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Bilka counts on a 20% increase for 2019

BILKA, leader of the roofing market, ended 2018 with a turnover of RON 501 million (EUR 108 million), 27% higher compared to RON 394 million in 2017.

The business grew by 27% in 2018, as the roofing market grew slightly below 10%, according to company data.

“Last year’s growth is above the market growth, which means that Bilka roof continues to capture from the market share of other brands present on the Romanian market and of those in the vicinity. The registered growth comes in the context of the high consumption, the company’s investments in recent years, the development of the brand on a premium position and, last but not least, the export growth. These are the fundamental elements of our business strategy, and the performance indicators we constantly check”, said Horațiu Țepeș, Bilka’s CEO.

Investments and exports ‒ growth factors in 2019

This year, the company’s goal is a turnover of over RON 600 million, meaning an increase by 20% compared to the level reported last year. Estimates are mainly based on expansion and investment.

This year, the company continues its growth strategy through continuous investment at all business levels. At present, an investment plan is in place for the development of the industrial product division. It amounts to EUR 20 million and its deadline is 2020.

“This year we stick to the investment plan for the development of the industrial division, a plan that amounts to 20 million Euros and runs between 2017- and 2020. We are currently in full renovation of the production areas purchased at the end of 2017 and we simultaneously go on with the procedures to acquire the necessary production equipment and to increase the team that will manage this division. At the same time, we continue to invest in increasing the production capacity and the range of products for the residential division. In 2019, for this division, we have an investment budget of 5 million Euros that will be used to purchase new production equipment, to extend the production and storage areas, and also to increase the vehicle fleet. Our growth strategy will go on with investments, however, we made an analysis and this year we also consider a possible purchase of companies in the fields related to our field of activity”, said Horațiu Țepeș.

Exports up 50%

Exports are another important growth direction for the company. Last year Bilka exported full roofing systems amounting to EUR 11 million, a 50% increase compared to last year.

There are markets in Europe where we can become a market leader in the next 5 years. The growth potential we see in export and the fact that the investments made in the last years allow us to be competitive all over Europe, make us approach more and more markets and consider expanding to other continents. This year, also, the development of new sales markets remains one of our main goals, along with brand consolidation in the countries we are already present. Our goal for the year-end is to maintain the growth by 50% of export business”, stated Țepeș.

BILKA, leader of the roofing market and the largest consumer of pre-painted steel in Romania, ended the year 2018 with a turnover of RON 501 million. In 12 years of activity, BILKA covered over 250,000 houses and made investments exceeding EUR 40 million. The production lines are fully automated, relying on the latest technologies available worldwide.

In 2018, BILKA sold its products all over the country and abroad via more than 500 stable dealers. BILKA products are exported in several countries, among which Bulgaria, Hungary, the Republic of Moldova, Germany, Poland, Slovakia, The Netherlands, Austria, Ireland or Ukraine.

BILKA’s business has exceeded the threshold of EUR 100 million

BILKA’s business has exceeded the threshold of EUR 100 million

BILKA, leader of the roofing market, reached the threshold of EUR 100 million earlier this month, 30% more compared to the same period of the last year. The company’s goal is to maintain its business growth of 30% until the end of the year, mainly based on expansion and investments which have reached a total of EUR 40 million in the past 11 years.

“The EUR 100 million turnover threshold is an important step in the company’s evolution.  This outcome resulted from the significant growth on all of the business lines, the residential division, the industrial division, domestic sales or exports. Investments have been, this year also, the main growth driver. The continuous process of investing in developing and improving the range of services and products, in increasing the production capacity, in team building, in identifying new markets or business divisions, is the key element that characterizes the company’s daily activity, which is also reflected in its financial results”, stated Horațiu Țepeș, Bilka’s CEO.

Investments remain the main focus

The company continues its growth strategy through continuous investment on all business levels. At present, an investment plan is in place for the development of the industrial product division.  It amounts to EUR 20 million and its deadline is 2020.

