Volgograd group "VOLMA" producing building materials over the past few years has placed its power in different parts of Russia and came to the regional markets of North-West to the Maritime Provinces. The company develops its own production of raw materials and intends to build additional plants
The crisis has become an ordeal for manufacturers of building materials. Grow during this period could very few companies. In Volgograd company "VOLMA" — manufacturer of finishing materials — during the crisis turned out to increase production, to negotiate with distributors and retail chains and become, in effect, the federal industry players. To sum up, it happened largely because the beginning of the crisis on the company everything was ready for an upgrade. The development group says Yuri Goncharov, Co-founder and Chairman of the Board of Directors of the "Management Company" VOLMA. '"
— How fast your company grows this year?
— In 2011, we plan to add 35 percent. This is due to the launch of new capacity — we began to produce more products. Indicators of "VOLMA" the past few years, growing quite rapidly. And even in the crisis years, we in general, did not fall: in 2009, there was a small increase, four per cent, and in 2010, the situation was better — we added about 20 percent. This was made possible thanks to the fact that we are focusing their efforts in the field of marketing, monetary policy, to build capacity. For example, let a new shop drywall sheets (GCR) on our site in the suburbs. We have four production sites: two in Volgograd, one in Voskresensk and one in Chelyabinsk.
The irreversibility MODERNIZATION
— Due to what has become possible to grow during the crisis? After all, the construction industry has suffered more than others.
— Of course, all builders of the crisis was not easy. Each company has its own individual destiny. Some of the projects we started in 2007, when the crisis nobody thought. It so happened that the crisis was soon begun, but we did not stay because as has already passed the point of return — there was no point to stop projects and spend big money on the content of what has already managed to build. In our industry sometimes takes a lot of time from when you're up to something, until the realization of the idea. This is due to the fact that the equipment is made long enough. If we, for example, to place orders in Germany for the production of equipment, we deliver it in just two years. Our revenue increased because running in times of crisis projects started to pay off, despite the reduced demand.
Of course, during the crisis, a number of projects we had to freeze — Chelyabinsk plant was the whole of 2009. Then we decided to go to the regions and create several new sales centers, have started to cooperate with dealers and networks. Perhaps because of all this able to maintain growth. So talking about some sverhpobede over the crisis will be wrong. In the 2008-2009-the year we have been increasing production capacity chasing, but the crisis has certainly shown that you need to think about the efficiency of production and the need for proper distribution of products. After all, before production was easier to implement, but now it needs to be actively selling. We are trying to establish their civilized progress.
— If you talk about the dynamics of output, for whatever its forms is a growth or decline?
— We manufacture three main product groups: gypsum plasterboard (gypsum), cam partition plate and dry building mixtures. In recent years, we have grown well on the GCR. Until recently, we had only one production site in Volgograd — where we did 10 million square meters of sheet per year. With the launch of the plant in Voskresensk this year we will release and sell about 33 million square meters of plasterboard, it is our most developing lineup. As for the corrugated and then for the last three years, their production has doubled — the market allows it. For dry construction mixtures dynamics considerably smaller: for three years, their production has increased by 40-45 per cent, but this market is much tougher competition.
— How do you get the raw material for their businesses?
— Our main raw material — gypsum, we try to go out on a self-sufficient consumption. The strategy of this — all of our plants must have its own field. Today, Volgograd sites we buy it at "Knauf" in Baskunchakovskom career in the Astrakhan region. For the Resurrection site materials we buy from the same company in Novomoskovsk, Tula region — Europe's largest deposit of gypsum. We understand that this is not a normal situation. Raw material prices are steadily growing around 20 percent per year, and therefore our production costs from increasing. Therefore, we decided to do prey.
