROMANIA
147 ASTALDI
BUCURESTI
2.650
627,591,603
78
-120,487,023
3.083
1.350
136
137
138
139
FEROVIAR DE MARFA - CFR MARFA - S.A.
SEWS ROMANIA S.R.L.
SOCIETATEA COMERCIALA DE DISTRIBUTIE
SI FURNIZARE A ENERGIEI ELECTRICE ELECTRICA S.A.
ENERGY HOLDING S.R.L.
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
CANTITATIV
SCOR
CALITATIV
SCOR
148 LINDE GAZ ROMANIA S.R.L.
2.650
471,511,500
135
85,166,332
3.083
1.350
149 EURO CONSTRUCT TRADING 98 S.R.L.
2.650
458,900,643
145
31,318,422
3.083
1.350
150 WHITELAND IMPORT EXPORT S.R.L.
2.650
396,242,762
169
5,077,992
3.083
1.350
151 OLTCHIM S.A.
2.638
765,442,904
43
569,443,477
2.833
2.050
152 DAEWOO MANGALIA-HEAVY INDUSTRIES S.A.
2.613
833,178,138
24
-221,982,313
2.917
1.700
COMERCIALA FILIALA DE
153 SOCIETATEA
INTRETINERE SI SERVICII ENERGETICE
154 OIL PROD SRL
2.613
384,369,950
176
7,233,646
2.917
1.700
2.613
348,482,823
201
17,184
3.333
0.450
RANK
COMPANY NAME
155 REMAT SCHOLZ S.A.
2.600
477,338,496
132
-21,224,324
3.250
0.650
156 GOODYEAR DUNLOP TIRES ROMANIA S.R.L.
2.600
353,324,497
198
2,554,701
3.250
0.650
157 HOLCIM ROMANIA S.A.
2.588
948,750,263
4
-37,762,101
3.000
1.350
158 SIEMENS S.R.L.
2.588
688,783,873
60
-20,356,381
3.000
1.350
159 AD AUTO TOTAL S.R.L.
2.588
471,258,924
138
9,192,054
3.000
1.350
160 HORNBACH CENTRALA S.R.L.
2.588
402,220,289
165
3,360,578
3.000
1.350
161 UNICOM HOLDING S.A.
2.563
859,576,467
19
-23,157,347
3.083
1.000
162 ACTAVIS S.R.L.
2.563
358,494,955
194
25,284,389
3.083
1.000
163 S.I.E.P.C.O.F.A.R. SA
2.550
720,508,765
51
-2,180,467
2.833
1.700
AUTONOMA PENTRU ACTIVITATI
164 REGIA
NUCLEARE RA
165 ROPHARMA S.A.
2.550
636,841,401
75
-2,578,621
2.833
1.700
2.550
411,590,108
162
10,687,756
2.833
1.700
166 CONEF GAZ S.R.L.
2.538
443,085,891
149
3,716,851
3.167
0.650
167 AGRIUM-AGROPORT ROMANIA S.A.
2.525
508,938,567
115
-18,378
3.250
0.350
168 MAREX S.A.
2.525
473,852,988
134
3,511,115
2.917
1.350
169 TIRIAC AUTO S.A.
2.513
557,495,323
97
-8,997,352
3.000
1.050
170 MONSANTO ROMANIA S.R.L.
2.500
385,328,422
175
39,758,465
3.000
1.000
171 ANGHEL N.G. S.R.L.
2.500
366,595,557
188
159,609
3.000
1.000
172 AVICOLA CREVEDIA S.A.
2.488
383,517,342
177
1,139,147
2.750
1.700
173 ROMPETROL PETROCHEMICALS S.R.L.
2.475
855,167,053
20
-62,786,653
3.083
0.650
174 SERMEDIC S.R.L.
2.475
487,585,725
126
-10,280,580
3.083
0.650
TRADING SPA MILANO - SUCURSALA
175 EDISON
BUCURESTI
176 AUTOMOBILE BAVARIA S.R.L.
2.475
377,412,842
181
-659,340
3.083
0.650
2.438
399,755,588
168
1,298,435
2.917
1.000
177 KIRAZOGLU CORPORATION S.R.L.
2.438
346,956,989
202
80,476
2.917
1.000
178 METROREX S.A.
2.425
537,247,002
108
-42,302,066
2.667
1.700
179 ORACLE ROMANIA S.R.L.
2.425
468,661,832
140
-14,842,862
2.667
1.700
180 MCDONALD S ROMANIA S.R.L.
2.425
399,908,877
166
4,150,455
2.667
1.700
181 VEGA 93 S.R.L.
2.425
352,784,284
199
328,261
2.667
1.700
182 MACROMEX S.R.L.
2.400
484,213,728
127
-3,947,182
2.750
1.350
183 ROMINSERV S.R.L.
2.400
480,678,618
129
1,646,039
2.750
1.350
184 AROMET S.A.
2.400
470,681,346
139
-1,574,236
2.750
1.350
185 CARLSROM BEVERAGE CO S.R.L.
2.400
424,874,390
156
-22,933,515
2.750
1.350
186 ROMRECYCLING S.R.L.
2.375
394,198,226
170
-21,014,648
2.833
1.000
187 ARCELORMITTAL HUNEDOARA S.A.
2.363
435,597,645
154
-37,612,910
2.583
1.700
188 AGRICOLA INTERNATIONAL S.A.
2.363
354,291,288
195
961,676
2.583
1.700
MCR
TOP 300
RANK COMPANY NAME
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
CANTITATIV
SCOR
CALITATIV
SCOR
189 ENEL TRADE ROMANIA SRL
2.350
480,442,160
130
-3,478
2.917
0.650
190 HUAWEI TECHNOLOGIES SRL
2.338
422,049,371
158
-79,009,161
2.667
1.350
191 C.E.T. GOVORA S.A.
2.300
353,438,869
196
-186,788,091
2.500
1.700
192 ROMTEM S.A.
2.288
361,344,683
192
1,096,358
2.833
0.650
193 FRIESLANDCAMPINA ROMANIA S.A.
2.275
407,116,059
163
-18,970,986
2.583
1.350
194 COMPANIA NATIONALA A HUILEI S.A.
2.263
450,220,561
147
-167,473,647
2.333
2.050
195 ROMASTRU TRADING S.R.L.
2.250
436,445,858
151
-3,541,906
2.667
1.000
196 UPC ROMANIA S.R.L.
2.175
441,796,917
150
-229,580,076
2.333
1.700
197 PHARMAFARM S.A.
2.150
373,268,905
184
-30,354,192
2.417
1.350
198 A & G MED TRADING S.R.L.
2.088
386,369,812
174
-4,900,228
2.333
1.350
199 BERGENBIER S.A.
1.963
436,307,541
152
-142,104,360
2.167
1.350
200 PRO TV S.A.
1.900
476,773,053
133
-114,234,863
2.083
1.350
201 DOOSAN I.M.G.B. S.A.
1.900
392,640,626
171
-25,026,092
2.083
1.350
202 ENERGY BIO CHEMICALS S.A.
1.888
375,071,131
183
-36,398,609
2.167
1.050
203 KRONOSPAN ROMANIA S.R.L.
1.875
461,717,335
142
-35,059,916
2.167
1.000
364,77
billion RON - Total assets of Romanian banking
system in 2012
Banking & Finance
t BANKING
t INSURANCE
t FINANCIAL LEASING
t OPERATIONAL LEASING
t PENSION FUNDS ADMINISTRATORS
t FUND MANAGEMENT
t CAPITAL MARKET INTERMEDIARIES
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.
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.
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.
BANKING
RANK
MCR SCORING
TOTAL ASSETS
2012 RON
MARKET SHARE
PROFIT/LOSS
2012 RON
RAIFFEISEN BANK SA
4.300
23,604,769,622
6.6%
378,065,252
UNICREDIT TIRIAC BANK SA
4.200
25,061,501,215
7.0%
173,128,861
BANCA TRANSILVANIA SA
4.100
29,572,044,797
8.2%
320,431,880
BRD - GROUPE SOCIETE GENERALE SA
4.100
47,924,059,756
13.3%
-331,929,991
BANCA COMERCIALA ROMANA SA
4.000
70,524,929,397
19.6%
-1,214,832,834
ING BANK N.V. AMSTERDAM SUCURSALA BUCURESTI
3.900
16,438,951,429
4.6%
172,863,424
CEC BANK SA
3.900
26,883,398,692
7.5%
36,962,870
ALPHA BANK ROMANIA SA
3.400
16,479,458,541
4.6%
-5,106,760
VOLKSBANK ROMANIA SA
2.900
16,460,847,023
4.6%
-821,325,854
GARANTI BANK SA
3.200
6,691,000,034
1.9%
-106,759,657
CITIBANK EUROPE PLC, DUBLIN - SUCURSALA ROMANIA
3.100
6,513,499,031
1.8%
116,419,736
BANCA COMERCIALA INTESA SANPAOLO ROMANIA SA
3.100
5,065,671,896
1.4%
-105,449,818
BANCPOST SA
3.000
12,174,115,516
3.4%
-49,910,268
CREDIT EUROPE BANK (ROMANIA) SA
2.800
5,045,293,010
1.4%
-98,910,207
PIRAEUS BANK ROMANIA SA
2.700
7,830,774,781
2.2%
-94,992,701
BANCA DE EXPORT IMPORT A ROMANIEI (EXIMBANK) SA
BANCA ITALO ROMENA SPA ITALIA VOLPAGO DEL MONTELLO
SUCURSALA BUCURESTI
BANCA ROMANEASCA SA MEMBRA A GRUPULUI
NATIONAL BANK OF GREECE
OTP BANK ROMANIA SA
2.700
3,931,388,602
1.1%
13,065,564
2.500
4,475,665,580
1.2%
-61,932,325
2.200
6,914,756,921
1.9%
-166,847,204
2.200
4,641,848,177
1.3%
-77,089,954
2.100
4,725,920,079
1.3%
21,666,531
PROCREDIT BANK SA
2.700
1,204,495,718
0.3%
2,220,282
BCR BANCA PENTRU LOCUINTE SA
2.700
1,504,466,660
0.4%
25,547,516
BANK LEUMI ROMANIA SA
2.600
1,150,088,410
0.3%
13,632,285
MARFIN BANK (ROMANIA) SA
BANK OF CYPRUS PUBLIC COMPANY LIMITED NICOSIA
SUCURSALA ROMANIA
BLOM BANK FRANCE SA PARIS SUCURSALA ROMANIA
2.500
2,585,169,090
0.7%
5,205,656
2.400
2,427,061,875
0.7%
-4,162,028
2.300
683,393,224
0.2%
10,495,229
CREDIT AGRICOLE BANK ROMANIA SA
2.200
1,294,403,048
0.4%
-27,337,111
BANCA MILLENNIUM SA
2.100
2,573,719,864
0.7%
-106,116,372
LIBRA INTERNET BANK SA
2.100
777,257,396
0.2%
5,988,955
CAIXABANK SA (BARCELONA) - SUCURSALA ROMANIA
2.100
542,605,298
0.2%
8,610,893
PORSCHE BANK ROMANIA SA
2.000
379,710,812
0.1%
-11,606,420
FORTIS BANK SA/NV BRUXELLES SUCURSALA BUCURESTI
1.900
475,108,608
0.1%
4,277,799
NATIONAL BANK OF GREECE SA SUCURSALA BUCURESTI
1.800
14,167,288
0.0%
-22,441
ROMANIAN INTERNATIONAL BANK SA
1.800
440,993,491
0.1%
-10,887,589
NEXTEBANK SA
1.600
1,046,091,063
0.3%
-48,436,065
BANCA COMERCIALA FEROVIARA SA
1.600
294,883,443
0.1%
-20,453,963
ATE BANK ROMANIA SA
1.500
1,293,152,051
0.4%
-253,069,101
RAIFFEISEN BANCA PENTRU LOCUINTE SA
1.500
341,137,473
0.1%
580,335
COMPANY NAME
PEERS MORE THAN 4% MARKET SHARE
1
2
3
4
5
6
7
8
9
PEERS BETWEEN 1% AND 4% MARKET SHARE
10
11
12
13
14
15
16
17
18
19
20
BANCA COMERCIALA CARPATICA SA
PEERS LESS THAN 1% MARKET SHARE
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
Source: National Bank of Romania, Coface, Ministry of Finanace
MCR
Opinion
Sustenability:
the safe way to a
mature market
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
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.
INSURANCE
RANK COMPANY NAME
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
MARKET PROFIT/LOSS
GWP
GWP GENERAL GWP LIFE INSURANCE
MARKET
(2012, RON) INSURANCE (2012, RON)
(2012, RON) SHARE 2012 SHARE 2011 (2012, RON)
1,131,544,783
1,107,387,211
24,157,572
13.70%
12.89%
ALLIANZ - TIRIAC ASIGURARI SA
900,180,498
806,647,922
93,532,576
10.90%
11.49%
-42,742,255
GROUPAMA ASIGURARI SA
OMNIASIG VIG
(FOSTA BCR ASIGURARI VIG)
ASIROM VIENNA INSURANCE GROUP SA
807,086,548
760,602,055
46,484,493
9.77%
9.05%
-87,859,059
794,993,315
794,993,315
0
9.63%
0.00%
-228,156,874
596,449,651
512,366,693
84,082,958
7.22%
8.03%
14,880,090
ASTRA SA
6,671,058
ING ASIGURARI DE VIATA SA
544,539,727
0
544,539,727
6.59%
7.09%
25,177,551
UNIQA ASIGURARI SA
EUROINS ROMANIA ASIGURARE
REASIGURARE SA
GENERALI ROMANIA SA
BCR ASIGURARI DE VIATA VIENNA
INSURANCE GROUP SA
CITY INSURANCE SA
504,925,921
504,925,921
0
6.12%
4.90%
-19,184,806
444,732,579
444,732,579
0
5.39%
3.74%
6,750,480
432,001,815
348,372,307
83,629,508
5.23%
6.54%
-18,071,793
425,194,867
0
425,194,867
5.15%
4.41%
24,991,431
263,789,975
263,789,975
0
3.19%
2.55%
33,684,415
CARPATICA ASIG SA
OMNIASIG VIENNA INSURANCE
GROUP SA*
ALICO ASIGURARI ROMANIA SA
247,299,331
247,299,331
0
3.00%
2.55%
-6,994,719
232,350,311
232,350,311
0
2.81%
15.37%
N/A
197,868,009
0
197,868,009
2.40%
2.65%
41,336,050
GARANTA ASIGURARI SA
METROPOLITAN LIFE ASIGURARI SA
(FOSTA AVIVA)
BRD ASIGURARI DE VIATA SA
90,453,041
86,410,998
4,042,043
1.10%
1.04%
2,100,607
65,904,978
0.80%
0.94%
-15,625,710
61,978,591
0
61,978,591
0.75%
0.57%
4,378,994
GRAWE ROMANIA ASIGURARE SA
54,555,175
1,099,768
53,455,407
0.66%
0.70%
1,320,845
ASITO KAPITAL SA
CERTASIG - SOCIETATE DE ASIGURARE
REASIGURARE SA
EUREKO ASIGURARI SA
CREDIT EUROPE ASIGURARI REASIGURARI SA
PLATINUM ASIGURARI REASIGURARI SA
50,958,059
50,958,059
0
0.62%
0.73%
700,398
43,934,487
43,934,487
0
0.53%
0.38%
-2,648,012
42,456,101
11,270,994
31,185,107
0.51%
0.54%
-17,093,594
41,855,209
41,855,209
0
0.51%
0.44%
465,699
37,958,253
37,958,253
0.46%
0.23%
-8,316,442
LIG INSURANCE SA
36,938,492
36,938,492
0
0.45%
0.18%
1,825,433
AXA LIFE INSURANCE SA
32,494,053
0
32,494,053
0.39%
0.32%
-43,835,485
F.A.T.A. ASIGURARI SA
27,475,726
27,475,726
0
0.33%
0.26%
-4,398,561
POOL-UL DE ASIGURARE P.A.I.D.
24,200,893
24,200,893
0
0.29%
0.45%
-2,853,848
EXIM ROMANIA SA
22,083,347
22,083,347
0
0.27%
0.11%
-6,668,718
ABC ASIGURARI - REASIGURARI SA
17,656,706
17,656,706
0
0.21%
0.21%
48,879
ERGO ASIGURARI DE VIATA SA
17,648,007
0
17,648,007
0.21%
0.35%
-3,575,049
EFG EUROLIFE ASIGURARI DE VIATA SA
14,895,647
0
14,895,647
0.18%
0.13%
4,514,851
FORTE ASIGURARI REASIGURARI SA
13,716,028
13,716,028
0
0.17%
0.06%
123,097
SIGNAL IDUNA ASIGURARI DE VIATA SA
10,858,958
0
10,858,958
0.13%
0.10%
-10,233,045
EFG EUROLIFE ASIGURARI GENERALE SA
6,993,552
6,993,552
0
0.08%
0.07%
2,227,243
AEGON ASIGURARI DE VIATA SA **
6,285,365
0
6,285,365
0.08%
0.12%
UNIQA ASIGURARI DE VIATA SA
4,281,266
0
4,281,266
0.05%
0.01%
-4,649,425
ONIX ASIGURARI SA
3,522,422
3,522,422
0
0.04%
0.00%
404,343
ATE INSURANCE ROMANIA SA
1,688,418
1,688,418
0
0.02%
0.02%
80,358
GERMAN ROMANIAN ASSURANCE SA
1,686,773
1,686,773
0
0.02%
0.02%
80,944
ASIGURARE REASIGURARE ASIMED SA
1,388,851
1,388,851
0
0.02%
0.02%
333,339
89,222
89,222
0
0.00%
0.62%
29,224,714
CHARTIS ROMANIA SA ***
65,904,978
* 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
MCR
Opinion
Focus on clients’
expectations
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.
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 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 2014.
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.
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 - 9001:2008, 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.
At the end of 2012 ALD have registered very
good financial figures, where we have
reported a turnover of nearly Euro 30 mil
In May this year we’ve reached a milestone
in our used vehicle sales: the 4,000th
vehicle was sold online via ALD Carmarket
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.
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.
OPERATIONAL LEASING
TOTAL TURNOVER
(2012, RON)
TOTAL TURNOVER
(2011, RON)
ANNUAL TURNOVER
GROWTH %
PROFIT/LOSS
(2012, RON)
1
2
3
LEASEPLAN ROMANIA SRL
175,268,838
131,300,336
33.5%
11,831,596
ALD AUTOMOTIVE SRL
159,734,348
146,534,829
9.0%
21,087,635
ARVAL SERVICE LEASE ROMANIA SRL
131,142,570
100,379,695
30.6%
21,805,432
4
FELBERMAYR ROMANIA SRL
83,431,026
77,610,479
7.5%
-3,023,843
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
PORSCHE MOBILITY SRL
80,628,906
66,572,992
21.1%
14,531,298
Voluntari, ILFOV
NEW KOPEL ROMANIA SRL
65,499,141
59,860,233
9.4%
-1,009,184
Otopeni, ILFOV
DOSCO PETROSERVICES ROMANIA SRL
62,968,728
46,491,862
35.4%
7,468,648
ROLLING STOCK COMPANY SA
59,292,747
51,834,741
14.4%
14,976,246
ECS INTERNATIONAL ROMANIA SA
51,354,817
68,743,269
-25.3%
1,835,436
RCI FINANTARE ROMANIA SRL
47,298,459
34,584,167
36.8%
17,069,093
AUTONOM SERVICES SRL
36,814,617
23,788,362
54.8%
2,048,729 Piatra Neamt, Neamt
PREMIUM LEASING SRL
36,746,922
27,899,779
31.7%
3,177,948
MY CAR TRADING SRL
33,635,090
28,866,715
16.5%
596,580
BRD SOGELEASE ASSET RENTAL SRL
31,618,991
33,778,170
-6.4%
-478,908
AUTOTECHNICA FLEET SERVICES SRL
31,501,905
37,846,814
-16.8%
2,397,745
INDUSTRIAL ACCESS SA
31,366,702
32,744,234
-4.2%
48,617
GRENKELEASING SRL
29,993,060
15,995,280
87.5%
544,008
UNICREDIT LEASING FLEET MANAGEMENT SRL
29,466,948
27,806,706
6.0%
5,756,964
DOKA ROMANIA TEHNICA COFRAJELOR SRL
23,499,374
18,878,825
24.5%
1,654,083
AVIROMS RENT-A-CAR SRL
21,693,289
18,704,936
16.0%
-1,627,848
AGER BUSINESS TECH SA
21,437,152
35,840,045
-40.2%
906,934
RAD-TRANS SRL
19,150,562
15,966,917
19.9%
603,985
GE EQUIPMENT SERVICES RO SRL
18,425,654
18,457,569
-0.2%
1,403,486
ALGECO SRL
17,697,167
14,287,487
23.9%
-2,188,229
Sibiu, Sibiu
OPERATIONAL AUTOLEASING SRL
17,324,306
18,519,000
-6.5%
2,751,464
Scheia, SUCEAVA
MEDICAL DEVELOPMENT SISTEM SRL
16,643,788
10,874,169
53.1%
102,898
KASIM EMAKA SRL
15,752,111
10,853,984
45.1%
1,705,741
BT FINOP LEASING SA
15,343,586
12,664,666
21.2%
1,984,122
CARPAT BETON SERVICII POMPE SRL
15,282,975
17,220,630
-11.3%
-578,325
DANUBE CRUISES ROMANIA SRL
15,239,900
13,997,905
8.9%
144,519
IMPULS - LEASING SERVICES SRL
15,139,061
15,652,469
-3.3%
-1,427,634
MANULOC ROMANIA SRL
14,175,322
13,365,192
6.1%
1,735,484
PERI ROMANIA SRL
13,927,096
19,614,883
-29.0%
523,506
FLEET MANAGEMENT SERVICES SRL
13,738,805
11,210,552
22.6%
2,342,331
CIM SERVICE SPED SRL
11,512,035
10,002,271
15.1%
4,978
RANK COMPANY NAME
CONTACT
ILFOV
Otopeni, ILFOV
Tunari, ILFOV
Bacau, BACAU
Brasov, BRASOV
Mogosoaia, ILFOV
Cluj Napoca, Cluj
MCR
BANKING & FINANCE
FINANCIAL LEASING
TOTAL TURNOVER
(2012, RON)
TOTAL TURNOVER
(2011, RON)
ANNUAL TURNOVER
GROWTH %
PROFIT/LOSS
(2012, RON)
IVECO CAPITAL LEASING IFN SA
858,846,002
230,585,888
272.5%
-96,761,866
BCR LEASING IFN SA
516,392,636
603,475,267
-14.4%
-9,724,745
NBG LEASING IFN SA
475,362,864
382,459,991
24.3%
179,353
PIRAEUS LEASING ROMANIA IFN SA
455,988,784
333,769,985
36.6%
-76,879,700
UNICREDIT LEASING CORPORATION IFN SA
409,744,738
472,403,193
-13.3%
2,664,994
PORSCHE LEASING ROMANIA IFN SA
329,383,923
377,828,544
-12.8%
25,052,838
CETELEM IFN SA
265,354,536
261,838,988
1.3%
19,205,137
RAIFFEISEN LEASING IFN SA
227,906,397
201,311,866
13.2%
6,880,689
MOTORACTIVE IFN SA
216,466,945
373,988,992
-42.1%
14,547,263
VFS INT ROMANIA IFN SA
200,669,166
362,052,540
-44.6%
29,301,931
ERB LEASING IFN SA
195,033,986
149,918,173
30.1%
15,151,065
RSL LEASING IFN SA
177,950,448
197,820,112
-10.0%
5,649,539
TIRIAC LEASING IFN SA
149,997,952
248,353,528
-39.6%
5,016,779
IMPULS - LEASING ROMANIA IFN SA
148,514,736
246,505,591
-39.8%
4,614,057
VB LEASING ROMANIA IFN SA
144,416,849
180,800,444
-20.1%
27,795,598
FORTIS LEASE ROMANIA IFN SA
139,495,424
106,488,501
31.0%
-16,073,284
ING LEASE ROMANIA IFN SA
129,501,890
178,279,536
-27.4%
-12,166,045
BRD SOGELEASE IFN SA
126,363,950
145,587,347
-13.2%
9,764,262
RCI LEASING ROMANIA IFN SA
107,459,555
189,203,383
-43.2%
29,761,625
RALFI IFN SA
101,008,558
127,249,004
-20.6%
12,911,514
DEUTSCHE LEASING ROMANIA IFN SA
100,059,191
57,401,045
74.3%
3,244,067
BT LEASING TRANSILVANIA IFN SA
85,381,248
91,693,990
-6.9%
7,707,087
OTP LEASING ROMANIA IFN SA
81,895,351
111,589,856
-26.6%
8,380,315
CREDIT EUROPE LEASING IFN SA
73,960,081
91,235,715
-18.9%
-6,544,910
ALPHA LEASING ROMANIA IFN SA
72,118,143
114,652,875
-37.1%
-9,213,552
TBI LEASING IFN SA
59,650,509
88,437,581
-32.6%
3,069,025
AGER LEASING IFN SA
53,598,758
58,006,499
-7.6%
405,532
MKB ROMEXTERRA LEASING IFN SA
42,258,627
56,880,821
-25.7%
-28,419,981
BNP PARIBAS LEASE GROUP IFN SA
40,732,078
33,186,066
22.7%
9,680,938
ERSTE GROUP IMMORENT ROMANIA IFN SA
37,458,405
45,548,238
-17.8%
295,633
TEZAUR IMOBILIARE IFN SA
12,498,403
25,325,673
-50.6%
2,121,385
RANK COMPANY NAME
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
CONTACT
Voluntari, ILFOV
Cluj-Napoca, CLUJ
MCR
BANKING & FINANCE
PILLAR II PENSION FUNDS ADMINISTRATORS
RANK COMPANY NAME
1
2
3
4
5
6
7
8
9
FUND NAME
FPAP ING
FPAP
AZT
S.C. ALLIANZ-}IRIAC PENSII PRIVATE SAFPP S.A.
VIITORUL TAU
S.C. GENERALI SAFPP S.A.
FPAP ARIPI
S.C. ALICO SAFPAP S.A.
FPAP ALICO
S.C. AVIVA SAFPP S.A.
FPAP PENSIA VIVA
S.C. BCR PENSII SAFPP S.A.
FPAP BCR
S.C. EUREKO - SAFPP S.A.
FPAP Eureco
S.C. AEGON SAFPAP S.A.
FPAP VITAL
S.C. BRD SAFPP S.A.
FPAP BRD
S.C. ING PENSII SAFPAP S.A.
NET ASSETS
(2012, RON)
3,654,381,378
NET ASSETS NO OF PARTICIPANTS
YEAR VARIATION
31 DEC 2012
48.7%
1,729,058
2,241,674,164
48.8%
1,368,805
178.19
788,939,725
49.0%
538,746
67.66
682,725,796
50.3%
386,912
55.83
663,290,491
53.4%
432,038
63.85
540,400,617
58.3%
438,970
51.81
539,575,296
40.0%
439,599
37.66
276,453,383
55.9%
234,933
21.08
254,812,770
52.6%
203,453
14.79
NET ASSETS
NET ASSETS NO OF PARTICIPANTS
31 DEC 2012
(2012, RON) YEAR VARIATION
209,024,566
41.4%
89,161
PROFIT/LOSS
(2012, MLN RON)
13.99
PILLAR III PENSION FUNDS ADMINISTRATORS
RANK COMPANY NAME
1
2
S.C. ING ASIGUR~RI DE VIA}~ S.A.
S.C. BCR PENSII, SAFPP S.A.
3
4
5
S.C. ING ASIGUR~RI DE VIA}~ S.A.
6
S.C. S.A.I. RAIFFEISEN ASSET MANAGEMENT S.A.
7
8
9
S.C. AVIVA SAFPP S.A.
S.C. BRD SAFPP S.A.
S.C. GENERALI SAFPP S.A.
10
S.C. EUREKO - SAFPP S.A.
11
S.C. ASIROM - CONCORDIA SAFPF S.A.
FUND NAME
FPF ING OPTIM
FPF BCR PLUS
FPF AZT
MODERATO
FPF ING ACTIV
FPF AZT VIVACE
FPF RAIFFEISEN
ACUMULARE
FPF PENSIA MEA
FPF BRD MEDIO
FPF STABIL
FPF EURECO
COMFORT
FPF CONCORDIA
MODERAT
102,219,208
36.7%
81,572
8.79
88,477,617
32.9%
33,340
7.14
70,863,656
36.0%
29,177
6.56
40,950,997
33.1%
20,277
4.3
30,280,838
37.3%
7,855
3.17
28,626,105
29.8%
10,292
2.57
19,752,067
54.4%
11,679
0.92
5,819,034
52.4%
4,722
0.5
3,224,349
40.5%
3,713
0.28
732,960
29.9%
358
0.06
CAPITAL MARKET INTERMEDIARIES
RANK COMPANY NAME
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
SWISS CAPITAL S.A.
RAIFFEISEN CAPITAL & INVESTMENT
WOOD & COMPANY FINANCIAL SERVICES, A.S.
PRAGA
S.S.I.F. BROKER
BANCA COMERCIALA ROMANA
BT SECURITIES
NBG SECURITIES ROMANIA S.A. (ETEBA ROMANIA)
BRD GROUPE SOCIETE GENERALE
IFB FINWEST
ACTINVEST
TRADEVILLE
HARINVEST
INTERCAPITAL INVEST
RAIFFEISEN CENTROBANK AG
CARPATICA INVEST
VOLTINVEST
IEBA TRUST
KBC Securities N.V.
ESTINVEST
AVANTGARDE FINANCE S.A.
PROFIT/LOSS
(2012, MLN RON)
292.45
TRADED VALUE MARKET SHARE %
(JAN-SEP 2013, RON)
(JAN-SEP 2013)
19.5%
3,164,896,943
RANK 2012
1
TRADED VALUE MARKET SHARE %
(2012)
(2012, RON)
4,370,312,603
26.9%
2,572,896,510
15.8%
7
803,991,326
5.0%
2,235,863,382
13.8%
8
728,061,556
4.5%
1,870,730,392
1,087,851,954
614,292,490
534,917,360
479,556,432
427,663,750
415,681,096
257,448,287
253,497,352
227,962,822
212,823,163
176,645,890
165,798,907
165,731,340
147,200,751
129,185,266
119,443,607
11.5%
9
655,685,053
4.0%
6.7%
4
1,204,857,283
7.4%
3.8%
6
864,140,002
5.3%
3.3%
23
133,517,772
0.8%
3.0%
2
2,211,531,175
13.6%
2.6%
5
936,745,332
5.8%
2.6%
11
434,694,497
2.7%
1.6%
13
279,844,873
1.7%
1.6%
14
219,057,777
1.3%
1.4%
12
288,352,331
1.8%
1.3%
24
130,280,348
0.8%
1.1%
10
465,767,653
2.9%
1.0%
19
157,774,985
1.0%
1.0%
17
188,505,818
1.2%
0.9%
30
79,833,098
0.5%
0.8%
22
139,488,220
0.9%
0.7%
15
193,889,608
1.2%
FUND MANAGEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
UCITS
NON UCITS
CLOSED END
FUNDS
DISCRETIONARY
PORTFOLIO
MANAGEMENT
TOTAL
ASSETS
MARKET
SHARE
x
x
19,5
3776,2
22,69
x
217,3
49,3
3637,5
21,85
1438,7*
1438,7*
8,64
1327,5*
1327,5*
7,97
1266,2**
7,61
1148,5*
6,90
ASSET MANAGEMENT COMPANIES
ASSETS UNDER
MANAGEMENT
MARKET
SHARE
F.I.C.
ERSTE ASSET MANAGEMENT
3756,7
37,28
RAIFFEISEN ASSET MANAGEMENT
SOCIETATEA DE INVESTITII FINANCIARE
OLTENIA
BANAT-CRISANA
ING ASSET MANAGEMENT SUC. BUCURESTI
TRANSILVANIA
MOLDOVA
SAI MUNTENIA INVEST (SIF MUNTENIA)
3370,9
33,45
1266,2
12,56
x
x
x
1148,5*
1063,1*
x
x
1063,1*
6,39
1057,4*
x
X
1057,4*
6,35
BRD ASSET MANAGEMENT
747,1
7,41
x
X
747,1
4,49
BT ASSET MANAGEMENT
380,8
3,78
63,1
1,4
445,3
2,68
OTP ASSET MANAGEMENT
264,4
2,62
9,6
0,4
274,4
1,65
CERTINVEST
47,1
0,47
62,4
40,6
150,1
0,90
GLOBINVEST
34,9
0,35
25,4
x
60,3
0,36
ATLAS ASSET MANAGEMENT
36,5
0,36
18,3
0,9
55,7
0,33
PIONEER ASSET MANAGEMENT
50,1
0,50
x
x
50,1
0,30
CARPATICA ASSET MANAGEMENT
45,6
0,45
x
x
45,6
0,27
KD INVESTMENTS ROMANIA
31,2
0,31
x
x
31,2
0,19
ZEPTER ASSET MANAGEMENT
19,4
0,19
x
x
19,4
0,12
X
x
14,8
x
14,8
0,09
INTERCAPITAL INVESTMENT MANAGEMENT
1,5
0,01
9,6
x
11,1
0,07
STAR ASSET MANAGEMENT
9,5
0,09
X
x
9,5
0,06
TARGET ASSET MANAGEMENT
7,2
0,07
x
x
7,2
0,04
SWISS CAPITAL ASSET MANAGEMENT
4,4
0,04
x
x
4,4
0,026
SIRA
2,7
0,03
x
x
2,7
0,02
SAFI INVEST
VANGUARD ASSET MANAGEMENT
TOTAL MLN RON DEC 2012
* Figures for 11.30.2012; ** Foreign funds admin. locally
1,4
0,01
7885,5
100,0
6035,2
X
x
1,4
0,01
420,5
112,1
16645,4
100%
600 MW
installed capacity and 1 bln EUR - Rovinari power
plant, the larger investment in the last decades
Energy
t OIL & GAS EXTRACTION AND DISTRIBUITION
t ELECTRIC POWER GENERATION AND DISTRIBUTION
t WHOLE SALE OF ELECTRICITY AND FUELS
t RETAIL TRADE OF GAS - GAS STATIONS
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 2013. 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 H1 2013 compared to similar period in 2012. 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
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).
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
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 10-15 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).
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 Q1 2013 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.
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.
MCR
ENERGY
ELECTRIC POWER GENERATION AND DISTRIBUTION
RANK
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
COMPANY NAME
COMPANIA NATIONALA DE TRANSPORT AL
ENERGIEI ELECTRICE TRANSELECTRICA SA
ENEL DISTRIBUTIE MUNTENIA SA
FILIALA DE DISTRIBUTIE A ENERGIEI
ELECTRICE "ELECTRICA DISTRIBUTIE
MUNTENIA NORD" SA
E.ON MOLDOVA DISTRIBUTIE SA
SOCIETATEA COMPLEXUL ENERGETIC OLTENIA SA
SOCIETATEA NATIONALA NUCLEARELECTRICA SA
ELECTROCENTRALE BUCURESTI SA
CEZ DISTRIBUTIE SA
SOCIETATEA COMERCIALA ENEL DISTRIBUTIE
BANAT SA
DISTRIBUTIE TRANSILVANIA NORD" SA
DISTRIBUTIE A ENERGIEI ELECTRICE
"ELECTRICA DISTRIBUTIE TRANSILVANIA SUD" SA
A ENERGIEI ELECTRICE IN HIDROCENTRALE
HIDROELECTRICA SA
ENEL DISTRIBUTIE DOBROGEA SA
RUDNAP SRL
ELECTROCENTRALE GALATI SA
SOCIETATEA COMPLEXUL ENERGETIC
HUNEDOARA SA
CEZ ROMANIA SRL
ESPE RO SA
MW TEAM INVEST SRL
EON ROMANIA SRL
A ENERGIEI ELECTRICE SI TERMICE
TERMOELECTRICA - SA
TOMIS TEAM SRL
HIDROELECTRICA SA BUCURESTI - FILIALA
PENTRU REPARATII SI SERVICII HIDROSERV
SLATINA SA
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
CONTACT
3.388
2,719,196,000
1
47,976,000
2198
3.363
869,864,698
6
206,283,901
1,213
3.363
720,196,151
8
87,148,792
2,068
3.300
3.263
3.263
3.238
3.238
665,605,346
2,236,654,705
1,653,156,406
2,093,864,650
829,749,728
9
3
5
4
7
71,344,771
118,328,802
34,469,000
67,569,722
85,956,471
1,556
18,770
2,136
3,097
1,285
Bacau, BACAU
Târgu Jiu, GORJ
3.175
603,162,327
11
167,228,325
1,166
Timisoara, TIMIS
3.113
571,123,403
12
53,079,013
2,023
Oradea, BIHOR
3.050
632,835,702
10
45,804,940
1,818
Brasov, BRASOV
3.013
2,402,785,281
2
-508,010,530
5,199
2.713
2.225
2.213
480,310,174
188,750,214
279,764,985
13
16
14
94,474,591
227,171
-71,123,978
1.988
232,504,917
15
37,904,154
1.963
1.900
1.838
1.813
134,781,220
53,274,264
105,781,532
62,351,125
18
32
20
28
1,649,653
6,017,769
31,752,424
13,368,110
938 Constanta, CONSTANTA
3
542
PetrŽƔĂŶŝ͕
1,918
HUNEDOARA
513
3
Giroda, TIMIS
1
51 Tirgul Mures, MUREb
1.800
112,450,172
19
-3,397,944
1,027
1.775
188,122,390
17
-33,829,777
9
1.738
63,908,507
27
16,017
241
ENEL GREEN POWER ROMANIA SRL
1.713
89,456,480
24
111,426,589
45
BIO ELECTRICA TRANSILVANIA SRL
A ENERGIEI IN HIDROCENTRALE
HIDROELECTRICA BUCURESTI SA FILIALA
PENTRU REPARATII SI SERVICII HIDROSERV
PORTILE DE FIER SA
GRINSEG CONSTRUCT SRL
SOCIETATEA COMERCIALA FILIALA PENTRU
REPARATII SI SERVICII "HIDROSERV" SEBES SA
ELECTRIFICARE CFR SA
GENERAL ENERGETIC SA
CENTRALA ELECTRICA DE TERMOFICARE
ARAD SA ( CETARAD)
FILIALA PENTRU REPARATII SI SERVICII
HIDROSERV CURTEA DE ARGES SA
CONTOURGLOBAL SOLUTIONS (PLOIESTI) SRL
ECOGEN ENERGY SA
EFE ENERGY SRL
BEPCO SRL
ENERGY COGENERATION GROUP SA
EDP RENEWABLES ROMANIA SRL
CENTRALA ELECTRICA DE TERMOFICARE
HIDROCARBURI (CET HIDROCARBURI) SA
VEST - ENERGO SA
UZINA TERMOELECTRICA GIURGIU SA
1.713
26,370,741
39
10,466,085
11
1.700
74,567,147
26
5,792
629
Drobeta
Turnu-Severin,
MEHEDINTI
Craiova, DOLJ
Rusu de Sus,
BISTRITA-NASAUD
1.650
36,987,242
35
186,595
12
Campina , PRAHOVA
1.613
26,838,194
38
109,227
196
Sebes, ALBA
1.600
1.588
92,830,271
25,852,240
23
40
-14,214,280
1,746,623
2,695
21
Stejaru, NEAMT
1.575
99,028,140
22
9,258,243
422
Arad, ARAD
1.563
56,830,235
30
-1,735,551
276
Curtea de Arges,
ARGES
1.525
1.463
1.463
1.425
1.425
1.400
33,327,693
43,655,394
33,848,221
102,964,901
59,790,801
37,113,913
37
33
36
21
29
34
-4,068,490
1,597,738
-668,896
-9,043,198
51,730
-25,872,376
1.388
75,275,181
25
-24,944,377
395
Arad, ARAD
1.188
1.175
55,855,141
25,648,403
31
41
-2,349,979
-22,334,922
69
219
Giurgiu, GIURGIU
10
11
Buzau, BUZAU
5
Buzau, BUZAU
76
Ghimbav, BRASOV
51 Zimnicea, TELEORMAN
20
OIL & GAS EXTRACTION AND DISTRIBUITION
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
DISTRIGAZ SUD RETELE SRL
SOCIETATEA NATIONALA DE GAZE NATURALE
ROMGAZ SA
OMV PETROM SA
3.863
1,025,701,645
7
108,765,289
2,924
3.700
3,842,983,119
6
1,244,049,106
5,730
3.600
19,510,054,765
1
3,850,620,876
20,508
ARELCO DISTRIBUTIE SRL
3.350
794,723,145
8
9,007,402
14
EON ENERGIE ROMANIA SA
3.213
5,257,350,295
4
-32,597,692
520
GDF SUEZ ENERGY ROMANIA SA
3.213
4,315,829,716
5
209,555,220
624
PETROTEL - LUKOIL SA
3.150
6,933,476,358
3
-274,444,325
497
8
ROMPETROL RAFINARE SA
3.113
12,323,113,339
2
297,653,500
946
Navodari,
CONSTANTA
9
EON GAZ DISTRIBUTIE SA
3.050
744,364,145
9
73,019,676
3,738
Targu Mures, MURES
10
INTERGAZ SRL
3.000
471,444,591
11
36,140,723
51
Zimnicea,
TELEORMAN
11
12
BULROM GAS IMPEX SRL
2.875
326,641,483
14
6,093,539
131
LINDE GAZ ROMANIA SRL
2.650
471,511,500
10
85,166,332
406
Timisoara, TIMIS
13
OIL PROD SRL
2.613
348,482,823
13
17,184
49
Constanta,
CONSTANTA
14
15
16
17
18
CONEF GAZ SRL
2.538
443,085,891
12
3,716,851
7
PETROSANTANDER ROMANIA SRL
2.388
137,561,944
19
8,408,921
465
GAZ SUD FURNIZARE SRL
2.338
202,891,079
15
1,375,946
6
TACROM DRILLING SRL
2.300
50,843,222
23
4,027,269
102
TEN GAZ SRL
2.150
140,596,431
18
2,812,814
26
Cluj Napoca, CLUJ
19
CONGAZ SA
2.013
152,070,664
17
5,702,802
251
Constanta,
CONSTANTA
20
21
22
TOTAL LUBRICANTS ROMANIA SA
1.875
191,454,328
16
-1,365,237
92
MOL ENERGY TRADE ROMANIA SRL
1.838
121,658,035
20
-1,760,138
5
WIROM GAS SA
NABORS DRILLING INTERNATIONAL
PLOIESTI SRL
RAFO SA
1.550
49,687,275
24
3,843,252
95
1.488
47,673,776
25
-2,523,021
102
1.375
30,654,645
27
-54,409,062
913
PETROM DISTRIBUTIE GAZE SRL
1.363
54,572,728
22
-11,329,869
245
AMROMCO ENERGY SRL
1.325
76,994,083
21
-69,768,930
262
RAFINARIA STEAUA ROMANA SA
1.263
39,121,833
26
-65,998,926
83
RANK COMPANY NAME
1
2
3
4
5
6
7
23
24
25
26
27
CONTACT
Medias, SIBIU
Targu Mures, MURES
Arad, ARAD
PRAHOVA
Campina, PRAHOVA
MCR
ENERGY
WHOLE TRADE OF ELECTRICITY AND FUELS
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
ELECTRICA FURNIZARE SA
3.863
4,441,432,423
1
90,538,488
1,165
OMV PETROM GAS SRL
3.850
3,246,247,190
2
239,414,558
-
ENEL ENERGIE MUNTENIA SA
3.813
2,069,364,349
4
72,388,714
230
ENEL ENERGIE SA
3.775
2,066,949,724
5
331,250,198
336
TINMAR - IND SA
3.750
1,387,536,296
7
30,271,565
59
OSCAR DOWNSTREAM SRL
3.600
2,467,509,493
3
30,243,051
-
CEZ VANZARE SA
3.600
1,560,517,471
6
134,989,194
45
WIEE ROMANIA SRL
3.475
922,193,327
8
50,523,430
8
ALPIQ ROMENERGIE SRL
3.225
821,896,821
12
26,636,475
12
TRANSENERGO COM SA
3.225
722,570,242
15
10,374,852
19
ALPIQ ROMINDUSTRIES SRL
3.163
769,657,904
14
1,820,399
14
EGL GAS & POWER ROMANIA SA
3.038
550,112,255
19
11,333,825
13
PLANOIL SRL
2.850
773,689,590
13
1,803,910
25
ENERGY FINANCING TEAM ROMANIA SRL
2.850
378,826,174
24
4,919,335
4
ROMPETROL GAS SRL
2.813
912,998,237
9
466,214
132
LLK LUBRICANTS ROMANIA SRL
2.750
835,098,501
11
-16,531,454
89
GASPECO L &D SA
2.750
529,108,861
20
-14,518,853
245
Otopeni, ILFOV
COMISION TRADE SRL
2.750
492,310,705
22
7,596,002
214
Braila, BRAILA
EZPADA SRL
2.725
268,630,669
30
3,684,859
1
ROTTCO CONSULT SRL
SOCIETATEA COMERCIALA DE DISTRIBUTIE
SI FURNIZARE A ENERGIEI ELECTRICE ELECTRICA SA
ENERGY HOLDING SRL
2.713
655,528,869
16
171,719
15
2.688
653,371,024
17
15,363,377
213
2.688
642,875,408
18
-156,392,598
53
PETROLEXPORTIMPORT SA
2.688
361,578,925
26
1,147,799
19
2.663
509,948,239
21
-11,983,443
22
25
REPOWER FURNIZARE ROMANIA SRL
GEN - I BUCHAREST - ELECTRICITY TRADING
AND SALES SRL
2.663
353,332,385
27
1,458,187
1
26
ECO PETROLEUM SA
2.600
323,682,995
29
-386,806
47
27
28
29
30
CASTROL LUBRICANTS RO SRL
2.588
152,864,986
43
14,849,013
37
UNICOM HOLDING SA
2.563
859,576,467
10
-23,157,347
147
VOTROM SRL
2.525
180,350,297
38
2,723,541
14
Oradea, BIHOR
FIDELIS ENERGY SRL
EDISON TRADING SPA MILANO - SUCURSALA
BUCURESTI
RONEFER SRL
2.513
211,320,428
33
1,733,296
8
Valea Lupului, IASI
2.475
377,412,842
25
-659,340
2
2.413
194,903,505
35
3,361,929
5
Voluntari, ILFOV
ENERGON POWER & GAS SRL
2.400
168,988,531
40
1,767,321
9
Cluj-Napoca, Cluj
RENOVATIO TRADING SRL
2.400
164,980,101
42
5,058,312
11
ENEL TRADE ROMANIA SRL
2.350
480,442,160
23
-3,478
2
PLANOIL INDUSTRIES SA
2.350
345,059,854
28
38,731
1
MASTER CHEM OIL SRL
OET - OBEDINENI ENERGIINI TARGOVTSI OOD
BULGARIA SUCURSALA BUCURESTI
LIEB-BENZ-OIL COMPANY LTD SRL
2.350
202,909,254
34
599,546
28
2.275
230,431,881
31
6,580,360
15
39
40 KDF ENERGY SRL
2.225
217,732,584
32
2,410,846
11
2.100
180,962,202
37
12,927,966
11
41
TAN STEEL HOLDING SRL
2.100
167,048,656
41
38,379
10
42
43
CEZ TRADE ROMANIA SRL
1.900
191,551,951
36
24,149
4
AIR TOTAL ROMANIA SA
1.850
175,145,453
39
-4,038,131
34
RANK
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
31
32
33
34
35
36
37
38
COMPANY NAME
CONTACT
Craiova, DOLJ
Voluntari, ILFOV
Constanta,
CONSTANfA
Voluntari, ILFOV
Timisoara, TIMIS
Techirghiol,
CONSTANTA
MCR
ENERGY
RETAIL TRADE OF GAS - GAS STATIONS
RANK COMPANY NAME
1
2
3
4
5
6
7
OMV PETROM MARKETING SRL
MOL ROMANIA PETROLEUM PRODUCTS SRL
ROMPETROL DOWNSTREAM SRL
LUKOIL ROMANIA SRL
ENI ROMANIA SRL
ARAL SRL
SMART DIESEL SRL
8
ANNUAL TURNOVER
(2012 RON)
15,092,697,104
3.963
MCR SCORING
TURNOVER
RANKING
1
PROFIT/LOSS
(2012 RON)
253,603,314
NO OF
EMPLOYEES
280
CONTACT
3.688
3.113
3.050
2.688
2.438
2.363
4,147,768,969
4
76,118,480
188
8,155,062,334
2
-150,017,505
2,111
6,030,862,944
3
-223,080,093
3,309
611,634,803
5
-11,356,042
194
273,487,257
6
-3,846,939
220
Saliste, SIBIU
261,344,977
7
1,171,357
32
Chisineu-Cris, ARAD
TURIST SERVICE SRL
2.338
157,135,449
9
866,051
47
15
2,308,658
97
9
ROMBEER CRINGASU SRL
2.300
110,623,320
10
11
12
13
ANA OIL SRL
EUROGENETIC SRL
ALPHA GRUP OIL SRL
VILKY SERV SRL
2.025
1.988
1.963
1.963
141,643,900
12
20,156
43
GIURGIU
I. L. Caragiale ,
DAMBOVITA
Sibiu, SIBIU
70,000,835
19
1,564,245
78
Craiova, DOLJ
151,041,381
11
197,008
4
73,307,255
18
357,191
18
14
ROMAR OIL SRL
1.963
59,246,767
21
59,020
22
15
16
17
18
19
SOCAR PETROLEUM S.A.