“Our strategy since the first years of our activity has been to constantly seek new opportunities for development and investment and to create such opportunities where none are to be found. Thus, in addition to the business development this year, which is in line with our business strategy, the more important is the perspective that we have for the next few years in the current context of development and investment. We currently focus on the EUR 20 million investment project taking place between 2017 and 2020. In this respect, this year we started purchasing machinery for industrial sector production, for equipping the platform acquired last year with the equipment necessary for the production of high-profile corrugated sheet metal, insulated panels, and profiles for buildings and structures. We aim at covering the entire spectrum of the industrial segment so that we can offer our customers turnkey industrial halls”, said Horațiu Țepeș.

Exports up 50%

After having consolidated its top position on the national roofing market in the last years, the company accessed the neighboring countries, as well. In the first 9 months of the year, Bilka exported complete roofing systems amounting to EUR 10 million, up 50% compared to the same period of the last year.

“According to sales in the first 9 months of the year, when we recorded 50% more on export, we estimate we will keep this growth for the end of the year. We see great potential in foreign markets. There are markets like Bulgaria or Hungary where we can become a market leader in the next 5 years. This being one of our long-term goals also. This is also due to the fact that more and more neighboring countries are looking at the Romanian products, but also because we currently have the largest roofing systems factory in Eastern Europe”, said Horațiu Țepeș.

INFO

BILKA, a leader on the roofing market and the largest consumer of pre-painted steel in Romania, ended the year 2017 with a turnover of RON 394 million. In 11 years of activity, BILKA covered over 200,000 houses and made investments exceeding EUR 40 million. Its production lines are fully automated, relying on the latest technologies available worldwide.

In 2018, BILKA sold its products all over the country and abroad via more than 500 established dealers. BILKA products are exported in several countries, among which Bulgaria, Hungary, the Republic of Moldova, Germany, Poland, Slovakia or Ukraine.

BILKA’s turnover at the end of 2017 increased by 45%, being valued at EUR 86 million

BILKA, the leader on the roofing market, ended 2017 with a turnover of EUR 86 million, which was 45% higher compared to EUR 60 million in 2016. Residential products remain a top-selling category, accounting for 90% of the total sale volumes. The remaining 10% is represented by the category of industrial products.

The sustainable growth of the company is mainly due to its expansion and investments, which reached EUR 30 million over the past 11 years; the most recent investment amounting to EUR 5.56 million was made last year with the acquisition of the Hidromecanica 2 Brasov industrial platform, where the company started a new development project.

“This year’s results confirm that our strategy is well shaped and appropriate. However, apart from last year’s EUR 86 million turnover, we also take into consideration other two performance indicators. The first one is the number of covered houses and in this respect, we manufactured and sold 57,000 complete roofing systems last year; the second indicator reflecting the performance of a company in this field of activity is the consumption of pre-painted steel, which is the raw material used in 95% of the products that we sell. In 2017, Bilka used 80,000 tons of pre-painted steel, being the largest consumer of such material in Eastern Europe”, declared Horațiu Țepeș.

In 2018, the company continues the investment plan started last year with the acquisition of the Hidromecanica 2 Brasov industrial platform; this investment amounting to EUR 20 million is due for completion in 2020.

“Our focus in the forthcoming period is on the investment plan initiated last year and on the development of our industrial division. We will start renovating the platform and, at the same time, we have already commenced the procedures for the acquisition of the required production equipment and raw materials and for the expansion of the team in charge of this division. Investments will be completed in 2020, but their first outcomes will be noticed by the beginning of 2019, when we estimate that the production of insulated panels will be ready for launch”, stated Horațiu Țepeș.

The roofing market, a new record in 2017

Last year, the roofing market grew on average by 10%, up to approximately 38 million sqm. According to the company’s estimates, metal roofing accounts for 70% of the overall roofing market and this share is expected to increase on the short and medium term.

