Apemin Tusnad, a mineral water producer, is to invest 5m euros to triple its production capacity amid the sustained growth of mineral water consumption domestically and the company's debut on the segment of soft drinks.
"We have recently signed the contract for the acquisition of a new bottling line and the investment plan also includes the construction of a production hall. This will be finalised in the spring of 2007 once the new line becomes operational," Gyarfas Kurko, Apemin Tusnad general manager, told ZF.
"We are currently focusing on the Romanian market given that exports take additional efforts. At present, less than 1% of Apemin Tusnad turnover comes from the countries we are exporting to, Hungary and the Republic of Moldova," Kurko also said.
He added, however, that the company was not ruling out the possibility of focusing more on foreign markets in the future.
The production capacity increase will be 60% financed through banking loans, but also with the company's own funds and, to a smaller extent, with loans from suppliers, says Kurko.
The company expects to see its turnover advance by more than 50% this year, to 10m euros. Moreover, the company's officials say, Apemin Tusnad plans to tap into new market segments, complementary to the mineral water sector.
"Once a new production line becomes operational, we will also launch new premium product brands, entering the segment of non-carbonated soft drinks," Kurko also said.
Non-carbonated beverages currently make up one of the most dynamic segments of the Romanian soft drink market owing to shifting consumer preferences.
Apemin Tusnad last year invested in new products, namely "Izvorul Zanelor" spring water, positioned on the premium segment, and "Izvorul Ascuns" water, positioned on the economic segment and distributed nationwide. Last year, the company also invested in logistics and distribution and in improving the image of Tusnad brand by changing its label.
This is the second time Apemin Tusnad has tripled its production capacity, with the company having made the first such move in 2004, when it invested over 2.5m euros to acquire a new complete bottling line and to build a new hall. The investment paved the way for the company's entering the segment of non-carbonated mineral water.
At present, the company has a production capacity of 60 million litres.
Apemin Tusnad last year derived turnover worth 6.6m euros, 60% higher year-on-year. "The market share of Apemin Tusnad products is growing faster than the mineral water market," mentioned Kurko. The company currently owns a 5.8% market share, in line with its own estimates.
Apemin Tusnad is a Romanian privately-held company, set up in 1999, after the split of Perla Harghitei company.
Apemin Tusnad
Will invest 5m euros to triple its production capacity
The investment plan also includes the construction of a new production hall
Exports currently account for 1% of turnover
Last year derived turnover worth 6.6m euros, 60% higher year-on-year
Expects turnover growth by 50%, to 10 million euros in 2006
Plans to enter new market segments, complementary to the mineral water segment
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