TRANS IVINIS & CO SRL
BENZ OIL SRL
DESIRA IMPEX SRL
EUROIL SRL
1.938
1.925
1.913
1.900
1.863
232,757,476
8
-14,613,488
189
20
OZANA SRL
1.738
57,800,429
22
522,235
68
21
22
ALASCOM SRL
AS24 TANKSERVICE SRL
1.650
1.588
65,934,124
20
655,306
41
136,386,693
13
262,806
9
Nojorid, BIHOR
Constanta,
CONSTANTA
Botosani, BOTOSANI
93,287,484
17
677,855
94
Sebes, ALBA
153,937,907
10
-296,525
45
Medias, SIBIU
114,611,388
14
426,131
48
Beius, BIHOR
107,607,607
16
-2,527,728
177
Saliste, SIBIU
Bistrita, BISTRITANASAUD
Buzau,BUZAU
2.3%
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
t MANUFACTURE OF BASIC CHEMICALS
t WHOLESALE OF CHEMICAL PRODUCTS
t MANUFACTURE OF PAINTS, VARNISHES AND SIMILAR COATINGS,
PRINTING INKS AND MASTICS
t MANUFACTURE OF RUBBER AND PLASTIC PRODUCTS - EXCEPT TYRES
t WASTE MANAGEMENT
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 2011. (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 2011. 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 2008-2011.
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 2011.
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.
EXPECTED DEVELOPMENTS
An increase of gas prices for industrial consumers could
worsen the financial performance of the petrochemicals
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
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 2009. Its main supplier, Arpechim, a
refinery owned by Petrom Group, was closed in 2011 after
Austrian shareholders decided that it is not cost effective.
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
2011. 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%.
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.
MCR
Opinion
Packaging
industry:
RADU ANDREI,
innovation is the key word
The packaging industry was affected by the
crisis that started in Europe at the end of
2008 – beginning of 2009. 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.
There were several strategic decisions that
allowed us to keep on track and not follow
the numerous businesses that went
bankrupt during 2009 and 2010. 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.
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.
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.
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.
MBA Marketing,
LivingJumbo Industry S.A.
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 2013.
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 2008. 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.
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 –
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.
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.
MANUFACTURE OF BASIC CHEMICALS
RANK
COMPANY NAME
1
AZOMURES SA
ANNUAL TURNOVER
(2012 RON)
1,829,333,521
3.675
2
OLTCHIM SA
2.638
765,442,904
3
2.550
636,841,401
2.363
2.363
172,142,848
193,984,522
8
12,228,911
661
6
REGIA AUTONOMA PENTRU ACTIVITATI
NUCLEARE RA
REDOXIM SRL
CHIMCOMPLEX SA BORZESTI
UZINELE SODICE GOVORA - CIECH CHEMICAL
GROUP SA
2.300
330,935,287
5
-56,718,502
902
7
BIO FUEL ENERGY SRL
2.013
290,803,734
6
281,697
373
35
4
5
MCR SCORING
TURNOVER
RANKING
1
PROFIT/LOSS
(2012 RON)
244,049,442
NO OF
EMPLOYEES
2,623
2
569,443,477
3,318
3
-2,578,621
3,653
9
16,345,624
180
8
D PLAST-EFTEC RO SRL
1.963
42,139,654
19
8,068,666
9
10
11
12
13
ALCHIMEX SA
ENERGY BIO CHEMICALS SA
AMURCO SRL
EGGER TECHNOLOGIA SRL
VIROMET SA
1.913
1.888
1.888
1.788
1.788
46,375,116
18
4,849,001
48
375,071,131
4
-36,398,609
506
95,222,839
13
1,835,710
734
218,157,651
7
5,285,319
46
129,259,622
10
-1,960,426
528
14
COMBINATUL DE INGRASAMINTE CHIMICE SA
1.675
78,145,583
15
105,968
81
15
16
17
18
CHEMGAS HOLDING CORPORATION SRL
BIOROMOIL SRL
QUALICAPS ROMANIA SRL
TRUST LF TRADE SRL
1.638
1.600
1.550
1.438
784
19
DONAU CHEM SRL
1.413
20
PRIO BIOCOMBUSTIBIL SRL
1.150
90,124,501
14
1,737,800
102,694,775
11
-68,140,151
18
52,227,004
17
7,200,977
90
65,715,497
16
-309,604
171
99,264,080
12
410,093
1,042
41,766,413
20
-11,411,706
42
ANNUAL TURNOVER
(2012 RON)
571,524,897
3.150
TURNOVER
RANKING
1
PROFIT/LOSS
(2012 RON)
11,769,303
NO OF
EMPLOYEES
286
WHOLESALE OF CHEMICAL PRODUCTS
RANK
COMPANY NAME
1
2
3
4
5
COMFERT SRL
BAYER SRL
ALCEDO SRL
AGROTEX SRL
AGRIUM-AGROPORT ROMANIA SA
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
MCR SCORING
3.063
3.000
2.613
2.525
509,077,751
2
3,218,628
198
342,276,689
4
28,658,853
189
251,275,661
5
13,577,825
54
508,938,567
3
-18,378
34
BIZ SOLUTIONS SRL
2.525
100,436,253
18
530,453
25
AZOCHIM SRL
SYNGENTA AGRO SRL
MAKHTESHIM AGAN MAROM SRL
TIMAC AGRO ROMANIA SRL
MARIA INVEST HOLDING SRL
DEN BRAVEN ROMANIA COMEX SRL
BRENNTAG SRL
TERRA AGRO INVEST SRL
ARCHIM FERTIL SRL
LINZER AGRO TRADE ROMANIA SRL
BASF SRL
SIKA ROMANIA SRL
CHEMIROL AGRO SRL
ORBIT POLYMERS SRL
KWIZDA AGRO ROMANIA SRL
SOLEXIM POLYMERS SRL
CHEMARK ROM SRL
MESSER ROMANIA GAZ SRL
GLISSANDO SRL
2.488
2.475
2.450
2.413
2.400
2.375
2.313
2.213
2.150
2.025
2.013
2.000
1.963
1.950
1.925
1.838
1.800
1.800
1.725
157,997,458
12
8,157,019
125
211,072,184
6
6,905,040
75
117,876,811
14
1,405,369
21
140,682,505
13
10,986,858
71
116,756,102
15
9,941,653
28
203,889,131
7
3,334,135
220
177,780,826
8
5,741,574
89
71,492,370
23
3,388,346
12
166,922,553
11
4,578,112
45
171,986,204
9
2,677,912
36
CONTACT
Tg. Mures, MURES
Ramnicu Valcea,
VALCEA
Drobeta Turnu
Severin, MEHEDINTI
Diroda, TIMIS
Ramnicu Valcea,
VALCEA
Zimnicea,
TELEORMAN
Budeasa Mare,
ARGES
Bacau, BACAU
Victoria, BRASOV
Navodari,
CONSTANTA
Slobozia, IALOMITA
Focsani, VRANCEA
Turnu Magurele,
TELEORMAN
CONTACT
Bacau, BACAU
Carei, SATU MARE
DOLJ
Calugareni, GIURGIU
Voluntari, ILFOV
Chirnogi, CALARASI
Chiajna, ILFOV
Vladimirescu, ARAD
170,090,093
10
3,425,807
79
86,968,616
20
2,566,774
53
Brasov, BRASOV
69,142,365
24
3,341,332
46
Arad, ARAD
81,322,570
21
1,361,951
13
114,585,099
16
1,024,617
61
102,566,453
17
2,079,754
14
75,594,867
22
2,270,525
104
68,320,753
25
9,218,528
86
96,055,359
19
5,208,136
108
Brasov, BRASOV
Timisoara, TIMIS
MCR
CHEMICALS
MANUFACTURE OF RUBBER AND PLASTIC PRODUCTS
RANK COMPANY NAME
1
2
3
4
5
GREENFIBER INTERNATIONAL SA
ARTEGO SA
PLASTOR SA
CONTITECH THERMOPOL ROMANIA SRL
PHOENIX MECANO PLASTIC SRL
6
7
8
9
10
11
12
13
14
15
16
ANNUAL TURNOVER
(2012 RON)
317,923,582
2.713
MCR SCORING
TURNOVER
RANKING
2
PROFIT/LOSS
(2012 RON)
15,308,450
NO OF
EMPLOYEES
574
Buzau, BUZAU
CONTACT
2.700
2.688
2.575
2.500
201,230,043
8
11,699,944
1,257
Targu Jiu, GORJ
104,437,891
20
10,403,838
775
Oradea, BIHOR
135,514,408
12
23,410,107
409
Nadab, ARAD
110,132,746
18
12,028,075
291
ROMPETROL PETROCHEMICALS SRL
2.475
855,167,053
1
-62,786,653
-
STAR EAST PET SRL
VITAFOAM ROMANIA SRL
VALROM INDUSTRIE SRL
AQUATOR SA
PUROLITE SRL
ROMCARBON SA
EUROFOAM SRL
GEALAN ROMANIA SRL
PET STAR HOLDING SRL
GREIF FLEXIBLES ROMANIA SRL
2.375
2.313
2.213
2.163
2.138
2.063
2.063
2.063
2.050
2.025
110,185,554
17
2,192,157
58
Sibiu, SIBIU
Navodari,
CONSTANTA
Brasov, BRASOV
110,718,919
16
5,383,069
169
Ludus, Mures
223,234,220
6
8,964,768
352
242,031,833
3
937,512
15
191,352,925
9
3,174,467
249
17
TERAPLAST SA
18
19
20
VALEO LIGHTING INJECTION SA
HUTCHINSON SRL
CASA NOASTRA SRL
135,533,436
11
689,282
661
Buzau, BUZAU
123,956,925
14
3,278,009
195
Selimbar, SIBIU
114,212,633
15
-2,479,100
102
154,764,122
10
5,095,572
77
Slobozia, IALOMITA
107,418,728
19
1,847,515
593
1.988
239,544,664
4
8,979,353
470
1.963
1.688
1.588
226,950,937
5
-29,564,826
458
Botosani, BOTOSANI
Girmata, TIMIS
213,489,120
7
-2,469,250
557
124,437,002
13
-2,363,528
754
ANNUAL TURNOVER
(2012 RON)
734,178,425
3.125
602,848,222
3.063
TURNOVER
RANKING
1
PROFIT/LOSS
(2012 RON)
7,005,365
NO OF
EMPLOYEES
148
211
WASTE MANAGEMENT & RECYCLING
RANK COMPANY NAME
Buzau, BUZAU
MCR SCORING
CONTACT
1
2
3
4
5
6
7
8
9
10
11
12
13
REMAT SA
REMATHOLDING CO SRL
IONESCOM COLECT SRL
METALIMPEX ROMANIA SRL
SILNEF MG SRL
ALBA BALKAN RECYCLING SRL
METAL GROUP COMIMPEX SRL
REMAT MG SA
REMAT BRASOV SA
REMAT SCHOLZ SA
TEHNOINVEST & CO RECYCLING SRL
ENERGROM SA
ANGHEL NG SRL
2
5,739,190
3.038
3.000
2.963
2.725
2.725
2.688
2.688
2.600
2.575
2.538
2.500
267,060,983
13
2,168,465
254,751,573
15
10,026,689
105
Argeselu, ARGES
550,094,810
3
695,456
403
Brasov, BRASOV
346,689,777
9
1,046,942
29
239,007,673
17
2,158,386
33
413,460,545
5
640,049
222
Arad, ARAD
251,583,199
16
570,342
214
Brasov, BRASOV
477,338,496
4
-21,224,324
9
263,338,005
14
1,201,071
32
286,892,054
11
6,050,925
29
366,595,557
7
159,609
73
14
KIRAZOGLU CORPORATION SRL
2.438
346,956,989
8
80,476
77
15
16
17
18
GREENTECH SA
ROMRECYCLING SRL
COMPANIA ROMPREST SERVICE SA
REMAT BUCURESTI SUD SA
2.388
2.375
2.300
2.300
140,857,632
26
5,475,134
435
394,198,226
6
-21,014,648
85
273,267,787
12
2,353,613
2,743
150,500,750
24
1,512,538
175
19
NEW COMPANY RECYCLING SRL
2.188
230,260,048
18
1,439,096
97
20
21
22
23
24
25
REMATINVEST SRL
REMAT SA
SUPERCOM SA
METAL HOUSE CO SRL
ROSAL GRUP SRL
SIDEROM STEEL SRL
2.063
2.063
2.050
2.038
1.900
1.850
334,922,562
10
-8,910,847
219
Drobeta-Turnu
Severin, MEHEDINTI
Cluj-Napoca, CLUJ
169,247,677
22
2,524,623
240
Iasi, IASI
137,804,657
27
1,385,811
1,677
142,354,045
25
661,422
179,433,962
21
1,316,623
210,526,423
19
-5,954,303
26
REMAT SCHOLZ FILIALA OLTENIA SRL
1.850
184,093,999
20
-2,421,574
27
URBAN SA
1.538
164,728,587
23
-15,755,517
Calarasi, CALARASI
Brasov, BRASOV
Sendreni, GALATI
Agigea Sud,
CONSTANTA
Buzau, BUZAU
1,965
27
Drobeta-Turnu
Severin, MEHEDINTI
2,237 Ramnicu Valcea, VALCEA
132
MANUFACTURE OF PAINTS, VARNISHES AND SIMILAR COATINGS, PRINTING INKS AND MASTICS
1
2
3
4
5
6
7
8
9
10
11
12
13
KOBER SRL
CHIMTITAN SRL
AZUR SA
AXM PROD 93 SRL
POLICOLOR SA
2.413
2.200
2.175
2.038
1.950
ANNUAL TURNOVER
(2012 RON)
192,194,235
15,836,902
120,158,720
29,533,025
138,197,806
FABRYO CORPORATION SRL
1.925
123,488,992
3
1,207,072
204
DEUTEK SA
DILOIL CHIM SRL
SENTOSA IMPEX SRL
METALBAC & FARBE SA
NUBIOLA ROMANIA SRL
EUROINK ROMANIA SRL
1.913
1.900
1.888
1.888
1.800
1.700
117,985,825
6,350,867
46,494,914
18,054,458
66,911,874
21,262,956
5
21
9
14
7
12
-25,143,736
412,094
7,784,003
2,541,184
2,791,780
449,360
343
4
187
60
135
18
Cluj-Napoca, CLUJ
Magura, BACAU
SWARCO VICAS SA
1.675
19,521,375
13
96,018
44
Targoviste,
DAMBOVITA
14
VADOVA SRL
1.663
10,116,167
17
31,851
41
15
HELIOS TRADING CO SRL
1.613
8,207,643
18
430,514
33
16
17
18
19
20
21
SARCOM SRL
1.575
30,505,702
10
-1,822,213
94
DRUCKFARBEN ROMANIA SRL
1.488
50,496,817
8
1,063,825
85
DAW BENTA ROMANIA SRL
1.475
78,011,871
6
-2,640,877
266
NATIONAL PAINTS FACTORIES COMPANY SA
IZOCOLOR 92 PROD SRL
CHEMPRO CHEMICALS SRL
1.325
1.275
1.213
14,461,616
6,561,814
7,585,754
16
20
19
-843,239
136,625
11,147
RANK
COMPANY NAME
MCR SCORING
TURNOVER
RANKING
1
15
4
11
2
PROFIT/LOSS
(2012 RON)
13,053,065
1,579,396
168,177
1,864,156
3,087,162
NO OF
CONTACT
EMPLOYEES
455 Dumbrava Rosie, NEAMT
66
302
Timisoara, TIMIS
138
236
ILFOV
VALCEA
ILFOV
VALCEA
Magurele, ILFOV
Sancraiul de Mures,
MURES
Miroslava, IASI
71
50 Ramnicu Valcea, VALCEA
2.6%
increase in local pharmacy retail market in 2012,
the first 10 players represent approximately 48%
of total sales, related to 38% in 2011
Pharmaceuticals
t MANUFACTURE OF BASIC PHARMACEUTICALS
t WHOLESALE OF PHARMACEUTICALS
t RETAIL TRADE OF PHARMACEUTICALS
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 20111.
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. 2013 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.
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 PMR3 analysis, accelerated development of the
local market is forecasted for 2013 – 2014, 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
Q1 2013
OTC Sales
RX Sales
2012
2011
2010
0%
5%
10%
15%
20%
25%
30%
35%
y-o-y change
Source: Cegedim. *RX represents the prescription-drug segment.
Figure 1. Sales Evolution in Pharma Retail
2,500
2,216
2,273
2011
2012
2,045
2,000
1,682
EURm
1,500
1,000
500
0
2009
2010
Source: Cegedim.
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 segment2.
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 2012. 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
http://www.zfcorporate.ro/pharma/romania-ocupa-locul-21-in-europa-dupa-investitiile
-in-cercetare-in-medicina-cu-218-milioane-euro-11280004.
2
Romania Pharmaceutical Report, Intellinews, May 2013.
3
PMR is a British American company concentrated on providing market information
related to CEE and other emerging countries.
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?
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 2011.
PERFORMANCE AND EXPANSION
The number of pharmacy units has continually grown since
2006. 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 2015.
Figure 3. Evolution of Pharmacy Units in Romania
2011
6,969
2010
PRICING AND BRAND BUILDING STRATEGIES
6,682
2009
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 2012. 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.
6,506
2008
6,127
2007
5,897
2006
5,347
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Number of units
Source: Romania National Institute of Statistics.
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.
THE TOP PLAYERS SHARPEN THE WAR IN PHARMA
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
300
430
450
400
250
Number of units
400
350
200
300
220
250
150
200
147
123
150
83
72
60
55
50
50
0
ta
rm
te
Re
fa
m
ac
ro
nt
Ce
ar
ch
te
rF
Re
iile
Ri
on
de
rm
ac
Ge
Fa
ia
ia*
nn
a
do
m
lla
Be
ar
Number of units
m
ed
a
a
m
tF
He
lp
Ne
lu
na
ph
ar
Ro
Do
sib
Se
n
Ca
t
en
a
0
Net Turnover
PHARMACY RETAIL CONTINUE TO INNOVATE
100
120
100
EURm
500
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.
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.
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.
MCR
PHARMACEUTICALS
MANUFACTURE OF BASIC PHARMACEUTICALS
RANK COMPANY NAME
ANNUAL TURNOVER
(2012 RON)
463,464,977
3.088
TURNOVER
RANKING
2
PROFIT/LOSS
(2012 RON)
49,336,953
NO OF
EMPLOYEES
254
Brasov, BRASOV
304,731,950
3
27,110,836
1,465
Iasi, IASI
484,062,357
21
25,935,644
200
MCR SCORING
1
2
3
4
5
6
7
8
9
10
11
12
EUROPHARM SA
ANTIBIOTICE SA
PFIZER ROMANIA SRL
TERAPIA SA
BIOFARM SA
SANDOZ SRL
ZENTIVA SA
HOFIGAL EXPORT IMPORT SA
FITERMAN PHARMA SRL
ROMVAC COMPANY SA
BIOTEHNOS SA
ARENA GROUP SA
2.950
2.875
2.838
2.613
2.563
2.488
2.188
2.163
2.100
2.075
2.075
13
PASTEUR - FILIALA FILIPESTI SRL
14
471,499,015
1
96,879,207
783
104,970,886
8
21,036,200
340
CONTACT
Cluj-Napoca, CLUJ
261,180,690
4
25,703,798
225
242,491,029
5
30,362,521
531
26,247,553
19
3,190,125
245
68,338,967
11
7,883,713
135
Iasi, IASI
43,844,732
14
4,403,750
368
Voluntari, ILFOV
80,809,179
10
46,177,892
138
Otopeni, ILFOV
31,849,392
16
4,642,238
115
2.050
56,220,113
12
13,000,442
231
INFOMED FLUIDS SRL
2.013
120,665,563
7
7,690,094
402
15
MAGISTRA C&C SRL
1.850
27,333,887
18
2,485,680
120
16
17
18
19
20
21
GEDEON RICHTER ROMANIA SA
SWISSCAPS ROMANIA SRL
BBRAUN PHARMACEUTICALS SA
SINDAN - PHARMA SRL
ROMPHARM COMPANY SRL
FERROSAN SRL
1.838
1.763
1.763
1.738
1.688
1.413
123,146,206
6
-29,246,272
550
Constanta,
CONSTANTA
Targu Mures, MURES
46,597,706
13
3,773,700
266
Cornu, PRAHOVA
28,218,702
17
1,529,710
126
Timisoara, TIMIS
20,071,365
20
1,479,474
177
1
2
3
4
SENSIBLU SRL
HELP NET FARMA SA
VILEUS MED-COM SRL
CATENA HYGEIA SRL
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
PRAHOVA
86,669,387
9
2,045,477
252
Otopeni, ILFOV
43,712,835
15
-1,523,724
93
Cluj Napoca, CLUJ
ANNUAL TURNOVER
(2012 RON)
1,090,217,856
3.175
TURNOVER
RANKING
1
PROFIT/LOSS
(2012 RON)
-63,513,725
NO OF
EMPLOYEES
2,567
RETAIL TRADE OF PHARMACEUTICALS
RANK COMPANY NAME
Targu Mures, MURES
MCR SCORING
CONTACT
Mogosoaia, ILFOV
2.925
2.675
2.638
375,074,417
4
6,872,942
1,228
169,306,263
8
13,596,949
152
173,416,087
7
16,247,387
332
SIEPCOFAR SA
2.550
720,508,765
2
-2,180,467
1,301
ROPHARMA SA
GENERAL CONCEPT PHARM SRL
MED-SERV UNITED SRL
BELLADONNA TRADE PHARM SRL
FARMACEUTICA ARGESFARM SA
NEWS QUALITY PHARMA SRL
MC SERV TOUR SRL
HERMES PHARMA SA
CENTROFARM SA
VERDAN FARM SRL
URGENT FARM SRL
REMEDIUM FARM SRL
SIBPHARMAMED SRL
GEDEON RICHTER FARMACIA SA
MINI-FARM SRL
PASSIFLORA COM SRL
FARMACIA ACSADEMIA SRL
FARMACIA ALISSA RETAIL SRL
PHARMA VISION SRL
GENERAL TRADE PHARM SRL
DALIFARM SRL
2.550
2.400
2.238
2.150
2.138
2.125
1.988
1.975
1.963
1.963
1.963
1.925
1.825
1.763
1.675
1.650
1.650
1.550
1.463
1.413
1.150
411,590,108
3
10,687,756
817
ILFOV
Brasov, BRASOV
107,606,641
12
1,030,543
-
Magurele, ILFOV
182,658,591
6
2,166,149
138
52,968,145
17
124,767
-
204,653,863
5
2,507,177
280
61,052,125
14
23,562,798
227
59,687,606
15
1,233,910
155
Magurele, ILFOV
Buzau, BUZAU
1,944,200
26
1,455,191
5
134,866,108
10
-16,768,011
388
47,959,366
20
285,489
13
38,436,115
25
3,365,312
30
49,395,208
19
4,547,952
48
108,158,261
11
-7,139,510
262
Sibiu, SIBIU
142,240,498
9
-9,316,515
447
Corunca, MURES
49,948,712
18
396,922
144
Babadag, TULCEA
58,669,620
16
1,330,372
21
38,636,831
24
1,384,562
15
47,712,246
21
419,320
73
45,789,858
22
-1,752,528
38
99,480,127
13
56,885
-
Magurele, ILFOV
44,214,098
23
-387,557
15
Craiova, DOLJ
Cluj-Napoca, CLUJ
WHOLESALE OF PHARMACEUTICALS
RANK
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
COMPANY NAME
MEDIPLUS EXIM SRL
FARMEXPERT DCI SA
FARMEXIM SA
POLISANO SRL
ROCHE ROMANIA SRL
SANOFI-AVENTIS ROMANIA SRL
FILDAS TRADING SRL
EUROPHARM HOLDING SA
ADM FARM SRL
ACTAVIS SRL
GLAXOSMITHKLINE CONSUMER
HEALTHCARE SRL
BOEHRINGER INGELHEIM RCV GMBH & CO KG
VIENA SUCURSALA BUCURESTI
TEVA PHARMACEUTICALS SRL
FRESENIUS MEDICAL CARE ROMANIA SRL
SERMEDIC SRL
PICARA TRADING SRL
SERVIER PHARMA SRL
A & D PHARMA MARKETING & SALES
SERVICES SRL
FARMACEUTICA REMEDIA SA
ROMASTRU TRADING SRL
ANGELINI PHARMACEUTICALS ROMANIA SRL
BBRAUN MEDICAL SRL
SDS INTER PHARMA SRL
BIO EEL SRL
PHARMAFARM SA
FARMAVET SA
A & G MED TRADING SRL
PHARMA POINT SRL
MERCK SHARP & DOHME ROMANIA SRL
NOVARTIS PHARMA SERVICES ROMANIA SRL
FARMACOM SA
KRKA ROMANIA SRL
PHARMA SA
MEDICINE WAREHOUSE SRL
MEDIMFARM SA
SANDOZ PHARMA SERVICES SRL
SOF MEDICA SRL
ALCON ROMANIA SRL
JOHNSON & JOHNSON ROMANIA SRL
GLENMARK PHARMACEUTICALS SRL
EGIS ROMPHARMA SRL
GEMEDICA SRL
ROMED 93 EXPORT IMPORT SRL
A & A MEDICAL SRL
ANNUAL TURNOVER
(2012 RON)
3,146,688,442
3.588
MCR SCORING
TURNOVER
RANKING
1
PROFIT/LOSS
(2012 RON)
62,903,142
NO OF
EMPLOYEES
897
3.525
3.463
3.400
3.375
3.313
3.213
2.900
2.838
2.563
2,053,874,075
2
86,369,568
672
1,122,009,797
5
12,346,319
617
1,311,577,962
3
28,132,938
693
1,300,199,666
4
4,535,360
232
194
CONTACT
Mogosoaia, ILFOV
Sibiu, SIBIU
952,969,626
7
42,151,558
1,115,265,491
6
25,082,158
523
915,511,339
8
1,706,129
358
Brasov, BRASOV
768,210,094
9
2,080,818
494
Pantelimon, ILFOV
358,494,955
14
25,284,389
221
2.563
130,355,251
21
9,406,411
67
2.550
205,126,167
17
1,651,978
75
2.488
2.488
2.475
2.463
2.450
255,634,032
15
-6,815,964
184
139,447,049
19
10,864,703
77
487,585,725
10
-10,280,580
8
136,699,586
20
4,109,597
28
91,719,262
26
4,902,896
264
2.413
203,593,928
18
16,075,068
268
Mogosoaia, ILFOV
2.363
2.250
2.250
2.225
2.213
2.200
2.150
2.100
2.088
2.088
2.000
1.938
1.863
1.863
1.788
1.775
1.775
1.750
1.663
1.638
1.563
1.550
1.525
1.525
1.400
1.288
237,446,333
16
5,553,843
424
Deva, HUNEDOARA
436,445,858
11
-3,541,906
243
117,920,186
24
1,212,510
82
86,030,768
28
5,070,796
89 Remetea Mare, TIMIS
85,114,264
29
2,307,585
23
128,321,237
22
1,137,055
164
Targu Mures, MURES
373,268,905
13
-30,354,192
400
Cluj-Napoca, CLUJ
119,274,509
23
939,783
573
386,369,812
12
-4,900,228
303
67,579,072
38
5,887,895
5
96,003,426
25
4,594,951
195
81,616,410
31
3,689,713
143
67,776,913
36
1,905,848
216
51,415,964
44
1,194,571
200
89,017,424
27
1,848,943
136
84,862,857
30
1,270,018
8
72,059,989
35
236,870
278
60,466,802
42
254,893
152
63,985,518
41
7,234,435
55
64,898,071
40
770,619
53
73,774,501
33
1,342,121
123
65,047,373
39
-183,443
62
75,346,843
32
952,611
8
67,730,116
37
2,274,957
37
73,138,416
34
70,938
4
54,294,568
43
-9,675,851
118
Pantelimon, ILFOV
Brasov, BRASOV
Iasi, IASI
Cluj-Napoca, CLUJ
60%
of the total production cost represents raw
material cost
EU help ceramic producers with 5-year
anti-dumping duties
Glass & Ceramics
t MANUFACTURE OF GLASS AND GLASS PRODUCTS
t MANUFACTURE OF CERAMIC PRODUCTS
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 2009. 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
Hungary, Turkey, Bulgaria, Italy, Greece, Austria, Republic of
Moldova, Georgia and Slovakia. It expects exports of 65mn units
this year, worth EUR 7mn.
value of the duties went down to 13.1- 36.1%. The European
Union is China's biggest trading partner, as ceramic tableware
and kitchenware imports from China totaled EUR 728mn in 2011.
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.
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 2011. More than 85% of its production
goes to export, to countries such as France, Italy and Holland.
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
GDP vs. Glass industry in the Euro Area (%,yoy)
10
5
4
5
3
2
0
1
-5
2011
2012
2010
2009
2008
2007
2006
2004
2005
2003
2002
2001
2000
1999
-1
1998
0
1997
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.
Source: Romania’s National Export Strategy .
1996
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 2004. The average export prices from
China were some 70% lower than the average 2011 prices of all
other countries exporting to the EU.
-10
-2
-3
-15
-4
-20
-5
GDP
Source: Eurostat, SSIF Broker.
Manufacture of glass and glass products (rhs)
MCR
GLASS & CERAMICS
MANUFACTURE OF GLASS AND GLASS PRODUCTS
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
1
2
3
4
5
6
7
8
9
STIROM SA
2.175
199,440,208
1
19,462,703
410
TC ROM GLASS SRL
2.025
25,678,683
6
1,038,967
11
GECSAT SA
2.013
21,901,197
8
273,279
57
CRISTAL BRAD SERVICE SRL
1.975
46,686,093
2
1,442,259
182
DAFERMANN SRL
1.963
24,310,220
7
3,074,831
23
GEROM SA
1.813
28,919,423
4
1,035,630
191
Buzau, BUZAU
GLASSCORP SA
1.738
12,680,181
13
3,860,237
131
Buzau, BUZAU
MILLEFIORI SRL
1.688
10,632,497
15
818,206
158
Arad, ARAD
DELTA GLASS SRL
1.675
13,001,114
12
637,265
66
10
PIETTA GLASS WORKING SRL
1.563
42,847,769
3
1,037,100
275
11
12
13
14
15
16
17
18
19
FABRICA DE STICLA AVRIG SA
1.550
9,552,278
18
90,621
86
Avrig, SIBIU
LIPOPLAST SRL
1.450
27,683,446
5
39,113
127
Timisoara, TIMIS
LUSTIC INVEST SA
1.450
18,414,041
9
-2,067,248
91
Brasov, BRASOV
GECSATHERM SA
1.425
11,597,714
14
77,120
45
Tarnaveni, MURES
STICLA TURDA SA
1.375
10,018,913
16
-2,901,520
299
Turda, CLUJ
WEST CO IMPEX SRL
1.338
14,059,438
11
-414,437
50
Zalau, SALAJ
SPECTRUM INDUSTRIES SRL
1.300
8,730,840
19
130,567
25
VISPESTI PROD SRL
1.238
17,806,244
10
22,468
107
UNION GLASS SRL
0.963
9,960,235
17
-716,254
43
Carei, SATU MARE
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
CONTACT
8,702,351
54
RANK COMPANY NAME
MANUFACTURE OF CERAMIC PRODUCTS
RANK COMPANY NAME
CONTACT
Tarnaveni, MURES
Bacau, BACAU
Valenii de Munte,
PRAHOVA
1
2
LASSELSBERGER SA
2.075
78,846,591
6
LAZAR SRL
1.988
28,799,015
15
2,447,455
123
Reghin, MURES
3
REGATA SRL
1.950
90,080,683
5
5,754,975
187
Targoviste,
DAMBOVITA
4
5
6
PREMIER COM SRL
1.863
95,919,823
4
680,952
57
Slobozia, IALOMITA
MONDIAL SA
1.813
133,177,221
1
-3,656,144
791
Lugoj, TIMIS
ARCOROM SRL
1.800
25,686,193
17
942,022
15
Otopeni, ILFOV
7
SANOTECHNIK COM RUMANIEN SRL
1.738
19,111,754
20
4,058,048
28
SANEX SA
1.650
96,442,740
2
171,034
439
Cluj-Napoca, CLUJ
SICERAM SA
1.600
58,493,605
11
5,673,932
-
Sighisoara, MURES
APULUM SA
1.588
71,241,224
8
487,536
842
Alba Iulia, ALBA
CERSANIT ROMANIA SA
1.538
69,967,844
9
-3,262,711
527
Roman, NEAMT
CERAMICA SA IASI
1.538
63,955,989
10
2,211,568
214
Iasi, IASI
HELIOS SA
1.538
26,371,576
16
828,477
141
CESIRO SA
1.500
96,006,186
3
-1,593,132
1,533
ROCA OBIECTE SANITARE SRL
1.500
22,502,195
18
-13,364,616
147
YALCO ROMANIA SRL
1.463
20,636,081
19
82,224
27
KAI CERAMICS SRL
1.425
48,414,628
13
-3,131,732
19
SAWA SA
1.413
57,882,361
12
9,962
44
Cluj-Napoca, CLUJ
IPEC SA
1.400
74,576,181
7
5,290,898
-
Alba Iulia, ALBA
ELECTROCERAMICA SA
1.288
17,937,313
21
-3,036,519
239
Turda, CLUJ
PIASTRELLE SRL
1.050
29,047,672
14
-3,356,847
110
Timisoara, TIMIS
8
9
10
11
12
13
14
15
16
17
18
19
20
21
Snagov, ILFOV
Sighisoara, MURES
50%
decrease of the Romanian iron and steel
production, from 10.2 million tons in 2007
to 5.1 million tons in 2012
Metal
t PRIMARY METAL MANUFACTURING
t MANUFACTURE OF METAL PRODUCTS
t WHOLESALE OF METALS AND METAL ORES
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 1989. 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.
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 2007.
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
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 2009. 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.
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 1. Romania’s Iron & Steel Production vs. GDP Evolution
Figure 2. Evolution of World Iron & Steel Production
3,000,000
Steel production ('000 tonnes)
30.0%
20.0%
Y-o-Y Change
10.0%
0.0%
-10.0%
-20.0%
-30.0%
-40.0%
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
-50.0%
2000
2001 2002 2003
2004
Romania Iron & Steel Y-o-Y
2005 2006
2007
World Iron & Steel Y-o-Y
2008
2009 2010
2011
Romanian GDP Y-o-Y
Source: National Institute of Statistics, World Steel Association, EY analysis.
2012
2000
2001
2002
2003
World
2004
US
2005
Japan
Source: World Steel Association, EY analysis.
2006
2007
China
2008
2009
Eu (27)
2010
2011
2012
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.
Y-o-Y Change
Figure 3: Y-o-Y change of major producers of iron and steel
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
-10.00%
-20.00%
-30.00%
-40.00%
-50.00%
2000
2001
2002
World
2003
US
2004
2005
2006
Japan
India
2007
2008
China
2009
2010
2011
2012
Eu (27)
Source: World Steel Association, EY analysis.
GOING FORWARD
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 2012. Over the period 2014-2017, 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.