“We expect the trend of the past years to maintain also in 2018. There are premises for growth in this industry, at least in the following 10 years. On the one hand, there is a need to expand not only the residential but also the industrial and agricultural construction sector in Romania. On the other hand, the last years’ investments in production capacities and product range diversification were made specifically to meet the new construction needs. We expect a 10% increase in the total roofing market this year, and a 25% advancement for Bilka”, mentioned Horațiu Țepeș.

INFO

BILKA, the leader on the roofing market and the largest consumer of pre-painted steel in Romania, ended the year 2017 with a turnover of EUR 86 million. In 11 years of activity, BILKA covered over 200,000 houses and made investments exceeding EUR 30 million. The production lines are fully automated, relying on the latest technologies available worldwide. In 2017, BILKA sold its products all over the country and abroad via more than 500 stable dealers. BILKA products are exported in several countries, among which Bulgaria, Hungary, the Republic of Moldova, Germany, Poland, Slovakia and Ukraine.

Bilka acquires Hidromecanica 2 platform and launches a EUR 20 million investment plan

BILKA, the leader on the roofing market, has acquired Hidromecanica 2 platform and started an investment plan in amount of EUR 20 million to be implemented between 2017-2020. The budgeted amount will be allocated mostly to the development of the products dedicated to the industrial sector.

Bilka restores Hidromecanica 2 platform

After the acquisition and integration of the Romlag platform (a part of Rulmentul Brasov) in the production flow in 2014, following a EUR 10 million investment, the company undergoes a new development stage focusing on the industrial division.

The first step of the industrial development process was completed at the beginning of September when Bilka concluded the proceedings and signed the documents for the acquisition of the platform Hidromecanica 2 Brașov. The transaction was valued at EUR 5.5 million. The platform newly incorporated in the infrastructure of Bilka is located near the halls already owned by the company and it spreads over 9.5 hectares. By adding the new area to the 4.5 hectares of the current production halls owned by Bilka, the total resulting area is of 14 hectares.

“As a result of the last years’ investments in the residential division, we reached this year a 100% occupancy rate of the available space. This is in connection with a turnover of RON 400 million estimated for the end of the year. Therefore, it would have been impossible for us to develop our residential division in the existing area; in this context, growing our industrial division would have been out of the question. The acquired platform will allow us to maintain comparable growth rates in the following years, but also to develop our industrial division. Out of the 9.5 ha area, 20% will serve the residential division as a warehousing facility for the raw materials; the remaining space will be allocated to the industrial division for production halls, warehousing, and necessary logistic facilities”, declared Horațiu Țepeș, the owner of Bilka.

The second stage of the project will consist in the refurbishment of the platform and the acquisition of the necessary production equipment. The EUR 20 million investments are supported by the company’s profit and a bank loan.

“Now that we acquired the platform, we will start the renovation works which will last a year. The previous experience with the refurbishment and integration in the production flow of the Romlag platform will help us properly manage this new project. At the same time, we will work on the acquisition of the required production equipment and raw materials and on the expansion of the team in charge of this division. The investment will be implemented in three years and may be completed in 2020, once the new platform is refurbished and fully equipped. The first outcomes of these investments will be noticed by the beginning of 2019 when we estimate that the production of insulated panels will be ready for launch”, stated Horațiu Țepeș.

Future plans: expanding the market of insulated panels and the consumption of pre-painted steel

The market of insulated panels reached about EUR 100 million in 2016, being 8% higher versus 2015. The company’s assumptions for this year point to a 5% growth.

The market of pre-painted steel reached 256,000 tons in 2016, from 213,000 tons in 2015. The company estimates a volume of 270,000 tons in 2017.

At present, the manufacturing of industrial products accounts for 10% of the company’s turnover, while the remaining 90% is represented by residential products.

