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BILKA increases the investment plan started last year to EUR 7 million

BILKA, leader of the domestic roofing market, has started last year an investment plan with deadline in 2016 amounting to about EUR 5 million. Earlier this year, the company has increased its budget by EUR 2 million. The budgeted amount is distributed to the development of products marketed in the industrial and residential sectors.

The investment plan consists of two phases. The first phase started and ended last year, and amounted to EUR 3 million. The amount was directed to increasing the production capacity for the existing products in the portfolio and for the purchase and renovation of the Romlag Brașov production halls, thus reaching a total area of approximately 45,000 sqm used for storage, production lines, and offices.

The second phase, started this year, amounts to EUR 4 million and aims at increasing and especially diversifying the production. Eight new production lines for metal roofing sheets, rainwater system elements, and roof accessories will be installed this year at the BILKA plant.

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Increasing the production capacity and diversifying the product range are important steps that will bring added value to the market and will contribute to new financial performance for BILKA. With the decisions and investments made in 2014-2015, we provide our customers with a complete roofing system, a wide range of products and colors, transport, assembly, buying advice and after-sales support. We are therefore talking the client into renovating the roof, instead of using patches to repair it. Our current actions will lead to the future growth of the domestic roofing market, without waiting for governmental measures and projects meant to reinvigorate the market”, says Horațiu Țepeș.

Investments are supported by the company’s profit, European funds, and bank loans. In addition, this year the company received state aid worth RON 1 million, and European funds amounting to RON 3.5 million.

Funding was requested under the provisions of the state aid scheme to support investments that promote regional development through job creation. This means that we will generate 30 new jobs as a result of the investments, and the state aid obtained will cover, for two consecutive years, 50% of the total wage costs for the 30 new employees. A welcomed initiative that encourages Romanian entrepreneurs to create new jobs”, says Horațiu Țepeș.

Focus on export

The production at the plant in Brașov last year went up to 96% on the domestic market, with exports accounting for only 4%. For 2015, the company is considering expanding and increasing the export channels.

As a result of our investments, we have competitive products, the means and the resources needed to focus more on exports. This year we expect an increase of exports in the total turnover by a few percents. This year, BILKA products will mainly be found in former Soviet countries or in Slovakia, Germany, Austria, Hungary, Bulgaria”, says Horațiu Țepeș.

The roofing market in 2015 ‒ potential growth by up to 15%

According to the company’s estimates, in the first three months of the year, the roofing market has grown by about 5-8%.

The positive trend of the market seen in the first quarter of this year, when BILKA sales grew by 38% compared to the same period last year, allows us to be optimistic and see for the end of the year an increase in the roofing market by 10%. A positive evolution of agriculture and favorable weather conditions could lead to a 15% increase in the market. There is great demand for housing and great potential on the market waiting to be capitalized. I think that the gap to what is happening in the West must be fought against, and we as manufacturers, through investments made to increase product and service quality, will have a significant contribution to market growth”, said Horațiu Țepeș.

BILKA’s turnover at the end of 2014 increased by 29%, with a market share of 24%

BILKA’s turnover at the end of 2014 increased by 29%, with a market share of 24%

BILKA, leader of the roofing market, ended 2014 with a turnover of more than RON 134 million, 29% higher compared to 2013. Last year, BILKA produced and sold over 4 million square meters of metallic roofing, and the company became also the largest consumer of pre-painted steel sheets in Romania, purchasing over 30,000 tons.

Metal roof tiles remain a top-selling category, accounting for 54% of the total sale volumes. It is followed by accessories, corrugated sheets, and insulated panels, representing almost 31%, while rainwater systems (gutters and downspouts) represent 15%. Regarding colours, last year the company recorded an increase in dark shades, i.e. brown, chocolate brown or black, representing approximately 50% of the sales volume, 2 million sqm.

Horațiu Țepeș, the owner of BILKA, states: We think 2014 is the best year in Bilka’s history. At the end of this year, drawing the line, we have: financial performance well above the average of the players on this market and according to the objectives set at the beginning of the year, investments of EUR 3 million, new halls stretching over 27,000 sqm, two new production lines, and about 26,000 roofed houses”.

According to internal estimates, in 2014 BILKA also saw an increase in the share of the metal roofing tile market. In 2013 it held 21% of the domestic metal roofing tile market, and in 2014 it reached 24%.

2014 was a difficult year for the business environment, with a lack of predictability and insolvencies. I knew, from the very first year, that the company’s evolution must be influenced to the greatest extent by the internal business strategy. Therefore, during 8 years we have invested over 9 million Euros and the main objective was to achieve an optimal production capacity, a high-performance logistics system, a wide range of products and a country wide distribution. Another important aspect for the company’s evolution is the efficiency of the whole team and the fact that we do not work looking at the time, we work according to well-established goals and we are aware that, in order to maintain our leader position, we must work harder than the day before. Investments and hard work are the keys to our performance”, says Horațiu Țepeș.

2015 ‒ 8 new production lines

In 2015, an important direction in the company’s business strategy is to keep going with the investment plan started last year, amounting to EUR 5 million. It first targets production growth and diversification.

In 2015, we shall continue our development plans. We need to cover the production halls purchased last year, using production equipment, and we have budgeted investments for eight new production lines for metal roofing tiles, elements of the rainwater system and roof accessories. Once these machines are installed, we will launch new products. Our business strategy is a premise that allows us to consider that in 2015 we will remain number one on the market“, says Horațiu Țepeș.

Increasing the production area continues to be part of the company’s development strategy for the coming years. In order to reach the optimal and necessary area for the budgeted investments in the next years, Bilka is considering purchasing a new surface of 15,000 sqm of land in the proximity of the factory in Brașov. One of Bilka’s goals on the medium term is purchasing a local competitor.