MCR
METAL
PRIMARY METAL MANUFACTURING
RANK COMPANY NAME
1
2
3
ANNUAL TURNOVER
(2012 RON)
1,666,747,158
3.800
MCR SCORING
TURNOVER
RANKING
3
PROFIT/LOSS
(2012 RON)
231,057,199
NO OF
EMPLOYEES
1,480
CONTACT
4
SILCOTUB SA
ARCELORMITTAL GALATI SA
ALRO SA
ARCELORMITTAL TUBULAR PRODUCTS
ROMAN SA
5
TMK - RESITA SA
3.088
813,629,181
6
7
8
9
3.013
2.800
2.738
2.688
910,074,558
4
42,493,632
544,972,607
8
-16,462,958
721
Tulcea, TULCEA
776,642,909
7
-167,962,687
1,314
Buzau, BUZAU
240,281,958
15
4,893,559
228
2.663
127,956,612
26
31,644,361
183
11
12
TMK ARTROM SA
ALUM SA
DUCTIL STEEL SA
VIMETCO EXTRUSION SRL
ARCELORMITTAL TUBULAR PRODUCTS
GALATI SRL
LF METALURGICA ENGINEERING 1928 SRL
CROMSTEEL INDUSTRIES SA
2.638
2.588
103,757,183
29
342,724
261,673,483
13
13,129,163
13
DAN STEEL GROUP BECLEAN SA
2.488
265,279,049
12
1,206,304
14
HOEGANAES CORPORATION EUROPE SA
2.488
146,777,944
23
11,718,705
15
ARCELORMITTAL HUNEDOARA SA
2.363
435,597,645
9
-37,612,910
16
17
18
19
20
2.325
2.275
2.238
2.200
2.163
2,295,198
21
UPRUC CTR SA
EURO ALIAJ SRL
SAPA PROFILES SRL
MAIRON TUBES SRL
SATURN SA
HAMMERER ALUMINIUM INDUSTRIES
SANTANA SRL
22
10
Zalau, SALAJ
3.388
3.263
5,418,682,167
1
-231,066,763
7,936
2,081,764,001
2
155,270,970
2,512
3.138
826,413,602
5
26,901,231
1,125
Roman, NEAMT
6
36,635,681
765
Resita, CARASSEVERIN
1,183
1
Buzau, BUZAU
379 Targoviste, DAMBOVITA
Beclean,
671
BISTRITA-NASAUD
90
Buzau, BUZAU
Hunedoara,
607
HUNEDOARA
245
Fagaras, BRASOV
29,697,927
40
116,405,806
28
310,128
7
Brasov, BRASOV
169,028,201
20
-963,814
146
Chisineu-Cris, ARAD
137,713,980
25
1,033,155
103
87,639,614
30
2,220,064
542
Alba Iulia, ALBA
2.125
338,486,777
11
-384,632
106
Santana, ARAD
UNIVERSAL ALLOY CORPORATION EUROPE SRL
2.075
146,529,898
24
37,341,103
419
23
24
25
26
27
28
29
30
31
32
ARCELORMITTAL TUBULAR PRODUCTS IASI SA
BECOTEK METAL SRL
ELMET INTERNATIONAL SRL
PRODNEF COM SRL
INDUSTRIA SÂRMEI CÂMPIA TURZII SA
FONDAL INTERNATIONAL SRL
TECHNOSTEEL LBR SRL
DOOSAN IMGB SA
OTELINOX SA
LAMINORUL SA
2.063
2.050
2.050
1.963
1.950
1.925
1.913
1.900
1.888
1.863
258,921,649
14
-12,513,569
-
Dumbravita,
MARAMURES
Iasi, IASI
156,242,065
22
6,310,113
204
Ghimbav, BRASOV
60,052,626
33
2,971,643
205
Bacau,BACAU
23,212,203
43
336,382
20
209,366,353
18
-82,745,043
1,606
Campia Turzii, CLUJ
40,815,940
37
2,434,292
177
Letcani , IASI
127,592,661
27
357,577
196
Iasi, IASI
392,640,626
10
-25,026,092
673
33
ERDEMIR-ROMANIA SRL
1.838
34
DONALAM SRL
1.813
35
EUCASTING RO SRL
36
161,127,745
21
1,127,976
193,569,464
19
-51,643,863
240,050,400
16
-6,755,775
236,677,410
17
777,504
1.800
42,905,838
36
2,550,272
DELTA ALUMINIU SRL
1.738
33,576,137
39
123,633
37
ZIMTUB SA
1.575
24,498,141
41
142,080
38
39
ALMET SA
CIE MATRICON SA
1.525
1.488
69,418,976
32
413,115
80,765,430
31
-2,731,595
237
40 COZMIRCOM SA
1.488
22,941,907
44
607,192
90
41
42
43
44
45
1.425
1.363
1.350
1.325
1.300
45,911,587
34
-48,189,271
98
23,600,807
42
232,594
130
Brasov, BRASOV
22,766,597
45
-2,885,672
314
Campina, PRAHOVA
35,878,493
38
-7,199,655
139
44,493,896
35
-947,337
75
FERAL SRL
AMORELLI EXPORT IMPORT SRL
TURNATORIA CENTRALA ORION SA
INTFOR SA
METALSIL PROD SRL
382
Braila, BRAILA
Targoviste,
286
DAMBOVITA
201
Calarasi, CALARASI
Geamana, Localitate:
205
Bradu, ARGES
173
Zimnicea,
148
TELEORMAN
49 Navodari, CONSTANTA
Targu Mures, MURES
Baia Sprie,
MARAMURES
Tulcea, TULCEA
Brasov, BRASOV
MANUFACTURE OF METAL PRODUCTS
RANK
COMPANY NAME
1
2
3
4
5
6
BAMESA OTEL SA
CAN-PACK ROMANIA SRL
CORD ROMANIA SRL
TUREX SA
PROFILAND STEEL SRL
GIC NOSAG METAL SRL
ANNUAL TURNOVER
(2012 RON)
502,827,362
3.125
MCR SCORING
TURNOVER
RANKING
1
PROFIT/LOSS
(2012 RON)
31,733,940
NO OF
EMPLOYEES
96
2.813
2.713
2.588
2.550
2.513
338,941,448
5
22,569,611
165
359,595,866
4
19,012,137
490
215,461,382
9
255,076
-
115,503,485
19
3,632,352
140
180,365,106
12
9,955,120
402
CONTACT
Topoloveni, ARGES
Buzau, BUZAU
Bradu, ARGES
Ramnicu-Valcea,
VALCEA
Buzau, BUZAU
7
VILMAR SA
2.463
233,805,373
7
14,590,906
417
8
9
10
11
12
13
14
15
16
AROMET SA
DUCTIL SA
CONFIND SRL
ISOPAN EST SRL
ROMTEM SA
ELDON SRL
ELECTROCARBON SA
TEHNIC GRUP MC SRL
ELSID SA
2.400
2.375
2.300
2.300
2.288
2.288
2.238
2.213
2.200
470,681,346
2
-1,574,236
207
148,003,214
15
4,559,811
254
Buzau, BUZAU
220,307,471
8
12,372,871
1,298
Campina, PRAHOVA
106,278,217
22
7,847,162
60
361,344,683
3
1,096,358
18
Buzau, BUZAU
128,588,758
16
3,768,234
545
Prejmer, BRASOV
180,522,846
11
5,274,713
421
75,094,058
29
147,170
1
Buzau, BUZAU
335,266,097
6
47,747,563
250
17
NIMET SRL
2.175
115,165,275
20
3,517,390
245
Titu, DAMBOVITA
Lazuri, Comisani,
DAMBOVITA
18
FIERCTC SIBEL SRL
2.113
112,847,844
21
3,510,021
114
19
UZINGRUP VEST SRL
2.088
148,375,485
14
91,925
45
20
2.075
152,880,787
13
10,522,633
481
2.050
194,328,442
10
4,188,804
172
2.038
2.000
77,659,727
28
892,241
341
Medias, SIBIU
62,976,780
39
7,876,271
54
1.988
72,639,419
33
618,937
66
25
26
27
28
29
30
31
32
33
34
35
FAIST MEKATRONIC SRL
PROCEMA - INSTITUT DE CERCETARE,
PROIECTARE SI PRODUCTIE EXPERIMENTALA
IN DOMENIUL CONSTRUCTIILOR SI AL
MATERIALELOR DE CONSTRUCTII SA
ARMAX GAZ SA
GORMET SRL
ASSA ABLOY ENTRANCE SYSTEMS
PRODUCTION ROMANIA SRL
MEGAPROFIL SRL
EMAILUL SA
DOLADELA COMPANY SRL
HECKLER ROMANIA SRL
BOG'ART STEEL SRL
FAIST METALWORKING SRL
BILKA STEEL SRL
PROINVEST GROUP SRL
METABET CF SA
ESTROM CONSULTING SRL
METALICPLAS IMPEX SRL
1.975
1.913
1.900
1.838
1.800
1.800
1.788
1.763
1.638
1.588
1.575
121,866,864
18
516,198
142
Cluj-Napoca, CLUJ
Hunedoara,
HUNEDOARA
Buzias, TIMIS
79,784,774
27
1,914,912
861
Medias, SIBIU
73,868,954
31
2,872,952
49
59,462,979
42
488,353
31
85,134,782
25
374,210
68
36
LINDAB SRL
1.563
37
MIRO SA
38
39
MARTIFER CONSTRUCTII SRL
FORJA NEPTUN SRL
21
22
23
24
Hunedoara,
HUNEDOARA
Oradea, BIHOR
Selimbar, SIBIU
65,887,084
37
4,445,981
226
Bors,BIHOR
74,199,955
30
2,131,992
49
Brasov, BRASOV
81,938,460
26
3,040,565
191
Pascani, IASI
60,240,727
41
2,308,271
470
11,720,294
44
2,341
2
127,527,342
17
-1,898,930
293
69,135,287
35
-575,753
112
1.450
42,796,539
43
278,943
292
1.425
1.363
72,295,989
34
3,324,767
187
64,439,910
38
998,641
159
40 PLASTSISTEM SA
1.300
89,685,836
24
-720,840
69
41
42
43
44
1.275
1.238
1.163
1.113
60,264,907
40
-2,071,041
67,626,925
36
155,210
73,737,082
32
-48,521,876
932
98,983,567
23
-2,394,770
227
MGS PREFABRICATE SRL
TOPANEL PRODUCTION PANELS SA
VULCAN SA
GRUPPO RAGAINI ROMANIA SRL
Dej, CLUJ
ILFOV
Bistrita,
BISTRITA-NASAUD
Baicoi, PRAHOVA
Crainimat, Comuna
Sieu-Magherus,
BISTRITA-NASAUD
2
MCR
METAL
WHOLESALE OF METALS AND METAL ORES
RANK COMPANY NAME
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
1
MAIRON GALATI SA
3.400
1,135,910,629
1
24,303,276
397
2
MECHEL SERVICE ROMANIA SRL
2.838
929,389,068
2
-17,790,537
421
3
METALROM SRL
2.538
289,925,091
3
783,822
24
4
MIRAS INTERNATIONAL SA
2.363
156,408,650
7
8,029,684
106
5
BAUROM CONSTRUCT SRL
2.125
174,744,425
5
2,038,458
149
6
MELINDA-IMPEX STEEL SA
2.113
154,794,446
8
3,100,786
135
7
COMTECH CO SRL
2.088
110,695,626
11
3,528,062
39
8
2.088
86,178,941
18
109,535
3
9
FULGER INDUSTRIAL DYNAMIC SRL
ARCELORMITTAL DISTRIBUTION
ROMANIA SRL
2.038
169,763,241
6
-14,285,857
29
10
DAN STEEL GROUP NEGRESTI OAS SA
1.975
237,830,288
4
2,369,553
26
11
FRANKSTAHL ROMANIA SRL
1.963
101,449,826
13
417,580
36
12
TEHNOINVEST TRADE SRL
1.963
45,260,333
25
165,544
21
13
ITALINOX ROMANIA SRL
1.863
72,503,333
21
907,847
53
14
EUROPE METAL TRADE SRL
1.838
103,214,618
12
-306,337
23
CONTACT
Odorheiu Secuiesc,
HARGHITA
MARE
Constanta,
CONSTANTA
15
THYSSENKRUPP MATERIALS ROMANIA SRL
1.800
138,604,266
10
-4,145,118
74
16
TURBO TUB SRL
1.775
90,003,095
15
1,482,099
44
17
ADIMET SA
1.763
69,192,630
22
473,888
29
18
ALUMIL ROM INDUSTRY SA
1.750
68,511,169
23
3,185,627
167
19
IZOMETAL - MAGELLAN SRL
1.713
154,420,223
9
-17,450,825
255
20
PROSIDER INTERNATIONAL TRADING SRL
1.713
88,504,537
16
1,151,186
38
21
STEELMET ROMANIA SA
1.663
86,150,130
19
799,866
29
22
CLEMANS SRL
1.613
83,100,660
20
3,580,691
130
23
METALTRADE INTERNATIONAL SRL
1.513
47,735,622
24
-4,032,391
272
24
METALICPLAS DISTRIBUTION SRL
1.300
88,066,784
17
85,847
118
Dej, CLUJ
25
SIDMA ROMANIA SRL
1.275
92,093,117
14
-9,248,742
41
Caldararu, ILFOV
Iasi, IASI
Timisoara, TIMIS
Bascov, ARGES
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
t MANUFACTURE OF MACHINERY, INDUSTRIAL EQUIPMENT,
SHIPS AND AIRCRAFT
t WHOLESALE OF MACHINERY, INDUSTRIAL EQUIPMENT,
SHIPS AND AIRCRAFT
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 2012.
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 2013.
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 2010. 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 2013. This order represents the most
complex project at Damen for the past decades, with an
estimated contract value of EUR 290 million. Also, another
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.
Avioane Craiova registered a loss of RON 9,1 million and
RON 84 million of short term debt in 2012. 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 2012. 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.
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.
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
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
“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.”
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.
MANUFACTURE OF MACHINERY, INDUSTRIAL EQUIPMENT, SHIPS AND AIRCRAFT
1
2
CAMERON ROMANIA SRL
ANNUAL TURNOVER
(2012 RON)
894,638,349
3.275
STX RO OFFSHORE TULCEA SA
3.113
542,801,456
5
9,906,095
2,872
3
SCHAEFFLER ROMANIA SRL
3.050
1,427,843,294
1
-26,122,935
3,498
4
5
6
7
SANTIERUL NAVAL DAMEN GALATI SA
2.988
322,406,212
8
35,097,206
1,870
EMERSON SRL
2.988
309,826,460
9
40,237,979
1,313
Cluj-Napoca, CLUJ
GRUP ROMET SA
2.938
792,541,340
4
-197,591
62
Buzau, BUZAU
TIMKEN ROMANIA SA
2.900
378,023,380
7
75,165,408
951
8
ROMBAT SA
2.775
299,046,836
10
18,366,439
641
9
10
11
12
13
14
15
16
17
18
MECHROM INDUSTRY SRL
2.763
154,842,634
19
6,858,291
320
AEROSTAR SA
2.700
196,912,658
16
15,068,186
1,272
STX OSV BRAILA SA
2.675
226,776,843
14
72,254,299
1,838
Braila, BRAILA
ECOFOREST SA
2.663
504,425,534
6
-3,409,198
12
Buzau, BUZAU
EUROCOPTER ROMANIA SA
2.663
129,375,602
23
10,549,101
156
Ghimbav, BRASOV
EMERSON PROCESS MANAGEMENT ROMANIA SRL
2.638
113,084,467
25
11,132,922
64
DAEWOO MANGALIA-HEAVY INDUSTRIES SA
2.613
833,178,138
3
-221,982,313
UNISON ENGINE COMPONENTS - BUCHAREST SA
2.613
109,974,718
28
19,827,728
ELECTROPRECIZIA SA
2.563
168,960,904
17
10,292,072
45
Sacele, BRASOV
2.450
125,680,591
24
9,987,324
410
Iasi, IASI
2.450
78,939,708
31
4,665,753
467
Timisoara, TIMIS
20
IG WATTEEUW ROMANIA SRL
DPR DRAXLMAIER PROCESE DE PRODUCTIE
ROMANIA SRL
HIDROSERV BISTRITA SA
2.325
52,783,126
44
1,567,633
21
KOYO ROMANIA SA
2.300
248,529,364
12
1,320,891
22
SANTIERUL NAVAL CONSTANTA SA
2.288
296,751,195
11
-29,848,909
23
24
25
26
27
RULMENTI SA
2.238
233,639,756
13
18,602,340
PREMIUM AEROTEC SRL
2.200
142,630,466
21
20,715,212
412
ASTRA VAGOANE ARAD SA
2.025
111,655,465
26
-239,710,278
1,173
Arad, ARAD
MASCHIO-GASPARDO ROMANIA SRL
2.013
111,298,205
27
2,638,132
183
Chisineu-Cris, ARAD
GENERAL TURBO SA
1.950
164,988,467
18
5,573,322
739
28
RIG SERVICE SA
1.938
74,385,714
34
14,930,643
29
UNIO SA
SOCIETATEA COMERCIALA DE REPARAT
MATERIAL RULANT REVA SA
BOSCH REXROTH SRL
1.925
86,716,553
30
340,705
Constanta,
CONSTANTA
952 Satu Mare, SATU MARE
1.925
69,046,357
36
5,326,412
690 Simeria, HUNEDOARA
1.900
216,324,832
15
7,312,106
612
Blaj , ALBA
VOESTALPINE VAE APCAROM SA
1.838
90,490,019
29
5,309,131
205
Buzau, BUZAU
STABILUS ROMANIA SRL
1.825
139,000,511
22
-7,730,726
412
Sanpetru, BRASOV
ASTRA RAIL INDUSTRIES SRL
1.800
149,576,706
20
-35,919,273
1,687
Arad, ARAD
NTN-SNR RULMENTI SRL
1.700
75,342,139
33
4,047,833
496
Sibiu, SIBIU
POPECI UTILAJ GREU SA
1.688
76,504,983
32
2,791,761
717
Craiova, DOLJ
FEPA SA
1.613
69,110,452
35
-25,178,848
316
Barlad, VASLUI
ROMAERO SA
1.600
66,777,369
37
-46,695,764
960
ASTRA VAGOANE CALATORI SA
1.575
54,560,078
43
7,348,879
808
Arad, ARAD
TOTALGAZ INDUSTRIE SRL
1.563
62,184,253
38
111,859
322
41
SEVERNAV SA
1.538
55,685,653
41
479,913
463
42
43
44
45
SMR SA
1.538
55,007,771
42
40,048
983
Iasi, IASI
Drobeta-Turnu
Severin, MEHEDINTI
Bals, OLT
DANEX CONSULT SRL
1.475
60,751,845
40
88,200
164
ELECTROPUTERE VFU PA{CANI SA
1.413
49,036,236
45
-3,128,167
751
UPETROM 1 MAI SA
1.200
61,186,904
39
-27,296,205
803
RANK
19
30
31
32
33
34
35
36
37
38
39
40
COMPANY NAME
MCR SCORING
TURNOVER
RANKING
2
PROFIT/LOSS
(2012 RON)
162,200,442
NO OF
EMPLOYEES
865
Campina, PRAHOVA
Tulcea, TULCEA
CONTACT
BRASOV
Bistrita,
BISTRITA-NASAUD
Bacau, BACAU
2,728 Mangalia, CONSTANTA
106
293 Piatra Neamt, NEAMT
Alexandria,
TELEORMAN
Constanta,
1,366
CONSTANTA
2,321
Barlad, VASLUI
1,378
Ghimbav, BRASOV
453
Pascani, IASI
MCR
MACHINERY
WHOLESALE OF MACHINERY, INDUSTRIAL EQUIPMENT, SHIPS AND AIRCRAFT
RANK COMPANY NAME
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
CONTACT
Mogosoaia, ILFOV
1
IPSO SRL
3.150
383,143,665
3
23,241,431
268
2
ECHIPCOMER TRADE COMPANY SRL
3.138
454,736,041
2
61,304
-
3
2.588
688,783,873
1
-20,356,381
631
2.538
116,330,124
6
9,351,956
67
5
SIEMENS SRL
MEWI IMPORT EXPORT AGRAR
INDUSTRIETECHNIK SRL
DAAS IMPEX SRL
2.475
103,265,958
8
6,963,085
154
6
VA INTERTRADING AUSTRIA SRL
2.400
237,397,900
4
130,501
15
4
7
ANDREAS STIHL MOTOUNELTE SRL
2.388
104,133,175
7
12,289,220
23
Otopeni, ILFOV
8
WILO ROMANIA SRL
2.388
56,938,451
23
5,603,226
52
Chiajna, ILFOV
9
VAILLANT GROUP ROMANIA SRL
2.350
70,185,837
15
3,872,336
41
10
MINEX ROMANIA SRL
2.275
34,441,505
34
1,585,771
33
11
INDUSTRIAL MDTRADING SRL
2.175
59,193,433
21
7,560,196
7
12
SANDVIK SRL
2.175
48,509,270
27
818,580
-
13
AGRIROM IMPEX SRL
2.150
97,112,481
9
809,271
2
14
UZINSIDER TECHNO SA
2.150
51,738,253
26
2,079,966
20
15
ATLAS COPCO ROMANIA SRL
2.113
62,466,440
20
6,261,675
54
16
DUTCH MARINE TRADING DESIGN SA
2.100
69,125,727
17
5,925,171
70
17
HUSQVARNA PADURE & GRADINA SRL
2.088
77,391,180
14
11,574,407
33
18
HEPA PROIECT SRL
2.025
67,917,567
18
749,128
25
19
ABB SRL
2.000
190,421,664
5
28,244
74
20
KAESER KOMPRESSOREN SRL
1.988
32,593,659
36
5,983,653
38
21
WIRTGEN ROMANIA SRL
1.950
89,394,884
10
9,320,951
30
22
PROENERG SA
1.938
38,613,028
31
1,925,214
71
23
GRUNDFOS POMPE ROMANIA SRL
1.925
58,596,283
22
995,269
30
24
HAUSER SRL
1.900
41,160,633
30
1,886,125
4
25
STRAALTECHNIEK MINEX INTERNATIONAL SRL
1.900
33,532,564
35
2,764,808
9
26
FERROLI ROMANIA SRL
1.863
86,482,289
11
3,753,950
44
27
AGROCOMERT HOLDING SA
1.813
32,235,717
37
2,171,654
66
Timisoara, TIMIS
28
IRCAT-CO SRL
1.800
37,907,920
32
2,597,248
52
Ciorogarla,ILFOV
12
11,318,988
82
16
152,248
43
29
GENERAL LEASING SA
1.725
83,863,741
30
MAP - MASINI AGRICOLE PERFORMANTE SRL
1.713
69,877,621
31
MECRO SYSTEM SRL
1.700
28,597,360
38
2,818,945
48
32
NHR AGROPARTNERS SRL
1.688
52,120,711
25
400,213
155
33
NITECH SRL
1.638
81,146,498
13
6,568,860
-
34
TOYOTA MATERIAL HANDLING ROMANIA SRL
1.613
36,833,872
33
928,111
87
35
ITACO INTERNATIONAL SRL
1.588
64,323,044
19
1,568,710
22
36
COM GAZ SA
1.588
41,357,984
29
1,813,299
23
37
DOLSCH IMPORT - EXPORT SRL
1.588
20,128,028
39
315,301
27
38
SYSCOM - 18 SRL
1.538
55,100,651
24
170,496
119
39
APROV SA
1.425
5,059,684
40
-2,252,070
66
40 ISIS DEVELOPMENT SRL
1.400
46,170,550
28
-283,349
27
41
1.338
4,489,583
41
-21,457,569
17
FRESCO PROIECT SRL
Otopeni, ILFOV
Birlad, VASLUI
Otopeni, ILFOV
Cernica, ILFOV
Otopeni, ILFOV
Medias, SIBIU
Pantelimon, ILFOV
4.3
increase of Technical Consumer Goods market
over the first half of 2012, reaching a value of
EUR 699 mln
Electric & Electronic
Equipment
t MANUFACTURE OF ELECTRICAL AND ELECTRONIC EQUIPMENT
t TRADE OF ELECTRICAL AND ELECTRONIC EQUIPMENT
t MANUFACTURE OF DOMESTIC APPLIANCES
MCR
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 Q2 2013 when compared to the same quarter of
2012. 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 Q2 2013 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 Q2 2012. 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 2011. 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.
THE SMART PHONES CONQUEST IN TELECOM
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.
According to data provided by National Authority for
Management and Regulation in Communications (ANCOM),
the revenues obtained from the provision of electronic
Telecom sectors saw a 17 percent in Q2 of 2013 compared
communications networks and services in 2013’s first half
with the same period of previous year, according to GfK
amounted to RON 7.48 billion, up by
Mobile Telephony Market estimations for SE region (Greece, Bulgaria, Romania & Serbia)
3.5 percent as compared to 2012’s
same period. In the same time, fixed
Market value (EUR million)
2010
2011
2012
2013 (F)
2014 (F)
telephone and leased line services
Total market Southeastern Europe
16.31
15.589
15.328
15.517
15.956
registered revenue decreases of
Total market Southeastern Europe / IT
3.824
3.637
3.55
3.71
4.109
approx. 11 percent compared to the
Total market Southeastern Europe / Telco
12.486
11.952
11.778
11.807
11.847
first semester of 2011, down to RON
Total market Southeastern Europe / Mobile Services
9.733
9.32
9.089
8.961
8.849
745 million and, respectively, RON
Total market Southeastern Europe / Mobile Data services
931
1.052
1.225
1.376
1.498
133 million.
Source: mSensis, EITO, BMI, Wireless Intelligence.
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
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
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
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
Major IT&C retailers in Romania
25 percent in April and may this year,
Turnover in 2012
Turnover in 2011
Retailer
Store network in 2013
compared with the same period of last year
(mln. EUR) estimated value (mln. EUR)
while on locale market, according to retail
Altex (including Media Galaxy)
103
220
200 mln
representatives, the mainstream photo
Domo
99
160
163 mln
Flanco
78
137
110 mln
cameras decreases by 10 percent each year.
online store
1
eMag
165
145 mln
Currently, Romanians take pictures with
showroom
280.000 photo cameras. Moreover,
Source: Company available data.
according to GfK Temax study, after the
peak of Christmas and Black Friday sales, Q2 of this year
surprise that, in the mind of Romanian consumer, the online
brought a sudden decrease of 25.5 percent on this segment.
store eMag competes with the other retailers such as Altex,
But not only the entry level compacts saw decrease, also the
Flanco or Domo.
high end compacts and DSLRs contributed to the decline of
this segment.
This year, eMag, controlled by South Africa based internet
group Naspers announced a structure-oriented deal as its
GfK TEMAX Romania Report Q2 2013
affiliated marketing platform
Profitshare was taken over by the
Q2 2013 /
Q1-2 2013 /
Q3 2012
Q4 2012
Q1 2013
Q2 2013
Q1-2 2013
company Conversion Marketing,
Q2 2012
Q1-2 2012
segment value mln. EUR
mln. EUR
mln. EUR
mln. EUR
+/-%
mln. EUR
+/-%
where eMag owns the majority of
Consumer Electronic (CE)
57
110
57
52
-5.20%
109
-3.70%
shares. Conversion Marketing
Photo (Ph)
11
15
9
9
-25.50%
18
-10.30%
already integrated other online
Major Domestic Appliances (MDA)
87
105
58
73
4.90%
131
1.70%
Small Domestic Appliances (SDA)
24
35
24
24
8.70%
48
4.70%
retailers such as PCfun, ElectroFun,
Information Technology (IT)
98
151
105
88
2.70%
192
1.70%
Flanco, La Redoute and Noon
Telecommunication (TC)
103
140
88
99
17.00%
187
17.50%
Copenhagen. Also, Profitshare, an
Office Equipment & Consumables (OE)
7
10
8
6
-8.80%
14
-2.10%
GfK TEMAX®
387
566
349
350
4.70%
699
4.30%
internal affiliated marketing program
of eMag has been shut down and
KEEN ON HOUSEHOLD
transfer the accounts of user to the new owner, which will
run it under the name Profitshare 2.0. Also, Domo changes
Both major and small domestic appliances registered
its shareholder structure, following a board decision agreed
increases at half year, a 4.9 percent increase for MDA and 8.7
on December last year. The new owner is a fund based in
percent increase for small appliances. The total market is
Lichtenstein.
MCR
MANUFACTURE OF ELECTRICAL AND ELECTRONIC EQUIPMENT
1
2
3
4
5
6
7
COFICAB EASTERN EUROPE SRL
ANNUAL TURNOVER
(2012 RON)
1,218,249,074
3.963
EATON ELECTRO PRODUCTIE SRL
3.613
831,422,836
2
34,273,148
1,749
LEONI WIRING SYSTEMS ARAD SRL
3.113
567,955,147
4
12,916,284
3,618
Arad, ARAD
AEM SA
3.050
279,910,046
12
26,056,827
1,315
Timisoara, TIMIS
MARQUARDT SCHALTSYSTEME SCS
2.988
539,590,857
5
17,317,547
1,099
Sibiu, SIBIU
PRYSMIAN CABLURI SI SISTEME SA
2.963
491,971,267
6
4,095,867
256
ICME ECAB SA
2.900
656,695,834
3
1,462,286
569
8
STEINEL ELECTRONIC SRL
2.900
370,407,383
8
7,123,000
462
RANK COMPANY NAME
MCR SCORING
TURNOVER
RANKING
1
PROFIT/LOSS
(2012 RON)
76,274,150
NO OF
EMPLOYEES
381
Arad, ARAD
Sarbi, MARAMURES
CONTACT
Curtea de Arges,
ARGES
9
ELECTROMAGNETICA SA
2.863
449,968,727
7
15,955,898
538
10
ZES ZOLLNER ELECTRONIC SRL
2.838
317,851,381
10
22,951,950
895
11
12
13
14
15
16
17
HARTING ROMANIA MANUFACTURING SCS
2.750
155,039,864
21
11,560,817
508
Satu Mare,
SATU MARE
Sibiu, SIBIU
SIMEA SIBIU SRL
2.713
140,476,029
23
3,103,805
883
Sibiu, SIBIU
KUHNKE PRODUCTION ROMANIA SRL
2.663
179,631,137
18
3,209,491
571
Sibiu, SIBIU
FRIGOGLASS ROMANIA SRL
2.650
334,821,471
9
3,748,738
831
Timisoara, TIMIS
SYSTRONICS SRL
2.625
132,391,804
24
5,882,545
348
Arad, ARAD
ROMCAB SA
2.613
267,928,341
13
6,856,547
283
Targu Mures, MURES
FLEXTRONICS ROMANIA SRL
CUMMINS GENERATOR TECHNOLOGIES
ROMANIA SA
ASKOLL ROMANIA SRL
2.613
257,817,938
14
9,055,476
2,646
Timisoara, TIMIS
2.588
299,117,159
11
1,665,091
740
Craiova, DOLJ
17
7,510,861
490
18
19
20
21
22
2.500
182,077,284
ELECTRO-ALFA INTERNATIONAL SRL
2.438
161,644,854
20
12,259,169
262
HONEYWELL LIFE SAFETY ROMANIA SRL
2.400
218,688,191
15
646,150
649
Lugoj, TIMIS
2.288
109,648,102
29
2,063,638
103
Feldioara, BRASOV
2.275
167,335,830
19
6,996,126
884
Craiova, DOLJ
24
MIELE TEHNICA SRL
SOCIETATEA COMERCIALA PENTRU SERVICII
DE MENTENANTA A RETELEI ELECTRICE DE
TRANSPORT "SMART" SA
COOPER INDUSTRIES ROMANIA SRL
2.250
109,535,481
30
6,674,360
143
249
23
Botosani, BOTOSANI
25
ELECTRO SISTEM SRL
2.250
75,110,430
44
6,112,225
26
27
28
HANNA INSTRUMENTS SRL
2.213
106,190,478
32
11,196,911
16
Arad, ARAD
Baia Mare,
MARAMURES
Nusfalau, SALAJ
ELSACO ELECTRONIC SRL
2.200
209,668,089
16
7,593,963
409
Botosani, BOTOSANI
EXIMPROD GRUP SRL
2.163
88,038,450
36
12,152,004
199
Buzau, BUZAU
29
WEIDMULLER INTERFACE ROMANIA SRL
2.100
83,816,736
40
3,552,465
387
30
IPROEB SA
2.088
87,032,995
37
922,226
357
31
32
33
34
35
36
37
38
39
ELECTROPRECIZIA ELECTRICAL MOTORS SRL
2.025
86,194,443
38
1,797,983
-
MARAMURES
Bistrita,
BISTRITA-NASAUD
Sacele, BRASOV
ELECTROPUTERE SA
2.013
127,917,376
26
53,548,844
1,116
Craiova, DOLJ
ENERGOBIT PROD SRL
1.975
93,958,463
35
9,051,074
159
Jibou, SALAJ
CABLETEAM SRL
1.938
107,718,675
31
-814,194
320
Sighisoara, MURES
ELBA SA
1.913
123,643,420
28
2,006,119
793
Timisoara, TIMIS
CONNECTRONICS ROMANIA SRL
1.888
145,408,626
22
-3,134,789
867
Oradea, BIHOR
PLEXUS SERVICES RO SRL
1.888
127,589,738
27
-17,381,032
255
DUCATI ENERGIA ROMANIA SA
1.888
96,725,870
33
3,735,705
283
ISOVOLTA SA
1.763
132,119,671
25
-13,755,146
505
40 RCB ELECTRO 97 SA
1.750
81,265,556
42
57,613
86
41
42
EVEREL ROMANIA SRL
1.663
85,685,395
39
202,155
300
EKR-ELEKTROKONTAKT ROMANIA SRL
1.538
83,746,133
41
-377,175
2,001
43
ELECTROPLAST SA
1.500
95,529,586
34
585,607
156
44
SHINHEUNG ELECTRONICS SRL
1.325
79,022,878
43
-6,748,924
525
Busteni, PRAHOVA
Bistrita,
BISTRITA-NASAUD
Lipova, ARAD
Santana, ARAD
Bistrita,
BISTRITA-NASAUD
Oradea, BIHOR
TRADE OF ELECTRICAL AND ELECTRONIC EQUIPMENT
RANK
COMPANY NAME
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
CONTACT
131
Voluntari, ILFOV
1
2
3
4
5
6
7
8
9
10
11
12
SAMSUNG ELECTRONICS ROMANIA SRL
3.813
2,378,875,657
1
63,169,015
ALTEX ROMANIA SRL
3.363
1,132,228,072
2
12,329,921
GERSIM IMPEX SRL
2.900
492,328,020
4
12,102,978
13
FLANCO RETAIL SA
2.775
609,224,897
3
259,133
770
Voluntari, ILFOV
MOBILE DISTRIBUTION SRL
2.750
216,099,060
7
4,528,806
125
Cluj-Napoca, CLUJ
SCHNEIDER ELECTRIC ROMANIA SRL
2.750
191,918,143
9
10,474,211
177
EURO GSM 2000 SRL
2.650
101,253,253
17
5,748,525
27
WHIRLPOOL ROMANIA SRL
2.538
154,530,141
11
2,042,506
20
LG ELECTRONICS ROMANIA SRL
2.500
300,505,627
6
-1,707,813
57
ELBI ELECTRIC & LIGHTING SRL
2.475
102,019,749
16
8,059,893
136
HUAWEI TECHNOLOGIES SRL
2.338
422,049,371
5
-79,009,161
628
MARELVI IMPEX SRL
2.288
167,922,531
10
3,618,280
96
13
B&K ELECTRO SYSTEM SRL
2.288
32,726,314
29
1,623,602
15
Baia Mare,
MARAMURES
14
15
16
17
18
19
20
SECPRAL COM SRL
2.175
53,903,447
25
9,157,336
74
Cluj-Napoca, CLUJ
PHILIPS ROMANIA SRL
2.125
201,031,947
8
287,078
72
ENERGOTECH SA
2.025
49,041,402
26
7,427,066
37
OBERTHUR TECHNOLOGIES ROMANIA SRL
2.025
47,193,257
27
1,678,426
37
VORTEX INTERNATIONAL SRL
1.963
102,693,494
15
-1,151,682
25
EL&CAB BIZZ SRL
1.963
56,973,270
23
1,285,016
25
PAYPOINT SERVICES SRL
1.950
130,760,700
12
223,329
112
21
GOMAR LUX SA
1.838
120,885,805
13
599,140
47
22
23
24
25
26
27
28
29
30
31
32
GENCO TRADE SRL
1.825
120,151,874
14
-19,774,758
402
AVITECH CO SRL
1.763
58,807,809
22
23,345
177
Voluntari, ILFOV
TOP TECH SRL
1.650
28,409,999
30
539,637
12
Carcea, DOLJ
CONSOLIGHT COM SRL
1.613
72,974,956
20
901,444
118
BSH ELECTROCASNICE SRL
1.575
64,153,465
21
-21,915
25
ECAS ELECTRO SRL
1.575
21,538,515
31
614,030
33
CHORUS MARKETING AND DISTRIBUTION SRL
1.513
54,963,198
24
-1,395,108
98
ADICOM GLOBAL TRADE SRL
1.475
95,684,079
18
-1,344,422
BANESTO SRL
1.463
76,524,809
19
-900,564
HAT GROUP CO ROMANIA SA
1.413
3,036
33
-498,550
3
NEXTELEKOM SRL
1.338
0
34
-4,569
-
Timisoara, TIMIS
33
MONDO PLAST SRL
1.325
37,660,961
28
400,655
67
Bocsa,
CARAS-SEVERIN
34
GENTRADE COM SRL
1.238
908,423
32
-671,367
1
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
ARCTIC SA
4.050
1,372,278,937
1
92,225,679
2,457
ELECTROARGES SA
2.800
138,116,297
4
13,145,892
468 Curtea de Arges, ARGES
ZOPPAS INDUSTRIES ROMANIA SRL
2.713
162,357,234
3
18,756,776
2,496 Sannicolau Mare, TIMIS
SOGECO ROMANIA SRL
2.275
320,465,896
2
-11,095,858
511
TEHNOTON SA
2.088
23,247,619
7
1,238,056
143
Iasi, IASI
HT EST DIVISION SRL
1.863
29,156,158
6
910,791
156
Pecica, ARAD
METALICA SA
1.825
22,330,316
8
127,828
165
Oradea, BIHOR
TECNOWIND EAST EUROPE SRL
1.425
33,911,999
5
-728,171
88
Arad, ARAD
MANUFACTURE OF DOMESTIC APPLIANCES
RANK
1
2
3
4
5
6
7
8
COMPANY NAME
1,659 Piatra Neamt, NEAMT
Cluj-Napoca, CLUJ
Bragadiru, ILFOV
Viisoara,
BISTRITA-NASAUD
3
CONTACT
27.297
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
t TELECOMMUNICATIONS
t COMMUNICATION EQUIPMENT
t COMPUTER PROGRAMMING, CONSULTANCY AND
RELATED ACTIVITIES
t MANUFACTURE AND SALE OF COMPUTERS AND
PERIPHERAL EQUIPMENT
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 2012. 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
(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 27.297 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.
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
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.
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 email that boosts productivity.
Figure1. Market Share in Q4 2012
Figure 2. Evolution till 2012 and Forecasts till 2017
DigiMobil
10%
35,000
29,760
30,000
27,782 27,435 27,489 27,556 27,640 27,741 27,859
25,000
Orange
37%
Cosmote
23%
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.
MCR
Opinion
JEAN-FRANÇOIS FALLACHER,
CEO Orange Romania
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
140.000 new customer joining Orange.
Turning smarter and
faster technologies
into affordable and
accessible ones
In terms of revenues, the first 9 month of
2013 confirmed the positive financial
performance, continuing the recovery
trend from the end of 2012. 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.