“Through the investment project that we have initiated, our plan is similar to that implemented on the roofing market, notably to come with a new approach, with new products and services leading to the growth and improvement of the market dedicated to panels and corrugated metal sheets and implicitly to a higher consumption of pre-painted steel. In our industry, one performance indicator is represented by the consumption of pre-painted steel and in this respect, we estimate that the Romanian market may exceed the 400,000 tons threshold in 5-7 years. Our assumptions are based on the growing need for metal roofs in Romania, on the development of the industrial construction sector, but also on the investments that we have initiated this year which will sustain the market evolution. In 2016, the consumption of pre-painted steel by Bilka reached 63,000 tons and this year we estimate consumption of 80,000 tons. In the following 5 years, after the implementation of the investment plan, the launch into the production of insulated panels and corrugated steel sheet profiles, and after the consolidation of these investments, the company’s demand may exceed 100,000 tons of pre-painted steel”, declared Horațiu Țepeș.

INFO

BILKA, a leader on the roofing market and the largest consumer of pre-painted steel in Romania, ended the year 2016 with a turnover of RON 270 million. In 10 years of activity, BILKA covered over 150,000 houses. The production lines are fully automated, relying on the latest technologies available worldwide. In 2016, BILKA sold its products all over the country and abroad via more than 500 stable dealers. BILKA products are exported in several countries, among which Bulgaria, Hungary, the Republic of Moldova, Germany, Poland, Slovakia, and Ukraine.

Bilka business in the last 6 months up by 54%

In the first semester of 2017 BILKA, leader of the roofing market, maintained its ascending trend of the previous years, reaching a turnover of RON 147 million, i.e. 54% higher compared to the same period of the previous year. This is mainly a consequence of the increase in demand and of the investment project amounting to EUR 10 million started by the company in 2014 and completed in 2016.

“The 54% increase was determined, on the one hand, by the increasing demand for roofing, which is normal if we are to consider the surveys on the construction market evolution, showing that the market is mainly driven by residential buildings, followed by office buildings and commercial areas. Moreover, there is an increase in the number of construction permits for residential buildings, and a decrease in renovation works. Following these permits, new constructions will appear and we will have to cover them. On the other hand, Bilka’s growth is due to investments from previous years, for the development and diversification of our range of products. This year’s figures also reflect the production lines started last year, that were mandatory so that we can comply with the demand. We estimate that this growth will last till the year-end”, stated Horațiu Țepeș.

Following the EUR 20 million investments made during its 10 years of activity, Bilka continues to grow its business, while also relying on exports.

Exports up by 33%

Having consolidated its top position on the national roofing market in the last years, the company accessed the neighboring countries, as well. In 2016, Bilka exported complete roof systems in the amount of RON 27 million. Export sales went up by 33% in the first half of 2017 compared to the same period of the previous year.

“Given the sales in the first part of the year, when we recorded 33% more on export, we estimate we will keep this growth for the end of the year. We see great potential in the foreign markets and an increased interest in our products. This is also due to the fact that we currently have the largest roof systems factory in Eastern Europe. Given the investments made, we now have the necessary production means and logistics to become a player on the foreign markets”, declared Horațiu Țepeș.

Foreign companies choose the roofs manufactured in Brașov, not only for the quality and competitiveness of the company’s products and services but also for the fact that they come along with the know-how provided by the manufacturer.

“In Romania, we have gone beyond bulk selling, as we have also focused on market development and education, and on the development of our partners. Not all our partners have a well-defined business strategy, a clear vision of their business objectives or of their development possibilities. This is where we come in and suggest new business directions. This has brought added value and we follow the same strategy abroad as well, where we already see the desired outcome. We do this because we want a sound business and we know that this requires a sound market and strong partners”, said the entrepreneur.

