The rustic-style facades of buildings in the Netherlands, Belgium and Germany are becoming a fashionable feature with both the owners and builders of Romanian houses, a fact that is reflected in the above 500,000-euro turnovers registered by the producers and distributors of flexible face brick and stone.
"At the Budapest construction materials fair we saw flexible face brick and stone products and met the products inventor. We liked what was on offer and were impressed by the product's characteristics and uniqueness. After several discussions, we decided to secure the necessary know-how," explains Horea Bunta, a partner in the Cluj-based Delap Invest firm, a Romanian-held company.
Despite the tight domestic competition, especially with major international competitors, 2001 saw the two associates establish their company as the sole producer of flexible face brick and stone. Now, six years on, the company has expanded its product range. Horea Bunta says the company developed by expanding its sales area and by manufacturing products that were in high demand. The company's customers range from everyday DIY consumers and construction firms to investors.
When first launched in 2001, the company started out by employing 5 people, and is now employing a staff of 14. Originally, the main problem faced by Delap was the lack of raw materials, which had to be imported.
According to data published by the Finance Ministry, the business is currently thriving. "In 2006, we registered a 80% growth rate, year-on-year, due to rising investments. This year, we expect our turnover to double owing to a higher recognition of product quality and continuing market developments," says Bunta. A stronger domestic position and forays into foreign markets are part of the company's medium and long-term plans.
Dan Fizedean, a partner in the Arad-based Kromston firm was looking for decorative plaster for his own house back in 2002. "Talking to a producer at a fair in Cluj, I found out we could make these products ourselves through a franchise system. It seemed to me this was a viable opportunity, so I acquired the production and retail franchise for Arad and Timis counties," explains Fizedean.
Between 2005-2006, Fizedean visited several European construction materials fairs seeking new business opportunities and discovered Klinker products, which he believed would prove popular on the Romanian market. As a result of his find, he signed collaboration contracts with the producers and in November 2006 began importing the first products. The firm also provides assistance on how products should be used.
The firm's customers include designers and architects and other individuals involved in similar construction services.
The business started in 2002 with 2 employees, with initial investments of 2,500 euros. Another 10,000 euros were later invested and the number of employees rose to 6. The turnover reached around 600,000 RON (190,000 euros) in 2006, up 50% year-on-year. "After supplementing our product range with Klinker products, we expect our 2007 turnover to increase by 20-30%," adds Fizedean.
The business in brief
Construction fairs can be an important source for new business ideas
Targeted customers: individuals, construction companies, as well as investors
Turnover exceeds the 500,000 euro mark, doubling each year
Profit margins range between 9% and 15%
Raw materials are imported
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