TELECOMMUNICATIONS
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
ORANGE ROMANIA SA
3.613
4,119,424,689
1
517,785,638
2,798
VODAFONE ROMANIA SA
COSMOTE ROMANIAN MOBILE
TELECOMMUNICATIONS SA
RCS & RDS SA
SOCIETATEA COMERCIALA PENTRU SERVICII
DE TELECOMUNICATII SI TEHNOLOGIA
INFORMATIEI IN RETELE ELECTRICE DE
TRANSPORT TELETRANS SA
NOBEL ROMANIA SRL
3.613
3,457,194,964
2
502,157,093
2,685
3.300
1,940,513,702
4
43,829,091
1,275
3.138
2,047,044,743
3
88,152,045
8,845
2.375
57,867,017
17
7,614,792
245
2.363
35,971,459
26
1,221,237
224
NET TEAM SRL
2.213
29,632,746
28
4,068,876
31
UPC ROMANIA SRL
SOCIETATEA NATIONALA DE
RADIOCOMUNICATII SA
RADCOM SRL
2.175
441,796,917
5
-229,580,076
1,594
2.175
330,144,616
6
-8,910,017
1,467
2.175
58,857,010
16
6,196,960
177
EAD TELECOM SRL
2.150
49,349,078
19
2,142,273
15
ORSAM TELECOM SRL
2.088
135,540,319
8
524,772
14
VOXLINE COMMUNICATION SRL
2.025
5,095,714
39
476,209
14
2.013
34,905,443
27
1,040,027
71
15
MEDIA SAT SA
BT GLOBAL SERVICES LIMITED LONDRA
SUCURSALA BUCURESTI
1.963
24,406,771
29
741,474
-
16
GMB COMPUTERS SRL
1.863
18,264,928
33
2,139,805
105
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
COMBRIDGE SRL
1.863
69,423,482
12
5,559,372
33
NET-CONNECT INTERNET SRL
1.838
79,379,819
11
1,197,087
19
MEDIATEL DATA SRL
1.838
6,398,770
38
698,572
23
DIGITAL CABLE SYSTEMS SA
1.800
137,797,432
7
-8,217,961
1,063
INES GROUP SRL
1.800
22,538,904
30
1,575,696
45
D & D COMPANY SRL
1.775
38,199,639
23
251,066
3
NOKIA SIEMENS NETWORKS ROMANIA SRL
1.775
20,960,168
31
3,090,734
40
IDILIS SRL
1.775
12,759,919
36
765,002
9
MIRA TELECOM SRL
1.738
39,942,378
22
976,467
84
TELECOMUNICATII CFR SA
1.725
55,107,239
18
1,082,373
1,003
DIRECT ONE SA
1.700
44,887,142
21
7,299,079
46
PRIME TELECOM SRL
1.675
37,120,849
24
713,880
128
ACCESSNET INTERNATIONAL SRL
1.588
17,714,344
35
238,631
2
2K TELECOM SRL
1.550
59,001,255
15
2,328,277
123
EQUANT ROMANIA SA
1.475
44,992,468
20
-4,647,028
27
VOXILITY SRL
1.338
19,829,338
32
327,479
36
NEXTGEN COMMUNICATIONS SRL
1.325
90,656,104
9
-10,833,181
545
GTS TELECOM SRL
1.325
88,916,636
10
-7,396,095
148
EUROWEB ROMANIA SA
1.325
36,537,569
25
-3,928,730
82
ROKURA SRL
1.300
17,755,082
34
381,603
63
FOCUS SAT ROMANIA SRL
1.238
60,169,943
14
-29,444,514
70
MARCTEL - SIT SRL
1.238
4,403,064
40
-4,311,181
1
TELEMOBIL SA
1.175
61,296,267
13
-174,128,766
96
ATLAS TELECOM INTERACTIVE SRL
1.088
12,218,308
37
-732,826
-
RANK
1
2
3
4
5
6
7
8
9
10
11
12
13
14
COMPANY NAME
CONTACT
Brasov, BRASOV
Constanta,
CONSTANTA
Oradea, BIHOR
MCR
IT & C
COMMUNICATION EQUIPMENT
RANK COMPANY NAME
ANNUAL TURNOVER
(2012 RON)
362,747,052
3.300
MCR SCORING
TURNOVER
RANKING
1
PROFIT/LOSS
(2012 RON)
30,777,468
NO OF
EMPLOYEES
1,014
CONTACT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
KATHREIN ROMANIA SRL
ALCATEL - LUCENT ROMANIA SA
HR FRANCHISING SRL
GDS MANUFACTURING SERVICES SA
ASGO TELECOM SA
GERMANOS TELECOM ROMANIA SA
CELLULAR ONE SRL
COSMOS MOBILE SRL
ROMKATEL SRL
FELIX TELECOM SRL
ROBEST COM SRL
ARSIS TRADING SRL
CISCO SYSTEMS ROMANIA SRL
VOX CARRIER SRL
ILEX COM SRL
2.925
2.825
2.575
2.350
2.300
2.300
2.275
2.263
2.238
2.175
2.138
2.113
2.088
2.050
255,144,070
3
32,616,928
1,459
Timisoara, TIMIS
102,270,244
6
11,544,679
469
Cluj Napoca, CLUJ
Arad, ARAD
16
LESSOR SRL
17
CENTRUL PENTRU SERVICII DE
RADIOCOMUNICATII SRL
DELTATEL SRL
FRONTAL COMMUNICATION SRL
TELELINK SERVICES ROMANIA SRL
BRITCOM DIRECT SRL
INTERACTIVE SYSTEMS & BUSINESS
CONSULTING SRL
ECCO GROUP DEVELOPMENT SRL
UNIVERSAL CARD SYSTEMS SA
ROHDE & SCHWARZ TOPEX SA
SIMPLUS INVEST SRL
NOKIA ROMANIA SRL
ADVANCED TECHNOLOGIES SRL
AVENIR TELECOM SA
STAR PRINT TRADE CO SRL
MOBILIS SRL
MCS COMMUNICATIONS SRL
ACCORD 93 SRL
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
124,960,746
5
249,810
329
31,863,293
17
6,646,400
206
264,576,416
2
-52,810,559
1,052
28,148,308
20
1,155,424
119
47,924,452
12
3,057,833
12
64,259,492
7
6,922,165
53
27,798,526
21
4,104,245
74
Timisoara, TIMIS
Braila, BRAILA
32,718,339
15
967,404
184
134,129,589
4
957,696
512
Carcea, DOLJ
23,760,875
28
2,191,838
37
25,539,421
25
471,451
16
56,792,684
10
1,219,862
239
1.825
55,239,955
11
175,502
4
1.800
30,925,475
18
1,438,798
77
1.775
1.775
1.775
1.738
47,409,683
13
-1,427,318
359
Timisoara, TIMIS
28,387,935
19
214,464
16
Otopeni, ILFOV
12,800,901
32
805,530
43
20,690,845
30
86,315
153
1.738
19,889,063
31
1,950,412
66
1.713
1.713
1.700
1.650
1.588
1.588
1.513
1.488
1.463
1.450
1.338
57,758,521
9
414,230
18
25,892,396
24
990,862
41
32,432,346
16
772,391
152
24,852,172
27
373,918
14
26,545,761
23
-867,371
570
24,920,951
26
62,869
12
61,150,041
8
-9,057,937
315
27,429,433
22
-1,431,031
58
21,007,861
29
278,061
28
37,375,595
14
-6,455,071
266
11,925,527
33
-2,062,197
7
Craiova, DOLJ
Piatra-Neamt,
NEAMT
Cluj-Napoca, CLUJ
Iasi, IASI
COMPUTER PROGRAMMING, CONSULTANCY AND RELATED ACTIVITIES
RANK
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
COMPANY NAME
IBM ROMANIA SRL
UTI SYSTEMS SA
SAP ROMANIA SRL
COMPUTER GENERATED SOLUTIONS
ROMANIA SRL
IQUEST TECHNOLOGIES SRL
MICROSOFT ROMANIA SRL
SIVECO ROMANIA SA
1&1 INTERNET DEVELOPMENT SRL
IXIA SRL
MISYS INTERNATIONAL FINANCIAL SYSTEMS SRL
TEAMNET INTERNATIONAL SA
EVOLINE SRL
ORACLE ROMANIA SRL
EBS ROMANIA SRL
UBISOFT SRL
GAMELOFT ROMANIA SRL
TSE DEVELOPMENT ROMANIA SRL
ROMSYS SRL
CRYS COMPUTERS SRL
ENDAVA ROMANIA SRL
NOVENSYS CORPORATION SRL
SIMULTEC SRL
INFORMATION BUSINESS CONSULTING SA
TEAMNET BUSINESS SERVICES SRL
PENTALOG ROMANIA SRL
INFINEON TECHNOLOGIES ROMANIA & CO SCS
CRESCENDO INTERNATIONAL SRL
S & T ROMANIA SRL
NET BRINEL SA
BITDEFENDER SRL
INTRAROM SA
LUXOFT PROFESSIONAL ROMANIA SRL
METRO SYSTEMS ROMANIA SRL
STAR STORAGE SRL
ATOS IT SOLUTIONS AND SERVICES SRL
PRINTEC GROUP ROMANIA SRL
TEAMNET SOLUTIONS INTERNATIONAL SRL
ETA-2U SRL
SOFTWIN SRL
FREESCALE SEMICONDUCTOR ROMANIA SRL
ASESOFT INTERNATIONAL SA
SYSCO SRL
BRODOS ROMANIA SRL
XOR-IT SYSTEMS SRL
TOTALSOFT SA
EON IT ROMANIA SRL
SOFTWARE DEVELOPMENT & CONSULTING SRL
KAPSCH SRL
49 ROMSOFT SRL
ANNUAL TURNOVER
(2012 RON)
368,374,500
3.050
MCR SCORING
TURNOVER
RANKING
2
PROFIT/LOSS
(2012 RON)
50,461,119
NO OF
EMPLOYEES
1,072
2.863
2.700
294,782,229
3
39,156,717
1,505
103,486,854
14
12,772,983
171
2.663
129,252,131
12
21,509,732
2,313
2.613
2.588
2.550
2.513
2.500
2.475
2.450
2.450
2.425
2.425
2.388
2.388
2.363
2.313
2.300
2.250
2.238
2.213
2.213
2.150
2.125
2.113
2.075
2.063
2.063
2.063
2.025
2.013
2.013
2.000
1.950
1.950
1.925
1.913
1.913
1.913
1.888
1.838
1.775
1.738
1.450
1.425
1.425
1.400
74,368,372
26
15,802,491
295
148,490,675
10
12,201,830
251
206,253,264
5
18,486,751
1,148
60,735,057
34
7,596,316
279
75,081,714
25
3,539,870
364
56,008,215
38
17,625,350
280
235,655,532
4
16,163,653
263
57,902,966
35
12,005,301
365
468,661,832
1
-14,842,862
2,184
49,240,984
42
5,792,941
240
97,890,602
17
3,875,723
886
60,826,142
33
1,652,360
674
56,700,559
37
5,253,502
208
201,965,050
7
7,437,964
201
62,395,861
30
3,330,363
204
64,634,551
29
1,398,957
527
205,643,808
6
6,420,945
212
42,085,511
48
1,661,827
36
40,163,233
49
3,355,930
25
57,129,465
36
223,456
-
49,611,146
41
1,942,891
308
77,474,658
21
4,434,680
236
53,528,797
39
1,906,331
94
140,168,123
11
-3,897,959
143
67,983,644
28
5,658,572
79
160,935,943
9
4,975
278
405
1.275
191,407,955
8
250,775
94,306,638
18
13,665,146
669
80,274,602
20
2,405,687
503
99,302,812
15
8,058,290
507
76,264,968
24
2,079,715
371
45,750,957
44
7,573,774
155
42,322,964
47
34,011
115
99,092,161
16
4,649,171
197
48,267,446
43
6,320,455
368
43,556,126
46
870,419
240
112,772,710
13
341,891
95
61,346,388
32
4,768,099
11
61,767,737
31
-44,018
6
76,646,906
22
2,532,466
141
CONTACT
Cluj-Napoca, CLUJ
Cluj-Napoca, CLUJ
Cluj-Napoca, CLUJ
Cluj-Napoca, CLUJ
Cluj-Napoca, CLUJ
Cluj-Napoca, CLUJ
Voluntari, ILFOV
Timisoara, TIMIS
93,213,973
19
-3,414,481
436
76,524,656
23
-1,305,380
58
Voluntari, ILFOV
Iasi, IASI
51,233,830
40
137,403
61
Otopeni, ILFOV
45,557,872
45
-699,473
32
68,271,338
27
107,342
42
Ramnicu Valcea,
VALCEA
MCR
IT & C
MANUFACTURE AND SALE OF COMPUTERS AND PERIPHERAL EQUIPMENTS
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
CONTACT
CELESTICA ( ROMANIA ) SRL
3.175
1,728,543,405
1
-11,648,800
1,013
Bors, BIHOR
BENCHMARK ELECTRONICS ROMANIA SRL
3.088
267,109,728
5
16,006,364
663
Ghimbav, BRASOV
DANTE INTERNATIONAL SA
2.963
685,110,236
3
807,266
350
Voluntari, ILFOV
ASESOFT DISTRIBUTION SRL
2.938
917,403,768
2
7,468,193
178
HEWLETT - PACKARD ROMANIA SRL
2.725
343,599,948
4
26,457,121
-
ASSECO SEE SRL
2.488
107,303,890
16
5,723,008
183
FIT DISTRIBUTION SRL
2.463
172,914,559
8
547,959
40
Q'NET INTERNATIONAL SRL
2.300
74,927,398
23
4,587,539
113
PRODUCTON SRL
2.300
69,826,879
24
2,897,435
113
AGIS COMPUTER SRL
2.275
144,821,228
10
5,790,691
37
SKIN MEDIA SRL
2.238
185,569,485
6
5,190,771
90
ASBIS ROMANIA SRL
2.225
143,414,308
11
1,030,050
44
GINO ELECTRONICS SRL
INTEGRATED ROMANIAN INFORMATION
SYSTEMS SA
TONERFILL ROMANIA SRL
2.213
122,499,969
15
170,350
2
2.213
63,975,463
27
425,002
3
2.200
94,324,494
20
4,299,518
645
DESPEC ROMANIA SRL
2.175
166,244,931
9
2,201,113
88
MB DISTRIBUTION SRL
2.163
130,954,570
13
2,074,156
68
EVOLUTION PREST SYSTEMS SRL
2.150
50,637,412
31
367,483
47
NEODIGITAL SRL
2.138
79,512,027
22
1,764,629
29
SCOP COMPUTERS SRL
2.063
136,501,403
12
-26,711,698
99
XEROX ROMANIA ECHIPAMENTE SI SERVICII SA
2.063
98,311,623
19
11,680,853
76
SYSTEM PLUS SRL
2.000
35,751,796
34
914,195
53
ELKOTECH ROMANIA SA
1.950
123,987,131
14
-673,885
40
GEMINI SP SRL
1.925
65,343,447
26
1,665,809
3
MITCRIS SRL
1.900
103,602,715
17
37,791
37
ROYAL COMPUTERS SRL
1.888
49,787,541
32
1,534,230
47
OMNILOGIC SRL
1.750
179,384,109
7
1,171,384
96
Otopeni, ILFOV
LASTING SYSTEM SRL
1.738
54,772,238
30
2,934,133
93
Timisoara, TIMIS
DIM SOFT SRL
1.713
60,851,279
29
7,931,505
22
GRUPUL INDUSTRIAL GIR SA
1.713
29,472,130
35
4,859,206
13
RTC PROFFICE EXPERIENCE SA
KONICA MINOLTA BUSINESS SOLUTIONS
ROMANIA SRL
ATLAS CORPORATION SRL
1.688
101,222,307
18
-4,261,254
151
1.688
84,029,882
21
481,536
172
1.688
66,953,920
25
-5,369,926
174
TREND IMPORT EXPORT SRL
1.463
48,226,605
33
-995,395
34
GMN DISTRIBUTIE SRL
1.400
63,404,639
28
-3,273,775
35
GAPI SRL
1.213
0
36
45,095
1
RANK COMPANY NAME
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
Cluj-Napoca, CLUJ
Dumbravita, TIMIS
Oltenita, CALARASI
Cluj-Napoca, CLUJ
Oradea, BIHOR
Timisoara, TIMIS
7
GE-signed turbines for Tulcea wind park
Industrial Engineering
MCR
New business models:
The merge of manufacturing and services
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.
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.
Following companies’ operations, a conclusion can be tinted:
new business models are emerging, that link manufacturing
closer to services.
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.
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
ADREM INVEST SEIZES NEW HORIZONS
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
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
RANK
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
COMPANY NAME
RENAULT TECHNOLOGIE ROUMANIE SRL
GENERAL ELECTRIC INTERNATIONAL INC WILMINGTON SUCURSALA ROMANIA
FOSTER WHEELER ITALIANA SRL CORSICO
SUCURSALA PLOIESTI ROMANIA
ROMELECTRO SA
ALEWIJNSE MARINE GALATI SA
JCR - CHRISTOF CONSULTING SRL
IMUC SA
TIAB SA
ROMINSERV SRL
KRAFTANLAGEN ROMANIA SRL
ADREM INVEST SRL
VEOLIA WATER SOLUTIONS & TECHNOLOGIES
ROMANIA SRL
KREMSMUELLER ROMANIA SRL
IPIP SA
TMUCB SA
IMSAT SA
MOLDOCOR SA
TRACTEBEL ENGINEERING SA
TOTAL ENERGY BUSINESS SA
ISAF-SOCIETATE DE SEMNALIZARI SI
AUTOMATIZARI FEROVIARE SA
METROUL SA
COMAU ROMANIA SRL
MARTIFER ENERGIA RO SRL
CONSITRANS SRL
ENERECO SPA FANO SUCURSALA BUCURESTI
SEARCH CORPORATION SRL
INSTITUTUL DE STUDII SI PROIECTARI
ENERGETICE SA
ROMENERGO SA
INOCSA INGENIERIA, SL SPANIA FILIALA
ROMANIA SRL
GSE PROIECTE TURNKEY SRL
INDUSTRIAL ENGINEERING AND
CONTRACTING RO SRL
SNAMPROGETTI ROMANIA SRL
IPTANA SA
PROIMSAT SA
environmental and thermoelectric (to be delivered in
2013-2014) 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.
ANNUAL TURNOVER
(2012 RON)
583,158,869
3.238
MCR SCORING
TURNOVER
RANKING
1
PROFIT/LOSS
(2012 RON)
22,863,488
NO OF
EMPLOYEES
2,106
104
3.063
326,942,244
5
31,908,250
2.825
372,254,247
3
18,793,704
2.813
2.525
2.500
2.450
2.438
2.400
2.300
2.250
346,269,505
107,713,282
189,460,571
33,028,746
144,671,204
480,678,618
126,336,840
172,473,913
4
13
8
32
10
2
11
9
11,122,774
4,646,971
3,432,064
2,862,548
2,156,173
1,646,039
855,991
13,862,827
2.188
49,622,286
24
1,729,489
2.188
2.138
2.113
2.113
2.063
2.038
2.013
119,722,349
70,052,956
234,127,877
210,561,085
56,783,959
43,217,691
69,254,991
12
17
6
7
21
28
18
-1,664,256
5,547,588
4,371,582
877,088
4,405,925
2,164,773
11,385,522
CONTACT
Voluntari, ILFOV
88
289
450 Brazii de Sus, PRAHOVA
332
Bradu, ARGES
707
635
182
797
76
220
334
1,511
1,098
198
34
2.013
32,532,529
33
1,943,363
281
2.000
1.950
1.900
1.863
1.838
1.638
59,352,208
76,147,190
44,300,813
34,500,701
35,231,302
52,884,001
20
15
27
31
30
23
15,799,806
2,025,710
5,240,643
1,476,074
4,316,346
1,585,866
260
344
1
230
14
351
1.625
61,106,060
19
231,623
619
1.613
82,649,270
14
4,955,528
113
1.613
53,300,682
22
2,444,776
167
1.588
74,409,419
16
6,317,740
3
1.588
44,573,203
26
1,767,737
1.550
1.375
1.325
37,343,812
30,229,467
45,775,840
29
34
25
-7,181,507
-3,142,872
-39,864,053
Oradea, BIHOR
12
237
342
2.5%
increase, to USD 4.2 billion, in Romanian
transportation infrastructure industry
represents 1/3rd of total construction
market value
Constructions
t CONSTRUCTION OF RESIDENTIAL & INDUSTRIAL BUILDINGS
t BUILDING MATERIALS
t CONSTRUCTION OF ROADS, RAILWAYS, BRIDGES AND TUNNELS
t CONSTRUCTION OF UTILITY PROJECTS FOR FLUIDS AND RELATED SERVICES
t HYDRO-TECHNICAL CONSTRUCTIONS
t MANUFACTURE OF EQUIPMENT FOR CONSTRUCTION INDUSTRY
t CONSTRUCTION OF ELECTRIC SITES
t ELECTRICAL, PLUMBING AND OTHER CONSTRUCTION INSTALLATION ACTIVITIES
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.
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
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.
Romania has a motorway network of 550 km (529 km under
CNADNR administration and the remainder under Bucharest
municipality). Compared with the country area (238.39 sq km
and 900 km from East to West) and peers network, the
Figure 1. Expected Structure of Romanian Transportation
Infrastructure in 2013
Figure 2. Historical Timeline - Total Motorway KM Under Exploitation
12%
0%
600
Roads and bridges
infrastructure
3%
500
Year 2012 closed with 529 km under
CNADNR administration (550 km, if including
a Bucharest administered segment)
400
Railways infrastructure
Airports infrastructure
A2,
bridge
300
200
A1
85%
(% sector size in total infrastructure)
Source: Business Monitor Online (BMO), National Statistics Institute (INSSE).
50
42
10
263
305
315
2009
2010
2011
97
18
100
Ports harbours and
waterways infrastructure
50
164
213
98
98
116
1972
1987
2004
365
0
Preceding year
(no. of km)
2007
Reference or current year
(no. of launched motorway km)
(Years of start of operations)
Source: Competition Council. Sector Investigation.
2012
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.
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
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 2015.
Following an unsuccessful concession attempt in years
2007-2009, 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
% year on year estimated real growth
TRENDS AND TENDENCIES
5
4
3
2
1
0
-1
-2
-3
-4
-5
4.2
3.0
2.5
1.0
-0.6
2013
-1.2
2014
2015
Romania
Poland
Bulgaria
Czech Republic
Hungary
Ukraine
(Real value estimated year on year percentage growth)
Source: BMO, INSSE.
MCR
CONSTRUCTIONS
CONSTRUCTION OF RESIDENTIAL & INDUSTRIAL BUILDINGS
RANK COMPANY NAME
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
STRABAG SRL
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
PROFIT/LOSS
(2012 RON)
5,268,795
NO OF
EMPLOYEES
695
CONTACT
2.963
459,822,636
4
31,179,418
400
2.788
784,401,062
2
16,361,303
-
2.650
627,591,603
3
-120,487,023
959
2.525
199,814,329
10
12,354,860
-
VEGA 93 SRL
2.425
352,784,284
5
328,261
1,748
AEDIFICIA CARPATI SA
HOCHTIEF CONSTRUCTION AG ESSEN
SUCURSALA BUCURESTI
ROTARY CONSTRUCTII SRL
COLLINI LAVORI SPA TRENTO SUCURSALA
BUCURESTI
SOCIETATEA COMERCIALA DE CONSTRUCTII
NAPOCA SA
BOGÀRT SRL
ALPINE BAU GMBH AUSTRIA SUCURSALA
MOGOSOAIA
SELINA SRL
2.400
154,084,043
14
23,967,366
631
2.363
117,800,667
20
8,062,461
75
2.263
176,071,799
11
3,319,561
414
2.263
125,773,673
19
10,126,887
17
2.188
114,846,605
21
14,163,514
197
2.100
339,018,944
6
1,793,573
-
2.088
316,908,561
7
-106,146,390
-
Mogosoaia, ILFOV
2.075
136,753,552
16
14,575,264
526
Oradea, BIHOR
PAB ROMANIA SRL
2.050
128,244,195
18
3,275,500
227
Arad, ARAD
ACOMIN SA
2.025
132,210,304
17
1,565,818
367
Cluj-Napoca, CLUJ
BUILD CORP SRL
2.000
227,399,468
9
3,338,532
219
Iasi, IASI
ALPINE SA
1.963
238,243,668
8
-34,428,773
443
Mogosoaia, ILFOV
APOLODOR COM IMPEX SRL
1.900
171,562,186
12
19,281
335
PORR CONSTRUCT SRL
1.813
148,080,032
15
393,945
226
TRANSIM GRUP SRL
1.550
165,434,422
13
31,914
159
HENKEL ROMANIA SRL
ANNUAL TURNOVER
(2012 RON)
606,989,685
3.650
TURNOVER
RANKING
4
PROFIT/LOSS
(2012 RON)
45,576,673
NO OF
EMPLOYEES
466
CARPATCEMENT HOLDING SA
3.150
807,945,334
3
152,524,608
790
LAFARGE CIMENT (ROMANIA) SA
3.025
853,878,685
2
163,619,796
462
HOLCIM ROMANIA SA
SAINT-GOBAIN CONSTRUCTION PRODUCTS
ROMANIA SRL
MITLIV EXIM SRL
2.588
948,750,263
1
-37,762,101
942
2.525
284,056,188
5
1,690,495
519
2.525
230,920,897
6
5,993,940
253
TRADO AVANGARD COMMERCE SRL
2.463
113,897,065
17
18,992
CARMEUSE HOLDING SRL
2.250
110,515,228
18
11,210,244
168
Brasov, BRASOV
RUSTRANS SRL
2.188
118,217,739
14
1,305,483
244
Margineni, BACAU
APLAST TRADING SRL
2.175
117,629,207
15
1,138,364
70
ADEPLAST SA
2.138
184,445,875
9
14,730,827
166
DAMILA SRL
2.125
216,169,916
7
1,084,372
232 Ramnicu-Valcea, VALCEA
ANDAMI COMP SRL
2.113
211,414,610
8
1,714,160
170
LAFARGE AGREGATE BETOANE SA
1.900
159,617,250
11
-29,205,523
384
BAUMIT ROMANIA COM SRL
1.888
126,811,574
12
-3,531,994
163
WIENERBERGER - SISTEME DE CARAMIZI SRL
HOCHTIEF TRADE SOLUTIONS LIMITED HONG
KONG SUCURSALA BUCURESTI
MENATWORK EST PREFABRICATE SRL
1.813
117,336,418
16
-9,133,341
204
1.763
126,105,369
13
-73,129,051
4
1.750
108,064,035
20
-5,309,432
102
RUUKKI ROMANIA SRL
1.625
164,451,500
10
-24,965,698
153
MACON SRL
1.600
110,006,134
19
-23,751,549
662
BUILDING MATERIALS
5
TURNOVER
RANKING
1
CONSTRUCTII ERBASU SA
STRABAG AG AUSTRIA SUCURSALA
BUCURESTI ROMANIA
ASTALDI SPA ITALIA SUCURSALA ROMANIA
BUCURESTI
CON-A SRL
RANK COMPANY NAME
1
2
3
4
ANNUAL TURNOVER
(2012 RON)
1,403,884,345
3.463
MCR SCORING
MCR SCORING
Selimbar, SIBIU
Cluj-Napoca, CLUJ
CONTACT
Craiova, DOLJ
- Simleul Silvaniei, SALAJ
Oradea, BIHOR
Deva, HUNEDOARA
CONSTRUCTION OF ROADS, RAILWAYS, BRIDGES AND TUNNELS
RANK
1
2
3
4
5
COMPANY NAME
ANNUAL TURNOVER
(2012 RON)
549,761,129
3.363
MCR SCORING
TURNOVER
RANKING
4
PROFIT/LOSS
(2012 RON)
73,510,148
NO OF
EMPLOYEES
1,364
Bacau, BACAU
Bacau, BACAU
15
TEHNOSTRADE SRL
SPEDITION UMB SRL
STRACO GRUP SRL
VIAROM CONSTRUCT SA
TEHNOLOGICA RADION SRL
DELTA ANTREPRIZA DE CONSTRUCTII SI
MONTAJ 93 SRL
ROMAIRPORT SRL ROMA SUCURSALA
BUCURESTI
MAX BOEGL ROMANIA SRL
EURO CONSTRUCT TRADING 98 SRL
DIFERIT SRL
TECHNOCER SRL
NEMAR EDIL-CONSTRUCT SRL
TIRRENA SCAVI CONDOTTE COSSI GIE
ANTREPRIZA DE REPARATII SI LUCRARI
A R L CLUJ SA
CAST SRL
2.238
124,191,029
25
8,759,986
224
16
TEL DRUM SA
2.213
147,603,225
22
10,575,661
610
17
IMPREGILO SPA MILANO-SUCURSALA SIBIU
ASTALDI SPA ITALIA SUCURSALA GHEORGHE
PETRASCU BUCURESTI
CONFORT SA
TANCRAD SRL
SOCIETATEA DE CONSTRUCTII IN
TRANSPORTURI BUCURESTI SA
TIRRENA SCAVI SPA ITALIA SUCURSALA CLUJ
VECTRA SERVICE SRL
SHAPIR STRUCTURES SRL
FCC CONSTRUCCION SA BARCELONA
SUCURSALA BUCURESTI
PA & CO INTERNATIONAL SRL
TEMIX CONSTRUCT SRL
2.163
291,404,612
9
-16,791,437
43
6
7
8
9
10
11
12
13
14
18
19
20
21
22
23
24
25
26
27
3.100
2.963
2.825
2.800
616,762,926
2
94,399,901
37
872,556,755
1
1,347,780
815
274,419,717
10
5,024,752
236
560,013,055
3
4,486,255
2,161
2.800
502,606,342
5
15,186,828
1,509
2.738
173,674,809
20
41,869,591
159
2.688
2.650
2.550
2.425
2.413
2.400
387,873,211
7
6,264,483
80
458,900,643
6
31,318,422
926
2.325
114,280,040
27
9,819,976
186
Cluj-Napoca, CLUJ
164,591,579
21
31,444,271
240
Nadrag, TIMIS
123,000,077
26
3,327,361
30
268,195,158
11
0
278
Sannicoara, CLUJ
135,851,239
24
9,581,781
307
Cluj-Napoca, CLUJ
1
2
COMPANY NAME
2.100
138,421,594
23
87,532,973
33
254,701,239
12
-101,374,565
579
194,346,100
17
11,015,040
216
2.038
202,176,315
15
221,691
504
1.988
1.988
1.975
211,088,074
14
16,448,438
107
Sannicoara, CLUJ
188,575,923
18
703,339
1,100
Brasov, BRASOV
181,200,591
19
1,176,575
-
1.925
315,446,253
8
-987,670
216
1.838
1.725
227,758,785
13
2,029,103
646
200,182,332
16
-44,568,041
-
ANNUAL TURNOVER
(2012 RON)
504,621,998
3.513
TURNOVER
RANKING
1
PROFIT/LOSS
(2012 RON)
17,488,497
NO OF
EMPLOYEES
5
MCR SCORING
4
5
6
METKA BRAZI SRL
ELCOMEX - IEA SA
INTRETINERE SI SERVICII ENERGETICE
ELECTRICA SERV SA
ELECTROMONTAJ SA
ELECTROGRUP SA
CAMUSAT ROM-TELECOMUNICATII SRL
7
ELECTROECHIPAMENT INDUSTRIAL SRL
1.850
49,670,235
11
1,495,013
8
9
10
11
12
13
14
SALVATI EST SRL
EGNATIA ROM SRL
SERVICII ENERGETICE MUNTENIA SA
SERVICII ENERGETICE OLTENIA SA
AQUA TRANS EDILITAR SRL
ELECTRA TAJ SRL
TELEMONTAJ EDILITAR SRL
1.838
1.775
1.513
1.388
1.213
1.213
1.213
47,736,927
12
1,139,326
8
42,405,588
13
5,652,430
35
3
Alexandria,
TELEORMAN
Sibiu, SIBIU
2.088
2.050
CONSTRUCTION OF ELECTRIC SITES
RANK
CONTACT
3.063
290,448,526
3
20,921,095
2.613
384,369,950
2
7,233,646
3,658
2.363
2.275
2.138
185,175,218
4
9,929,843
1,362
146,998,482
5
17,953,014
282
84,398,920
6
12,118,885
159
227
Timisoara, TIMIS
Oituz, BACAU
CONTACT
571 Cernavoda, CONSTANTA
Cluj-Napoca, CLUJ
Resita,
CARAS-SEVERIN
65,780,826
7
-5,321,920
668
35,830,782
14
-12,149,137
546
Craiova, DOLJ
60,144,490
8
-13,122,685
22
Bacau, BACAU
60,078,302
9
-21,673
9
59,921,307
10
-56,764
10
Bacau, BACAU
MCR
CONSTRUCTIONS
CONSTRUCTION OF UTILITY PROJECTS FOR FLUIDS AND RELATED SERVICES
RANK COMPANY NAME
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
CONTACT
Constanta,
CONSTANTA
1
GRUP SERVICII PETROLIERE SA
2.838
813,037,318
1
143,596,468
364
2
PROSPECTIUNI SA
WEATHERFORD INTERNATIONAL EASTERN
EUROPE SRL
INSPET SA
2.700
314,358,626
3
17,295,121
1,784
2.463
325,214,671
2
19,056,130
288
2.325
196,028,092
4
6,904,766
767
IREM SERVICII SRL
2.325
51,597,795
15
1,871,033
700
ROMPETROL WELL SERVICES SA
2.288
97,677,364
7
22,053,148
343
WEATHERFORD ATLAS GIP SA
2.225
105,544,821
6
7,978,409
346
ANVERGO SRL
2.100
50,560,734
16
14,226,711
93
PETROSTAR SA
2.013
32,772,457
20
3,414,488
255
ERBASU EDIL CONSTRUCT SA
1.988
44,128,629
18
2,867,431
134
COMESAD RO SA
1.975
60,048,339
11
8,957,544
139
CDI OILFIELD SERVICES SRL
1.950
93,626,415
8
6,707,350
281
M I PETROGAS SERVICES ROMANIA SRL
1.713
138,707,260
5
-1,284,515
-
14
PETROCONST SA
1.700
59,429,117
12
2,424,715
534
15
16
17
18
19
20
GEPROCON SA
1.675
43,462,230
19
1,373,042
125
Iasi, IASI
GRUP 4 INSTALATII SA
1.613
53,140,945
13
368,221
240
Cluj-Napoca, CLUJ
IRIDEX GROUP CONSTRUCTII SRL
1.613
52,992,142
14
2,191,775
151
Voluntari, ILFOV
ERG TERMROM SA
1.613
50,504,209
17
695,072
170
ACVATOT SRL
1.550
82,863,255
10
504,629
229
CONDMAG SA
1.475
92,849,288
9
22,824,079
870
Brasov, BRASOV
NO OF
EMPLOYEES
CONTACT
3
4
5
6
7
8
9
10
11
12
13
MANUFACTURE OF EQUIPMENT FOR CONSTRUCTION INDUSTRY
RANK COMPANY NAME
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
Targu Mures, MURES
Constanta,
CONSTANTA
1
MAKITA EU SRL
2.775
387,598,107
1
20,193,971
625
2
COMELF SA
2.500
169,587,781
2
3,862,535
1,064
Bistrita,
BISTRITA-NASAUD
3
4
BERGERAT MONNOYEUR SRL
2.350
128,007,579
3
5,990,460
129
Mogosoaia, ILFOV
SCHINDLER ROMANIA SRL
TERRA ROMANIA UTILAJE DE CONSTRUCTII
SRL
SMITH - CONFIND SRL
1.925
79,466,878
7
6,346,401
142
1.875
106,592,058
4
-3,113,684
74
Tunari, ILFOV
1.775
49,955,165
13
9,569,153
2
Campina, PRAHOVA
ELMAS SRL
1.763
89,124,838
5
3,758,699
246
Brasov, BRASOV
8
UPET SA
1.725
71,309,757
9
1,019,058
656
Targoviste,
DAMBOVITA
9
LIEBHERR-ROMANIA SRL
GRUPUL REPARATII INDUSTRIALE SI MONTAJ
EXCAVATOARE X SRL
TRUSTUL PENTRU SERVICII CU UTILAJE
DIVERSE SA
AUTOGRUPM RO SRL
5
6
7
1.700
61,510,390
12
1,147,712
67
Otopeni, ILFOV
1.700
48,624,326
14
745,476
339
Targu Jiu, GORJ
1.675
73,241,885
8
1,273,287
192
Rovinari,GORJ
1.675
47,500,815
15
254,706
100
Arad, ARAD
UMT SA
1.638
22,431,987
18
-1,694,233
252
Timisoara, TIMIS
MARCOM RMC 94 SRL
1.613
69,879,221
10
3,532,949
85
Otopeni, ILFOV
IFMA SA
1.575
31,019,602
17
35,624
220
16
FELBERMAYR ROMANIA SRL
1.488
83,431,026
6
-3,023,843
148
17
18
19
LOEDIGE MACHINE SRL
1.425
21,513,985
19
270,295
69
Brasov, BRASOV
PROMEX SA
1.388
46,982,742
16
-4,697,930
669
Braila, BRAILA
PROMPT SA
1.300
67,138,930
11
444,261
194
10
11
12
13
14
15
ILFOV
ELECTRICAL, PLUMBING AND OTHER CONSTRUCTION INSTALLATION ACTIVITIES
RANK
COMPANY NAME
1
2
3
ENERGOBIT SRL
ANNUAL TURNOVER
(2012 RON)
399,831,278
3.125
PROFIT/LOSS
(2012 RON)
54,076,918
NO OF
EMPLOYEES
220
ENERGOMONTAJ SA
2.738
406,460,041
ROMSTAL IMEX SRL
2.713
534,967,781
2
3,948,346
3,363
1
10,300,307
986
4
BLACK SEA SUPPLIERS SRL
2.525
293,583,317
4
109,121
506
5
6
7
8
9
10
LUXTEN LIGHTING COMPANY SA
2.463
LJG BUILDING SOLUTIONS ALPHA SRL
2.438
153,492,498
5
23,385,199
426
103,093,961
11
12,491,736
DAS SRL
50
2.388
151,872,619
6
17,071,789
452
HONEST GENERAL TRADING SRL
2.338
124,491,733
8
6,356,865
261
SECPRAL PRO INSTALATII SRL
2.100
113,207,471
9
5,396,124
102
1.988
104,358,619
10
125,099
195
1.963
78,636,461
15
23,791,031
-
12
VERTA TEL SRL
LEOPOLD JORDAN GMBH SRL WIEN
SUCURSALA BUCURESTI
VIESSMANN SRL
1.950
102,959,155
12
-3,587,687
58
13
MELINDA IMPEX INSTAL SA
1.875
144,933,025
7
-2,184,247
240
14
15
16
BRODRENE DAHL SRL
1.863
74,217,181
16
6,593,535
62
RADEL & HAHN SRL
1.838
85,321,203
14
2,236,564
34
Sag, TIMIS
TECHNOVA INVEST SRL
TRUSTUL DE INSTALATII MONTAJ SI
CONSTRUCTII SA
1.800
48,129,388
17
554,864
63
Oradea, BIHOR
1.513
87,034,051
13
161,233
353
Cluj-Napoca, CLUJ
TURNOVER
RANKING
1
PROFIT/LOSS
(2012 RON)
18,438,989
NO OF
EMPLOYEES
5,478
11
17
MCR SCORING
HYDRO - TECHNICAL CONSTRUCTIONS
TURNOVER
RANKING
3
CONTACT
Cluj-Napoca, CLUJ
Constanta,
CONSTANTA
Iasi, IASI
Cluj-Napoca, CLUJ
Ghimbav, BRASOV
Odorheiu Secuiesc,
HARGHITA
Tulcea, TULCEA
1
HIDROCONSTRUCTIA SA
ANNUAL TURNOVER
(2012 RON)
623,555,725
2.950
2
LESCACI COM SRL
2.075
77,807,356
3
4,445,443
393
3
HIDROTRAN SRL
1.925
14,841,280
14
341,315
55
4
5
6
7
REPCON SA
1.725
82,572,109
2
510,445
67
SATU MARE
Miercurea Ciuc,
HARGHITA
Oradea, BIHOR
SOCOT SA
1.725
63,333,743
4
686,738
723
Targu Mures, MURES
CONSTRUCTII HIDROTEHNICE IASI SA
1.700
27,660,296
10
1,389,364
270
Iasi, IASI
TRANS CARPAT SRL
ANDRITZ HYDRO GMBH VIENA - SUCURSALA
PORTILE DE FIER II SRL
ARGOS SA
1.650
13,740,387
15
458,437
47
1.650
11,050,712
17
1,049,324
7
1.563
34,113,858
6
109,302
RANK
8
9
10
COMPANY NAME
MCR SCORING
CLIF SA
1.550
17,741,350
12
203,999
MIF SA
1.550
9,103,042
20
11,323
12
13
DRAGOS CONSTRUCT GRUP SRL
1.550
8,984,376
21
76,020
SUPERQUATRO GRUP SRL
1.488
32,262,447
8
5,548,851
74
14
HIDROTERRA SA
1.488
15,751,659
13
489,847
91
1.463
32,917,833
7
2,636,470
11
1.450
43,835,798
5
750,277
466
19
49,986
16
17
VOITH SIEMENS HYDRO POWER GENERATION
SRL HEIDENHEIM, GERMANIA SUCURSALA
BUCURESTI GENERATION
APASCO SA
Drobeta-Turnu
Severin, MEHEDINTI
458 Cernavoda, CONSTANTA
11
15
CONTACT
Sangeorgiu de Mures,
MURES
62
Bascov, ARGES
104
Slobozia Sucevei,
SUCEAVA
Maneciu, PRAHOVA
VIDELI SRL
1.400
9,495,140
18
BENY ALEX SRL
1.363
11,988,139
16
159,019
192
19
20
CONTEHNO SRL
1.275
30,480,555
9
233,424
47
SATU MARE
Oradea, BIHOR
ECOLOGIC CONSTRUCT SRL
ANDRITZ HYDRO GMBH RAVENSBURG SUCURSALA PORTILE DE FIER II SRL
CONSIR SA
1.275
21,202,950
11
233,269
48
Oradea, BIHOR
1.213
8,878,331
22
-91,280
11
Gogosu, MEHEDINTI
1.113
9,887,503
18
10,664
62
Siret, SUCEAVA
21
22
79
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
t REAL ESTATE EVALUATION COMPANIES
t REAL ESTATE AGENCIES
t REAL ESTATE PROJECT DEVELOPERS
t PROPERTY & FACILITY MANAGEMENT
t REAL ESTATE ASSET MANAGERS
MCR
REAL ESTATE
On the road to
recovery?
Liana Bulgaru, Senior Consultant - Transaction Advisory, EY Romania
MARKET OVERVIEW
million transaction volume, 42% related to offices, 40% to
shopping centers and 10% to logistics.
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 2007-2008.
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 2007-2008, 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
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
1,200
28
1,000
24
20
800
16
600
12
400
8
200
4
0
0
2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013
H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1
Investment Volume
Source: CBRE Romanian Investment Market Overview for H1 2013.
Number of Transactions
No. of Transactions
EUR mln
Figure 1. Investment Volume and Number of Transactions (2005-2013)
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.
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
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.
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
2014. 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.
REAL ESTATE AGENCIES
RANK
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
COMPANY NAME
PRIME PROPERTY ADVISERS SRL
EHL REAL ESTATE ROMANIA SRL
CONADI IMOB CONSTRUCT SRL
REGATTA SRL
ESOP CONSULTING SRL
DTZ ECHINOX CONSULTING SRL
COLLIERS INTERNATIONAL SRL
BNP PARIBAS REAL ESTATE ADVISORY SA
LONGBRIDGE CONSULTING SRL
WINTERHILL (ROMANIA) SRL
MEDIA CITY SRL
CUSHMAN & WAKEFIELD ROMANIA SRL
IMOINVEST CO SRL
BLACKSHIRE CONSULTING SRL
CBAR MANAGEMENT SRL
CBRE REAL ESTATE CONSULTANCY SRL
EVEREST MANAGEMENT GROUP SRL
ANNUAL TURNOVER
(2012 RON)
11,546,506
2.275
TURNOVER
RANKING
2
PROFIT/LOSS
(2012 RON)
1,988,355
7,955,815
3
1,418,227
-
1,540,315
11
99,259
10
MCR SCORING
1.988
1.650
1.613
1.463
1.450
1.425
1.400
1.400
1.400
1.400
1.363
1.338
1.338
1.338
1.275
0.988
552,143
17
219,713
7
1,172,435
14
154,390
18
20
3,603,100
7
-873,233
14,355,902
1
-498,967
30
3,803,800
6
-317,275
17
1,432,666
12
-154,159
3
1,394,878
13
-444,754
4
1,156,682
15
320,356
3
7,052,564
4
-1,930,046
47
1,779,067
8
-2,130,319
3
1,647,625
9
-49,690
5
988,863
16
347,047
-
4,794,588
5
-5,041,270
26
1,569,423
10
-2,525
3
ANNUAL TURNOVER
(2012 RON)
265,096,461
3.050
TURNOVER
RANKING
1
PROFIT/LOSS
(2012 RON)
8,495,818
NO OF
EMPLOYEES
21
73,368,946
4
9,597,501
664
66,115,918
7
2,714,341
16
REAL ESTATE PROJECT DEVELOPERS
RANK
1
2
3
4
5
6
7
COMPANY NAME
NO OF
EMPLOYEES
9
MCR SCORING
1.650
59,495,864
9
623,218
27
9
10
11
12
13
14
RE PROJECT DEVELOPMENT SRL
IULIUS MANAGEMENT CENTER SRL
PRIMAVERA DEVELOPMENT SRL
NIRO INVESTMENT SA
SYNERGY INVEST SRL
BETHALAND INVEST SA
CONARG SA
KESZ EPITO ES SZERELO ZRT SZEGED
SUCURSALA CLUJ NAPOCA
ANCHOR GRUP SA
REWE PROJEKTENTWICKLUNG ROMANIA SRL
WILLBROOK MANAGEMENT INTERNATIONAL SRL
RO NATURSTEIN SRL
GREENLAKE DEVELOPMENT SRL
IMOTRUST SA
1.575
1.463
1.463
1.400
1.400
1.363
56,819,551
10
5,141,651
100
61,196,402
8
13,823,265
-
9,291,246
23
-5,359,978
29
25,430,572
18
-15,406,496
11
7,211,201
25
12,344,768
4
21,075,633
21
-5,786,377
12
15
OPUS LAND DEVELOPMENT SA
1.363
21,036,330
22
-30,997,113
22
16
17
18
BOC REAL PROPERTY SRL
ROMFELT REAL ESTATE SA
CONARG REAL ESTATE SRL
ITALIAN-ROMANIAN INDUSTRIAL
DEVELOPMENT ENTERPRISE - IRIDE SA
SOCIETATE DEZVOLTARE COMERCIAL
SUDULUI (SDCS) SRL
INTERMED CONSULTING & MANAGEMENT SRL
PROPRIETATI IMOBILIARE LAR SRL
ANCHOR REAL ESTATE DEVELOPMENT SRL
AMW IMOBILIARE SRL
HERCESA IMOBILIARA SRL
PORTLAND ROMANIA INDUSTRIAL ONE SRL
ALPHA PROPERTY DEVELOPMENT SRL
1.338
1.338
1.300
49,681,747
12
-28,418,463
-
30,036,844
16
22,673,018
5
24,308,225
19
-16,093,168
9
1.275
69,765,135
5
-9,228,848
-
1.275
69,093,325
6
-74,820,421
-
1.275
1.275
1.150
1.150
1.113
1.088
0.963
47,452,220
13
8,791,094
-
7,499,037
24
-7,209,620
-
6,830,372
26
-28,670,196
2
8
19
20
21
22
23
24
25
26
27
2.213
2.150
1.963
1.838
1.838
1.725
CONTACT
Arad, ARAD
CONTACT
Iasi, IASI
113,740,975
3
1,517,831
408
191,681,445
2
-1,287,234
31
Gilia, Dambovita
47,425,000
14
3,384,739
-
Cluj Napoca, CLUJ
43,648,514
15
3,600,894
24
6,653,124
27
587
3
24,277,517
20
-25,340,356
15
28,802,307
17
-21,190,381
1
53,017,951
11
-1,442,037
5
Cluj Napoca, CLUJ
Arad, ARAD
ILFOV
Suceava, SUCEAVA
MCR
REAL ESTATE
PROPERTY & FACILITY MANAGEMENT
RANK COMPANY NAME
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
CONTACT
1
MT & T PROPERTY MANAGEMENT SRL
2.475
46,165,169
2
5,905,145
229
2
ISS FACILITY SERVICES SRL
2.288
64,081,566
1
5,440,437
1,733
3
BUILDING SUPPORT SERVICES SRL
2.138
45,376,597
3
2,526,850
574
4
ROMPREST SERVICII INTEGRATE SRL
2.038
42,374,296
4
1,491,829
1,119
5
THE FACILITY MAINTENANCE COMPANY SRL
2.025
4,163,712
8
454,378
40
6
CORAL CONSTRUCT
1.975
9,508,184
7
1,411,790
125
7
ATALIAN ROMANIA
1.613
11,380,921
5
58,105
114
8
P DUSSMANN SERV ROMANIA SRL
1.388
9,654,550
6
1,785,248
238
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
1
CA IMMO REAL ESTATE MANAGEMENT
ROMANIA SRL
2.088
7,303,136
20
1,228,924
16
2
EQUEST INVESTMENTS SRL
1.963
3,895,630
23
56,849
32
3
BILLA INVEST CONSTRUCT SRL
1.788
30,162,153
11
8,707,197
-
4
METEX BIG SA
1.713
35,267,638
8
14,408,812
39
5
PRACTIC SA - member of ALLTROM REAL
ESTATE GROUP
1.600
31,319,242
10
17,623,630
49
6
OPERA CENTER ONE SRL
1.588
12,509,374
17
4,286,924
-
7
METROPOLIS INVESTITII IMOBILIARE SRL
1.525
23,661,271
14
5,747,036
-
8
BANEASA BUSINESS & TECHNOLOGY PARK SA
- member of ALLTROM REAL ESTATE GROUP
1.513
27,328,980
12
172,283
16
9
PORSCHE IMMOBILIEN SRL
1.463
24,562,755
13
4,048,283
22
10
RETAIL GROUP SRL
1.463
3,293,821
24
-4,452
6
11
WEST GATE SRL
1.400
41,394,443
5
13,989,762
9
12
OASIS SRL
1.400
4,536,412
21
891,967
10
13
PVN ROMANIA SRL
1.338
71,032,878
2
10,083,806
6
14
EUROPOLIS PARK BUCHAREST ALPHA SRL
1.338
37,667,299
7
-25,608,632
-
15
IULIUS GROUP SRL
1.338
23,202,942
15
-8,541,849
1
16
NEPI INVESTMENT MANAGEMENT SA
1.338
9,516,594
19
-266,598
33
17
TRI INVESTMENTS ERPF SRL
1.338
4,403,935
22
-2,425,584
-
18
BCR REAL ESTATE MANAGEMENT SRL
1.300
132,079,033
1
-92,997,752
89
19
BUCURESTI MALL DEVELOPMENT AND
MANAGEMENT SRL
1.275
64,816,259
3
14,450,374
1
20
FLOREASCA BUSINESS PARK SRL
1.275
48,176,918
4
231,494
-
21
COCOR SA
1.200
12,191,511
18
-16,221,710
17
22
METROPOLIS GRUP SRL
1.175
21,753,272
16
-7,244,948
156
Bistrita,
BISTRITA-NASAUD
23
MERCUREAL SRL
1.150
35,129,465
9
14,660,726
1
Timisoara, TIMIS
24
PLAZA MALL DEVELOPMENT AND
MANAGEMENT SRL
1.113
41,391,222
6
-31,387,191
1
REAL ESTATE ASSET MANAGERS
RANK COMPANY NAME
Otopeni, ILFOV
CONTACT
Voluntari, ILFOV
Sibiu, SIBIU
Iasi, IASI
WDP ROMANIA
Company name: WDP DEVELOPMENT RO S.R.L.