2017 ‒ premium products on the increase

Official studies in different fields show that Romanians have gone in favor of higher-value products in the past two years, which has determined growth in the consumption of premium products. This has been noticed with respect to current goods, but it equally applies to consumer durables, such as roofs. During the past 6 months, Bilka has sold 25% more premium products, as compared to the same period last year.

“The increase in premium product sales is mainly generated by the growing weight of such products in our portfolio. We identified this market need two years ago when we met clients that would rather have thicker products and special-finishing products, which they could not find on the market. This was an underdeveloped segment on the roofing market. In 2014, our portfolio included a special finishing, with technical specifications superior to those existing on the market at that time. The demand has constantly increased since then, and a new finishing, GrandeMat, was launched this year. This is a Bilka product available in 8 different color shades. We are glad to see a growing interest in top products and we will continue to support this trend”, stated Horațiu Țepeș.

INFO

BILKA’s turnover in 2016 amounted to RON 270 million. At present, the BILKA factory covers an area of 45,000 sqm, divided into production halls, warehouses, and offices. In 10 years of activity, BILKA covered over 150,000 houses. The production lines are fully automated, relying on the latest technologies available worldwide. In 2016, BILKA sold its products all over the country via more than 500 stable dealers. The company’s distribution network covers the entire Romanian territory.

BILKA’s turnover at the end of 2016 increased by 41%, being valued at EUR 60 million

BILKA, the leader on the roofing market, ended 2016 with a turnover of more than EUR 60 million, which was 41% higher compared to EUR 43 million in 2015. In 2016, the company was considered for the third consecutive year as the largest consumer of pre-painted steel sheets in Romania, purchasing over 63,000 tons.

“Last year’s results are the immediate outcome of the 10 million euro investment plan launched in 2014 and completed in 2016. Following this project, we purchased and integrated a new platform of 27,000 sqm in our production flow, we installed 25 new production lines, we launched 3 new models of metal tile and thus we completed our investments related to the residential division. All these improvements are reflected in the 2016 turnover, which grew by 41%”, stated Horațiu Țepeș, the owner of BILKA.

2017 – consolidation and optimization

After the completion last year of the development process with respect to the residential sector, the main objectives for 2017 are: making use of the EUR 13 million investments executed throughout the company’s 10 years of activity in order to increase the production capacity and the range of products, rendering the factory’s activity more efficient and increasing the weight of exports in total business volumes.

“Our focus this year is to make our investments profitable; we have new production lines and products below one year of functioning and their impact on sales will start to be noticed only this year. At the same time, exports continue to be an important matter for us. In 2015, they represented 7.3% of the company’s turnover, reaching 10% in 2016. We see great potential in the foreign markets; therefore we plan to encourage exports this year. Given the investments made, we now have the necessary production and logistic means to become a player on the foreign markets”, declared Horațiu Țepeș.

Another relevant aspect of our strategy for 2017 is the support and expansion of the network of 500 dealers with whom the company cooperates at present.

“BILKA helps other 500 businesses grow. We are responsible for the development of more than 500 partners that represent us, and our growth is positively reflected in their business as well. This year, we will continue to offer know-how support to our partner dealers, but also services and products that help them evolve”, stated Horațiu Țepeș.

A new investment program is pending, dedicated to the industrial sector – the production of corrugated metal sheets, insulated panels, industrial profiles, structural liner trays, and turnkey halls. But the deployment of this project depends on the acquisition of new production spaces.

“Now, that we have ended the development stage of the residential division, it is the right moment to make new investments for the industrial sector. We have the necessary financial resources for this project, but the available property near the Bilka factory, notably the former Rulmentul platform, now in ruins, is owned by the state and we depend on the local authorities. If we succeed with the rental of the requested property, we will commence the investments; otherwise, we will have to put this project on hold. We go on with the proceedings in order to expand our activity on the neighboring lands, but in the future we do not exclude the option of purchasing properties outside the city”, mentioned Țepeș.

