Novi Sad-based Velebit conquers label market - Leader in medical paper and thermal rolls production expands product range and announces cooperation with logistics companies

Source: eKapija Wednesday, 22.03.2017. 15:57
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For years, Novi Sad-based VeleBit is a leader in production of paper for medical devices and all major Serbian health institutions are their clients. With the second pillar of its business - business program (thermal rolls, rolls for cash machines, parking machines, lottery ...), recently they expanded range to industry labels for various industries. In order to strengthen its market position in this field and generate successes, they invested in equipment. They bought three new machines for label production and now they objective is, as a founder and owner, Branko Dragicevic says in his interview for eKapija, to put these machines into operation and to new contracts.
Velebit has recently celebrated 25th anniversary. They started in difficult times, in 1991 in the times of crisis and sanctions, instable dinar exchange rate, more difficult raw materials import, etc.

We talked with a founder and an owner of Velebit, Branko Dragicevic, about start, fight and mass cheap production, plans for conquest of new industries, etc.


- The idea was to make a domestic product which would replace imported one. No one had a simple thing in operating at that time since the entire country was in difficult situation due to wars and sanctions, In order to contribute, we provided material and helped a large number of health institutions

They started in a rented space and soon they built their own production facility. Apart from commercial developments - distinctive quality, steady production growth, increasing market share and exports, Velebit is known also for care for employees. They are proud of the fact that part of the workers has been with them since start, a full quarter of a century. "Money is not everything," Dragicevic said, "employees appreciate if they feel we are colleagues, that they are here primarily people and then everything else. The worker is not a" commodity ", someone who is just there to do the job and who can easily be replaced ". Today, it employs 15 people and, if necessary, when they have great scope, they hire additionally. Today, in the Velebit, people work on most modern machines, in line with the highest standards. They do not spare funds on innovation, but are constantly working on optimizing costs.

- Production takes place in line with the standards of global certificates ISO 9001 and ISO 13485. To achieve these goals, it took proactive and coordinated involvement of experts from research and development, procurement, etc. In production, important role is a source of quality raw materials and chain of trusted suppliers, also input quality control and monitoring of all stages of production – the collocutor says.


Medical paper program which this Novi Sad-based company offers, covers almost all the needs of medical institutions. There are papers EKG, EEG, and CTG paper, ultrasound, spirometry, and laboratory analysis. Products for cameras of different manufacturers.

The advantage of Velebit, our source says, is years of experience, number of projects in major medical institutions, both state and private. And all this - without a single complaint or customer complaints.

- We supply more than 85% of the Serbian market, when it comes to health care institutions. Our users are VMA, Clinical Center of Serbia, Clinical Center of Vojvodina Clinical Center Niš, GAK Narodni front, many health centers and ambulatory, private clinics and practices, etc.

For certain sectors, such as, for example, gynecology and obstetrics, it is important only to "break the ice" and get a chance to prove yourself. Branko Dragicevic reveals how they won this sector.


An important segment of Velebit is business program: thermal rolls, rolls for ATMs and POS terminals, rolls for parking meters, taximeters and tachographs, lottery and bingo tickets and papers for bookmakers, blank and printed forms.

Recently, they won a new field, where they will face new business challenges - label sector. Velebit offers self-adhesive labels in rolls, with or without printing for the food, pharmaceutical and chemical industry, retail sector, logistics, etc. With an annual capacity of more than 3,000,000 m2 labeling paper, they can meet requirements for large circulations.

Also, legislation affects increase in liabilities when it comes to product labeling. Therefore, every product, in addition to a regular (advertising) label contains also label with instructions for use, etc. Here Velebit sees its chance, especially in business growth expected in logistics sector, which has been progressing in Serbia. Representatives of logistics companies in Serbia have announced big plans for the future, a label (labels) for marking are what they all need.


Labelling field is particularly challenging because there is an infinite number of variations, and they should be tailored to each customer and meet demands.

To end a conversation, Branko Dragicevic commented on the attitude of the state towards local companies. According to him, our companies are being targeted by inspection and control, and the last on the list for help and support, they should be changed. There is more concern about large foreign investors, while "domestic intelligence" and local businessmen, who have proven that they know what they are doing, are not consulted on important decisions for the profession by authorities.

However, our source has no regrets, but says that this is the situation they are accustomed. Business environment far from ideal does not prevent them to work and to work well.


That's why in crisis, when some categories in general are falling, Velebit operates stable and in line with expectations. This is confirmed by business results and growth and increase in market share and sales growth compared to previous year by 30%.

Cooperation with the "big players"

Dragicevic stressed out that future is cooperation of domestic manufacturers and foreign companies. He says he would not mind if local workforce and local production join, and international experience and freedom foreigners have in the major markets.

- We certainly do not have the capacity to compete with huge corporations that have several million customers, and to conquer a big market. We do not have the capacity to handle their needs. However, this does not mean that Velebit may not work in some kind of partnership with strangers, or even become part of a bigger company someday.

As an example of a company with which we could cooperate, our source says American NCR, leader in production of ATMs and provision of IT services, which a few years ago opened a call center in Serbia.

Founder of Velebit emphasizes that they always try to, as much as possible, contribute to the community in which they operate, and to donate and help medical institutions with which they cooperate. They have won numerous awards and gold medals for the quality of design.


M.M.
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