Contact:
1 Baia de Arama Street,
022204, sector 2, Bucharest
Phone: +40-31-225.71.16
+40-730-09.27.01
Fax:
+40-31-225.71.16
E-mail: [email protected]
Website: www.wdp.eu
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 Pùle[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. 13-14 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
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
2009-2010, 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 2014-2020, eliminating
financial losses in economy, financial
transparency in using public funding
and investment efficiency.
REAL ESTATE EVALUATION COMPANIES
RANK
COMPANY NAME
ANNUAL TURNOVER
(2012 RON)
ANNUAL TURNOVER
(2011 RON)
ANNUAL TURNOVER
GROWTH %
PROFIT/LOSS
(2012 RON)
CONTACT
Cluj Napoca
1
DARIAN DRS
13,637,732
12,842,747
6.2%
3,348,070
2
PRIME PROPERTY ADVISERS - KNIGHT FRANK
11,546,506
3,886,875
197.1%
1,988,355
3
ROMCONTROL
11,389,946
11,586,374
-1.7%
13,468
4
FAIRVALUE CONSULTING
4,120,398
3,444,162
19.6%
1,068,969
5
R.E.A.G. REAL ESTATE ADVISORY GROUP SRL
2,341,874
4,944,195
-52.6%
-876,879
6
PARKER LEWIS & ASSOCIATES
1,326,972
1,709,599
-22.4%
4,257
7
CBAR RESEARCH & VALUATION ADVISORS
(COLDWELL BANKER AFFILIATES)
1,277,718
1,031,553
23.9%
245,378
8
EVAL CORP
671,050
575,205
16.7%
-119,400
9
GBF VALUATION & RESEARCH
594,084
1,046,397
-43.2%
44,348
10
COHISPANIA CONSULTING
591,522
777,098
-23.9%
29,585
1.83
billion EUR worth local furniture production
in 2012, Romania, the 13th largest furniture
exporters worldwide
Wood, Paper & Furniture
t MANUFACTURE OF FURNITURE
t RETAIL TRADE OF FURNITURE, CARPETS AND LIGHTING EQUIPMENT
t MANUFACTURE OF WOOD AND WOODEN PRODUCTS
t MANUFACTURE OF PAPER AND PAPER PRODUCTS
MCR
Romanian furniture
gets comfy outside
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 2013.
For instance, Casa Rusu plans a boost of 15-20 percent this
year from EUR 27 million stated in 2012. The same increase is
planned by Lemet, with a turnover of EUR 47 million attained
in 2012. 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 2008 - 2012
1.000 m3
geo\time
2008
2009
2010
2011
2012
EU (27 countries)
415.132
384.070
423.135
428.395
425.040
Euro area (changing composition)
238.394
213.700
234.993
237.587
234.51
1
EU (28 countries)
419.600
388.312
427.612
433.653
n/a
Average Europe
194.430
354.005
187.650
181.940
163.700
Romania
136.670
125.56.5
131.117
143.586
169.431
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).
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 35-40 million by yearend, registering a 25 percent increase
compared with 2012. To compare, this market was estimated
at around EUR 80-100 million in 2007-2008.
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 351.2 million this year, whereas the exports’ value
amounts to EUR 1.421 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
400
1 plant at Radauti
Kronospan Romania
104 mln
250
2 plants at Brasov , Sebes, logistic center at Constanta
Kastamonu România (Former Prolemn)
80 mln
800
2 production lines at Reghin
Losan Romania
26.5 mln
508
1 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 2011. 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.
MCR
MANUFACTURE OF WOOD AND WOODEN PRODUCTS
1
2
3
4
5
6
7
8
9
10
11
12
HOLZINDUSTRIE SCHWEIGHOFER SRL
EGGER ROMANIA SRL
KRONOSPAN SEBES SA
SIMPE SRL
KASTAMONU ROMANIA SA
HOLZINDUSTRIE SCHWEIGHOFER BACO SRL
3.800
3.275
3.213
2.638
2.338
2.150
ANNUAL TURNOVER
(2012 RON)
1,816,739,799
869,763,051
1,073,407,412
115,266,071
267,320,747
167,197,036
AVIVA SRL
2.150
133,182,721
9
3,334,700
914
EGGER ENERGIA SRL
LOSAN ROMANIA SRL
KRONOSPAN ROMANIA SRL
UNIROM SA
1.938
1.938
1.875
1.838
302,749,146
114,605,168
461,717,335
176,415,097
5
12
4
7
-38,434,267
3,178,746
-35,059,916
-1,225,789
154
508
203
27
SILVANIA INTERNATIONAL PROD SRL
1.800
79,483,134
13
524,458
228
13
14
15
16
17
18
RGHOLZ COMPANY SRL
1.763
61,744,581
20
830,484
540
ALREDIA SRL
BARLINEK ROMANIA SA
FORESTAR SA
FORESTCOV SRL
1.738
1.700
1.650
1.575
62,848,837
65,034,064
118,396,294
62,449,172
17
16
10
18
589,891
22,898,891
-4,473,467
277,000
241
441
264
297
KARELIA - UPOFLOOR SRL
1.550
77,720,987
15
-1,193,555
230
19
20
21
22
23
24
VITRAROM SRL
1.550
47,551,079
23
113,672
205
WERZALIT LEMN TECH SCS
1.513
41,659,769
24
34,730
242
DEKO RAME SRL
1.438
60,714,046
21
-563,974
284
JF FURNIR SRL
RICH FOREST SRL
VIMAN WOOD SRL
1.388
1.300
1.275
77,914,249
54,032,501
61,925,305
14
22
19
-1,394,707
398,520
-471,394
337
160
8
TURNOVER
RANKING
6
PROFIT/LOSS
(2012 RON)
5,709,633
NO OF
EMPLOYEES
262
8
246,300
151
RANK COMPANY NAME
MCR SCORING
MANUFACTURE OF PAPER AND PAPER PRODUCTS
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
PROFIT/LOSS
(2012 RON)
340,611,321
69,969,637
-1,522,367
3,175,147
-7,099,196
2,778,448
NO OF
EMPLOYEES
1,313
464
440
326
786
589
ROMCARTON SA
ANNUAL TURNOVER
(2012 RON)
119,806,448
2.638
DUNAPACK RAMBOX PRODIMPEX SRL
2.500
100,437,417
RONDOCARTON SRL
2.400
247,622,698
1
16,938,664
256
VRANCART SA
ECOPAPER SA
AVERY DENNISON SRL
PEHART TEC SA
TIGER SOMES IMPEX SA
ROMPRIX EXIM SRL
VALMIR SERVICE SRL
MAYR MELNHOF PACKAGING ROMANIA SRL
2.388
2.288
2.188
2.150
1.988
1.975
1.925
1.925
180,279,376
111,575,130
22,952,699
226,479,839
57,933,487
46,751,035
6,723,729
57,056,463
4
7
22
2
12
16
24
13
5,249,901
13,176,879
1,021,350
5,669,462
2,041,981
2,375,867
180,909
3,750,231
1,070
152
99
369
64
141
32
66
ABC-IMPEX SRL
1.925
31,944,674
19
7,276,766
121
PENTAROM SRL
AMBRO SA
ECOPACK SA
COMCEH SA
THIMM PACKAGING SRL
PETROCART SA
BARLETA SRL
1.813
1.763
1.763
1.638
1.513
1.513
1.425
50,744,326
174,373,149
87,813,289
187,413,050
34,150,791
29,476,666
33,617,762
15
5
9
3
17
20
18
2,539,302
-63,343,493
2,322,951
-7,050,435
-4,292,936
140,827
172,693
50
451
190
247
274
249
168
DENTAS ROMANIA SRL
1.425
26,859,081
21
-1,870,166
135
SEGEZHA PACKAGING SRL
DS SMITH PACKAGING ROMANIA SRL
VPK PACKAGING SRL
1.413
1.350
1.300
55,494,042
66,826,697
72,250,914
14
11
10
-5,101,416
-5,111,061
-2,716,641
67
128
169
BUDAVAL RO SRL
1.150
22,889,914
23
-161,133
RANK COMPANY NAME
1
2
TURNOVER
RANKING
1
3
2
11
6
8
MCR SCORING
CONTACT
Sebes, ALBA
Sebes, ALBA
Sebes, ALBA
Reghin, MURES
Baia Mare,
MARAMURES
Brasov, BRASOV
Brasov, BRASOV
Buzau, BUZAU
Lunca Ilvei, BISTRITA
NASAUD
Viseul de Sus,
MARAMURES
Aiud, ALBA
Tarcau, NEAMT
Valeni,VALCEA
Satulung,
MARAMURES
Lunca Calnicului,
BRASOV
Lugoj, TIMIS
Miercurea Sibiului,
SIBIU
Brasov, BRASOV
Bulz, BIHOR
CONTACT
Sfantu Gheorghe,
COVASNA
Sannicoara/Apahida,
CLUJ
Adjud, VRANCEA
Dej, CLUJ
Pantelimon , ILFOV
Blejoi, PRAHOVA
Odorheiu Secuiesc,
HARGHITA
Campulung, ARGES
Suceava, SUCEAVA
Ghimbav, BRASOV
Calarasi, CALARASI
Sura Mica, SIBIU
Piatra Neamt, NEAMT
Bacau, BACAU
DAMBOVITA
Timisoara, TIMIS
Salonta, BIHOR
Jucu de Mijloc,
7
Localitate: Jucu, CLUJ
MANUFACTURE OF FURNITURE
RANK
1
COMPANY NAME
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
ARAMIS INVEST SRL
3.050
505,910,724
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
ITALSOFA ROMANIA SRL
2.800
ADA FABRICA DE MOBILA SRL
PARISOT GREEN SOFA SRL
2.788
2.688
PLIMOB SA
COTTA INTERNATIONAL SRL
TAPARO SRL
MOBILIER GENERAL ARAD MGA SRL
19
20
21
22
23
24
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
1
8,192,882
2,909
318,003,800
2
12,083,911
1,447
132,072,895
147,936,797
7
6
8,447,777
11,511,250
727
607
2.538
152,951,774
5
10,925,389
1,433
2.525
2.463
2.363
200,974,123
270,592,611
54,913,592
4
3
19
7,417,246
3,466,867
6,939,709
COUNTRY ELEMENTS SRL
2.325
108,487,196
10
5,356,475
ECOLOR SRL
FUTURE SRL
RUS-SAVITAR SRL
SAVINI DUE SRL
SORTILEMN SA
GAMMET 2000 SRL
DITRE INTERNATIONAL SRL
POLIPOL MOBILA SRL
2.250
2.213
2.138
2.050
2.038
2.013
2.013
2.013
115,556,660
50,109,327
68,068,047
51,071,855
130,979,496
81,782,886
74,758,863
72,828,040
9
24
17
22
8
12
15
16
4,019,528
5,129,478
9,419,158
6,446,545
4,447,117
3,268,881
7,488,914
1,707,918
TOP DESIGN FURNITURE SRL
2.013
52,643,074
21
2,219,346
TRANSVAL MOB SA
1.763
78,873,535
14
2,325,186
390
LEMET SRL
ITALROM LEATHER SRL
NIKMOB SA
ELVILA SA
MOBILA SOVATA SRL
1.688
1.638
1.588
1.500
1.388
80,928,035
82,676,616
53,783,197
60,148,309
50,434,887
13
11
20
18
23
2,776,570
2,618,762
-464,347
-19,380,106
-1,959,962
453
432
418
1,141
476
CONTACT
Baia Mare,
MARAMURES
Baia Mare,
MARAMURES
Salonta, BIHOR
Oradea, BIHOR
MARAMURES
673
Arad, ARAD
914 Borcut, MARAMURES
238
Arad, ARAD
Satu Mare, SATU
953
MARE
282
Jucu, CLUJ
Otopeni, ILFOV
381
248
Sebes, ALBA
1,017
Gherla, CLUJ
317
Lugoj, TIMIS
444
Arad, ARAD
573
Foieni, SATU MARE
Mediesu Aurit, SATU
277
MARE
MARAMURES
Campina, PRAHOVA
Nehoiu,BUZAU
Sovata, MURES
RETAIL TRADE OF FURNITURE, CARPETS AND LIGHTING EQUIPMENT
RANK
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
COMPANY NAME
MOBEXPERT BANEASA SRL
IKEA ROMANIA SRL
M & D RETAIL PIPERA SRL
CASA DI ADRIANO SRL
PROGES SRL
CASA RUSU SRL
PHYLOSOPHY DESIGN SRL
MOBEXPERT PANTELIMON SRL
MOBEXPERT MILITARI SRL
MOBILIER OVO DESIGN SRL
MOBEXPERT BRASOV SRL
POLTERGEIST SRL
KIKA MOBILIER SRL
MOBEXPERT IASI SRL
MOBEXPERT BERCENI SRL
ROMATEX SA
SORTEM COM SRL
2B GROUP SRL
ROMEUR SRL
VENUS MOB SRL
FURNITURE DESIGN DISTRIBUTION SRL
MCR SCORING
2.238
2.138
2.063
2.050
1.863
1.863
1.713
1.675
1.675
1.650
1.588
1.575
1.475
1.338
1.338
1.300
1.288
1.263
1.213
1.213
1.175
ANNUAL TURNOVER
(2012 RON)
73,861,909
339,351,721
56,082,975
16,205,722
129,401,151
46,255,736
29,365,084
18,124,872
16,560,714
6,157,953
13,168,431
60,689,191
45,501,031
12,312,337
9,003,536
8,875,845
9,850,445
29,895,158
20,280,810
9,489,235
24,047,381
TURNOVER
RANKING
3
1
5
14
2
6
9
12
13
15
15
4
7
16
41
87
53
8
11
36
10
PROFIT/LOSS
(2012 RON)
7,329,612
-15,982,545
1,393,063
517,120
-88,500,478
254,675
828,104
-918,400
-614,174
389,586
138,117
551,782
-13,401,162
-1,965,456
-15,713,024
-4,254,435
-1,988,035
-182,192
-1,278,920
53,020
-3,807,204
NO OF
EMPLOYEES
155
366
138
61
239
157
39
78
57
14
39
115
107
44
67
95
74
142
25
50
34
CONTACT
Oradea, BIHOR
Dumbravita, TIMIS
Brasov, BRASOV
Timisoara, TIMIS
Iasi, IASI
Otopeni, ILFOV
Roman, NEAMT
Regin, MURES
Oradea, BIHOR
Nanov, TELEORMAN
Manufacturer for ready
to wear garments
1.6%
y/y dropped the exports of textiles, wearing apparel
and leather goods to nearly EUR 5.2 bn in 2012
Textile & Leather
t PREPARATION OF TEXTILE FIBERS AND TEXTILES MANUFACTURE
t MANUFACTURE OF WEARING APPAREL
t RETAIL TRADE OF CLOTHING IN SPECIALISED STORES
t MANUFACTURE OF FOOTWEAR AND LEATHER GOODS
t RETAIL TRADE OF FOOTWEAR AND LEATHER GOODS
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.
2011. 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 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
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
Textile product manufacturing in 2007-2013 (monthly output
indices, 2010=100, unadjusted)
Exports of textiles, wearing apparel, leather goods in
2011-2012 (EUR mn)
160
140
2007
120
2008
100
-1.6%
2009
80
Exports
(EUR mn)
2010
60
2011
40
2012
20
y/y, in %
2013
0
Jan
Feb
Mar
May Jun
Jul
Aug
Sep
Oct
Nov
Dec
Clothing apparel manufacturing in 2007-2013 (monthly output
indices, 2010=100, undjausted)
5,275.8
5,193.5
2011
2012
Imports of textiles, wearing apparel, leather goods in
2011-2012 (EUR mn)
250
200
2007
-1.7%
2008
150
2009
Exports
(EUR mn)
2010
100
2011
50
2012
2013
0
Jan
Feb
Mar
Apr
Source: Statistics office.
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
y/y, in %
4,867.5
4,784.7
2011
2012
Source: Department for External Trade.
global economic crisis. The share of the sector’s exports also
diminished to 11.5% of total exports in 2012, from 11.7% in 2011.
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 2010-2012 - Selective indicators by product type (EUR mn)
Articles of apparel, accessories, knit or
crochet (code 61)
Export
% of total EU 27 export
Import
% of total EU 27 import
Articles of apparel, accessories, not knit or
crochet (code 62)
Export
Footwear, gaiters and the like, parts
thereof (code 64)
2010
2011
2012
701.7
754.5
748.0
2.1%
2.1%
2.1%
318.2
350.8
370.0
0.6%
0.6%
0.6%
1,862.0
1,600.8
1,858.4
% of total EU 27 export
4.0%
4.2%
4.1%
Import
% of total EU 27 import
346.5
415.4
421.5
Export
% of total EU 27
footwear exports
Import
% of total EU 27
footwear imports
0.6%
0.7%
0.7%
1,140.0
1,352.3
1,255.0
4.3%
4.5%
4.1%
486.0
604.8
544.7
1.5%
1.7%
1.5%
Source: Own selections, calculations based on European Commission, Eurostat data.
Major export destinations in 2011-2012 for apparel, not knit
(% of total exports)
21.6%
23.2%
Italy
Germany
47.4%
49.6%
15.4%
17.9%
2.7%
3.2%
9.1%
United Kingdom
France
others
9.9%
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 2012. It accounted for 57.1% of
footwear exports, 40.3% of total knitted textiles and 21.6% of total
not knitted textiles in 2012. 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
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 2009-2012 except 2010,
when the share was slightly higher, at 1.6%, according to data
from the central bank.
Foreign Direct Investments in textiles, apparel and leather industry in 2009-2012 (EUR mn)
Major export destinations for footwear in 2011-2012
(% of total exports)
14.9%
Italy
5.6%
Austria
6.1% 5.6%
7.3%
8.0%
7.8%
8.3%
2009
717
-9.7%
1.4%
2010
835
16.5%
1.6%
2011
798
-4.4%
1.4%
2012
834
4.5%
1.4%
Source: Central bank.
15.5%
5.1%
FDI in textiles, apparel and leather industry
y/y, in %
% in total FDI stock
Germany
58.7%57.1%
France
Slovakia
Others
Source: European Commission, Eurostat; *inner circle 2011, outer circle 2012.
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
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 2009.
The statistics regarding the turnover of retail trade with clothing,
footwear and leather products shows no encouraging
performance in 2012. 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
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 2011.
LOCAL PRODUCERS FACE SUPPLY DETERRENTS, RISING COSTS,
QUALIFIED LABOUR FORCE SHORTAGE
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.
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.
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.
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 2014.
Household spending on clothing and footwear in 2009-2012
(monthly spending per household)
100.0
90.0
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0
88.1
80.3
80.7
76.6
RON
EUR
20.8
19.1
2009
18.1
18.1
2010
2011
2012
Source: Own calculations, based on official statistics.
Turnover indices for retail trade with clothing, footwear and
leather products in 2007-2013 (monthly, undjusted, 2010=100)
160
140
2007
120
2008
100
2009
80
2010
60
2011
40
2012
20
0
2013
Jan
Feb
Mar
Apr
Source: Statistics office.
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
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 2008-2011,
according to the latest official statistics available. The number
of companies in textiles manufacturing reached 1,317 at
end-2011, from 1,770 in 2008. 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 2008. Of the total, 128 are large
companies and 594 medium-sized.
MANUFACTURE OF WEARING APPAREL
RANK
COMPANY NAME
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
CONTACT
Miercurea Sibiului,
SIBIU
1
BENROM SRL
3.313
590,431,849
1
41,522,793
179
2
3
4
5
6
ROSKO TEXTIL SRL
3.050
348,704,892
2
18,492,235
1,201
FORMENS SRL
2.725
144,529,933
7
15,027,942
617
COINDU ROMANIA SRL
2.713
175,617,127
6
2,013,409
827
IC COMPANYS ROMANIA SRL
2.663
218,318,534
3
4,044,510
33
PANDORA PROD SRL
2.575
103,443,273
10
10,483,332
939
7
PRODUCTIE ZARAH MODEN SRL
2.563
126,699,333
8
15,587,258
696
8
NORADA SA
2.513
55,762,622
23
9,868,189
904
9
10
11
12
13
TIME INTERNATIONAL TRADING SRL
2.475
99,852,656
11
13,784,054
1,207
ARIES TEXTILE SRL
2.388
183,578,008
4
8,487,512
489
Arad, ARAD
BIANCOSPINO SRL
2.375
61,772,245
22
14,189,544
376
Breaza, PRAHOVA
ALISON HAYES (ROMANIA) SRL
2.350
179,021,630
5
3,682,934
1,300
Urziceni, IALOMITA
CONFECTII BARLAD SA
2.338
33,050,876
42
6,224,865
933
Barlad, VASLUI
14
TRANSILVANIAN TROUSERS COMPANY SA
2.325
47,212,713
28
5,537,183
293
Sf Gheorghe,
COVASNA
Botosani, BOTOSANI
Focsani, VRANCEA
Targu Secuiesc,
COVASNA
Odorheiu Secuiesc,
HARGHITA
15
VERSO CORPORATION SRL
2.263
77,478,493
16
5,540,877
413
16
IKOS - CONF SA
2.213
47,632,190
27
8,525,812
1,229
17
18
19
20
21
22
23
ARTIFEX SRL
2.200
119,025,318
9
1,891,631
995
Focsani, VRANCEA
EUROTEX COMPANY SRL
2.175
40,585,554
33
3,602,495
247
Targu Frumos, IASI
KOSMOS TRE SRL
2.113
35,868,808
38
2,222,907
181
Alba Iulia, ALBA
UNICONFEX EXIM SRL
2.075
53,537,247
24
2,575,093
125
PANCARPROD SRL
2.075
32,868,194
43
862,265
652
Vaslui, VASLUI
BIG CONF SRL
2.050
37,120,789
35
2,087,016
152
Botosani, BOTOSANI
BRAICONF SA
2.050
32,277,503
44
1,904,087
943
Braila, BRAILA
Targu Secuiesc,
COVASNA
Odorheiu - Secuiesc,
HARGHITA
24
NEW-FASHION SA
1.950
39,016,751
34
5,610,475
831
25
26
27
28
29
30
31
32
33
34
35
36
37
38
COTTONTEX SRL
1.900
87,326,069
15
5,746,192
740
Timisoara, TIMIS
PAOLA CONFECTII SRL
1.888
35,465,423
39
7,308,490
416
Titu, DAMBOVITA
MAGREB KNITWEAR EAST SA
1.825
75,848,198
17
1,861,184
342
Cluj-Napoca, CLUJ
TEBA BRAD INDUSTRY SRL
1.825
41,337,413
32
1,543,937
435
Brad, HUNEDOARA
TANEX SRL
1.763
62,714,353
21
1,769,142
772
INCOM-VRANCO SA
1.763
34,877,580
40
906,351
617
STEILMANN ROMANIA SRL
1.763
43,326,367
29
2,102,411
233
ROMANITA SA
1.663
42,374,465
30
785,996
-
Caracal, OLT
SONOMA SRL
1.638
64,427,478
20
1,203,834
707
Bacau, BACAU
BLAZER SRL
1.600
34,799,798
41
816,327
981
Braila, BRAILA
BETACOM PROD SRL
1.588
88,591,997
14
-10,048
36
OZTASAR SRL
1.525
92,321,204
13
10,211,234
33
JOLIDON IMPORT EXPORT SRL
1.488
96,252,973
12
-11,911,834
1,088
ADESGO SA
1.475
69,166,716
18
-481,110
295
39
IMPERIAL SA
1.450
51,935,153
26
1,052,775
600
40
41
42
43
44
FRANCESCA INDUSTRIES SA
1.450
37,102,586
36
317,840
230
STAFF COLLECTION SRL
1.400
53,143,203
25
-11,747,420
780
CORSSA SRL
1.388
42,049,492
31
-7,236,210
421
MAGLIERIE CRISTIAN IMPEX SRL
1.388
37,092,667
37
744,004
926
Calafat, DOLJ
ROULEAU - GUICHARD ROUMANIE SRL
1.200
66,127,034
19
-1,397,612
792
Sacele, BRASOV
Focsani, VRANCEA
Cluj-Napoca, CLUJ
Turnu Magurele,
TELEORMAN
MCR
TEXTILE & LEATHER
PREPARATION OF TEXTILE FIBRES AND TEXTILES MANUFACTURE
1
2
RIFIL SA
ANNUAL TURNOVER
(2012 RON)
290,401,903
2.900
INTEX SA
2.650
102,940,295
9
3,810,023
290
3
COATS ODORHEI SRL
2.575
142,351,734
6
10,623,594
420
4
5
6
7
8
9
10
11
12
13
14
15
16
17
SUN GARDEN ROMANIA SRL
2.563
163,587,686
4
15,859,885
902
EUROPEAN INTERIOR SRL
2.450
65,447,159
14
9,377,532
262
ITALTEXTIL SARATA SRL
2.388
188,916,871
3
1,613,218
405
COATS ROMANIA IMPEX SRL
INDUSTRIA FILATI BUZAU SRL
TREVERTEX SRL
YARNEA SRL
CARREMAN ROMANIA SRL
TE-ROX PROD SRL
MONOTEX SRL
AX PERPETUUM IMPEX SRL
ROLANA TEX SRL
MARTELLI EUROPE SRL
2.200
2.075
2.063
2.063
2.013
2.013
1.988
1.913
1.900
1.825
44,415,371
109,717,547
74,119,612
144,149,817
117,343,273
88,480,095
49,861,308
87,421,675
205,232,274
53,574,898
23
8
12
5
7
10
19
11
2
16
5,254,623
1,005,648
3,559,654
720,444
1,389,896
1,670,483
8,494,535
4,106,633
-2,620,949
4,664,974
55
423
50
412
352
641
67
162
275
609
FILECA INDUSTRY SA
1.613
49,031,550
20
97,586
172
18
ROMTEXTIL SA
1.575
57,948,051
15
586,627
398
19
20
21
22
23
MINET SA
1.575
45,005,165
22
1,860,949
72
AMANN ROMANIA SRL
UCO TESATURA SRL
SEFAR SRL
DOROTEX SRL
1.538
1.538
1.488
1.238
67,957,100
51,931,126
46,971,289
53,031,886
13
18
21
17
475,019
842,683
7,338
-4,031,491
127
165
145
197
TURNOVER
RANKING
1
7
2
4
6
14
10
13
PROFIT/LOSS
(2012 RON)
51,366,882
13,168,396
15,550,265
8,496,722
7,944,528
14,216,145
11,517,793
7,041,878
NO OF
EMPLOYEES
630
88
387
185
185
65
140
113
RANK COMPANY NAME
MCR SCORING
TURNOVER
RANKING
1
PROFIT/LOSS
(2012 RON)
17,752,246
NO OF
EMPLOYEES
492
RETAIL TRADE OF CLOTHING IN SPECIALISED STORES
ZARA BUCURESTI SRL
PEEK & CLOPPENBURG SRL
H&M HENNES & MAURITZ SRL
C&A MODA RETAIL SRL
BERSHKA CARPATI SRL
MASSIMO DUTTI RO SRL
PULL & BEAR RO SRL
STRADIVARIUS RO SRL
3.150
2.813
2.713
2.563
2.488
2.300
2.238
2.175
ANNUAL TURNOVER
(2012 RON)
332,471,209
103,358,308
273,949,456
187,484,443
104,635,111
59,139,256
86,899,268
61,537,937
EMPORIO COM SRL
2.050
35,509,620
17
1,058,420
118
RENANIA TRADE SRL
ROUMASPORT SRL
M - FASHION COM SRL
PEERAJ BRANDS INTERNATIONAL SRL
NYER ROMANIA SRL
TAKKO FASHION INTERNATIONAL SRL
SONYA MOD SA
MIROGLIO ROMANIA SRL
MARKS & SPENCER MARINOPOULOS
ROMANIA SA
SOLMAR TRADING GRUP SRL
LPP FASHION DISTRIBUITOR SRL
SPRIDER STORES SRL
HIGH FASHION CONCEPT SRL
KENVELO ROMANIA SRL
PUMA SPORTS ROMANIA SRL
2.038
2.038
1.975
1.863
1.800
1.738
1.725
1.613
93,370,068
195,062,931
73,552,242
39,087,726
102,369,164
116,520,447
28,751,720
21,627,391
9
3
12
15
8
5
18
22
10,669,197
-247,190
2,070,664
4,186,086
-1,086,646
-9,762,348
-203,913
-3,857,013
102
311
399
162
205
378
87
1.550
26,146,556
21
-6,402,514
59
1.425
1.300
1.263
1.238
1.213
1.213
38,752,724
27,380,239
15,847,264
14,745,972
73,899,816
26,846,842
16
19
23
24
11
20
-2,095,681
-4,620,671
-33,237,685
-1,523,749
-11,961,082
-1,262,004
175
95
103
25
RANK COMPANY NAME
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
MCR SCORING
CONTACT
Nasaud, BISTRITANASAUD
Odorheiu-Secuiesc,
HARGHITA
Sat Pucioasa,
DAMBOVITA
Sarata, BISTRITANASAUD
Buzau, BUZAU
Botosani, BOTOSANI
Pascani, IASI
Sighisoara, MURES
Cluj-Napoca, CLUJ
Botosani, BOTOSANI
Buzau, BUZAU
Beclean, BISTRITANASAUD
Constanta,
CONSTANTA
Ramnicu Valcea,
VALCEA
Harman, BRASOV
Giurgiu, GIURGIU
Sighisoara, MURES
Dorohoi, BOTOSANI
CONTACT
Constanta,
CONSTANTA
Targu Mures, MURES
Otopeni, ILFOV
Cluj-Napoca, CLUJ
Voluntari, ILFOV
MANUFACTURE OF FOOTWEAR AND LEATHER GOODS
1
2
RIEKER ROMANIA SRL
ANNUAL TURNOVER
(2012 RON)
269,631,141
3.000
ARA SHOES ROMANIA SRL
2.863
246,794,851
3
4
5
6
7
8
LLOYD SHOES ROMANIA SRL
2.825
160,163,895
3
7,468,246
628
RAFFAELLO SHOES FACTORY SRL
ALPINA SHOE PRODUCTION SRL
BIHORE SRL
REROPAM SRL
TRICOSTAR SRL
CALZATURIFICIO SKANDIA SA SAN BIAGIO
DI CALLALTA TREVISO-ITALIA SUCURSALA
BRASOV-ROMANIA
CLASS SHOE SRL
SOMAREST SRL
BELLARMA SRL
REKORD SRL
STAR INTERNATIONAL SRL
SIR SAFETY SRL
CFS-COMPONENTS FOR SHOES SRL
COSTE SHOES SRL
ROMIPEL SRL
RO ALTO GRADIMENTO SRL
PROGRESS SA
KROMO PIELMO COM SRL
MUSETTE EXIM SRL
GLOBAL FASHION SRL
DTR DRAXLMAIER SISTEME TEHNICE
ROMANIA SRL
2.325
2.325
2.288
2.263
2.263
67,865,550
67,206,619
100,486,727
76,060,448
46,563,934
11
13
4
8
16
307,440
2,268,852
827,406
5,414,431
2,179,506
689
491
749
270
763
Reghin, MURES
Oradea, BIHOR
Bors, BIHOR
Oradea, BIHOR
2.150
71,568,754
9
2,730,266
-
Brasov, BRASOV
2.138
2.013
2.013
1.963
1.963
1.950
1.913
1.900
1.838
1.763
1.675
1.675
1.663
1.638
67,320,807
88,062,184
70,589,476
87,116,026
34,408,962
41,426,923
45,410,132
99,482,488
64,634,055
39,607,335
32,773,931
25,895,142
38,750,330
25,479,703
12
6
10
7
21
18
17
5
14
19
22
23
20
24
6,542,900
8,774,036
3,500,700
4,320,603
3,384,952
1,349,059
1,587,484
3,902,453
8,998,782
410,112
250,240
8,633
3,599,125
-94,617
181
812
270
433
27
420
169
36
645
157
162
308
281
Cluj-Napoca, CLUJ
Cisnadie , SIBIU
Sibiu, SIBIU
Alba Iulia, ALBA
1.450
62,064,593
15
2,461,078
685
Codlea, BRASOV
CONTACT
RANK
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
COMPANY NAME
MCR SCORING
TURNOVER
RANKING
1
PROFIT/LOSS
(2012 RON)
2,748,508
NO OF
EMPLOYEES
98
2
7,620,977
1,523
RETAIL TRADE OF FOOTWEAR AND LEATHER GOODS
RANK
1
2
3
4
5
6
7
8
9
COMPANY NAME
DEICHMANN COMERCIALIZARE
INCALTAMINTE SRL
ADIDAS ROMANIA SRL
LEONARDO SRL
BENVENUTI SRL
OTTER - DISTRIBUTION SRL
ELMEC ROMANIA SRL
HERVIS SPORTS AND FASHION SRL
LEATHER & SHOE SRL
E-QUATION SRL
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
2.513
175,783,486
2
10,056,504
460
2.263
2.050
2.000
1.913
1.838
1.613
1.613
1.413
73,290,606
219,761,519
59,531,643
87,202,862
110,399,853
68,139,072
41,999,037
566,983
5
1
7
4
3
6
8
9
3,260,905
-27,714,323
1,609,615
5,359,438
-14,983,900
1,714,700
906,048
-903,628
179
1,108
243
273
446
154
69
1
CONTACT
Lugoj, TIMIS
Valea Lui Mihai,
BIHOR
Valea Lui Mihai,
BIHOR
Bacau, BACAU
Ghisoda, TIMIS
Arad, ARAD
Sibiu, SIBIU
Timisoara, TIMIS
Brasov, BRASOV
Topliceni, BUZAU
Sibiu, SIBIU
Oradea, BIHOR
Oradea, BIHOR
Chiajna, ILFOV
Voluntari, ILFOV
Sibiu, SIBIU
Sebes, ALBA
16%
drop in agricultural production in 2012,
cereals for grain dropped by 39.1%
Agriculture
t GROWING AND TRADING AGRICULTURAL RAW MATERIALS
t GROWING AND TRADING FRUIT AND VEGETABLES
t FARMING AND MEAT PROCESSING
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 Statistics1, 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
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.
Figure 1: 2010-2012 Agricultural Production
LOOKING FORWARD
Source: Eurostat.
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 Q4 2013
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
Table 1. Deals in Agriculture in 2013
Source: Ziarul Financiar Top Tranzactii 2013.
controls; grain prices are
expected to increase
throughout 2013-2014 in spite
of the good 2013 yields.
Table 2. Structure of Agricultural Holdings 2003-2007
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
http://www.recolta.eu/articole/analize-de-piata/.
MCR
AGRICULTURE
GROWING AND TRADING AGRICULTURAL RAW MATERIALS
RANK COMPANY NAME
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
1
202,252,332
248
1
INTERAGRO SA
3.250
2,808,818,455
2
BRISEGROUP SRL
3.250
822,428,891
7
24,533,603
182
3
3.125
1,890,825,490
3
-18,320,962
106
4
ALFRED C TOEPFER INTERNATIONAL
(ROMANIA) SRL
CARGILL AGRICULTURA SRL
3.063
2,057,112,179
2
29,852,901
235
CONTACT
Constanta,
CONSTANTA
5
ARDEALUL TRADING SRL
3.050
255,168,453
20
3,816,887
113
Carei, SATU MARE
6
AGRICOVER SRL
3.000
910,341,598
4
6,272,059
189
Voluntari, ILFOV
7
INTERAGRO SRL
2.963
851,193,607
6
2,266,724
914
Zimnicea,
TELEORMAN
8
TCE 3 BRAZI SRL
2.963
461,181,974
10
80,757,699
9
BUNGE DANUBE TRADING SRL
2.788
584,913,878
9
-20,591,973
-
Buzau, BUZAU
10
POPASUL TREBES SRL
2.788
344,698,980
12
30,792,476
41
Margineni, Bacau
11
PIONEER HI-BRED ROMANIA SRL
2.788
230,622,354
21
9,024,359
19
Sindrilita, ILFOV
12
AMEROPA GRAINS SA
2.775
884,371,606
5
2,568,596
191
Constanta,
CONSTANTA
13
AGRO-CHIRNOGI SA
2.763
657,397,725
8
1,836,239
721
Chirnogi, CALARASI
14
BARTER TRADING ROMANIA SRL
2.688
303,463,247
14
1,342,051
91
Agigea, CONSTANTA
15
NOVA COMERT SRL
2.638
113,707,464
39
2,464,334
4
16
MERIDIAN SRL
2.638
112,084,337
40
4,287,426
4
17
CARCO GRUP SRL
2.588
176,352,971
28
2,040,106
5
18
NIDERA ROMANIA SRL
2.538
289,840,740
15
2,028,296
19
TOTALAGRO SA
2.538
281,050,582
16
353,215
20
MONSANTO ROMANIA SRL
2.500
385,328,422
11
39,758,465
120
Constanta,
CONSTANTA
Constanta,
CONSTANTA
Constanta,
CONSTANTA
21
30 Posta Calnau, BUZAU
21
COMCEREAL SA
2.488
273,767,565
19
3,548,302
500
Vaslui, VASLUI
22
PROMAT COMIMPEX SRL
2.463
177,726,502
27
13,273,283
30
Tasnad, SATU MARE
23
CEREALCOM DOLJ SA
2.375
278,279,680
17
3,261,338
221
Segarcea, DOLJ
24
PLANTAGRO-COM SRL
2.363
127,846,498
34
5,555,085
52
Vaslui, VASLUI
25
GLENCORE PROTEIN ROMANIA SRL
2.350
178,677,584
25
6,740,436
17
26
COMCEREAL SA
2.300
119,873,659
38
3,643,922
211
27
CHS AGRITRADE ROMANIA SRL
2.288
344,477,196
13
-2,944,590
17
28
PIONEER HI - BRED SEEDS AGRO SRL
2.288
193,066,286
24
16,702,848
108
Focsani, VRANCEA
Sindrilita, ILFOV
29
ROMSILOZ CEREALE SRL
2.225
155,075,051
31
7,197,816
43
30
AGRIGROS SRL
2.213
151,242,483
32
2,011,159
15
Timisoara, TIMIS
31
CHIMAGRI SRL
2.213
120,999,597
37
7,982,311
45
Chiscani, BRAILA
32
MARIA CEREALE SRL
2.163
227,742,066
22
2,813,376
16
Constanta,
CONSTANTA
33
AGROEST SA
2.163
170,694,492
30
418,297
15
Balta Alba, Buzau
34
AGROGLOBAL SA
2.163
124,648,443
35
963,591
20
Buzau, BUZAU
35
INTERSNACK ROMANIA SRL
2.150
275,067,165
18
-1,204,985
502
36
ATIFCO INTERNATIONAL SA
2.138
174,608,761
29
2,984,695
150
37
AGROSUD SA
2.088
123,512,146
36
364,504
8
Rusetu, Buzau
38
AGROIND CAUACEU SA
2.050
178,053,775
26
4,074,437
91
Oradea, BIHOR
39
SOUFFLET MALT ROMANIA SA
1.913
199,384,599
23
7,033,578
26
Buzau, BUZAU
40 ROREX TRADER SRL
1.913
135,702,043
33
45,928
10
Constanta,
CONSTANTA
41
1.675
106,922,434
41
-2,961,052
90
KWS SEMINTE SRL
FARMING AND MEAT PROCESSING
1
2
3
ELIT SRL
ANNUAL TURNOVER
(2012 RON)
342,968,393
3.175
SMITHFIELD FERME SRL
3.113
697,598,893
2
89,478,812
1,060
Timisoara, TIMIS
TRANSAVIA SA
2.963
426,905,925
6
33,729,681
982
4
DIANA SRL
2.963
327,687,805
10
3,643,715
532
5
6
7
8
9
10
11
SMITHFIELD PROD SRL
2.900
744,901,874
1
15,255,019
614
Oiejdea, ALBA
Ramnicu-Valcea,
VALCEA
Timisoara, TIMIS
ANA & CORNEL SRL
2.900
142,853,607
30
12,394,074
623
Mizil, Prahova
UNICARM SRL
2.863
636,869,685
3
12,633,050
2,573
VEGETAL TRADING SRL
2.850
503,285,598
4
14,234,511
41
FOX COM SERV DISTRIBUTION SRL
2.838
179,918,247
24
5,962,807
314
CAROLI FOODS GROUP SRL
2.738
296,576,543
11
11,316,602
1,040
MAREX SA
2.525
473,852,988
5
3,511,115
384
12
AVICOLA CREVEDIA SA
2.488
383,517,342
7
1,139,147
565
13
ALDIS SRL
2.488
275,731,096
13
1,009,283
1,003
14
AGRISOL INTERNATIONAL RO SRL
2.463
240,003,115
14
11,092,896
988
15
16
17
18
19
20
FOX COM SERV SRL
2.413
137,341,180
32
7,900,012
270
EUROPEAN FRESH FOOD SRL
2.413
116,630,393
38
515,756
1
DANUBIUS EXCLUSIV SRL
2.400
115,412,704
41
675,241
25
MARIA TRADING SRL
2.388
223,010,594
17
13,891,621
PAJO HOLDING SRL
2.375
134,049,174
33
2,985,099
126
Mizil, PRAHOVA
AGRICOLA INTERNATIONAL SA
2.363
354,291,288
8
961,676
1,755
Bacau, BACAU
Com Glodeanu
Silistea, BUZAU
Oltenita, CALARASI
RANK
COMPANY NAME
MCR SCORING
TURNOVER
RANKING
9
PROFIT/LOSS
(2012 RON)
14,219,628
NO OF
EMPLOYEES
1,096
Cugir, ALBA
CONTACT
Braila, BRAILA
Braila, BRAILA
Crevedia,
DAMBOVITA
Calarasi, CALARASI
PRAHOVA
21
VIS AGRI SRL
2.350
121,908,822
35
9,306,100
189
22
23
24
25
26
NUTRICOM SA
2.288
195,111,721
21
4,602,070
450
CRISTIM 2 PRODCOM SRL
2.213
280,193,191
12
-8,682,475
667
MAHMUD-IMPEX SRL
2.213
115,457,584
40
712,031
NUTRIENTUL SA
2.200
161,727,758
25
1,883,646
153
MEDA PROD 98 SA
2.163
118,153,783
36
331,943
482
27
C+C SA
2.150
142,146,811
31
538,856
330
28
AVICOLA BUZAU SA
2.125
116,156,568
39
1,684,641
386
29
FERMA ZOOTEHNICA SRL
2.100
112,899,757
42
261,436
286
30
SERGIANA PRODIMPEX SRL
2.088
111,210,653
45
1,088,941
622
31
32
33
34
35
AVICOLA BRASOV SA
1.963
117,815,903
37
624,164
476
AGROALIM DISTRIBUTION SRL
1.938
147,363,693
28
-14,727,535
244
AAYLEX DISTRIBUTION SRL
1.925
214,780,626
19
-283,789
87
AVICARVIL SRL
1.913
157,483,002
26
3,193,775
694
CARMOLIMP SRL
1.913
111,911,359
44
803,828
334 Ucea de Jos, BRASOV
36
RECUNOSTINTA PRODCOM IMPEX SRL
1.900
235,778,543
15
431,362
674
37
38
39
40
AVICOLA MIHAILESTI SRL
1.875
225,428,708
16
-32,481,066
AVICOLA FOCSANI SA
1.863
112,298,288
43
123,719
-
Focsani, VRANCEA
AAYLEX PROD SRL
1.838
190,387,843
22
-26,565,609
521
Buzau, BUZAU
GEPETO IMPEX SA
1.788
143,059,471
29
-403,821
41
AVE IMPEX SRL
1.788
129,288,955
34
53,067
42
43
44
45
GALLI GALLO SRL
1.725
153,206,707
27
249,138
ANGST RO SRL
1.713
185,624,829
23
-7,752,223
AGROLI GROUP SRL
1.625
215,754,019
18
395,462
93
Crevedia,GIURGIU
SCANDIA FOOD SRL
1.538
198,140,236
20
-4,645,716
531
Sibiu, SIBIU
Palota, BIHOR
Buzau, BUZAU
Baia Mare,
MARAMURES
Poiana Marului,
BRASOV
Brasov, BRASOV
PRAHOVA
198 Draganescu, GIURGIU
Satu Mare, SATU
503
MARE
392
Codlea, BRASOV
645
MCR
AGRICULTURE
GROWING AND TRADING FRUIT AND VEGETABLES
RANK COMPANY NAME
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
CONTACT
1
LUCO FRUCHT MARKETING SRL
2.713
113,827,357
3
5,234,778
35
2
FRESH PLAZA SRL
2.350
73,988,547
10
1,274,198
12
3
SAMANDAG SRL
2.275
44,206,684
24
1,151,322
46
Craiova, DOLJ
4
AKPAROM SRL
2.238
170,722,918
1
2,821,201
14
Chiajna, ILFOV
5
LUCIDIUS SRL
2.150
55,121,279
16
372,261
35
6
ALFREDO FRESH SRL
2.125
110,978,798
4
37,511
112
7
INTERFRUCT SRL
2.113
54,180,948
18
1,006,632
86
ILFOV
ILFOV
8
AGER FRUIT SRL
2.088
74,208,925
9
1,330,376
36
9
TOTAL PRODUCE BUCHAREST SRL
2.088
70,680,875
12
651,720
2
10
CONTEC FOODS SRL
2.025
98,699,079
5
5,877,679
487
11
HORTIFRUCT SRL
2.013
165,444,800
2
116,649
99
12
OZR FRUIT SRL
1.963
50,638,473
20
525,425
20
Targu Mures, MURES
13
GLOBAL FOOD 2010 IMPORT-EXPORT SRL
1.900
88,347,144
7
207,811
39
Pantelimon, ILFOV
14
BARO PROSPER SRL
1.900
66,470,435
14
227,681
-
Chiajna, ILFOV
15
AGRICANTUS SRL
1.863
84,429,297
8
1,227,032
63
16
EFES EXPORT SRL
1.800
50,541,735
21
1,891,593
93
Maracineni,ARGES
17
SMT FRUCT SRL
1.775
43,170,296
26
117,979
3
Chiajna, ILFOV
18
LEOSER SA
1.763
48,073,447
23
1,868,537
242
13
456,231
68
115
19
ENB SRL
1.738
69,753,918
20
ORLANDO IMPORT - EXPORT 2001 SRL
1.738
54,590,665
17
767,544
21
DOLE ROMANIA SRL
1.663
692,167
27
-500,081
7
22
SEMT INTERNATIONAL FRUCT SA
1.650
89,857,370
6
99,299
6
23
ASIL 2000 TRADING IMPEX SRL
1.463
44,170,343
25
-298,212
20
24
FLIPPER COMIMPEX SRL
1.438
49,861,346
22
-9,145,456
99
25
GOLDEN FOODS SNACKS SRL
1.425
52,611,820
19
-8,487,060
146
26
BELLA INTERNATIONAL SRL
1.400
59,419,792
15
475,375
35
27
ALGIDA CENTER SRL
1.238
73,599,929
11
463,721
69
Voluntari, ILFOV
Tecuci, GALATI
ILFOV
Constanta,
CONSTANTA
Clinceni, ILFOV
Chiajna, ILFOV
Tunari, ILFOV
Oradea, BIHOR
11%
the share private brands held on the
Romanian consumption market in 2012,
increased from 8% in 2011
FMCG
t PROCESSING OF TEA AND COFFEE
t MANUFACTURE OF COCOA, CHOCOLATE AND CONFECTIONERY
t MANUFACTURE OF SUGAR
t MANUFACTURE OF CONDIMENTS AND SEASONINGS
t MANUFACTURE OF VEGETABLE AND ANIMAL OILS AND FATS
t MANUFACTURE OF DAIRY PRODUCTS
t MANUFACTURE OF GRAIN MILL PRODUCTS AND STARCHES
t MANUFACTURE OF WINE FROM GRAPE
t MANUFACTURE OF BEER
t MANUFACTURE OF SOFT DRINKS; PRODUCTION OF MINERAL WATERS AND
OTHER BOTTLED WATERS
t DISTILLING, RECTIFYING AND BLENDING OF SPIRITS
t MANUFACTURE OF TOBACCO PRODUCTS
t HOME AND PERSONAL CARE
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 Q4 2013 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 2012. 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
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 2013. 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.