The roofing market in 2016 – the highest level ever recorded in Romania

The roofing market increased by 5-10% over the previous years, exceeding last year the threshold of 32 million square meters, for the first time since 2008. In 2016, the market reached the highest level ever recorded in Romania, notably 35 million square meters. This result is due to the higher consumption and the need for new residential estates or refurbishments on the one hand, and to the investments in this sector during the last years on the other hand. “We expect a 10% market increase during this year, as well. First of all, we count on the contribution of our company to market growth. A market cannot develop unless its main players invest in innovation, technology, and new products. If the market growth recorded in 2016 was mainly fuelled by that of BILKA, things will most probably follow the same trend this year, as well. Secondly, we rely on the market trend in the recent years, on the official surveys pointing to the increase up to 5% of the construction market in 2017, with a 10% increase in the residential sector; the number of building permits increased by 5% last year only in the urban area. The statistics encourage us to be optimistic and to see 2017 as a year of considerable growth on the roofing market”, mentioned Horațiu Țepeș.

INFO

BILKA’s turnover in 2016 amounted to RON 270 million. At present, the BILKA factory covers an area of 45,000 sqm, divided into production halls, warehouses, and offices. In 10 years of activity, BILKA covered over 150,000 houses. The production lines are fully automated, relying on the latest technologies available worldwide. In 2016, BILKA sold its products all over the country via more than 500 stable dealers. The company’s distribution network covers entire Romania.

BILKA completed a EUR 10 million investment plan and doubled its business

BILKA, the leader on the roofing market, recorded a turnover of EUR 45 million in the first 9 months of 2016, that is 44% higher versus the same period last year.

These results are mainly due to the EUR 10 million investment plan launched in 2014 and completed in 2016. Based on this project, BILKA installed 15 new production lines for the manufacture of complete roofing systems. It now counts 250 employees, versus 150 last year.

“We managed to maintain a constant growth pace of 40% over the last years, and this was mainly due to the development and investment plan implemented between 2014-2016. Following this project, we purchased and integrated a new platform of 27,000 sqm in our production flow, we installed 15 new production lines, we launched 3 new models of metal tile and thus we completed our investments related to the residential division. The outcomes of this project are reflected in the company’s turnover which almost doubled, from EUR 23 million at the end of 2013 to EUR 45 million by the end of the 3rd quarter of 2016. For the year-end, we expect the same growth as in the first 9 months, which will place our company among the top 100 Romanian companies”, declared Horațiu Țepeș, the owner of BILKA.

2018 – EUR 100 million potential

This year, after completing the expansion for the residential sector, the company targets new investment and development initiatives that may lift its business up to EUR 100 million in the next 2 years. “Starting with 2017, we plan to launch a new investment plan for the industrial sector – the production of corrugated metal sheets, insulated panels, industrial profiles, structural liner trays, and turnkey halls. At present, the industrial sector stands for 12% of the total production volumes and we intend to raise it to 40% in the forthcoming years. With respect to this project, we budgeted and planned investments of EUR 12 million, but we also need new production spaces.

The available areas near the plant belong to the state and we have already filed a rental request with the authorities. If we succeed with the rental of the requested property, we will commence the investments so that in two years we reach a turnover of EUR 100 million; otherwise, we will have to put this project on hold. We face certain difficulties regarding this matter, but we hope that the authorities will see the opportunities instead of obstructing a 12 million euro investment”, stated Horațiu Țepeș.

The roofing market in 2016 – the greatest ascension in the last 8 years

The official surveys reveal that the total roofing market of 2015 represented 31 million sqm, of which 65% (20 million sqm) metal tiles, 8% concrete tiles and 13% ceramic tiles; the remaining percentage is represented by other types of roofing.

“The residential and industrial projects initiated during the past two years are also reflected in the roofing market development. Considering that the new houses and apartments, built after 1990, represent only 11% of the residential estate in Romania, the development of this sector is necessary and likely to continue in the following years”, declared Horațiu Țepeș. For the end of 2016, the company foresees a 10% increase in the roofing market. 70% of the sold roofing systems are metallic, and they are expected to exceed this figure within three years.