Now in various stages of readiness are several related projects — the company has three production licenses of gypsum in the Orenburg and Samara regions in Karachay-Cherkessia. In the Orenburg region, we have already begun shipping to its Chelyabinsk plant. By the way, I am very pleased with the cooperation with government bodies: the regional governor Yury Berg has given us great support. In the Samara region, we develop the Trinity mine, and I think by the end of the year already start production. And in Karachay-Cherkessia, while the state of "greenfield" — all on the level of protection of the project. As for the other raw materials necessary for the production of a dry mix chemical components of all domestic producers of import from Korea, China, Germany and other countries — here we are on the other are no different. These are products of deep chemical synthesis, which Russia does not produce — and this is a serious problem. All of these supplements are expensive. For example, a kilogram of methyl cellulose is more than eight dollars — it's expensive. If our chemical industry has mastered the production of the necessary chemicals, we would have been much easier. We also buy cardboard at three plants — in St. Petersburg, Bryansk region and Ukraine.
MARKETING — THE REGIONS
— I have often seen your products in major construction networks. How do you have lined up sales?
— Basically the whole system is built the industry's sales through dealers and distributors, giving rise to some difficulties: lack of money in trading companies, the problems of institutional and human order. Therefore, we value the direct contact with the builders. While also interesting and large distributors. We are certainly pleased to be working with networks, but they sometimes put quite stringent. However, integrated turns, and we see that through network marketing is on the rise. We will continue to work not only with the foreign but also domestic trade networks, which are now developing actively. I am absolutely convinced that the existing system of sales, with its natural, roadside and various other construction markets, over time, will be transformed into a more civilized format DIY (short for Do It Yourself — «Do It Yourself" — trade in goods for the house, the garden, as well as the construction and maintenance of housing. — "Expert South"). We conducted the study in European markets — where the format of DIY developed much better than in Russia, not to mention the regions. For example, in Moscow, this sector is adequately represented, but new stores are still being built. And in this region is just beginning
. For example, in the same Volgograd now operates one such marketplace, even now the store will open two large national chains. Three DIY on millionaire city — not so much.
— What is the geography of your sales? Is there any evaluation of your market share?
— Major sales — in the Southern Federal District, Volga and Central Federal District. Historically, we are strong in the Southern District, where a network of dealers and sell about half of its products. We are well represented in some areas of the Volga region. With the launch of the plant in Voskresensk occupy a worthy place in the Bryansk, Belgorod and Voronezh regions. But in some central regions of our positions are weak, as in the eastern part of the country. However, in Siberia and in the Far East, there is a strong dealers with whom we are working. For example, thanks to this partnership, we now have a good position in the Primorsky Krai. In addition, we are trying to enter the direct supply of large builders.
On plasterboard sheets for the last year we have built up its share of the Russian market from 7 to 12-14 percent, although the market leader remains "Knauf" — they have about 75 percent. Cam boards — produce more specific and a little-known, here we are stronger and occupy about 35 percent of the market. On cement mixtures we're still in the tail of the top ten, maybe eighth in the country, and on plaster — the latter. Speaking in market share plaster — we have about 18 percent.
— What are the specifics of competition in this market? What are your benefits?
— The competition is quite tough. On plasterboard sheets we compete with "Knauf" and gradually catching up. For example, in the same Rostov and Krasnodar, a couple of years ago, we almost did not have, and now we can already see, this share, we continue to strengthen. We continue to work on the CFD markets. Due to the fact that the rail transportation draconian tariffs are set, we do not dovozili their products to other regions. For example, if you send a car with gypsum boards from Volgograd to Irkutsk, the shipping cost would be one and a half times the value of the goods.
Still, our products are cheaper than the competition, although the price is not the most important thing — we try to cooperate with networks and dealers so that it would be beneficial to all — are building the new models, conducting various marketing events. In this case, the combination works "price — quality — the promotion."
Compelling INVESTMENT MARKET
— Do you plan to create new and existing production capacity?
— We want to participate in the Olympic construction — in our case it is right, not too far away we are from Sochi. Do not forget the same FIFA World Cup. We anticipate that this will cause all some growth in the market, and therefore we will implement a number of projects that are conceived earlier. For example, in Voskresensk next year will add two production lines of cement and plaster, in the expectation that Moscow will expand, in addition to what will be a small, but growing market. We figured what should be the consumption of gypsum per person in the country. If Europe produced an average of 3.5 square meters per person per year, we have a figure of about 2 square meters, it has a certain market potential still exists. Therefore, we expect that in the future 10-15 years, our products find their demand.