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.”
PROCESSING OF TEA AND COFFEE
RANK
COMPANY NAME
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
1
CAFEA FORTUNA SRL
2.700
126,898,662
2
6,367,585
100
2
PRO SOFT SRL
2.288
109,582,486
3
4,518,389
156
3
LABORATOARELE FARES BIO VITAL SRL
2.113
48,133,058
8
10,424,951
236
4
5
6
STRAUSS ROMANIA SRL
1.900
235,347,430
1
-10,949,028
256
PANFOODS ROMANIA SRL
1.875
52,144,812
7
1,459,148
68
TCHIBO BRANDS SRL
1.738
64,965,147
6
832,007
34
7
DUO SRL
1.688
73,642,295
5
95,036
187
8
MERIDIAN CC SRL
1.613
94,809,061
4
82,653
118
9
ALKA CO SRL
1.375
47,721,535
9
-5,468,212
228
MANUFACTURE OF CONDIMENTS AND SEASONINGS
CONTACT
ILFOV
Brasov,
BRASOV
HUNEDOARA
Constanta,
CONSTANTA
Orsova,
MEHEDINTI
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
1
SOCIETATEA NATIONALA A SARII SA
3.050
272,036,716
1
20,781,362
1,870
2
DR OETKER RO SRL
2.413
245,510,401
2
21,266,996
-
3
4
KAMIS - CONDIMENTE SRL
2.150
26,198,121
9
2,470,333
46
SUPREMIA GRUP SRL
2.113
138,412,901
3
3,751,765
227
Alba Iulia, ALBA
5
PACOVIS ROMANIA SRL
1.963
18,425,085
10
555,358
28
Targul Mures,
MURES
6
7
8
KOTANYI CONDIMENTE SRL
1.963
5,803,265
11
208,959
11
ALEX & COMP SRL
1.888
72,322,869
5
948,806
236
DOHLER ROMANIA SRL
1.888
41,981,118
7
1,253,807
27
Chiajna, ILFOV
9
FUCHS CONDIMENTE RO SRL
1.863
59,845,910
6
405,488
224
Curtea de Arges,
ARGES
10
11
12
COMPANIA INDIILOR ORIENTALE PROD SRL
1.825
29,919,830
8
1,129,768
107
ION MOS SRL
1.688
85,922,601
4
4,868,239
183
CONDIMENTE ROMANIA SRL
1.275
3,387,710
12
-190,144
12
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
BRITISH AMERICAN TOBACCO (ROMANIA)
TRADING SRL
PHILIP MORRIS TRADING SRL
3.963
6,600,194,988
1
394,479,140
300
3.963
2,281,851,765
3
17,986,737
271
JT INTERNATIONAL (ROMANIA) SRL
3.713
2,476,816,675
2
8,172,062
620
JT INTERNATIONAL MANUFACTURING SA
3.275
1,813,264,206
4
8,211,518
341
LUZAN LOGISTIC SRL
2.938
293,167,323
6
2,418,461
74
SHARK GROUP SRL
2.350
195,318,869
8
503,656
35
PAMIMAI DISTRIBUTION SRL
2.313
327,361,737
5
15,637
173
2.275
11
16,916,896
513
2.075
157,580,123
10
16,955,311
538
1.913
207,975,150
7
-483,834
32
11
PHILIP MORRIS ROMANIA SRL
BRITISH - AMERICAN TOBACCO ROMANIA
INVESTMENT SRL
HTS HONGTA SERVICES SRL
CHINA TOBACCO INTERNATIONAL
DISTRIBUTION SRL
137,566,124
1.838
101,871,144
12
-2,686,496
18
12
M TABAC SRL
1.750
164,150,760
9
128,498
50
RANK
COMPANY NAME
MANUFACTURE OF TOBACCO PRODUCTS
RANK
1
2
3
4
5
6
7
8
9
10
COMPANY NAME
CONTACT
Curtea de Arges,
ARGES
Vanatori, GALATI
Chiajna, ILFOV
CONTACT
Otopeni, ILFOV
Targu Jiu, GORJ
Otopeni, ILFOV
Pantelimon,
ILFOV
Miercurea Ciuc,
HARGHITA
MCR
FMCG
DISTRIBUTORS OF COCOA, CHOCOLATE AND CONFECTIONERY PRODUCTS
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
CONTACT
KRAFT FOODS ROMANIA SA
INTERBRANDS MARKETING &
DISTRIBUTION SA
NESTLE ROMANIA SRL
3.463
578,630,198
3
26,619,159
272
Ghimbav, BRASOV
3.238
659,741,101
2
9,388,153
1,948
2.988
717,734,304
1
5,507,312
1,021
STAR FOODS EM SRL
2.838
343,572,060
4
8,892,919
877
MARS ROMANIA SRL
2.825
183,983,756
10
15,313,783
69
FREE MARKET PRODCOM SRL
2.800
115,032,572
17
3,268,845
52
7
T&O PRODCOM SRL
2.600
137,033,401
15
2,935,963
153
8
WRIGLEY ROMANIA SRL
2.563
181,665,589
11
21,852,212
176
9
SECA DISTRIBUTION SRL
2.463
276,733,704
5
-1,748,427
603
10
11
12
RESCO SA
2.363
70,350,434
31
3,557,958
128
FERRERO ROMANIA SRL
2.350
186,887,870
8
3,398,152
32
CHIPITA ROMANIA SRL
2.338
267,941,446
6
847,769
699
Clinceni, ILFOV
13
DRIM DANIEL SRL
2.325
128,673,130
16
668,850
379
Maracineni,
ARGES
14
15
16
17
18
DE SILVA EXCLUSIV SRL
2.325
101,907,506
19
9,714,765
74
CROCO SRL
2.250
85,064,257
26
7,866,774
246
Bacau, BACAU
TOP GEL PROD SRL
2.213
93,361,214
23
14,324,897
568
Carcea, DOLJ
OVERSEAS GROUP IMPEX SRL
2.175
114,912,790
18
1,584,887
86
NORDIC IMPORT EXPORT CO SRL
2.113
159,478,775
12
761,951
193
19
DOBROGEA GRUP SA
2.038
185,983,001
9
-289,657
-
20
ECUATOR SRL
2.038
137,069,441
14
989,570
205
21
HEIDI CHOCOLAT SA
2.038
69,556,988
32
1,757,438
371
22
BEST FOODS PRODUCTIONS SRL
LEKKERLAND CONVENIENCE
DISTRIBUTIE SRL
SAFF TRADING SRL
2.013
57,388,307
36
4,396,776
198
2.000
100,195,555
20
-7,782,040
86
Chiajna,
ILFOV
1.988
59,808,260
35
456,170
115
Carcea, DOLJ
ALPIN 57 LUX SRL
1.975
71,474,181
29
5,921,360
404
Sebes, ALBA
ROMPAK SRL
1.925
98,723,781
21
14,729,233
200
Pascani, IASI
CARAVELLE IMPEX SRL
1.900
62,326,801
34
140,559
5
Giurgiu, GIURGIU
-334,943
524
Odorheiul Secuiesc,
HARGHITA
Baicoi, PRAHOVA
RANK COMPANY NAME
1
2
3
4
5
6
23
24
25
26
27
28
ELAN-TRIO SRL
1.900
29
30
31
32
33
34
PHOENIXY SRL
KANDIA DULCE SA
Hunedoara,
HUNEDOARA
PRAHOVA
Arad, ARAD
Constanta,
CONSTANTA
SUCEAVA
Pantelimon,
ILFOV
191,398,667
7
1.888
79,288,698
27
7,366,903
260
1.725
148,801,234
13
-30,537,161
536
NARDO TRADING CO SRL
1.725
70,586,385
30
1,214,151
67
BETTY ICE SRL
1.713
94,809,282
22
523,540
676
ALKA TRADING CO SRL
1.613
91,602,624
25
-1,289,126
206
TECSA BUSINESS SRL
1.525
71,876,088
28
139,235
566
35
LIDO GIRBEA SRL
1.513
64,927,996
33
2,480,511
233
36
37
PURATOS PROD SRL
1.488
92,297,228
24
-760,514
149
Tunari, ILFOV
BOEMA SRL
1.200
53,873,792
37
-7,681,449
192
Sibiu, SIBIU
Suceava, SUCEAVA
PRAHOVA
MANUFACTURE OF DAIRY PRODUCTS
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
1
DANONE - PRODUCTIE SI DISTRIBUTIE DE
PRODUSE ALIMENTARE SRL
2.963
506,400,194
1
9,890,611
569
2
ALBALACT SA
2.675
343,844,878
4
7,320,697
661
3
4
5
6
7
8
9
10
11
12
13
14
15
16
WHITELAND IMPORT EXPORT SRL
NAPOLACT SA
ALMERA INTERNATIONAL SRL
HOCHLAND ROMANIA SRL
FRIESLANDCAMPINA ROMANIA SA
DELACO DISTRIBUTION SA
DORNA LACTATE SA
KALLAS - PAPADOPOULOS ROMANIA SRL
INDLACTO MURES SRL
SOLE MIZO ROMANIA SRL
GORDON-PROD SRL
LACTO-SOLOMONESCU SRL
SIMULTAN SRL
LACTO FOOD SRL
2.650
2.525
2.375
2.338
2.275
2.275
2.275
2.225
2.175
2.038
1.988
1.988
1.938
1.925
396,242,762
224,502,870
52,876,400
197,444,322
407,116,059
207,408,182
182,010,865
71,980,921
35,297,079
89,267,660
45,928,516
35,318,191
96,471,864
53,271,989
3
5
25
7
2
6
8
17
30
15
26
29
13
24
5,077,992
9,094,638
2,779,131
6,011,326
-18,970,986
1,558,715
24,372,621
820,576
3,118,448
1,469,049
5,541,560
1,014,261
5,583,775
719,479
17
COVALACT SA
1.900
118,526,463
12
-4,088,216
18
19
20
21
22
23
NORDEX FOOD RO SRL
DORNA SA
INDUSTRIALIZAREA LAPTELUI MURES SA
OLYMPUS
FIVE CONTINENTS GROUP SRL
LACTATE NATURA SA
1.838
1.825
1.788
1.725
1.675
1.663
39,929,994
92,652,167
135,054,888
169,381,143
26,641,878
23,799,000
27
14
10
9
32
34
1,591,827
945,127
-2,183,526
-250,847
1,298,557
-481,350
24
CARMO-LACT PROD SRL
1.625
55,339,217
22
592,713
25
PRIMULACT SA
1.613
34,777,394
31
283,954
26
27
28
29
30
31
LACTALIS ROMANIA SRL
MULLER DAIRY RO SRL
ILVAS SA
PRODLACTA SA
TONELI HOLDING SRL
DANONE BABY NUTRITION ROMANIA SRL
1.613
1.513
1.513
1.513
1.488
1.450
16,426,911
55,706,587
24,008,539
9,175,548
75,348,782
64,770,324
36
21
33
37
16
18
1,274,167
-16,053,273
179,380
-9,051,428
4,638,490
-1,980,227
32
SANLACTA SA
1.300
19,502,085
35
24,952
33
RARAUL SA
1.200
37,329,034
28
-1,638,489
34
TRM - TNUVA ROMANIA MILK SRL
1.113
3,281,791
38
-11,104,524
399
364
Cluj-Napoca, CLUJ
160
369
Sighisoara, MURES
383
Codlea, BRASOV
530 Vatra Dornei, SUCEAVA
12
Mogosoaia,ILFOV
37 Targu Mures, MURES
41
Timisoara, TIMIS
163
Lupeni, HARGHITA
156
185
Faget, TIMIS
40
Sofronea, ARAD
Sfantu Gheorghe,
385
COVASNA
29
Campulung, ARGES
187 Vatra Dornei, SUCEAVA
311 Targu Mures, MURES
188
Halchiu, BRASOV
125
Monor,
185
BISTRITA-NASAUD
Miercurea-Ciuc,
189
HARGHITA
5 Vatra-Dornei, SUCEAVA
124
Bragadiru, ILFOV
156
Vaslui, VASLUI
81
Brasov, BRASOV
48
42
Santana de Mures,
82
MURES
Campulung
210
Moldovenesc, SUCEAVA
4
ANNUAL TURNOVER
(2012 RON)
1,223,059,099
667,115,486
171,634,181
181,649,567
61,390,635
65,274,688
140,829,251
79,569,814
63,338,733
156,713,193
21,313,507
18,912,694
38,384,413
TURNOVER
RANKING
1
2
4
3
10
8
6
7
9
5
12
13
11
PROFIT/LOSS
(2012 RON)
115,130
12,830,036
30,583,833
702,054
1,829,345
6,523,921
-14,006,078
776,727
12,483,989
-59,085,925
2,290,331
5,689,511
-4,302,831
NO OF
CONTACT
EMPLOYEES
599
233
Oradea, BIHOR
213
Ludus, MURES
63
Buzau, BUZAU
3
Ludus, MURES
105
Corabia, OLT
376
Urziceni, IALOMITA
Tandarei,IALOMITA
234
Bod, BRASOV
43
25
Calarasi, CALARASI
11 Targu-Mures , MURES
36
RANK
COMPANY NAME
MANUFACTURE OF SUGAR
RANK
1
2
3
4
5
6
7
8
9
10
11
12
13
COMPANY NAME
AGRANA ROMANIA SA
ZAHARUL ORADEA SA
ZAHARUL LUDUS SA
AGRANA BUZAU SRL
ZAHARCOM SRL
ZAHAR CORABIA SA
LEMARCO CRISTAL SRL
AGRANA TANDAREI SRL
FABRICA DE ZAHAR BOD SA
LEMARCO SA
ZAHAR CALARASI SA
ZAMUR TARGU MURES SA
ZAHARUL LIESTI SA
MCR SCORING
3.300
3.000
2.638
2.563
2.413
1.925
1.788
1.788
1.700
1.663
1.550
1.525
1.225
CONTACT
Galda de Jos,
Localitatea Oiejdea,
ALBA
MCR
FMCG
MANUFACTURE OF GRAIN MILL PRODUCTS AND STARCHES
RANK COMPANY NAME
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
CONTACT
1
19,775
2,687
Ramnicu Valcea,
VALCEA
291,727,881
2
-7,325,430
857
Pantelimon, ILFOV
82,566,941
12
2,638,784
386
Sibiu, SIBIU
2.088
197,835,783
5
-3,078,484
439
Ramnicu Valcea,
VALCEA
PAMBAC SA
2.088
119,977,880
6
543,750
533
Bacau, BACAU
PAN GROUP SA
2.088
101,868,675
11
458,475
789
Craiova, DOLJ
SAM MILLS SRL
2.063
241,976,020
4
4,018,817
167
MOARA CIBIN SA
2.025
104,462,242
10
538,002
216
Sibiu, SIBIU
BOROMIR PROD SA
1.988
114,064,740
8
1,928,326
751
Buzau, BUZAU
10
BOROMIR IND SRL
1.900
245,874,231
3
100,597
764
Ramnicu Valcea,
VALCEA
11
12
13
14
15
MP BANEASA - MOARA SA
1.888
114,415,934
7
649,759
65
OLTINA IMPEX PROD COM SRL
1.875
113,087,749
9
2,237,303
228
EUROPAN SRL
1.875
54,845,512
16
61,333
213
PLEVNEI SA
1.838
3,431,865
28
363,995
29
RISO SCOTTI DANUBIO SRL
1.813
74,872,656
14
37,868
51
Otopeni, ILFOV
342
Miercurea Ciuc,
HARGHITA
1
VEL PITAR SA
2.488
293,373,918
2
3
TITAN SA
2.300
TRANS AGAPE SRL
2.125
4
SAPTE SPICE SA
5
6
7
8
9
Sarmasag, SALAJ
16
HARMOPAN SA
1.700
43,142,150
18
1,110,012
17
18
19
20
21
22
23
LUJERUL SA
1.613
30,291,720
20
-182,576
PANGRAM SA
1.525
52,733,682
17
-2,240,562
DELTAPAN SA
1.488
2,168,341
29
-26,433
23
MORARIT-PANIFICATIE BANEASA SA
1.438
24,152,935
22
213,832
132
MOPAN SA
1.388
78,702,876
13
549,707
685
ANA PAN SA
1.363
18,179,197
24
339,061
153
FORNETTI ROMANIA SRL
1.350
66,042,236
15
-9,700,495
314
Satchinez, TIMIS
24
DOBRE SI FIII SRL
1.238
25,560,112
21
69,830
163
Constanta,
CONSTANTA
25
26
27
GALMOPAN SA
1.238
21,848,969
23
-2,386,301
190
DEMOPAN SA
1.238
6,232,860
26
-1,391,080
99
COMPAN SA
1.238
3,665,872
27
-1,953,560
91
Iasi, IASI
76
271 Resita, CARAS-SEVERIN
Tulcea, TULCEA
Vaslui, VASLUI
28
RO-CREDO SRL
1.175
40,827,758
19
-10,365,780
223
Constanta,
CONSTANTA
29
ABO MILL SA
1.175
7,265,719
25
-9,196,966
56
Zalau, SALAJ
NO OF
EMPLOYEES
CONTACT
MANUFACTURE OF VEGETABLE AND ANIMAL OILS AND FATS
RANK COMPANY NAME
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
1
2
3
4
5
6
7
BUNGE ROMANIA SRL
3.125
1,132,502,159
1
-42,885,140
245
Buzau, BUZAU
EXPUR SA
2.838
993,823,696
2
16,979,870
474
Urziceni, IALOMITA
UNILEVER SOUTH CENTRAL EUROPE SA
2.775
789,524,234
3
-16,910,608
268
PRUTUL SA
3.025
563,972,370
4
5,621,487
463
CARGILL OILS SA
2.525
343,765,079
5
-8,965,212
273
ARDEALUL SA
2.275
211,481,123
6
27,151,121
279
PRIO EXTRACTIE SRL
1.475
183,697,188
7
-62,232,555
-
8
ARGUS SA
2.088
146,512,719
8
-20,962,040
238
Constanta,
CONSTANTA
9
10
ULEROM SA
1.575
107,929,070
9
871,109
175
Vaslui, VASLUI
ORKLA FOODS ROMANIA SA
1.450
99,056,155
10
-1,774,563
218
Carei, SATU MARE
MANUFACTURE OF WINE FROM GRAPE
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
CONTACT
1
2
3
4
JIDVEI SRL FILIALA ALBA
2.225
100,731,490
3
8,943,624
162
Jidvei, ALBA
COTNARI SA
2.213
105,378,383
2
3,581,631
304
Cotnari, IASI
CRAMELE RECAS SA
2.138
73,016,823
5
11,767,827
83
Recas, TIMIS
CASA DE VINURI COTNARI SA
1.963
16,172,289
16
5,295,114
8
Cotnari,IASI
5
VINCON VRANCEA SA
1.913
77,280,166
4
4,303,438
490
6
MURFATLAR ROMANIA SA
1.750
133,829,098
1
377,572
205
7
8
ZAREA SA
1.725
51,279,580
6
-3,054,136
146
VINO BIANCO SRL
1.525
26,362,735
12
826,775
3
Bacau, BACAU
9
ROVIT SA
1.525
5,790,852
21
2,328
48
Valea Calugareasca,
PRAHOVA
10
11
12
ANGELLI SPUMANTE & APERITIVE SRL
1.425
47,953,369
7
-605,993
63
AGROINDUSTRIALA BUCIUM SA
1.425
16,072,060
17
17,079
60
VINARTE SA
1.425
11,579,909
19
134,321
69
13
TOHANI SA
1.400
3,439,562
23
271,876
44
14
CASA DE VINURI ZORESTI SA
1.363
40,975,622
9
99,644
31
15
VINEXPORT TRADE-MARK SA
1.363
33,814,845
11
-3,148,448
-
Focsani,
VRANCEA
16
17
SPEED SRL -CASA DE VINURI HUSI
1.363
22,947,891
14
530,438
115
Husi, VASLUI
CRAMELE HALEWOOD SA
1.263
41,710,040
8
-2,876,185
154
18
DOMENIILE VITICOLE TOHANI SRL
1.263
39,490,517
10
212,505
152
19
VINEXPORT SA
1.263
24,891,069
13
-1,910,410
135
20
VINIA SA
1.263
7,024,088
20
-22,812,636
64
Iasi, IASI
21
VERITAS PANCIU SA
1.238
3,575,536
22
-4,435,142
106
Panciu,
VRANCEA
22
23
VINTON SRL
1.213
18,681,114
15
64,958
36
CARL REH WINERY SRL
1.138
15,292,478
18
-2,451,963
85
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
HEINEKEN ROMANIA SA
3.925
1,180,982,710
2
185,532,896
1,222
URSUS BREWERIES SA
3.050
1,283,124,027
1
-10,329,704
1,416
CARLSROM BEVERAGE CO SRL
2.400
424,874,390
4
-22,933,515
443
UNITED ROMANIAN BREWERIES BEREPROD SRL
2.275
279,897,926
5
-5,686,607
304
BERGENBIER SA
1.963
436,307,541
3
-142,104,360
597
BERMAS SA
1.900
23,912,201
8
1,581,486
200
ALBRAU PROD SA
1.888
35,214,137
6
505,393
108
MARTENS SA
1.350
27,608,049
7
-779,789
117
ALBRAU GRUP SRL
1.113
15,329
9
-22,566,454
-
RANK
COMPANY NAME
MANUFACTURE OF BEER
RANK
1
2
3
4
5
6
7
8
9
COMPANY NAME
Focsani,
VRANCEA
Murfatlar,
CONSTANTA
Iasi, IASI
Comuna Gura
Vadului, PRAHOVA
Gura-Vadului,
PRAHOVA
Focsani,
VRANCEA
CONTACT
Pantelimon, ILFOV
Scheia, SUCEAVA
MCR
FMCG
MANUFACTURE OF SOFT DRINKS;
PRODUCTION OF MINERAL WATERS AND OTHER BOTTLED WATERS
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
CONTACT
1
2
3
4
COCA-COLA HBC ROMANIA SRL
3.550
1,939,420,892
1
148,409,857
1,642
Voluntari, ILFOV
ROMAQUA GROUP SA
2.800
600,826,132
3
-1,125,517
1,948
Borsec, HARGHITA
QUADRANT AMROQ BEVERAGES SRL
2.713
632,559,021
2
-66,278,560
921
LA FANTANA SRL
2.225
101,211,224
6
11,440,222
497
5
TYMBARK MASPEX ROMANIA SRL
2.213
279,538,553
4
-1,357,671
723
6
7
8
9
10
11
12
AQUADOR SRL
2.213
3,436,688
20
1,438,210
30
RIO BUCOVINA SRL
2.125
128,140,097
5
1,981,477
527
RED BULL ROMANIA SRL
2.025
52,064,460
9
1,836,033
45
MINERAL QUANTUM SRL
1.950
31,465,659
17
2,626,888
88 Sancraieni, HARGHITA
PERLA HARGHITEI SA
1.913
75,907,692
7
1,854,941
327 Sancraieni, HARGHITA
CUMPANA 1993 SRL
1.913
42,247,209
12
1,305,347
383
AGRANA JUICE ROMANIA VASLUI SRL
1.838
16,086,494
18
2,028,380
23
Vaslui, VASLUI
13
APEMIN TUSNAD SA
1.688
42,620,547
11
1,560,779
152
Tusnadu Nou,
HARGHITA
14
15
16
17
APEMIN ZIZIN SA
1.625
36,799,272
15
801,886
112
Zizin, BRASOV
TIOSS COMMERCE SRL
1.613
37,388,368
14
116,605
170
Dumbravita, TIMIS
ALCONOR COMPANY SRL
1.575
65,850,796
8
306,322
211
Carei, SATU MARE
PARMALAT ROMANIA SA
1.563
38,828,727
13
-1,856,054
89
Tunari, ILFOV
18
CARPATHIAN SPRINGS SA
1.363
33,589,283
16
380,555
71
VatraDornei,
SUCEAVA
19
20
RAUCH ROMANIA SRL
1.238
11,532,351
19
-2,893,691
8
AZUGA WATERS SRL
1.113
47,553,821
10
-1,915,028
76
RANK COMPANY NAME
DISTILLING, RECTIFYING AND BLENDING OF SPIRITS
RANK COMPANY NAME
Valenii de Munte,
PRAHOVA
Azuga, PRAHOVA
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
CONTACT
3
4,229,666
215
Acatari, MURES
2
3,079,177
339
1
FAREL IMPEX SRL
2.475
131,263,238
2
MIRUNA INTERNATIONAL IMPEX SRL
2.325
139,105,103
3
BDG IMPORT SRL
2.313
176,465,073
1
5,329,266
84
4
EXCELSIOR SRL
2.050
68,712,338
8
3,107,947
120
Constanta,
CONSTANTA
5
6
7
8
9
10
11
12
13
14
15
16
ALCOPROD SERVICE SA
2.000
27,476,777
15
1,217,761
118
Urziceni, IALOMITA
GRANDDIS SRL
1.950
110,199,420
5
82,683
71
Caldararu, ILFOV
PRODVINALCO SA
1.938
35,516,103
14
4,759,537
96
Cluj-Napoca, CLUJ
PERNOD RICARD ROMANIA SRL
1.850
114,863,943
4
-473,117
37
TOP MARKET COMIMPEX SRL
1.763
59,913,926
9
2,372,441
126
OTED GRUP SA
1.538
43,909,507
12
-170,341
96
Iasi, IASI
RODISTRIB SRL
1.488
51,323,602
10
-1,923,580
57
Focsani, VRANCEA
ANTONY GROSS EXIM SRL
1.488
50,155,774
11
227,550
83
PRODALCOM SA
1.488
39,782,971
13
199,493
184
Botosani, BOTOSANI
DEFEL COM SRL
1.475
69,006,847
7
37,735
150
Suceava, SUCEAVA
LERIDA INTERNATIONAL SRL
1.338
21,544,814
16
-56,154
21
ALEXANDRION GRUP ROMANIA SRL
1.313
96,682,512
6
-21,610,519
245
Cluj-Napoca, CLUJ
Otopeni, ILFOV
HOME AND PERSONAL CARE
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
1
2
3
4
5
6
PROCTER & GAMBLE DISTRIBUTION SRL
3.600
1,254,784,218
1
20,076,377
44
AVON COSMETICS (ROMANIA) SRL
2.900
436,080,042
2
38,436,857
309
RECKITT BENCKISER ROMANIA SRL
2.875
280,507,334
3
38,261,357
87
L’OREAL ROMANIA SRL
2.750
235,775,910
5
11,898,385
129
BEIERSDORF ROMANIA SRL
2.750
199,539,141
6
1,628,798
71
SCA HYGIENE PRODUCTS SRL
2.725
141,471,199
11
3,806,671
25
7
SARANTIS ROMANIA SA
2.713
165,674,378
7
9,835,386
316
8
9
10
11
12
13
COSMETICS ORIFLAME ROMANIA SRL
2.563
153,108,410
8
4,416,652
99
DETERGENTI SA
2.463
144,426,760
10
16,228,573
598
JOHNSON WAX SRL
2.413
144,518,891
9
2,293,027
35
FARMEC SA
2.350
121,886,781
13
7,981,754
577
Cluj-Napoca, CLUJ
SIDE TRADING SRL
2.338
62,578,176
25
5,829,564
32
Timisoara, TIMIS
COLGATE-PALMOLIVE (ROMANIA) SRL
PROFESSIONAL BRANDS MARKETING &
DISTRIBUTION SRL
PROCTER & GAMBLE MARKETING
ROMANIA SRL
GEOLAILA COMIMPEX SRL
2.313
243,198,443
4
3,726,677
90
2.313
43,080,210
33
3,845,773
74
2.275
123,003,158
12
20,598,222
387
2.275
53,670,925
27
1,446,136
24
AMWAY ROMANIA MARKETING SRL
2.163
78,783,204
18
2,651,238
27
SUPERFOOD COMPANY SRL
2.125
73,700,035
20
2,022,844
185
INTERSTAR CHIM SA
2.063
98,715,950
14
2,058,670
208
FOREVER LIVING PRODUCTS ROMANIA SRL
2.063
53,627,811
28
1,069,948
67
EVERET ROMANIA DISTRIBUTION SRL
2.063
52,013,618
29
610,486
100
SANO ROMANIA SRL
2.000
64,550,162
24
2,191,971
85
Pantelimon, ILFOV
COS 2000 DISTRIBUTION SRL
1.963
66,792,687
22
813,373
44
Brasov, BRASOV
YVES ROCHER ROMANIA SRL
1.963
51,098,664
30
76,681
-
25
BELLA ROMANIA IMPEX SRL
1.875
96,930,009
15
2,002,621
110
Clinceni, Sat Olteni,
ILFOV
26
27
28
29
30
31
CLEOPATRA CENTER SRL
1.875
84,627,976
17
581,136
132
Barlad, VASLUI
GNV OMEGA TRADING SRL
1.800
45,863,737
32
2,168,227
65
Voluntari, Ilfov
POINT DISTRIBUTION GRUP SRL
1.688
69,273,060
21
337,909
99
Vanatori, GALATI
LA-RO IMPEX 2001 SRL
1.688
33,051,848
34
51,896
99
COTY COSMETICS ROMANIA SRL
1.663
76,705,810
19
128,861
41
FICOSOTA SINTEZ ROMANIA SRL
TOTAL DISTRIBUTION GROUP &
LOGISTICS SRL
UNILEVER ROMANIA SA
1.663
61,184,942
26
-221,712
29
1.625
96,438,421
16
-2,585,745
247
1.525
65,616,992
23
3,810,929
299
ROLICOM IMPORT EXPORT SRL
1.488
50,912,148
31
437,891
180
RANK
14
15
16
17
18
19
20
21
22
23
24
32
33
34
COMPANY NAME
CONTACT
ILFOV
Timisoara, TIMIS
Pantelimon, ILFOV
Cluj-Napoca, CLUJ
2.9%
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
t CASH & CARRY
t HYPERMARKETS
t SUPERMARKETS
t DO-IT-YOURSELF
t DISCOUNT
t MALLS & SHOPPING CENTERS
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 quarter1.
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 2012. 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 stores2.
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 20103. 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 retailers4 at the end of last year.
2012 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 July5.
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 20136.
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.
1
http://www.zf.ro/eveniment/vesti-bune-de-la-principalii-indicatori-macro-in-primultrimestru-dar-si-pesimism-de-la-oamenii-de-afaceri-10731734
2
http://jurnalul.ro/bani-afaceri/economia/mic-ro-companie-controlata-de-dinupatriciu-a-intrat-in-insolventa-604566.html
3
Delhaize Group Company Report, 2012
4
Metro Group Company Report, 2012
5
http://www.capital.ro/detalii-articole/stiri/emag-vandut-pe-83-de-milioane-de-dolari174758.html
6
http://www.capital.ro/detalii-articole/stiri/184859.html
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 study7. 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 2012. 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 2013.
During the first four months alone, close to 50 new modern
retail outlets have been opened all over the country8.
According to a CBRE study the national retail stock
increased by 150,000 m2 during 2012, reaching a total of 2.7
million m2, 30% of which located in Bucharest. At the end of
the year there was an average of 127 m2 of retail space per
1,000 inhabitants, whereas Bucharest benefitted of 416
m2/1000 people9. Considering that the European average lies
at around 350 m2/ capita10 (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 study11. 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
Council12.
the moment, the percentage of nonperforming loans keeps
growing (Romania occupied the 3rd place in EU at the end of
201214), 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 2011. 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 201413.
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
7
http://www.gfk-ro.com/public_relations/press/multiple_pg/011012/index.ro.html
http://www.zf.ro/companii/bilantul-primelor-patru-luni-in-comertul-modern-48-demagazine-inaugurate-dupa-investitii-de-40-50-de-milioane-de-euro-10819747
9
Romania Retail Market View, H2 2012, CBRE Global Research and Consulting
10
http://www.colliers.com/~/media/files/emea/eastern-european-information/retailmarket-year-end%20snapshot-2013.pdf.ashx
11
http://www.gfk-ro.com/public_relations/press/multiple_pg/011049/index.ro.html
12
http://www.plmainternational.com/en/private_label13_en.htm
13
http://www.imf.org/external/country/rou/index.htm
14
http://www.zf.ro/banci-si-asigurari/sistemul-bancar-a-ajuns-pe-locul-3-in-europa-lacredite-neperformante-10749823
8
MCR
TRADE
CASH & CARRY
RANK COMPANY NAME
1
SELGROS CASH & CARRY SRL
HYPERMARKETS
RANK COMPANY NAME
1
2
3
4
5
ROMANIA HYPERMARCHE SA
KAUFLAND ROMANIA SCS
CARREFOUR ROMANIA SA
AUCHAN ROMANIA SA
real,- HYPERMARKET ROMANIA SRL
SUPERMARKETS
RANK COMPANY NAME
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
MEGA IMAGE SRL
PROFI ROM FOOD SRL
BILLA ROMANIA SRL
ARTIMA SA
PALAS COM SRL
ANNABELLA SRL
SUCCES NIC COM SRL
KONSTA SPLENDID SRL
BERLIN SRL
DIANA COM SRL
SEPHORA MARINOPOULOS ROMANIA SA
ZANFIR SNC
ELECTROUNIVERS SRL
DACIA SA
TREI G RETAIL BEIUS SRL
GENERAL NIC IMPORT-EXPORT SRL
DM DROGERIE MARKT SRL
DANEMAR COMPANY SRL
DARINA COM SRL
ALFA BETA SRL
RAIMAN SRL
CDE R INTEREX SA
IMPEX CRIS TIM SRL
ADIVIN95 SRL
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
CONTACT
3.550
3,426,331,788
1
68,597,173
4,343
Brasov, BRASOV
ANNUAL TURNOVER
(2012 RON)
1,461,578,882
3.613
6,438,372,297
3.575
TURNOVER
RANKING
5
PROFIT/LOSS
(2012 RON)
24,556,054
NO OF
EMPLOYEES
3,972
11,947
MCR SCORING
1
274,507,498
4,288,398,196
2
104,710,446
6,896
1,973,757,257
4
3,298,867
4,073
2,898,670,491
3
-73,524,283
5,336
ANNUAL TURNOVER
(2012 RON)
1,757,017,878
3.763
1,155,745,855
3.738
TURNOVER
RANKING
1
PROFIT/LOSS
(2012 RON)
46,722,111
NO OF
EMPLOYEES
5,693
3
13,138,974
3,313
2
3,654,503
3,009
3.513
3.363
3.263
MCR SCORING
3.613
3.050
2.513
2.463
2.425
2.363
2.300
2.300
2.188
2.150
2.150
2.113
2.075
1.913
1.850
1.800
1.738
1.550
1.525
1.450
1.450
1.425
1,266,573,573
CONTACT
CONTACT
Timisoara, TIMIS
700,186,926
4
355,872
1,881
Chiajna, ILFOV
62,151,663
17
3,669,689
261
Targu Mures, MURES
184,776,420
6
3,623,927
341,427,264
5
1,341,837
1,523
116,708,417
9
2,696,510
168
Medias, SIBIU
55,513,963
19
682,093
120
Barlad, VASLUI
52,629,341
21
617,498
129,524,234
7
5,200,127
219
100,432,611
11
-34,956
320
97,799,542
12
2,105,391
48
Targu Jiu, GORJ
Focsani, VRANCEA
49,277,439
24
2,009,693
161
Alba Iulia, ALBA
104,386,341
10
110,163
300
Oradea, BIHOR
63,830,271
16
6,898,595
204
123,238,758
8
-18,368,542
348
51,218,580
23
737,976
237
Babeni, VALCEA
53,042,638
20
550,893
224
Targu Mures, MURES
67,177,232
14
569,286
66,237,031
15
23,795
24
79,626,806
13
-55,155,866
338
58,655,349
18
-210,609
269
51,495,348
22
-269,214
DEDEMAN SRL
ANNUAL TURNOVER
(2012 RON)
2,410,570,736
3.888
TURNOVER
RANKING
1
PROFIT/LOSS
(2012 RON)
258,767,227
NO OF
EMPLOYEES
5,711
ARABESQUE SRL
3.238
1,564,021,757
2
42,590,841
2,468
AMBIENT SA
3.113
666,086,173
3
3,278,538
1,505
BRICOSTORE ROMANIA SA
2.863
640,986,310
5
-14,478,186
1,573
PRAKTIKER ROMANIA SRL
2.800
649,507,674
4
-71,836,096
1,744
BAUMAX ROMANIA SRL
2.800
545,864,926
6
-98,483,861
1,165
HORNBACH CENTRALA SRL
2.588
402,220,289
7
3,360,578
598
ARTSANI COM SRL
2.200
127,328,627
10
4,050,400
307
OBI ROMANIA SRL
2.150
182,295,255
8
-56,606,211
636
Oradea, BIHOR
TIGER AMIRA COM SRL
2.075
146,555,134
9
1,383,980
398
Oradea, BIHOR
BRICO EXPERT SA
1.238
63,417,939
11
-11,359,971
242
DO IT YOURSELF
RANK COMPANY NAME
1
2
3
4
5
6
7
8
9
10
11
MCR SCORING
MCR SCORING
Timisoara, TIMIS
Craiova, DOLJ
CONTACT
Bacau, BACAU
Sibiu, SIBIU
Voluntari, ILFOV
DISCOUNT
RANK
1
2
REWE (ROMANIA) SRL
ANNUAL TURNOVER
(2012 RON)
1,927,506,664
3.300
MINIMAX DISCOUNT SRL
1.588
1,101,357
2
-30,227,215
288
Voluntari, ILFOV
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
CONTACT
2.163
173,059,136
1
66,169,284
129
1.838
1.838
1.713
1.688
1.400
1.388
1.338
1.338
1.288
1.275
1.088
1.088
1.088
1.025
0.838
130,903,423
2
24,220,489
8,827,414
15
525,818
50,040,702
6
11,379,585
-
82,861,179
3
5,811,716
130
COMPANY NAME
MCR SCORING
MALLS & SHOPING CENTERS
RANK
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
COMPANY NAME
BANEASA DEVELOPMENTS SRL - member of
ALLTROM REAL ESTATE GROUP
COTROCENI PARK SA
CITY PARK MANAGEMENT SRL
WIN MAGAZIN SA
UNIREA SHOPPING CENTER SA
LAND DEVELOPMENT PROIECT SRL
IULIUS MALL CLUJ SRL
ARENA CITY CENTER SRL
ARMONIA CENTER ARAD SRL
IULIUS MALL SUCEAVA SRL
IULIUS MALL TIMISOARA SRL
SUCEAVA SHOPPING CITY SRL
VITANTIS SRL
RIVER PLAZA MALL SRL
COMETEX SA
TOMIS SA
DISTRIBUTION COMPANIES
RANK
COMPANY NAME
1
2
3
4
5
HACHETTE DISTRIBUTION SERVICES INMEDIO SRL
MARATHON DISTRIBUTION GROUP SRL
PUNCTUAL COMIMPEX SRL
AFI TOTAL DISTRIBUTION SRL
ELGEKA - FERFELIS ROMANIA SA
6
TURNOVER
RANKING
1
PROFIT/LOSS
(2012 RON)
-6,586,180
NO OF
EMPLOYEES
2,735
CONTACT
28
41,633,825
7
-17,462,662
-
68,364,087
5
-10,659,672
1
Cluj-Napoca, CLUJ
20,350,591
11
-13,467,139
21
Bacau, BACAU
7,461,169
16
-39,534,204
-
30,668,477
8
-27,727,433
137
77,386,454
4
-53,645,970
2
Timisoara, TIMIS
21,093,118
10
-6,993,447
-
Suceava, SUCEAVA
16,771,349
12
-12,117,399
-
11,017,524
14
-6,762,340
23,341,376
9
-8,660,627
12,451,554
13
-19,237,934
ANNUAL TURNOVER
(2012 RON)
309,553,149
3.063
261,926,727
2.963
TURNOVER
RANKING
2
PROFIT/LOSS
(2012 RON)
7,628,171
NO OF
EMPLOYEES
145
430
MCR SCORING
Suceava, SUCEAVA
- Ramnicu Valcea, VALCEA
29
Suceava, SUCEAVA
CONTACT
6
8,809,971
2.813
2.738
2.713
275,746,113
5
1,735,325
62
169,605,107
11
17,196,150
130
307,642,857
3
1,411,406
378
AMIGO & INTERCOST SRL
2.713
238,081,095
7
9,425,784
551
7
8
9
10
11
12
13
14
15
16
17
LICURICI IMPEX SRL
MACROMEX SRL
HEINRIG DISTRIBUTION SRL
XIMENA DISTRIBUTIE SRL
VENUS DISTRIBUTION SRL
TOTAL DISTRIBUTION GROUP ARGES SRL
FRANCISC DISTRIBUTION SRL
DOVA & PORUT SRL
CARMISTIN SRL
CENTRAL MORENI SRL
PP DISTRIBUTORS - ROMANIA SRL
2.688
2.400
2.275
2.275
2.275
2.113
2.113
2.113
2.063
2.050
2.025
282,271,766
4
1,474,987
242
484,213,728
1
-3,947,182
394
195,376,991
9
4,148,032
40
117,644,177
16
234,377
19
Braila, BRAILA
103,715,286
17
1,044,051
15
Sindrilita, ILFOV
159,797,109
12
603,223
177
101,526,462
18
1,873,650
57
59,473,864
25
1,994,159
68 Alexandria, TELEORMAN
237,455,384
8
1,410,419
75
Mizil, PRAHOVA
98,749,544
19
1,867,569
152
Razvad, DAMBOVITA
121,925,963
15
7,041,982
49
18
VLASE DISTRIBUTION SRL
1.988
139,943,919
13
333,054
156
19
20
21
22
23
24
25
26
27
MERSEL COMPANY SRL
MADCONT IMPEX SRL
DENIMPEX SRL
NISTOR COMPANY SRL
HANSA DISTRIBUTION SA
SAVCOM SRL
PARMAFOOD GROUP DISTRIBUTION SRL
GROUP QUEEN MONACO SRL
TOP BRANDS DISTRIBUTION SRL
1.963
1.838
1.775
1.775
1.725
1.550
1.488
1.463
1.463
185,639,939
10
-24,929,821
256
95,342,142
20
82,265
61,190,651
24
206,273
Cluj-Napoca, CLUJ
Odorheiu Secuiesc,
HARGHITA
Gheorghe Lazar,
IALOMITA
2
57,320,737
26
269,239
24
130,978,510
14
-33,120,892
47
94,410,406
21
131,997
155
91,016,948
22
123,272
77
64,129,102
23
-978,019
21
31,523,840
27
3,123,591
319
Arad, PECICA
Scheia, SUCEAVA
Otopeni, ILFOV
DB Schenker Rail Romania SRL
Delea Noua Nr. 3, 030925 Bucharest, Romania
Tel.: +40 (0) 21 - 331 22 07
Fax: +40 (0) 21 - 331 22 09
67.7%
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
t ROAD TRANSPORT
t RAIL TRANSPORT
t AIR TRANSPORT
t MARITIME & RIVER TRANSPORT
t FREIGHT TRANSPORT
t POSTAL AND COURIER ACTIVITIES
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 2014. 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 2012.