INFO

BILKA’s turnover in 2015 amounted to EUR 43.1 million. At present, the BILKA factory covers an area of 45,000 sqm, divided into production halls, warehouses, and offices. The factory released only last year more than 5.5 million square meters of metal tiles and more than 18.2 million square meters during its 9 years of activity, which means 100,000 roofs. The production lines are fully automated, relying on the latest technologies available worldwide. In 2015, BILKA sold its products all over the country and abroad via more than 500 stable dealers. The company’s distribution network covers entire Romania.

BILKA after 6 months: 55% growth and a new production line

BILKA, leader of the roofing market, recorded a turnover of RON 69 million in the first 6 months of 2015, that is 55% higher than the same period of last year. According to the company estimates, 1 of 4 metal roofs sold in the first half of the year was bought from BILKA.

“Our business in the first 6 months of 2015 was equivalent to the cumulated business during the first four years (2007-2010). This result comes as a consequence of the maturity of investments of over EUR 9 million made in the 8 years of business. However, an important contribution to business growth was the company’s internal infrastructure, and the management system which efficiently managed the existing resources and capitalized the investments made. I believe that without this, the production capacity, the investments and the range of products and services are not enough on one competitive market”, says Horațiu Țepeș, owner of BILKA.

New production lines and metal roofing tile models

At the end of June, the company set up a new production line, doubling the production capacity for the BALCANIC metal roofing tile. This investment is part of the investment program started at the beginning of last year, amounting to about EUR 7 million and will be completed in 2016.

“We plan to process any order in just 24 hours. Therefore, in order to hold on to this commitment, as demand grows, we need to increase our production capacity. In the second half of the year, we will install another 7 new production lines and we will launch 3 new models of metal roofing tiles. The diversification of the product range will lead to the growth of the BILKA business as well as to the growth of the whole roofing market. The investments are supported by our own funds and by bank loans and over 3 million RON from European funds”, says Horațiu Țepeș. After a 55% increase in turnover and investments made to expand production, the company aims to acquire new land.

“In our field, an increase of 55% brings, in addition to the need to increase the production capacity, the need to increase the storage capacity for the raw material. In this regard, we aim at acquiring new land. This year, the concession or purchase of the 13,000 sqm land in the immediate proximity of the factory, on the public domain, becomes mandatory for the proper functioning of the production flow”, states Horațiu Țepeș.

The roofing market in 2015: potential growth by 15%

According to internal studies, the metal roofing market recorded an average increase of 10% in the first half of the year. In 2015, roof sales are driven mainly by renovation works, but there is a revival in both new residential and industrial works.

“Our forecasts are mainly based on the market trend in the first half of the year when demands for roofing have increased unexpectedly. The demand for new homes, the state aid in purchasing new housing facilities, the willingness of banks to support builders and individuals at the same time, together with the producers’ efforts to increase the market, are some of the elements that add a boost to the roofing market. Also, this year we will also feel the positive effects of the projects completed in the field of agriculture under European funding programs between 2007 and 2014. Once these investments mature, they generate new opportunities and the financial resources necessary for the development of this industry. They are the reasons for a significant increase in the roofing market and, implicitly, in BILKA business”, says Horațiu Țepeș.

INFO

BILKA, the manufacturer of roof systems, was established in 2007. BILKA’s turnover in 2014 amounted to RON 134 million. At present, the BILKA factory covers an area of 45,000 sqm, divided into production halls, warehouses, and offices. The factory released last year more than 4 million square meters of metal roofing sheets. The production lines are fully automated, relying on the latest technologies available worldwide. In 2014, BILKA sold its products all over the country and abroad via more than 500 stable dealers. The company’s distribution network covers the entire Romanian territory.

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.

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.