(Nemanja Popov)
- Centroproizvod, one of the leading food manufacturers in Serbia, plans several acquisitions in the markets of former Yugoslav republics, while one of its priorities is the takeover of Slovenian Droga Kolinska. In addition to expansion of business in Bosnia and Herzegovina, Montenegro, Croatia, Macedonia and Slovenia, the company from Belgrade also "eyes" acquisitions in Albania, Romania and Hungary - Nemanja Popov, CEO of Centroproizvod, told eKapija and pointed out that years 2010 and 2011 would be the period for significant expansion of the business.
Popov said that Centroproizvod had already formed the consortium for acquisition of Droga Kolinska and that the consortium comprised multinational company and investment fund. He added that the funds for acquisition were provided as well.
- We can not affect the date of acquisition of Droga Kolinska because it will be determined on the basis of the situation in Slovenian Istrabenz and the Group's complex ownership structure. It is still uncertain how long it will take for the Group's management to publish the offer, but I hope it will happen prior to the end of 2010. Otherwise, we will change the rules of game within the consortium that we have formed. Centroproizvod is highly liquid company without the burden of loans, so that we are going to use good financial situation to complete some acquisitions.
Popov explained that Centroproizvod was interested in the majority ownership of Droga Kolinska , as well as in the minority share in the company.
- We are open for strategic partnership, additional capitalization, acquisition of certain share of the company or some other form of partnership. In case Droga Kolinska holding is offered for sale separately, we will be focused on acquisition of the companies that operate in Serbia.
Mr. Popov says that the time has come for more realistic appraisal of the company than in 2006 and 2007, but he also points out that Droga Kolinska is worth a lot.
The President of the Administration of Droga Kolinska, Slobodan
Vučićević, said in the earlier interview for eKapija that the Slovenian company planned to set aside 20m EUR every year for acquisitions in the region within the next four years, but he also pointed out that the company might be sold before year 2013.
- Whoever gives a good offer, we will negotiate on the sale. But the bidders must be qualified buyers because this company is worth a lot, and its price will reach the amount of 500m EUR after the crisis - Vučićević said on that occasion.
He pointed out that the sale also depended on the banks and owners who announced that Droga Kolinska would be the last company within Istrabenz Group to be offered for sale.
Vučićević, who is the President of the Serbian Association of Managers, said at the recent meeting of that Association that large companies that operated in the markets of the countries of former SFRY would have to merge within the next few years.
- Otherwise, they are doomed to disaster due to the arrival of global players. Therefore, we should expect 10 to 15 mergers of large companies from the same branch - said Vučićević.
Istrabenz owns 89% of Droga Kolinska, 5% are in the possession of NCA
Investment Group, Probanka's share amounts to 4%, while Faktor Banka owns 2% of the company.
Investment of 6m EUR in Centroproizvod's new factory in Surčin
In addition to the growth through acquisitions, Centroproizvod also plans organic expansion in 2010, and the biggest investment will be placed in construction of new production unit in Surčin, for which 6m EUR will be set aside. About 13.4m EUR have been invested in production over the past five years.
- The sales incomes in 2009 grew by 12%. Significant growth is registered in both production of goods and market shares. The company has 28 production categories and our aim is to rank either first or second in each category. We are number one in 80%
of the categories, number 2 in 15% of them, and number 3 or 4 in only 5% of these categories -
said Popov.
Centroproizvod hired 60 people in 2009 and Popov announced employment of another 100 workers in 2010. According to him, the company has decided to take over the jobs of direct distribution, which requires larger number of employees.
Centroproizvod, which was founded in 1947, has 630 employees at the moment, and its most famous brands, among 240 different products, are "Supa C", "Cipiripi", "Začin C", "C puding".
Three factories of this company are situated in Belgrade, Surčin and Bavanište near Kovin.
Centroproizvod is present in the markets of Macedonia, Montenegro, Bosnia, Australia, Canada, USA, Switzerland, Kosovo, Albania, Romania and Bulgaria.
Darko Bajčetić, the President of the Administrative Board of Centroproizvod, is this year's laureate of the "Businessman of the Year" award, which is presented by the Club of Business Journalists of Serbia.
T.S.
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