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
2013. 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
Tel.: +40 (0) 21 - 331 22 07
Fax: +40 (0) 21 - 331 22 09
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 2014. 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-2015.
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 2013. 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 2013. According
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 190.5 million tones, in line with
macroeconomic growth. By 2017, the road haulage volumes
are forecasted to expand by 17.9%, reaching 219.2 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 2007.
Figure 1. Romania Road Freight (2007-2017)
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
10
0
-10
-20
-30
-40
-50
2007 2008 2009 2010 2011 2012e 2013f 2014f 2015f 2016f 2017f
Road freight, '000 tonnes
- % change y-o-y
Source: BMI
Tel.: +40 (0) 21 - 331 22 07
Fax: +40 (0) 21 - 331 22 09
MCR
Opinion
EDUARD IANCU,
CEO DB Schenker Rail Romania
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
Infrastructure,
precondition for
the development
of railway
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
Tel.: +40 (0) 21 - 331 22 07
Fax: +40 (0) 21 - 331 22 09
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.
ROAD TRANSPORT
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
AQUILA PART PROD COM SRL
3.050
526,899,522
2
3,360,976
1,765
DUVENBECK LOGISTIK SRL
REGIA AUTONOMA DE TRANSPORT
BUCURESTI RA
HAVI LOGISTICS SRL
2.850
154,374,162
16
9,446,161
430
2.825
698,666,050
1
0
10,949
2.775
420,795,449
3
-148,795
296
TRANS BITUM SRL
2.588
302,129,648
4
4,926,179
285
6
ALPHA CONSTRUCT SISTEM SA
2.575
146,493,252
18
9,790,275
736
7
GEFCO ROMANIA SRL
2.563
188,619,224
11
8,602,669
82
8
GEOFY TRANS SRL
2.525
137,097,416
21
560,806
11
Constanta,
CONSTANTA
H ESSERS SRL
2.513
117,899,396
23
498,739
401
Oradea, BIHOR
TRANSPECO LOGISTICS & DISTRIBUTION SA
2.500
145,039,842
19
40,893,922
453
ATLASSIB SRL
2.363
260,752,209
5
2,837,561
1,412
DIANTHUS COMPANY SRL
2.363
107,011,387
25
11,161,411
225
Geamana, ARGES
TRANSMEC RO SRL
2.325
180,218,840
12
5,506,755
287
Cluj Napoca, CLUJ
HOEDLMAYR-LAZAR ROMANIA SRL
2.288
118,059,684
22
3,921,696
116
Bascov, ARGES
WABERER`S ROMANIA SA
2.275
243,909,034
6
10,167,290
732
TOTAL N S A SRL
2.263
142,032,371
20
1,806,245
305
Saliste, SIBIU
CARRION EXPEDITION SRL
2.200
208,403,641
10
814,708
710
Cluj-Napoca, CLUJ
HARTLTRANS ROMANIA SRL
2.188
80,961,879
31
1,085,624
248
Timisoara, TIMIS
CHINA SHIPPING (ROMANIA) AGENCY CO LTD SRL
2.150
78,926,175
32
2,444,617
36
TOURING EUROPABUS ROMANIA SRL
HOLLEMAN SPECIAL TRANSPORT & PROJECT
CARGO SRL
INTERNATIONAL LAZAR COMPANY SRL
2.125
178,365,947
13
820,951
242
2.113
76,960,316
33
10,776,234
99
2.075
169,573,988
14
10,590,506
434
Bascov, ARGES
TIR EXPRESS SRL
2.050
159,866,996
15
817,758
237
Timisoara, TIMIS
CIPCOS MAR COMPLEX SRL
2.050
75,971,544
34
4,225,636
95
Albota, ARGES
TRANS CAR SRL
2.038
57,395,119
41
5,140,943
208
Sibiu, SIBIU
TRANSCONDOR SA
2.013
232,837,144
8
685,059
548
Arad, ARAD
DUNCA EXPEDITII SA
2.013
149,940,795
17
5,567,252
579
Dumbravta, TIMIS
TRANSPORTURI DACIA SA
1.988
57,906,427
40
1,038,807
130
Mioveni,ARGES
TRANSEXPED AGRO SRL
REGIA AUTONOMA DE TRANSPORT
TIMISOARA
CARPAT CEMTRANS SRL
1.963
107,376,444
24
346,334
-
Vadeni, BRAILA
1.950
65,412,039
39
2,340,067
919
Timisoara, TIMIS
1.925
66,922,206
38
469,992
65
EDY INTERNATIONAL SPEDITION SA
1.825
208,645,704
9
-65,378,027
905
Brad, HUNEDOARA
ASTALROM SA
1.763
92,907,506
27
6,575,099
393
Calarasi, CALARASI
34
LOGISTIC E VAN WIJK SRL
1.700
89,391,719
28
1,635,049
301
35
DUMAGAS TRANSPORT SA
1.650
234,384,932
7
-11,232,005
779
36
1.600
95,777,813
26
12,942
1,449
37
REGIA AUTONOMA DE TRANSPORT URBAN DE
CALATORI CLUJ NAPOCA RA
REGIA AUTONOMA DE TRANSPORT PUBLIC
PLOIESTI RA
1.600
67,541,467
36
-1,183,791
1,066
38
INT TRANSPORTE POPOVICI SRL
1.475
81,258,753
30
-1,742,626
168
Sfantu Gheorghe,
COVASNA
39
AGETAPS SRL
REGIA AUTONOMA DE TRANSPORT PUBLIC
IASI RA
VECTOR SPEDITION SRL
1.450
87,219,181
29
278,208
456
Brasov, BRASOV
1.413
73,909,279
35
-11,487,830
1,390
Iasi, IASI
1.113
17,083,035
42
33,619
220
Slobozia, IALOMITA
FRIGOEXPRES SA
1.075
67,313,570
37
-5,899,887
295
Oradea, BIHOR
RANK
1
2
3
4
5
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
40
41
42
COMPANY NAME
CONTACT
Drobeta Turnu
Severin, MEHEDINTI
Sibiu, SIBIU
Sannicoara,
Com Apahida, CLUJ
Podari, Sat Braniste,
DOLJ
Cluj-Napoca, CLUJ
Tel.: +40 (0) 21 - 331 22 07
Fax: +40 (0) 21 - 331 22 09
MCR
TRANSPORT & CARGO
MARITIME & RIVER TRANSPORT
RANK COMPANY NAME
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
CONTACT
3
56,184,050
489
Agigea, CONSTANTA
1
CONSTANTA SOUTH CONTAINER TERMINAL SRL
2.575
175,249,387
2
TOMINI TRADING SRL
2.500
276,408,772
1
11,894,772
3
COMVEX SA
2.450
109,205,606
7
18,771,638
4
MSC ROMANIA SHIPPING SRL
2.425
166,820,333
5
10,118,536
5
2.350
174,293,071
4
885,371
2.113
239,563,588
2
588,658
7
SARGEANT MARINE ROMANIA SRL
COMPANIA DE NAVIGATIE FLUVIALA ROMANA
NAVROM SA
OIL TERMINAL SA
2.050
111,512,140
6
540,105
8
KAPITAL LEADING TRANSPORT SRL
2.025
51,061,014
17
464,525
6
49
586
1,096 Constanta, CONSTANTA
36
9
VADECO SRL
2.025
50,576,432
18
1,494,195
10
CHIMPEX SA
2.000
72,412,783
10
2,034,632
11
SOCEP SA
1.963
55,193,012
15
2,231,745
12
1.900
53,533,510
16
6,033,285
27
1.888
41,170,936
22
4,836,197
430
1.825
68,552,693
13
0
720
15
TEAM LOGISTIC SPECIALISTS SRL
COMPANIA NATIONALA ADMINISTRATIA
CANALELOR NAVIGABILE SA
REGIA AUTONOMA ADMINISTRATIA FLUVIALA
A DUNARII DE JOS GALATI RA
ROMAR SHIPPING AGENCY SRL
1.775
71,952,211
11
180,897
16
NORTH STAR SHIPPING SRL
1.738
87,026,976
8
22,763,272
17
MIDIA MARINE TERMINAL SRL
1.738
56,249,074
14
10,098,340
81 Navodari, CONSTANTA
18
GRUP SERVICII PETROLIERE SHIPYARD SRL
1.675
71,094,655
12
3,821,390
19
UNITED SHIPPING AGENCY SRL
1.613
46,900,839
20
8,545,068
20
MINMETAL SA
1.550
47,326,528
19
10,194,315
21
DG PETROL SRL
1.288
44,205,743
21
-7,370,220
100
22
PORTO NAV GROUP SRL
1.275
81,476,771
9
-98,648
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
3.325
1,111,726,009
2
144,645,337
22,905
2.950
1,668,976,646
1
-992,207,335
13,645
2.925
813,683,088
4
28,824,601
2,368
2.700
970,399,645
3
-405,086,569
8,411
5
COMPANIA NATIONALA DE CAI FERATE CFR SA
FEROVIAR DE CALATORI CFR CALATORI SA
GRUP FEROVIAR ROMAN SA
FEROVIAR DE MARFA - CFR MARFA - SA
UNICOM TRANZIT SA
2.463
199,266,547
7
4,639,221
425
6
METROREX SA
2.425
537,247,002
5
-42,302,066
4,158
7
ROFERSPED SA
2.275
156,544,371
8
359,025
27
13
14
RAIL TRANSPORT
RANK COMPANY NAME
1
2
3
4
Agigea, CONSTANTA
- Constanta, CONSTANTA
CONTACT
Voluntari, ILFOV
8
TRANSFEROVIAR GRUP SA
2.138
140,275,824
9
7,351,610
491
9
TRANSFER INTERNATIONAL SPEDITION SRL
2.100
120,402,956
10
1,695,618
55
10
REGIOTRANS SRL
2.025
204,490,522
6
-40,315,854
876
11
RAIL FORCE SRL
1.950
48,597,318
16
23,896,173
48
Brasov, BRASOV
12
DB SCHENKER RAIL ROMANIA SRL
1.875
90,293,581
13
2,925,984
274
Timisoara, TIMIS
Voluntari, ILFOV
13
UNIFERTRANS SA
1.813
94,589,467
12
6,454,735
436
14
TRANS EXPEDITION FEROVIAR SRL
1.700
99,860,966
11
726,774
562
15
GRAMPET SA
1.588
77,425,563
15
3,842,348
-
16
SERVTRANS INVEST SA
1.375
84,767,484
14
-14,334,326
552
Tel.: +40 (0) 21 - 331 22 07
Fax: +40 (0) 21 - 331 22 09
Cluj Napoca, CLUJ
AIR TRANSPORT
RANK
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
COMPANY NAME
COMPANIA NATIONALA DE TRANSPORTURI
AERIENE ROMANE TAROM SA
ADMINISTRATIA ROMANA A SERVICIILOR DE
TRAFIC AERIAN ROMATSA RA
COMPANIA NATIONALA AEROPORTURI
BUCURESTI SA
LUFTHANSA CARGO AG - GERMANIA KELSTERBACH - SA SUCURSALA ROMANIA
GLOBE GROUND ROMANIA SRL
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
CONTACT
3.113
1,048,339,557
1
-230,617,520
2,173
Otopeni, ILFOV
3.113
707,129,123
2
9,424,206
1,519
2.925
555,519,217
3
53,125,339
1,174
Otopeni, ILFOV
2.150
35,689,731
12
34,404,535
3
Otopeni, ILFOV
2.013
74,406,738
5
10,115,026
817
Otopeni, ILFOV
REGIONAL AIR SERVICES SRL
1.988
41,475,483
9
2,822,088
89
Tuzla, CONSTANTA
CARPATAIR SA
1.900
245,820,960
4
-36,411,096
412
Ghiroda, TIMIS
REGIONAL AIR SUPORT SRL
1.775
18,123,418
14
1,012,395
21
AUTORITATEA AERONAUTICA CIVILA ROMANA RA
SOCIETATEA NATIONALA AEROPORTUL
INTERNATIONAL TIMISOARA - TRAIAN VUIA SA
SOCIETATEA NATIONALA AEROPORTUL
INTERNATIONAL MIHAIL KOGALNICEANUCONSTANTA SA
MEDALLION AIR SRL
1.738
42,908,165
8
3,128,792
203
1.638
44,241,857
7
4,209,350
258
Timisoara, TIMIS
1.475
15,195,214
15
-1,393,064
276
Mihail Kogalniceanu,
CONSTANTA
1.425
21,354,364
13
-13,433,528
77
JETRAN AIR SRL
1.238
13,056,621
16
118,419
92
EUROJET ROMANIA SRL
1.213
37,330,854
10
-6,297,537
30
COMPANIA ROMANA DE AVIATIE ROMAVIA RA
1.175
9,190,017
17
-11,258,444
97
AEROPORTUL CLUJ NAPOCA RA
1.050
49,436,169
6
0
221
Cluj-Napoca, CLUJ
ION TIRIAC AIR SA
1.025
36,838,808
11
-9,658,124
26
Otopeni, ILFOV
MCR
TRANSPORT & CARGO
FREIGHT TRANSPORT
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
SCHENKER ROMTRANS SA
3.113
364,220,002
1
15,624,920
1,115
TTS (TRANSPORT TRADE SERVICES) SA
2.663
300,813,402
2
15,519,016
43
DSV SOLUTIONS SRL
2.625
134,981,381
5
6,387,248
271
Otopeni, ILFOV
KUEHNE + NAGEL ROMANIA SRL
2.550
165,071,567
3
2,936,347
186
Joita, GIURGIU
DHL LOGISTICS SRL
2.325
59,573,088
17
6,763,586
52
KLG EUROPE LOGISTICS SRL
2.225
93,433,112
8
1,786,193
315
GOPET ROMANIA SRL
2.188
105,430,244
6
402,507
50
CALBERSON ROMANIA SA
2.138
103,015,880
7
78,561
330
NDL FRIGO LOGISTICS SRL
2.113
50,986,237
19
668,454
208
M&M MILITZER & MUNCH ROMANIA SRL
2.088
47,200,526
20
648,091
38
INTERNATIONAL BUSINESS TRANSPORT SA
2.050
61,703,456
14
1,865,227
114
GEBRUDER WEISS SRL
2.000
154,861,224
4
4,054,679
276
TIBBETT RETAIL SERVICES SRL
1.925
43,334,769
21
1,203,528
249
LAGERMAX AUTOTRANSPORT SRL
1.825
83,905,184
9
1,697,572
261
ALL CARGO EXPRES SRL
KARL HEINZ DIETRICH INTERNATIONAL
EXPED SRL
ROMEXPED GROUP SRL
1.775
77,362,243
12
4,400,340
39
Ghisoda, TIMIS
1.713
61,115,990
15
12,733,267
470
Otopeni, ILFOV
1.650
53,627,263
18
1,274,364
18
CARGO-PARTNER EXPEDITII SRL
1.550
82,877,388
10
-2,571,509
126
TIBBETT LOGISTICS SRL
1.513
67,214,975
13
3,014,797
391
H ESSERS TRANSPORT SRL
1.425
6,315,590
22
-527,408
13
PANALPINA ROMANIA SRL
1.400
60,006,698
16
-2,548,552
25
EXPRESS - INTERFRACHT ROMANIA SRL
1.300
78,671,522
11
-1,800,508
80
Otopeni, ILFOV
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
CONTACT
RANK COMPANY NAME
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
POSTAL AND COURIER ACTIVITIES
RANK COMPANY NAME
CONTACT
Chiajna, ILFOV
Chiajna, ILFOV
Oradea, BIHOR
1
2
3
4
5
6
7
8
COMPANIA NATIONALA POSTA ROMANA SA
3.075
1,205,532,168
1
-52,061,179
31,046
DHL INTERNATIONAL ROMANIA SRL
2.900
185,113,904
3
8,133,419
410
FAN COURIER EXPRESS SRL
2.738
241,724,888
2
40,868,482
1,189
POSTMASTER SRL
2.600
45,802,571
9
8,671,629
1,302
TNT ROMANIA SRL
2.500
167,210,002
4
11,309,111
304
UPS ROMANIA SRL
2.363
98,979,971
5
1,257,679
117
INTERNATIONAL ROMEXPRESS SERVICE LTD SRL
2.325
18,833,612
16
2,770,606
108
CARGUS INTERNATIONAL SRL
2.288
96,301,564
6
6,604,070
929
9
FULL DISTRIBUTION SERVICES SRL
2.163
16,888,024
17
8,317
20
Sfantu Gheorghe,
COVASNA
GLS GENERAL LOGISTICS SYSTEMS ROMANIA SRL
2.113
36,067,957
11
5,594,363
57
Sibiu, SIBIU
NEMO PROD COM IMPEX SRL
2.013
67,194,780
8
1,741,575
373
URGENT CURIER SRL
1.950
90,618,556
7
10,471,076
683
POSTA ATLASSIB CURIER RAPID SRL
1.888
31,057,673
12
1,743,495
535
DYNAMIC PARCEL DISTRIBUTION SA
1.738
45,385,165
10
1,598,107
153
INBOX MARKETING SRL
1.638
11,847,667
20
-622,627
600
OTTO EXPEDITII SRL
1.625
22,975,739
13
-1,142,702
280
TOTAL POST SERVICES SRL
1.575
22,155,957
14
-1,179,319
561
Voluntari, ILFOV
INFODIREKT SRL
1.463
22,143,258
15
487,409
4
Piatra Neamt, NEAMT
WORLD MEDIATRANS SRL
1.425
14,566,884
19
20,276
96
Timisoara, TIMIS
SPRINT CURIER EXPRESRL
1.300
16,259,826
18
-261,625
188
10
11
12
13
14
15
16
17
18
19
20
Tel.: +40 (0) 21 - 331 22 07
Fax: +40 (0) 21 - 331 22 09
Otopeni, ILFOV
Sibiu, SIBIU
420,000
passenger cars to be produced in 2013,
positioning Romania on the 9th place in Europe
Automotive Industry
t PRODUCERS & IMPORTERS
t CAR DEALERS
t AUTOMOTIVE PARTS PRODUCERS
t AUTOMOTIVE PARTS DISTRIBUTORS
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 2013. 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 H1 2012
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 H1 2012 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 H1 2012 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 2013. Despite its output, the
Romanian company recorded a 12.5% decrease in units sold
compared to the same period in 2012. Opel was the only brand
that recorded a slight increase in sales, reaching 756 units sold
in H1 2013 as compared to 728 units in H1 2012.
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 2012.
The light commercial vehicles segment recorded a decrease in
volume of 14.1% in H1 2013 vs. the same period of 2011, to reach
Figure 2. Sales of LCV by Brand
4%
4%
21%
29%
6%
21%
5%
3%
3%
6%
3%
9%
15%
4%
12%
5%
6%
Dacia
Ford
Peugeot
10%
6%
Volkswagen
Hyundai
Audi
8%
10%
10%
Skoda
Opel
Other
Renault
Toyota
Dacia
Volkswagen
Peugeot
Ford
Mercedes Benz
Citroen
Renault
Fiat
Toyota
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.
Figure 3. Sale of Passenger Cars by Month (2013 vs. 2012)
9,000
8,000
THE REGULATORY FRAMEWORK GOES THROUGH CHANGES
7,000
6,000
Units
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.
5,000
4,000
3,000
2,000
1,000
0
January February
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 2013. Thus, the voucher
holders have a limited period of 45 days to submit it to the
dealers or producers enrolled in the governmental project.
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
March
2013
April
May
June
2012
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.
MCR
Opinion
CHRISTIAN
VON ALBRICHSFELD,
General Manager,
Continental Automotive Romania
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 2025.
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
Lean on a
“lean
philosophy”
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 177.000 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
12.500 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.
AUTOMOTIVE PRODUCERS & IMPORTERS
RANK
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
COMPANY NAME
PORSCHE ROMANIA SRL
AUTOMOBILE DACIA SA
TOYOTA ROMANIA SRL
MERCEDES-BENZ ROMANIA SRL
BMW VERTRIEBS GMBH SALZBURG
SUCURSALA BUCURESTI
FORD ROMANIA SA
PREMIUM AUTO SRL
HYUNDAI AUTO ROMANIA SRL
DURA AUTOMOTIVE ROMANIA SRL
EUROSPORT DHS SA
TRUST MOTORS SRL
EVW HOLDING SRL
GERMAN TOP TRADING SRL
VOLVO ROMANIA SRL
CITROEN ROMANIA SRL
M CAR TRADING SRL
KIA ROMAUTO SRL
AUTO ITALIA IMPEX SRL
ASTRA BUS SRL
ROMAN SA
HONDA TRADING ROMANIA SRL
SUBARU MOTORS TRADING SRL
ANNUAL TURNOVER
(2012 RON)
1,609,520,847
3.750
TURNOVER
RANKING
3
PROFIT/LOSS
(2012 RON)
103,543,762
NO OF
EMPLOYEES
151
12,742,145,319
1
277,239,794
13,640
Mioveni, ARGES
555,476,459
5
3,434,991
61
Voluntari, ILFOV
806,467,551
4
15,377,724
144
MCR SCORING
3.575
3.313
3.125
2.788
422,977,465
6
12,275,488
12
2.738
2.488
2.288
2.200
2.188
2.188
2.088
1.950
1.888
1.863
1.788
1.775
1.675
1.538
1.488
1.400
1.363
2,479,148,106
2
-480,681,010
3,745
161,079,969
13
8,568,815
33
202,908,559
9
4,295,506
47
141,828,190
14
2,961,363
614
Ghiroda, TIMIS
165,872,374
11
1,579,451
286
Deva, HUNEDOARA
224,136,100
8
7,235,412
75
246,266,687
7
4,430,637
462
23,649,527
20
675,409
65
163,952,241
12
242,358
223
102,036,017
16
-1,853,090
41
105,710,730
15
-733,891
39
76,445,087
17
868,785
27
171,780,631
10
-11,592,778
176
Gilau, CLUJ
22
20,206
52
Arad, ARAD
20,142,243
21
-10,278,397
382
Brasov, BRASOV
54,413,603
18
-1,858,395
16
24,148,507
19
-3,054,911
28
TURNOVER
RANKING
1
PROFIT/LOSS
(2012 RON)
-19,821,845
NO OF
EMPLOYEES
1
1
RENAULT INDUSTRIE ROUMANIE SRL
ANNUAL TURNOVER
(2012 RON)
5,431,278,375
3.038
2
AUTONET IMPORT SRL
2.888
584,354,129
2
12,473,032
788
40
COMPANY NAME
Craiova, DOLJ
12,934,577
AUTOMOTIVE PARTS DISTRIBUTORS
RANK
CONTACT
Voluntari, ILFOV
MCR SCORING
CONTACT
Mioveni, ARGES
Satu Mare,
SATU MARE
Alexandria,
TELEORMAN
3
AUTOCORA SRL
2.663
293,847,676
5
6,434,487
4
5
6
7
8
9
GOODYEAR DUNLOP TIRES ROMANIA SRL
AD AUTO TOTAL SRL
CONEX DISTRIBUTION SA
AUGSBURG INTERNATIONAL IMPEX SRL
AUTO SOFT SERVICE ROTI SRL
ATP - EXODUS SRL
2.600
2.588
2.225
2.213
2.175
2.088
353,324,497
4
2,554,701
44
471,258,924
3
9,192,054
813
106,807,932
13
3,126,364
337
Iasi, IASI
219,441,830
6
626,078
290
Chiajna, ILFOV
98,194,926
15
8,500,130
196
Fundeni, ILFOV
171,213,682
7
3,886,101
325
10
DINAMIC 92 DISTRIBUTION SRL
2.075
118,783,722
12
2,371,732
-
Sasar, MARAMURES
Piatra-Neamt,
NEAMT
11
12
TROST AUTO SERVICE TECHNIK SRL
BARDI AUTO SRL
2.013
2.013
135,640,728
9
-7,996,060
339
90,755,518
17
4,716,856
255
13
NEXXON SRL
1.913
120,389,642
10
1,189,777
161
14
15
16
COM DIVERS AUTO RO SA
INTER CARS ROMANIA SRL
ELIT ROMANIA PIESE AUTO ORIGINALE SRL
1.875
1.863
1.863
119,517,963
11
2,404,274
329
Chiajna, ILFOV
Targu Secuiesc,
COVASNA
Bascov, ARGES
156,276,570
8
-5,065,218
91
Cluj-Napoca, CLUJ
104,733,220
14
-3,462,226
233
17
PROINVEST SRL
1.863
67,689,072
20
2,618,010
211
18
19
20
MATEROM SRL
DELTA PLUS TRADING SRL
MARSOROM SRL
1.700
1.638
1.613
95,754,054
16
29,896
280
43,758,434
23
3,685
122
66,876,506
21
52,702
99
21
IMPAR SRL
1.500
52,981,796
22
683,538
73
22
23
AUTO GROUP CMB SRL
EUROMASTER TYRE & SERVICES ROMANIA SA
1.488
1.450
71,127,888
19
217,908
94
86,269,347
18
-3,014,537
127
Alexandria,
TELEORMAN
Ernei, MURES
Odorheiu Secuiesc,
HARGHITA
Arad, ARAD
MCR
AUTOMOTIVE INDUSTRY
CAR DEALERS
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
1
2
3
4
5
6
7
8
RENAULT COMMERCIAL ROUMANIE SRL
3.875
1,392,502,732
1
33,327,070
195
PORSCHE INTER AUTO ROMANIA SRL
3.525
694,338,184
2
9,606,040
482
RADACINI MOTORS SRL
2.613
194,675,545
8
9,825,872
222
TIRIAC AUTO SA
2.513
557,495,323
3
-8,997,352
804
MHS TRUCK & BUS SRL
2.500
320,181,463
5
7,306,363
138
AUTOMOBILE BAVARIA SRL
2.438
399,755,588
4
1,298,435
195
EVOBUS ROMANIA SRL
2.300
70,541,848
28
2,940,860
52
AVIA MOTORS SRL
2.225
95,228,665
15
5,266,051
181
Pantelimon, ILFOV
9
AUTO ALEX SRL
2.175
54,976,188
36
2,099,672
108
Moldova Noua,
CARAS-SEVERIN
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
SERVICE AUTO SERUS SRL
2.075
94,967,672
16
7,265,342
301
AUTOWORLD SRL
2.038
129,555,950
12
1,063,136
141
BRADY TRADE SRL
1.975
68,379,729
29
957,029
127
CEFIN ROMANIA SRL
1.963
215,220,617
7
-103,988,814
438
SCANIA ROMANIA SRL
1.938
144,914,166
11
-4,062,650
118
Ciorogarla, ILFOV
RMB INTER AUTO SRL
1.925
107,798,038
14
-1,969,511
227
Cluj-Napoca, CLUJ
CASA AUTO SRL
1.925
74,184,263
23
892,994
98
Iasi, IASI
EURIAL INVEST SRL
1.888
112,660,365
13
-606,385
404
EUROSPEED SRL
1.888
85,067,563
19
1,538,930
83
Suceava, SUCEAVA
CTE TRAILERS SRL
1.850
73,188,037
24
1,229,145
41
Ciorogarla, ILFOV
AUTO SCHUNN SRL
1.788
82,838,766
20
1,595,719
107
Arad, ARAD
AUTOKLASS CENTER SRL
1.775
228,585,790
6
-4,803,580
310
DI - BAS AUTO SRL
1.738
35,378,160
39
500,033
70
MIDOCAR SRL
1.713
176,858,004
10
-3,556,753
259
INCHCAPE MOTORS SRL
1.675
65,733,189
32
967,461
75
Voluntari, ILFOV
CYBERNET AUTO CENTER SRL
1.675
54,090,312
37
18,062
103
Bacau, BACAU
IVECO ROMANIA SRL
1.663
189,149,433
9
-4,356,862
28
27
NURVIL SRL
1.600
91,237,435
17
856,835
167
28
29
30
31
32
33
34
35
36
37
38
39
COLINA MOTORS SRL
1.563
87,237,770
18
-3,159,089
136
AUTO COBALCESCU SRL
1.513
72,232,599
26
71,177
651
BUSINESS DEVELOPMENT TEAM SRL
1.488
74,242,556
22
-1,186,765
105
DELCAR SRL
1.488
67,891,624
30
37,578
26
EURO TEHNO GROUP SRL
1.488
66,751,084
31
664,994
131
RMB CASA AUTO TIMISOARA SRL
1.425
55,129,944
35
-1,275,435
92
MIT MOTORS INTERNATIONAL SRL
1.425
53,431,903
38
266,967
55
DUMATRUCKS SRL
1.363
73,108,371
25
-53,397,011
158
Podari, DOLJ
PROTRUCK CENTER SRL
1.325
71,775,126
27
-5,992,103
179
Jilava, ILFOV
EURO INTER TRADE CORPORATION SRL
1.275
59,821,219
34
1,524,580
22
D & C IMPEX SRL
1.188
61,085,534
33
-3,730,710
94
Oradea, BIHOR
TESS SRL
1.175
80,714,187
21
-853,827
126
Ghimbav, BRASOV
RANK COMPANY NAME
CONTACT
Tunari, ILFOV
Otopeni, ILFOV
Cluj-Napoca, CLUJ
Ramnicu Valcea,
VALCEA
Ghimbav, BRASOV
Timisoara, TIMIS
MCR
AUTOMOTIVE INDUSTRY
AUTOMOTIVE PARTS PRODUCERS
RANK COMPANY NAME
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
CONTACT
1
DELPHI PACKARD ROMANIA SRL
3.950
1,703,187,728
5
42,549,021
9,129
Sannicolau Mare,
TIMIS
2
3
4
AUTOLIV ROMANIA SRL
3.800
1,894,716,682
3
129,830,704
3,713
Brasov, BRASOV
CONTINENTAL AUTOMOTIVE PRODUCTS SRL
3.600
2,376,683,119
1
398,362,841
-
Timisoara, TIMIS
YAZAKI ROMANIA SRL
3.550
743,212,832
14
15,422,864
3,898
5
HELLA ROMANIA SRL
3.488
723,299,726
15
45,040,552
1,023
Sannicolau Mare,
TIMIS
CONTITECH ROMANIA SRL
3.488
689,122,632
16
116,568,484
1,556
Timisoara, TIMIS
MICHELIN ROMANIA SA
3.425
2,126,820,954
2
35,009,410
2,666
DELPHI DIESEL SYSTEMS ROMANIA SRL
3.425
1,849,217,306
4
121,508,865
2,071
Bratuleni, IASI
Timisoara, TIMIS
6
7
8
9
10
11
12
13
14
15
TRW AUTOMOTIVE SAFETY SYSTEMS SRL
3.425
886,361,772
12
9,409,407
2,648
PIRELLI TYRES ROMANIA SRL
3.300
1,521,577,921
8
60,019,499
2,100
TAKATA ROMANIA SRL
3.238
1,545,861,999
6
-7,103,649
4,168
Arad, ARAD
CONTINENTAL AUTOMOTIVE SYSTEMS SRL
3.175
1,526,272,339
7
-124,430,969
1,762
Sibiu, SIBIU
LEONI WIRING SYSTEMS PITESTI SRL
3.175
301,600,992
22
11,371,216
1,435
CONTINENTAL AUTOMOTIVE ROMANIA SRL
3.113
1,420,700,351
9
-113,611,255
3,942
Timisoara, TIMIS
3.113
1,295,437,947
10
-91,185,056
3,359
Mioveni, ARGES
3.113
308,395,165
21
23,760,447
2,753
17
JOHNSON CONTROLS ROMANIA SRL
GLOBAL E-BUSINESS OPERATIONS
CENTRE SRL
PREH ROMANIA SRL
3.088
340,331,610
20
12,968,969
469
Ghimbav, BRASOV
18
LEONI WIRING SYSTEMS RO SRL
2.988
763,018,948
13
6,527,468
3,142
19
20
21
22
23
24
25
26
27
RENAULT MECANIQUE ROUMANIE SRL
2.963
512,983,227
18
10,086,240
629
Mioveni, ARGES
KROMBERG & SCHUBERT ROMANIA SRL
2.863
414,872,708
19
4,928,826
2,056
Timisoara, TIMIS
EDUARD HARTMANN ROMANIA SRL
2.838
169,271,426
31
8,697,846
363
Cisnadie, BRASOV
LISA DRAXLMAIER AUTOPART ROMANIA SRL
2.800
257,902,075
24
8,041,300
3,408
YAZAKI COMPONENT TECHNOLOGY SRL
2.713
551,690,409
17
-12,383,219
862
Arad, ARAD
SEWS ROMANIA SRL
2.700
894,448,361
11
-23,859,236
7,653
Deva, HUNEDOARA
HIRSCHMANN ROMANIA SRL
2.625
192,723,136
27
6,927,420
773
Sanpaul, MURES
MGI COUTIER ROM SRL
2.588
100,651,828
44
10,248,922
281
Ghiroda, TIMIS
THYSSENKRUPP BILSTEIN COMPA SA
INERGY AUTOMOTIVE SYSTEMS
ROMANIA SRL
ECKERLE AUTOMOTIVE SRL
2.575
124,599,984
39
10,910,546
432
Sibiu, SIBIU
2.563
150,998,345
33
10,274,589
139
2.563
144,654,666
35
1,573,848
747
Cluj-Napoca, CLUJ
DAR DRAXLMAIER AUTOMOTIVE SRL
2.550
123,351,683
41
3,983,089
2,149
Timisoara, TIMIS
LEAR CORPORATION ROMANIA SRL
2.488
274,025,177
23
-4,880,128
1,760
NADAB AUTOMOTIVE COMPONENTS SRL
2.350
134,693,395
36
1,739,962
1,225
3M ROMANIA SRL
DRM DRAXLMAIER ROMANIA SISTEME
ELECTRICE SRL
ALTUR SA
2.250
205,825,692
26
39,923,706
84
2.213
171,848,202
30
8,189,149
4,547
2.113
112,147,120
43
5,310,245
668
COGEME SET RO SRL
1.988
127,955,011
38
9,844,119
217
KEY SAFETY SYSTEMS RO SRL
1.963
221,493,154
25
694,190
904
Ribita, HUNEDOARA
ROLEM SRL
1.963
186,559,149
28
-4,718,567
619
Codlea, BRASOV
BRANDL RO SRL
1.900
118,145,096
42
-1,907,561
587
Sibiu, SIBIU
MAHLE COMPONENTE DE MOTOR SRL
1.838
172,366,198
29
-2,991,679
317
Timisoara, TIMIS
CALSONIC KANSEI ROMANIA SRL
1.838
162,259,143
32
-6,044,401
427
Targoviste,
DAMBOVITA
Talmaciu, SIBIU
16
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42 FAURECIA SEATING TALMACIU SRL
43 STYRIA ARCURI SA
44 STAR TRANSMISSION CUGIR SRL
Nadab, ARAD
Satu Mare, SATU
MARE
1.713
147,488,632
34
-8,787,141
720
1.700
131,432,984
37
-3,982,386
331
Sibiu, SIBIU
1.688
124,505,105
40
-12,774,296
751
Cugir, ALBA
2013
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
t LEGAL
t MANAGEMENT CONSULTING COMPANIES
t ACCOUNTING, AUDIT, FAS & TAX
t EXECUTIVE SEARCH, RECRUITMENT AND HR MANAGEMENT
t TRAINING COMPANIES
t MARKET RESEARCH COMPANIES
t BUSINESS PROCESS OUTSOURCING
MCR
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 2008-2012
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 2008-2012 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 2009. 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
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.
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
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.
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.
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
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.