According to Volgograd sites investment while not follow. Southern market is rather complicated, heavy. We will modernize Voskresensk and Chelyabinsk, to build a plant in Orenburg, and, I hope, in Karachay-Cherkessia. We have already met with the President of the Republic Mr Temrezova and plan to sign a cooperation agreement, to master production of gypsum and build a production line for plasterboard. There's a good field, but the question is still open infrastructure — we hope that the country will help us in his decision. In the construction site for the extraction of raw materials and the production of plasterboard will invest up to one billion rubles, partly due to credit funds — problems with borrowed money is not, we have a sufficient collateral base, we have a good reputation. We definitely will be physically closer to the markets, that is to acquire existing businesses in convenient areas either, because of the ever growing cost of logistics, built closer to markets.
— What are the factors in the next five to seven years will determine the state of the industry in the South?
— We expect continued growth uniquely buildings, still SFD — a region with significant potential. Most likely, the increase will be caused in part the implementation of Olympic state programs, the development of resorts in the North Caucasus, the holding of the World Cup — we are planning to take part in all these programs. Under these conditions, we expect not only to some serious help from the authorities (although it's nice to help), but the lack of any opposition on their part and loyalty of consumers, including the state order, with an emphasis on domestic products, which is as good as foreign.
Regions as brands
— What should be done to the authorities, to maximize the potential subjects of the Southern Federal District and, in particular, the Volgograd region?
— There is an important concept as a brand. As consumers we overpay some money for promoted brands. Therefore, the development of our country subjects, as in business, largely depends on the brand of the region, the investment positions of power. If there is any difference, for which people are willing to invest their money, and the business will flourish. We wish the authorities of our native Southern Federal District, including the Volgograd region, to find interesting ideas and promote them to the level of the brand. This is very important. Now it is difficult to surprise, so if there is something new, promising, success is definitely coming.
On the part of the regional leadership is very important to represent that entail different projects. Take, for example, our company, which is located in the district of Orenburg region Belyayevskoye: poor agricultural region, there is only industrial enterprise, and with our arrival will be about 200 jobs — well, is it bad? We were fairly easy to communicate with the management of the Orenburg region. Important that the specifics, not just a "good idea", talked and went away. Here, we signed an agreement with the governor of Orenburg on the socio-economic development and construction company, and I feel it my duty to execute it clearly. I know it is some issue arise from the government will be given maximum support. And it's not just about our company. I have heard that the contribution is made in other regions, but there is little good examples. So, if the regional leaders will be what is called a bleed for your site, then everything will turn out, because the right side the head — it's 80 percent success rate. In our country, for sure.
The company "VOLMA" grew out of the Soviet enterprise "Volgograd gypsum plant," and the current leadership came to the management of the plant in 1999. In November 2005, it was created by LLC "Volgograd gypsum", which in February 2007, renamed LLC "VOLMA" (the largest production site of the group). Today, the group "VOLMA" includes several manufacturing and trading companies. According to SPARC, productive assets "VOLMA" are owned by the "Corporation" VOLMA ""
, which is controlled by the Austrian "ATT Analitikal Technology Trading" (56.56%), Cyprus' GROUVSEND HOLDING LIMITED "(42.38%) and two individuals — Alexander Malashkin (0.53%) and Yuri Goncharov (0.53%, is the general director of the company). Revenues main companies of the group in 2010 was: LLC "VOLMA" (Volgograd) — 3.033 billion rubles, LLC "VOLMA Resurrection" — 1,243,000,000 rubles, LLC "VOLMA-Chelyabinsk" — 220,756,000 rubles, LLC "VOLMA-Marketing" ( Volgograd) — 137,714,000 rubles, LLC "VOLMA-TUE" (Volgograd) — 47,404,000 rubles.