MCR
ACCOUNTING, AUDIT, FAS AND TAX
ANNUAL
TURNOVER
(2012 RON)
ANNUAL
TURNOVER
(2011 RON)
ANNUAL
TURNOVER
GROWTH %
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
116,390,555
109,563,568
6.2%
322,137
401
PRICEWATERHOUSECOOPERS AUDIT SRL
BRITISH AMERICAN SHARED SERVICES
(EUROPE) SRL
ERNST & YOUNG ASSURANCE SERVICES SRL
82,998,673
68,701,522
20.8%
1,641,728
274
64,808,225
50,948,546
27.2%
5,550,703
253
60,780,406
55,752,617
9.0%
1,376,117
127
DELOITTE AUDIT SRL
60,315,683
55,205,075
9.3%
2,250,359
208
ERNST & YOUNG SRL
PRICEWATERHOUSECOOPERS TAX ADVISORS &
ACCOUNTANTS SRL
KPMG AUDIT SRL
58,802,537
83,552,164
-29.6%
6,749,957
116
57,508,992
50,448,931
14.0%
7,604,916
143
42,488,086
38,057,563
11.6%
473,112
24
DELOITTE CONSULTANTA SRL
26,110,969
23,196,617
12.6%
293,243
51
KPMG TAX SRL
24,886,655
23,453,797
6.1%
515,776
60
BDO AUDIT SRL
22,580,686
20,011,214
12.8%
2,877,832
100
DELOITTE TAX SRL
21,144,756
17,739,790
19.2%
3,987,718
52
TMF ROMANIA SRL
14,927,182
16,110,982
-7.3%
4,383,007
64
SOTER SRL
RANK COMPANY NAME
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
KPMG ROMANIA SRL
10,655,450
9,607,896
10.9%
2,296,023
37
MAZARS CONSULTING SRL
9,164,854
8,395,931
9.2%
-40,525
53
FIN EXPERT CONSULTING SRL
8,443,365
8,417,956
0.3%
1,003,373
47
A&F CLASSIC OFFICE SRL
8,401,314
8,231,305
2.1%
444,948
8
MAZARS ROMANIA SRL
7,647,271
8,380,995
-8.8%
485,137
26
BOSCOLO & PARTNERS CONSULTING SRL
NESTOR NESTOR DICULESCU KINGSTON
PETERSEN CONSULTANTA FISCALA SRL
RSM SCOT SRL
7,145,038
5,865,401
21.8%
2,298,799
32
7,105,253
9,035,232
-21.4%
323,523
9
6,605,548
5,916,853
11.6%
845,127
43
MIDOCAR CONSULTING SRL
6,584,839
16,569,858
-60.3%
-7,616,408
73
NOERR FINANCE & TAX SRL
6,191,349
4,892,179
26.6%
1,699,023
11
ROEDL & PARTNER OUTSOURCING SRL
5,621,089
4,889,433
15.0%
215,433
42
ACCACE EUROPE SRL
3,998,167
3,240,580
23.4%
-117,435
24
ROEDL & PARTNER AUDIT SRL
3,418,530
2,529,388
35.2%
103,656
22
BG CONTA SRL
3,374,044
3,304,454
2.1%
144,461
11
TPA HORWATH AUDIT SRL
3,100,779
2672882
16.0%
323,558
16
BAKER TILLY KLITOU AND PARTNERS SRL
2,838,696
3,201,564
-11.3%
231,187
20
FIDEXPERT SRL
2,526,907
3,097,527
-18.4%
30,722
19
TPA HORWATH TAX SRL
2,052,688
240596
753.2%
399,429
4
TMF ACCOUNTING & PAYROLL SRL
1,775,808
2,267,064
-21.7%
-65,316
17
CONTACT
MANAGEMENT CONSULTING
RANK COMPANY NAME
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
MCKINSEY & COMPANY SRL
PRICEWATERHOUSECOOPERS MANAGEMENT
CONSULTANTS SRL
ACCENTURE CENTRAL EUROPE BV
AMSTERDAM, OLANDA-SUCURSALA BUCURESTI
ACTIV EXPERT CONSULTANTA SI SERVICII SA
PRICEWATERHOUSECOOPERS SERVICII SRL
AT KEARNEY MANAGEMENT CONSULTING SRL
ROMCAPITAL INVEST SA
ROLAND BERGER STRATEGY CONSULTANTS SRL
ASCENDIS CONSULTING SRL
ENSIGHT MANAGEMENT CONSULTING SRL
HORVATH & PARTNERS MANAGEMENT
CONSULTING SRL
HAY GROUP MANAGEMENT CONSULTANTS SRL
BPI MANAGEMENT CONSULTING ROMANIA SRL
CAPITAL PARTNERS SRL
TMI TRAINING & CONSULTING SRL
TPA HORWATH CONSULT SRL
PIERRE AUDOIN CONSULTANTS SRL
PLURI CONSULTANTS ROMANIA SRL
ANNUAL
TURNOVER
(2012 RON)
75,372,914
ANNUAL
TURNOVER
(2011 RON)
58,091,702
ANNUAL
TURNOVER
GROWTH %
29.7%
41,374,112
24,117,554
36,987,535
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
12,118,202
31
71.6%
4,864,311
44
41,081,110
-10.0%
1,318,336
60
32,968,857
29,008,022
26,791,504
26,442,446
15,071,507
13,650,241
11,768,413
37,820,071
-12.8%
677,794
4
39,285,464
-26.2%
13,738,821
102
17,745,993
51.0%
2,137,083
16
19,766,927
33.8%
13,908,014
33
12,101,844
24.5%
-235,733
34
14,155,755
-3.6%
2,510,504
30
12,244,156
-3.9%
1,672,072
25
11,045,862
29,265,563
-62.3%
-193,434
26
4,437,606
3,817,668
3,481,646
2,897,082
2,095,460
1,871,855
780,708
5,356,783
-17.2%
-309,326
12
2,930,644
30.3%
662,601
18
11,849,944
-70.6%
-422,508
9
4,241,709
-31.7%
205,350
4
1,387,462
51.0%
643,727
1
1,784,344
4.9%
-27,707
11
846,876
-7.8%
57,032
12
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
338,115
4,230
CONTACT
Buzau, BUZAU
EXECUTIVE SEARCH, RECRUITMENT AND HR MANAGEMENT
RANK COMPANY NAME
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
MANPOWER ROMANIA SRL
ADECCO RESURSE UMANE SRL
TRENKWALDER SRL
ADECCO ROMANIA SRL
LUGERA & MAKLER SRL
LUGERA & MAKLER ROMANIA SRL
APT RESOURCES & SERVICES SRL
AGENTIA DE SERVICII PROFESSIONAL SRL
GI GROUP STAFFING COMPANY SRL
SMARTREE ROMANIA SRL
INTERIM PLUS SRL
ARCFORCE SRL
AIMS HUMAN CAPITAL ROMANIA SRL
PEDERSEN & PARTNERS CONSULTING SRL
BARNETT MCCALL RECRUITMENT SRL
HILL INTERNATIONAL HUMAN RESOURCES
CONSULTING ROMANIA LIMITED SRL
CONSULTEAM RECRUTARE SI SELECTIE SRL
STEIN & PARTNER MANAGEMENT
CONSULTING SRL
ROYALTY JOBS INTERNATIONAL SRL
BIA HUMAN RESOURCE MANAGEMENT
SERVICES SRL
E-FINANTE MANAGEMENT GRUP SRL
LEADERSHIP DEVELOPMENT SOLUTIONS SRL
DR PENDL & DR PISWANGER ROMANIA SRL
STANTON CHASE INTERNATIONAL SRL
ANNUAL
TURNOVER
(2012 RON)
166,037,866
116,876,692
95,335,847
66,379,979
58,393,313
58,160,471
51,122,016
32,297,623
31,617,691
27,313,895
18,312,763
14,581,282
10,200,602
3,653,705
3,500,883
ANNUAL
TURNOVER
(2011 RON)
112,360,432
ANNUAL
TURNOVER
GROWTH %
47.8%
107,083,586
9.1%
1,981,272
4,226
90,913,421
4.9%
-2,229,448
3,491
48,743,210
36.2%
2,131,931
761
64,587,732
-9.6%
896,823
1,425
78,188,276
-25.6%
319,784
1,633
43,859,263
16.6%
43,779
831
37,566,242
-14.0%
288,706
709
24,793,019
27.5%
-1,303,448
1,047
18,809,076
45.2%
147,153
622
17,511,183
4.6%
2,662,448
113
45,623,401
-68.0%
18,706
4
12,047,510
-15.3%
56,757
140
4,548,921
-19.7%
255,197
10
5,049,637
-30.7%
-1,488,856
58
2,529,031
3,316,663
-23.7%
99,642
19
2,273,989
2,091,799
8.7%
156,286
-
2,108,871
1,385,752
52.2%
243,332
10
1,897,133
1,592,084
19.2%
68,111
17
1,631,993
1,601,638
1.9%
294,706
15
1,604,678
1,374,042
1,101,399
1,014,104
1,777,806
-9.7%
278,718
5
1,748,351
-21.4%
-1,082,825
10
1,469,079
-25.0%
10,199
8
953,077
6.4%
-44,775
4
CONTACT
Timisoara, TIMIS
Craiova, DOLJ
MCR
Loud and clear
talkative market
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.
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.
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.
INCREASING PAYROLL OUTSOURCING MARKET
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
“Payroll outsourcing market in Romania has increased
significantly in the last 5 years, starting at around 70.000
processed employees in 2007 and has reached around 150.000
processed employees in 2012. 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 170.000
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 230-240 million for this year, an
increase of 20 percent over 2012. The demand for local workforce
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 10-15 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 2017.
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 2013. 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
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
ANNUAL
TURNOVER
(2012 RON)
ANNUAL
TURNOVER
(2011 RON)
ANNUAL
TURNOVER
GROWTH %
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
GENPACT ROMANIA SRL
302,738,436
220,997,557
37.0%
36,000,433
1,924
S & T ROMANIA SRL
COMPUTER GENERATED SOLUTIONS
ROMANIA SRL
WIPRO TECHNOLOGIES SRL
140,168,123
181,107,458
-22.6%
-3,897,959
143
129,252,131
112,066,525
15.3%
21,509,732
2,313
COMPANY NAME
CONTACT
103,795,001
93,100,221
11.5%
18,846,278
742
ACCENTURE SERVICES SRL
48,733,224
41,662,609
17.0%
3,187,239
387
PRINTEC GROUP ROMANIA SRL
45,750,957
59,270,931
-22.8%
7,573,774
155
AROBS TRANSILVANIA SOFTWARE SRL
38,581,092
33,599,647
14.8%
2,132,626
277
SPAR BUSINESS IDEAS PROVIDER SRL
17,349,639
16,908,870
2.6%
559,134
481
I Q MANAGEMENT SRL
14,259,758
19,309,399
-26.2%
1,721,839
32
IT SIX GLOBAL SERVICES SRL
13,813,966
8,343,094
65.6%
3,316,089
90
Craiova, DOLJ
NESS ROMANIA SRL
12,989,816
16,531,227
-21.4%
647,300
39
Iasi, IASI
BERG COMPUTERS SRL
Cluj-Napoca, CLUJ
12,306,082
12,298,482
0.1%
1,801,525
-
Ghiroda, TIMIS
EVALUESERVE SRL
8,612,309
7,887,623
9.2%
763,874
61
Cluj-Napoca, CLUJ
ARCHITECTED BUSINESS SOLUTIONS SRL
5,764,026
5,602,975
2.9%
802,698
12
TRINITY CORPORATE SERVICES ROMANIA SRL
2,363,286
2,090,648
13.0%
232,804
22
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 2007. 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 2014.
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 2008.
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.
MCR
Emerging Europe:
M&A Report 2012
CMS and DealWatch
Political grid-lock dampened M&A growth in 2012; modest
growth envisaged for 2013.
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.
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 2012. 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.
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 2013.
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 2013. 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 2013. 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.
MODEST GROWTH ENVISAGED
We are optimistic about 2013. 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
www.securities.com/dw - 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).
LEGAL
RANK LEGAL COMPANIES *
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
ANDRA MUSATESCU LAW & INDUSTRIAL PROPERTY OFFICES
ANGHEL STABB & PARTNERS
BCLAW CRINGUREANU & PARTNERS
BAKER TILLY ROMANIA
BIRIS GORAN SCPA
BOSTINA & ASSOCIATES
BPV GRIGORESCU STEF~NIC~
BULBOACA & ASOCIATII
BUZESCU CA
CHSH GILESCU, VALEANU & PARTNERII SCA CERHA HEMPEL SPIEGELFELD HLAWATI
CLIFFORD CHANCE BADEA
CMS
D&B DAVID SI BAIAS
DENTONS
DLA PIPER DINU SCA
DRAGNE & ASOCIATII
DRAKOPOULOS LAW FIRM
ENESCU & CUC.
EVERSHEDS LINA & GUIA
GIDE LOYRETTE NOUEL
HAMMOND, BOGARU AND ASSOCIATES SCPA
KINSTELLAR
KLC LAW FIRM BRANCH ROMANIA
MARARU & MARARU
MARES DANILESCU MARES
MAZARS - DUNCEA, STEFANESCU & ASOCIATII
MCGREGOR & PARTNERS S.C.A.
MUSAT & ASOCIATII
NESTOR NESTOR DICULESCU KINGSTON PETERSEN
NOERR
PACHIU & ASSOCIATES
PELI FILIP
PLATIS BAZILESCU LLLP
POP PEPA
POPOVICI NITU & ASOCIATII
RATIU & RATIU
REFF & ASSOCIATES
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
SCHOENHERR SI ASOCIATII SCA
TUCA ZBARCEA & ASOCIATII
VASILE DELEANU - ATTORNEYS AT LAW
VASS LAWYERS
VERNON | DAVID
VILAU & MITEL
VOICU & FILIPESCU SCA
WHITE & CASE, PACHIU SCA
WOLF THEISS
ZAMFIRESCU RACOTI PREDOIU ATTORNEYS AT LAW
* companies are listed alphabetically; ** source www.legal500.com
NO OF LAWYERS **
ADDRESS
n/a
www.andramusatescu.ro
15
www.stabblaw.com
n/a
www.bclaw.ro
n/a
30
www.birisgoran.ro
82
32
www.bpv-grigorescu.com
32
www.bulboaca.com
15
www.buzescu.com
20
www.chsh.com
n/a
43
www.cms-cmck.com
30
www.david-baias.ro
n/a
www.dentons.com
36
www.dlapiper.comromania
24
www.dragne.ro
18
www.drakopoulos-law.com
5
n/a
www.lina-guia.ro
n/a
www.gide.com/en/regions/romania
n/a
www.hbalaw.eu
n/a
www.kinstellar.com
n/a
n/a
www.mararu.ro
n/a
www.mares.ro
n/a
www.mazars.ro
12
www.mcgregorlegal.eu
116
www.musat.ro
115
www.nndkp.ro
470+
www.noerr.com
15
57
n/a
25
www.pop-pepa.com
85
www.pnpartners.ro
n/a
n/a
42
www.allenovery.com
20
www.hr.ro
28
n/a
www.stratula.com
n/a
www.schoenherr.eu
95
www.tuca.ro
n/a
www.deleanu.ro
n/a
www.vasslawyers.euro
n/a
www.vdalegal.com
40
www.vilaumitel.ro
45
www.vf.ro
n/a
www.whitecase.com
29
41
www.zrp.ro
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.
MCR
TRAINING COMPANIES
RANK COMPANY NAME
ANNUAL
TURNOVER
(2012 RON)
ANNUAL
TURNOVER
(2011 RON)
ANNUAL
TURNOVER
GROWTH %
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
1
ASCENDIS CONSULTING SRL
13,650,241
14,155,755
-3.6%
2,510,504
30
2
IFPTR SRL
12,351,093
12,827,938
-3.7%
-408,043
70
3
ECDL ROMANIA SA
INSTITUTUL ROMAN DE CERCETARI
ECONOMICO-SOCIALE SI SONDAJE - IRECSON SRL
CODECS SA
EUROCOR - INSTITUTUL EUROPEAN DE
CURSURI PRIN CORESPONDENTA SRL
SOCIETATEA COMERCIALA DE FORMARE A
ENERGETICIENILOR DIN ROMANIA SA
LEXIS SRL
7,979,779
8,960,212
-10.9%
1,651,951
28
7,861,115
9,423,723
-16.6%
43,226
74
6,337,932
5,341,675
18.7%
-2,113,898
29
6,295,801
7,241,527
-13.1%
271,281
68
5,991,787
7,702,394
-22.2%
105,642
35
5,047,569
5,177,445
-2.5%
-186,653
72
UNITED BUSINESS DEVELOPMENT SRL
4,954,295
6,217,746
-20.3%
-570,646
15
TREND CONSULT SRL
3,793,774
4,137,798
-8.3%
164,400
10
INTERACT BUSINESS COMMUNICATIONS SRL
3,230,281
3,407,011
-5.2%
-20,145
12
ROLAND GAREIS CONSULTING SRL
2,981,619
3,260,017
-8.5%
42,909
4
COMPETITIVE IN BUSINESS & CONSULTING SRL
2,946,828
3,722,811
-20.8%
1,392,786
8
TMI TRAINING & CONSULTING SRL
2,897,082
4,241,709
-31.7%
205,350
4
IHB LANGUAGE TRAINING CENTER
2,781,305
3,609,838
-23.0%
205,628
14
BUSINESS TRAINING ROMANIA SRL
2,702,495
2,769,949
-2.4%
10,217
6
HUMAN INVEST SRL
1,763,642
2,361,636
-25.3%
-468,177
8
ANNUAL
TURNOVER
(2012 RON)
ANNUAL
TURNOVER
(2011 RON)
ANNUAL
TURNOVER
GROWTH %
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
206,330,254
163,785,900
26.0%
41,271,024
658
55,255,457
46,790,636
18.1%
2,101,411
230
4
5
6
7
8
9
10
11
12
13
14
15
16
17
MARKET RESEARCH COMPANIES
RANK
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
COMPANY NAME
IPSOS INTERACTIVE SERVICES SRL
GFK ROMANIA - INSTITUT DE CERCETARE
DE PIATA SRL
ACNIELSEN ROMANIA SRL
32,198,313
20,445,059
57.5%
-52,386
275
CEGEDIM ROMANIA SRL
26,092,945
23,178,549
12.6%
3,172,521
70
DAEDALUS CONSULTING SRL
15,934,852
15,158,175
5.1%
1,503,996
36
ARMADATA SRL
CENTRUL PENTRU STUDIEREA OPINIEI
SI PIETII (CSOP) SRL
EURODATA MANAGEMENT SRL
12,952,037
12,624,973
2.6%
810,791
1
8,554,692
7,579,228
12.9%
230,843
47
7,704,168
8,893,836
-13.4%
-39,338
112
MERCURY RESEARCH SRL
6,960,653
6,470,354
7.6%
528,205
85
IPSOS RESEARCH SRL
6,610,553
7,905,080
-16.4%
-482,741
150
ISRA CENTER MARKETING RESEARCH SRL
6,169,140
5,826,435
5.9%
300,731
63
IMAS-MARKETING SI SONDAJE SA
CENTRUL DE SOCIOLOGIE URBANA SI
REGIONALA - CURS SRL
THE GALLUP ORGANIZATION - ROMANIA SRL
METRO MEDIA TRANSILVANIA STUDII
SOCIALE SONDAJE MARKETING SI
PUBLICITATE SRL
IRSOP MARKET RESEARCH & CONSULTING SRL
4,806,544
5,813,937
-17.3%
-100,228
51
1,608,427
2,563,827
-37.3%
85,258
7
1,510,231
4,083,383
-63.0%
-1,433,947
17
1,492,452
1,345,770
10.9%
53,987
23
1,193,652
1,549,756
-23.0%
23,310
16
CONTACT
Miercurea Ciuc,
HARGHITA
CONTACT
Cluj-Napoca, CLUJ
3.400
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
t HOTELS AND SIMILAR ACCOMMODATION
t TRAVEL AGENCIES
t SECURITY COMPANIES
t PRINTING SERVICES
MCR
BUSINESS SERVICES
Preparing for the better,
hoping for the best
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 2013. 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:
s)JMUPO.BSSJPUU"DDPSBOE4UBSXPPEBSFBMMEFWFMPQJOH
new properties at a range of locations, reflecting wider
growth in the Romanian hotel market. Two years ago,
National Institute of statistics counted 1.319 hotels in
Romania, 73 up compared with 2010. In 2011, the number of
hotels in Romania increased 8 percent compared with 2010
and 14 percent compared with 2009. 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 2012.
s0VUCPVOEBJSUSBGGJDBMTPMPPLTTFUGPSHPPEHSPXUIPWFS
our forecast period to 2017, rising from 4.13mn passengers in
2013, to 4.56mn in 2017.
s,FZFWFOUTJO3PNBOJBJOJODMVEFUIF5SBOTZMWBOJB
International film festival, Bucharest Music Festival, Enescu
Festival, and various other cultural events. The country also
IPTUFEUIF&VSPQFBO:PVUI0MZNQJDTFBSMZJO
s%VFUPUIFWBTUQPUFOUJBMBOECPPNJOHJOEVTUSJFTBDSPTT
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 2011.
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 2011. 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
2008. 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
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
FYQFOTJWFBTDPNQBSFEUP6TPS8FTUFSO6OJPO0OUIFUPQ
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
/BUJPOBM5SBEF3FHJTUFS0GGJDFIPUFMTBOESFTUBVSBOUTTUPPE
for 2.221 insolvencies after this year’s first nine months, out
of a total of 19.118 insolvency files registered since the
beginning of this year.
Monthly net occupancy rates of bed places, March 2013
Country
Occupancy rate (%)
EU 27
39.5
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
HOTEL OPENINGS EXPECT BETTER TIMES
Source: Eurostat.
A study published by hotel and tourism consultant
,PIM1BSUOFSFBSMJFSUIJTZFBSBOUJDJQBUFEOFXIPUFM
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
VOEFSBNBOBHFNFOUBHSFFNFOUXJUI(JDB1PQFTDV)PUFMT
a tourism-based company owned by the former football
player, is expected to open in early 2014.
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
PXOFS3BEV&OBDIFTJHOFEBTBMFMFBTFCBDLUSBOTBDUJPO
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
(BSEFO*OO"UIFOFF1BMBDF)JMUPOJTSFQSFTFOUFEXJUI
locations at Bucharest and Sibiu.
MCR
Opinion
JAVIER GARCIA DEL VALLE,
CEO Happy Tour
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
QBDF'PSBUSBWFMUPVSJTNDPNQBOZ
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
The New Age
of travel
companies
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
QSPDFTTPGBDMJFOU0VSNJTTJPOJTUP
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.
0VSQBSUOFST"TTPDJBUFE"HFODJFTBSF
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.”
TRAVEL AGENCIES
RANK
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
COMPANY NAME
PERFECT TOUR SRL
EXIMTUR SRL
J’INFO TOURS SRL
WECO TMC SRL
BUSINESS TRAVEL TURISM SRL
OLIMPIC INTERNATIONAL TURISM SRL
PARALELA 45 TURISM SRL
HOTELAIR SRL
VOLARO STUDENT ADVENTURE SRL
HAPPY TOUR SRL
ACCENT TRAVEL & EVENTS SRL
ROMANIA TRAVEL PLUS SRL
AEROTRAVEL SRL
MANRED INTER SRL
TRANSILVANIA TRAVEL SA
PALOMA TOURS SRL
MAREEA COMTUR SRL
DANCO PRO COMMUNICATION SRL
MARSHAL TURISM SRL
WENS TOUR SRL
SUNMEDAIR TRAVEL & TOURISM SERVICES SRL
PROMPT SERVICE TRAVEL COMPANY SRL
PRESTIGE TOURS INTERNATIONAL SRL
PARAVION TOUR SRL
TRANSMIXT SA
SECURITY COMPANIES
RANK
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
COMPANY NAME
CASSIDIAN ROMANIA SRL
INTERGUARD GRUP SRL
SCORSEZE SECURITY INTERNATIONAL SRL
ALISTAR SECURITY SRL
G4S CASH SOLUTIONS SRL
GRUP EST SECURITY SRL
CONCEPT CONSULT & PROSPECT SRL
SECURIT FORCE SRL
ROMPREST SECURITY SRL
G4S SECURE SOLUTIONS SRL
CIVITAS PSG SRL
ZIP ESCORT SRL
GLOBAL SECURITY SISTEM SA
TIGER PROTECTOR COMPANY SRL
AGENTIA ROMANA DE SECURITATE SRL
RASIROM RA
BGS DIVIZIA DE SECURITATE SRL
SECURITAS SERVICES ROMANIA SRL
NEI GUARD SRL
HELINICK SRL
ROSEGUR SA
GUARD ONE ALARM SYSTEMS SRL
ANNUAL TURNOVER
(2012 RON)
110,000,404
2.500
TURNOVER
RANKING
4
PROFIT/LOSS
(2012 RON)
1,047,572
NO OF
EMPLOYEES
153
157,059,208
2
1,766,597
129
44,304,386
18
530,057
42
39,649,712
20
609,323
18
66,412,701
8
3,409,798
40
56,152,442
13
1,476,125
27
127,566,375
3
1,699,806
200
74,234,709
6
846,158
10
92,837,140
5
369,584
52
181,936,705
1
-527,219
108
72,863,199
7
1,028,631
49
54,303,036
14
373,681
30
22,783,581
25
645,203
120
53,929,081
15
1,883,461
34,778,031
21
121,375
23,231,040
24
712,311
23
64,053,319
9
26,520
76
42,290,801
19
499,316
22
50,512,413
17
195,244
114
27,910,442
22
165,847
26 Bistrita, BISTRITA-NASAUD
63,964,636
10
489,159
62
63,856,206
11
329,950
34
57,904,100
12
-2,793,681
37
52,326,710
16
-1,288,157
24
23,841,106
23
-780,781
178
ANNUAL TURNOVER
(2012 RON)
138,829,409
2.613
TURNOVER
RANKING
1
PROFIT/LOSS
(2012 RON)
5,463,533
NO OF
EMPLOYEES
116
83,568,442
6
6,857,043
1,668
83,541,715
7
6,423,759
3,060
52,153,881
10
8,464,110
755
131,865,231
2
8,352,111
3,391
2,034 Piatra Neamt, NEAMT
MCR SCORING
2.488
2.275
2.275
2.213
2.213
2.175
2.150
2.063
1.988
1.963
1.963
1.863
1.838
1.838
1.838
1.800
1.775
1.613
1.588
1.575
1.525
1.463
1.450
1.300
MCR SCORING
2.525
2.525
2.388
2.300
2.288
2.275
2.200
2.200
2.163
2.163
2.125
2.013
1.963
1.950
1.925
1.913
1.913
1.850
1.738
1.663
1.513
CONTACT
Cluj-Napoca, CLUJ
44
42,510,990
11
5,002,793
126,918,372
3
4,791,910
46
26,947,286
15
2,461,284
597
Deva, HUNEDOARA
Sibiu,SIBIU
CONTACT
24,490,663
19
288,998
929
107,794,981
5
-2,516,152
3,015
Otopeni, ILFOV
34,496,137
14
4,058,636
1,552
23,946,159
20
3,683,084
1,000 Constanta, CONSTANTA
23,349,722
21
649,241
708
26,254,595
16
77,503
1,059
24,841,713
18
3,472,470
862
22,993,633
22
1,103,221
124
115,498,797
4
172,075
2,851
78,132,453
8
2,136,646
2,912
36,337,222
13
153,286
1,608
40,011,181
12
1,321,740
129
53,143,032
9
-15,917,665
2,273
25,398,973
17
-370,345
517
Craiova, Dolj
Voluntari, ILFOV
MCR
BUSINESS SERVICES
HOTELS AND SIMILAR ACCOMMODATION
2.113
2.063
2.025
2.013
ANNUAL TURNOVER
(2012 RON)
33,174,816
111,830,736
31,376,724
27,506,169
TURNOVER
RANKING
12
2
13
16
PROFIT/LOSS
(2012 RON)
4,085,680
-920,234
6,108
5,904,256
NO OF
EMPLOYEES
161
597
246
1.975
106,167,463
3
-21,269,784
319
1.950
1.863
1.825
1.788
1.725
26,837,722
20,234,863
20,902,603
118,503,919
48,923,348
18
23
22
1
6
3,133,173
1,929,806
176,004
-22,202
2,948,355
442
248
426
14
677
1.675
42,585,336
8
-705,037
1.488
1.488
1.475
1.463
1.450
1.425
1.388
1.288
1.213
1.200
1.113
1.088
30,225,971
26,857,463
28,078,942
41,217,835
26,308,632
22,086,506
36,922,459
87,092,733
21,810,184
43,002,279
36,062,055
59,130,811
14
17
15
9
19
20
10
4
21
7
11
5
2,067,298
-568,915
2,047,960
3,178,833
-6,948,316
-3,289,353
103,517
-15,762,146
235,746
-10,640,136
-6,509,126
17,490,452
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
2.650
326,854,362
1
20,446,467
479
2
3
4
5
COMPANIA NATIONALA IMPRIMERIA
NATIONALA SA
IMPRIMERIA ARTA GRAFICA SA
PARAGON ROMANIA SRL
RODATA SRL
MONITORUL OFICIAL RA
2.113
2.050
1.925
1.888
31,245,028
31,484,731
30,999,517
58,858,756
16
15
17
7
2,146,503
5,892,527
2,484,064
18,767,493
130
177
95
358
6
ASAS (ROMANIA) SRL
1.863
64,730,824
6
873,661
58
7
8
9
10
11
Sat Buciumeni,
CALARASI
PRINT PACK PROD SRL
AMMA PRINT SRL
JMI RO SRL
IMPRIMERIA BANCII NATIONALE A ROMANIEI RA
ROTTAPRINT SRL
1.838
1.800
1.675
1.550
1.538
20,350,150
23,637,097
21,883,241
40,578,907
49,816,720
25
21
24
10
9
729,660
1,537,538
1,432,265
9,177,733
974,538
45
123
61
128
142
Oradea, BIHOR
12
INFOPRESS GROUP SA
1.513
170,916,739
2
-13,816,002
348
13
14
15
16
NOVIS CASA DE EDITURA SI TIPOGRAFIE SRL
TIPOGRAFIA EVEREST 2001 SRL
EVADIX MPI SRL
BEST PRINT SERVICES SRL
COMPANIA NATIONALA A IMPRIMERIILOR
CORESI SA
INFORM LYKOS SA
ART GROUP INT SRL
G CANALE & C SRL
EDS ROMANIA SRL
CONPHYS SRL
COMPANIA DE PRODUCTIE INTERTAINMENT SA
TIPOGRAFIA REAL SRL
MEGA PRESS HOLDINGS SA
1.488
1.488
1.463
1.450
35,432,452
29,472,298
22,549,483
32,445,798
12
18
23
13
761,713
397,176
-453,578
25,772
85
129
34
165
1.450
26,215,816
20
27,965
378
1.363
1.363
1.300
1.300
1.300
1.238
1.175
0.963
98,238,519
37,892,972
73,022,292
71,990,648
23,626,625
26,889,923
31,939,759
54,912,624
3
11
4
5
22
19
14
8
-4,280,297
848,287
-4,799,809
-21,068,555
20,688
-4,354,395
-480,828
-7,337,445
RANK COMPANY NAME
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
ACCOR HOTELS ROMANIA SRL
ANA HOTELS SA
PROLEX HOLIDAY SRL
BALNEOCLIMATERICA SA
SOCIETATEA COMPANIILOR HOTELIERE
GRAND SRL
SIND TOUR TRADING SRL
CSDR SIND TURISM SRL
ARO-PALACE SA
BUCURESTI TURISM SA
TURISM FELIX SA
COMPANIA HOTELIERA INTERCONTINENTAL
ROMANIA SA
VALDOR SRL
SCORPION PROD SA
ALPIN 2003 SRL
CONFORT HOTELS SRL
PARC HOTELS SA
DE SILVA RTH SRL
CALIMANESTI CACIULATA SA
CONTINENTAL HOTELS SA
CALEX BUSINESS GRUP SRL
UNITA TURISM HOLDING SA
GRAND PLAZA HOTEL SA
BUCHAREST FINANCIAL PLAZZA SRL
MCR SCORING
PRINTING SERVICES
RANK COMPANY NAME
1
17
18
19
20
21
22
23
24
25
CONTACT
Unghieni, NEAMT
Sovata, MURES
Brasov, BRASOV
Baile Felix, BIHOR
251
223
Slanic, PRAHOVA
117 Mamaia, CONSTANTA
216 Poiana Brasov, BRASOV
29
258
137
447
787
4
524
Timisoara, Timis
226
3
CONTACT
Otopeni, ILFOV
Apahida, CLUJ
Odorheiu - Secuiesc,
HARGHITA
Cluj-Napoca, CLUJ
221
115
175
Pantelimon, ILFOV
92
105 Ramnicul Valcea, Valcea
132
182
43
295
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
t ADVERTISING AGENCIES
t MEDIA AGENCIES
t PR AGENCIES
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 2012. 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 2014. 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 (2004-2013)
600
500
400
300
200
100
0
2004
2005
2006
2007
Internet
2008
OOH
2009
Radio
2010
Print
Source: Initiative Media, MediaFactBook Romania 2013.
2011
TV
2012
2013
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 2012. 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 14-29 registered a decrease of 8%
between 2011-2012 and the group 30-49 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, 2011-2012, 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%.
The growing combination of TV and online channels used by
brands in advertising campaigns show that advertising
Figure 2. Digital Market Segmentation 2012E
5%
4%
37%
54%
Facebook
Yahoo
Display
Google AdWords
Source: : Initiative Media, MediaFactBook Romania 2013.
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.
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.
MCR
MEDIA & ADVERTISING
ADVERTISING AGENCIES
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
BV MCCANN ERICKSON SRL
2.438
221,984,758
1
6,627,799
89
GREY WORLDWIDE ROMANIA SRL
2.175
39,031,182
6
2,614,848
99
BRANDS TALK ADVERTISING SRL
MGA METRO GROUP ADVERTISING
ROMANIA SRL
LOWE & PARTNERS SA
2.150
8,196,940
18
513,429
26
2.025
67,459,304
3
261,083
8
2.013
18,876,443
13
218,299
43
OGILVYACTION ROMANIA SRL
1.988
30,905,051
9
1,009,549
108
OGILVY & MATHER ADVERTISING SRL
1.988
26,765,574
10
186,970
62
LEO BURNETT & TARGET SA
1.963
72,947,231
2
956,722
29
FCB BUCHAREST SRL
1.925
26,186,818
11
991,731
64
GREATER AD SRL
1.838
12,128,838
15
215,586
42
FRONT LINE MARKETING SRL
1.838
8,836,285
17
261,388
40
AGENTIA DE PUBLICITATE MEDIA CENTER SRL
GRUPUL PUBLICIS COMMUNICATION
SERVICES BUCURE
SAATCHI & SAATCHI SRL
1.800
18,558,828
14
346,298
15
1.763
56,556,705
4
3,085,789
49
1.713
18,924,105
12
395,237
38
MEDIA CONSULTA INTERNATIONAL SRL
1.650
35,395,483
7
3,439,687
19
GRAFFITI/BBDO SA
1.600
47,811,874
5
58,089
70
NEXT ADVERTISING SRL
1.550
34,167,759
8
733,949
58
VITRINA FELIX MEDIA SA
1.538
10,168,802
16
522,282
46
DDB BUCURESTI SRL
1.413
2,757,730
19
-240,111
12
ODYSSEY COMMUNICATION SRL
1.088
450,714
20
-23,031,459
11
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
GMP PUBLIC RELATIONS SRL
2.300
9,475,848
3
1,308,818
16
GRAYLING SRL
2.275
7,223,508
7
1,205,770
19
UNITED MEDIA CORPORATION SRL
2.238
2,261,973
18
85,749
3
GRAFFITI PUBLIC RELATIONS SRL
2.200
11,574,831
1
1,647,639
24
DC COMMUNICATION SRL
2.138
4,813,234
11
1,662,377
30
GOLIN HARRIS PUBLIC RELATIONS SA
2.088
7,922,706
5
228,393
26
FREE COMMUNICATION SRL
2.075
3,058,812
15
147,548
14
SYNERGY GROUP SRL
2.075
1,642,170
20
127,694
4
PEPPER COMMUNICATION SRL
2.025
6,541,378
8
375,837
9
ROGALSKI GRIGORIU PUBLIC RELATIONS SRL
BDR ASSOCIATES COMMUNICATION
GROUP SRL
ACTION GLOBAL COMMUNICATIONS SRL
2.025
3,864,529
13
458,235
10
1.963
4,689,649
12
214,238
21
1.963
2,574,560
17
610,754
10
PRAIS CORPORATE COMMUNICATIONS SRL
1.950
1,700,771
19
36,759
11
PATRU ACE SRL
1.913
3,135,066
14
677,109
9
2ACTIVEPR SRL
1.888
2,917,047
16
109,134
13
NICOLA &PARTNERS SRL
1.838
10,316,103
2
249,554
14
MCGUIREWOODS CONSULTING SRL
1.838
8,869,930
4
1,011,002
1
MATHER COMMUNICATIONS ROMANIA SRL
1.588
5,591,288
10
893,864
8
IMAGE PUBLIC RELATIONS SRL
1.575
6,234,730
9
164,230
28
GAIN CONSULTING SRL
1.275
7,733,817
6
-5,883
-
RANK COMPANY NAME
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
PR AGENCIES
RANK COMPANY NAME
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
CONTACT
Cluj-Napoca, CLUJ
CONTACT
MEDIA AGENCIES
RANK
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
MCR SCORING
ANNUAL TURNOVER
(2012 RON)
TURNOVER
RANKING
PROFIT/LOSS
(2012 RON)
NO OF
EMPLOYEES
STARCOM MEDIAVEST GROUP SRL
2.550
141,690,175
5
8,690,546
27
ZENITH MEDIA COMMUNICATIONS SRL
2.525
175,716,020
2
7,141,528
48
THE MEDIA PARTNERSHIP SRL
2.525
174,695,499
3
2,296,327
6
MEDIA INVESTMENT COMMUNICATION SRL
2.313
223,930,929
1
8,122,183
55
MEDIACOM ROMANIA SRL
2.275
103,793,099
6
1,730,802
34
CLEAR CHANNEL ROMANIA SRL
2.275
10,081,843
24
1,320,926
11
INITIATIVE MEDIA SA
2.263
161,655,024
4
2,230,796
42
UNITED MEDIA SERVICES SRL
2.150
43,967,936
11
617,121
10
OPTIMEDIA SRL
2.113
46,600,203
10
2,938,357
15
MEDIA-TIQUE SRL
2.088
20,700,616
18
2,205,785
9
MINDSHARE MEDIA SRL
1.988
52,713,347
9
803,622
21
MEDIAEDGECIA ROMANIA SRL
1.963
97,831,877
7
1,373,234
35
MEDIA LINK COMMUNICATION SRL
1.963
43,729,331
13
560,243
11
BRAND CONNECTION SA
1.963
12,586,818
21
161,654
12
MERCURY360 COMMUNICATIONS SRL
1.888
36,733,408
14
161,556
270
MEDIA SERVICE ZAWADA SRL
1.863
78,307,523
8
941,837
15
BABEL COMMUNICATIONS SRL
1.850
10,233,640
23
172,500
31
SPOON MEDIA SRL
1.800
9,762,268
26
206,479
8
HOUSE OF MEDIA SRL
1.775
25,587,589
17
1,785,333
4
MEDIA PLANNING GROUP (MPG) ROMANIA SA
1.713
34,547,272
16
691,338
25
NEW AGE ADVERTISING AGENCY SRL
1.675
11,861,940
22
244,955
24
NEWS OUTDOOR ROMANIA SRL
1.663
17,950,610
19
1,529,202
62
ZENITH MEDIA SRL
1.600
910,192
29
-103,468
-
DBV MEDIA HOUSE SRL
1.550
9,844,637
25
141,438
27
MEDIA DIRECTION SRL
1.525
43,765,440
12
1,150,979
25
CARAT ROMANIA SRL
1.463
36,405,253
15
-244,077
13
NETBRIDGE SERVICES SRL
1.350
13,554,781
20
-2,420,642
95
CLIR MEDIA GROUP SRL
1.275
3,451,032
28
21,401
10
APROPO MEDIA SRL
1.263
6,165,017
27
-3,480,845
94
SPLENDID MEDIA SA
1.150
235,264
30
-1,485,400
6
COMPANY NAME
CONTACT
Craiova, DOLJ
4.4%
of the GDP represents the budget assigned
for the healthcare system in 2013, with 0.4%
increase compared with 2012
Healthcare
t MEDICAL CENTERS
t DENTAL CENTERS
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 Europe1. 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
11.222 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.
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
2011. In fact, during 2011 – 2013, 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
Following several years of strong investments (2009 – 2011),
the private healthcare sector is currently lounging around,
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
800
25%
20.0%
700
600
500
EURm
16.3%
14.8%
13.5%
20%
Public
0.64 0.65
0.51
0.63
0.88
15%
0.64
0.88 0.91 0.89 0.91 0.94 0.90
0.97 0.93
9.9%
400
10%
300
5.9%
200
5.6%
Private
5%
2009
2010
2011
Turnover
2012f
2013f
2014f
2015f
0.36
0.03 0.07 0.12 0.09 0.11 0.09 0.06 0.10
Annual growth
1
Source: Ziarul Financiar and WHO.
0.37
Po
lan
d
Bu
lga
ria
C
Re zech
pu
blic
Cro
ati
a
Est
on
ia
Gre
ece
Hu
ng
ary
Lat
via
Lit
hu
an
ia
Ro
ma
nia
Se
rbi
a
Slo
vak
ia
Slo
ven
ia
Tur
key
0%
2008
0.49
0.12
100
0
0.36 0.35
2
IMF Country Report, October 2012.
Pro East Consulting, “Private Healthcare Market in Romania”, July 2013.
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
another3 and an increasing proportion of urban population
being provided at least once with healthcare services shifting
from 57% in 2009 to 80% in 20134. 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)
12%
MedLife
10%
Regina Maria
Medicover
8%
Sanador
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.
62%
5%
Gral Medical
3%
Others
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 2015. 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
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.
http://www.zfcorporate.ro/pharma/piata-de-jumatate-de-miliard-de-euro-a-serviciilormedicale-private-dezbatuta-la-zf-pharma-summit-11341640/.
4
http://www.capital.ro/detalii-articole/stiri/cat-costa-o-consultatie-in-clinicile-privatedin-romania-187525.html.
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.
MCR
Opinion
A strong dentistry
market: an illusion
or an achievable goal?
Dr. OANA TABAN,
CEO & Founder DENT ESTET
WE HAVE SHINY OFFICES AND
HIGH-END TECHNOLOGIES, BUT WHAT
ABOUT THE OVERALL SERVICES?
THE WORK OF YOUR NON-MEDICAL
TEAM IS AS IMPORTANT AS YOUR
DOCTORS' WORK
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.
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.
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.
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.
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.
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.
MEDICAL CENTERS
RANK COMPANY NAME
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
SYNEVO ROMANIA SRL
AMBULANTA BGS MEDICAL UNIT SRL
DELTA HEALTH CARE SRL
CLINICA ROMGERMED SRL
CLINICA MEDICALA HIPOCRAT 2000 SRL
NEFRO CLINIC SRL
CLINICA SANTE SRL
CENTRUL MEDICAL MED-AS 2003 SRL
SANADOR SRL
CENTRUL MEDICAL UNIREA SRL
CLINICILE ICCO SRL
FRESENIUS NEPHROCARE ROMANIA SRL
GRAL MEDICAL SRL
MED LIFE SA
PETROMED SOLUTIONS SRL
AVITUM SRL
MEDSANA BUCHAREST MEDICAL CENTER SRL
MEDICOVER SRL
BELLA VITAE FORTUNA SRL
CLINICA DIALMED SA
MEDCENTER SRL
BIOCLINICA SA
NEFROMED DIALYSIS CENTERS SRL
HIPERDIA SA
INTERNATIONAL HEALTHCARE SYSTEMS SA
EUROCLINIC MEDICAL CENTERS SA
NOVA VITA HOSPITAL SA
EUROMATERNA SA
PELICAN IMPEX SRL
RENAL CARE GROUP SRL
EUROMEDIC ROMANIA SRL
POLICLINICA DE DIAGNOSTIC RAPID SA
EUROCLINIC HOSPITAL SA
DIAVERUM ROMANIA SRL
CLINICA POLISANO SRL
DENTAL CENTERS
RANK COMPANY NAME
1
2
3
4
5
6
7
8
9
10
11
12
TRIDENT DENTAL SRL
ESTET DENT SRL
DENT - A - AMERICA STOMACLINIC SRL
DENT ESTET CLINIC SRL
DENTAL-ALEX SRL
DENTALMED COM SRL
CLINICA MEDICALA DENTIRAD SRL
BIOSTOM SRL
CLINICA DE STOMATOLOGIE STOMASAN SRL
DENTART SRL
DENTANA CAS IMPEX SRL
DENTAL SRL
ANNUAL TURNOVER
(2012 RON)
114,854,094
2.575
TURNOVER
RANKING
5
PROFIT/LOSS
(2012 RON)
9,053,950
NO OF
EMPLOYEES
590
24,792,096
21
7,843,869
350
24,525,316
22
974,978
85
25,271,582
20
1,811,032
160
17,224,841
33
4,387,125
170
15,402,154
35
1,417,628
69
24,463,623
23
6,368,488
285
36,044,069
14
1,502,758
423
115,665,998
4
-993,063
646
126,566,731
3
-13,245,594
785
33,027,013
15
901,567
144
136,933,354
2
-12,231,276
580
398
MCR SCORING
2.450
2.300
2.175
2.175
2.175
2.063
2.000
1.913
1.825
1.800
1.763
1.725
1.700
1.663
1.613
1.600
1.538
1.525
1.513
1.513
1.488
1.450
1.450
1.388
1.363
1.363
1.363
1.300
1.300
1.238
1.238
1.238
1.175
1.075
Buzau, BUZAU
Brasov, BRASOV
67,163,270
7
1,150,690
201,636,884
1
-10,370,664
-
23,967,155
25
-146,987
143
51,511,389
10
-464,640
243 Remetea Mare, TIMIS
19,103,233
30
-1,150,165
116
53,481,769
9
-12,241,749
504
23,224,834
26
263,827
19
46,231,954
12
517,363
270
29,974,948
19
-3,417,221
344
32,779,450
16
445,212
157
57,365,804
8
-278,909
254
51,489,612
11
-521,170
330
93,819,023
6
1,764,402
464
18,160,280
31
1,597,641
17,547,595
32
-892,003
Sibiu, SIBIU
Timisoara, TIMIS
Brasov, BRASOV
52
174 Targu-Mures, MURES
16,009,330
34
696,962
31,898,992
17
365,097
235
23,152,674
27
-1,962,612
120
42,029,138
13
-7,878,301
204
24,058,346
24
-7,619,401
173
19,379,552
29
-5,598,860
166
19,474,039
28
-11,421,017
71
30,913,139
18
-1,717,624
367
ANNUAL TURNOVER
(2012 RON)
2,629,982
2.213
TURNOVER
RANKING
3
PROFIT/LOSS
(2012 RON)
119,199
NO OF
EMPLOYEES
26
2,250,533
6
26,739
45
2,345,420
4
27,538
34
MCR SCORING
2.150
1.900
1.813
1.713
1.588
1.588
1.588
1.338
1.275
1.150
1.075
CONTACT
Chiajna, ILFOV
Oradea, BIHOR
Brasov, BRASOV
Sibiu, SIBIU
CONTACT
Braila, BRAILA
12,128,667
1
550,060
51
1,861,487
8
245,357
12
2,930,766
2
84,895
45
Brasov, BRASOV
2,330,181
5
201,875
32
Plopeni, PRAHOVA
1,371,199
11
12,309
17
826,562
12
35,307
29
1,578,490
10
5,550
1,702,707
9
-26,696
12
1,872,006
7
-217,197
21
Brasov, BRASOV
8 Baia Mare, MARAMURES
MCR

MCR 2013_Editia print - Major Companies of Romania

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