Krzysztof Domarecki, chairman of Selena, talked about the company’s plans for the next two years. He also gave his assessment of the condition of the construction chemicals market in Europe and the Middle East.
Over the next two years, Selena Group plans to focus on strengthening its position in the markets of southern and western Europe and the Middle East. The 16 countries in which the company is already present will be joined by the following countries: Iran, United Arab Emirates, Saudi Arabia, Oman, Kuwait and Egypt. According to Krzysztof Domarecki, the markets of countries such as Poland, Italy, Spain and Turkey (in the capital of which Selena already has two distribution branches and a production branch of foams and sealants) have clearly accelerated in the last year.
This desire to develop is related to the company’s strong situation. In the first quarter of this year, the group recorded consolidated sales revenues of PLN 178.7 million. At the same time, Selena recorded in this period a net loss of PLN 6.4 million, an improvement of PLN 1.3 million in comparison to the same period of 2015. It is worth remembering, however, that the construction industry is seasonal in nature and Selena recorded only 18% of its annual revenue from January to March. In 2015, the group recorded a net profit of PLN 26.8 million, about 28% higher than last year.
Although Western Europe and the Americas are the most stable markets, and the company concentrates on these regions, the markets of Central Europe are expected to grow in about 1.5 year, according to the CEO of Selena. Entry to countries such as Oman and Egypt is related to the design of their products in such a way as to bypass the problems of these regions. One of these is instability or lack of electricity supply, so products offered by Selena must operate without access to this resource.
In addition to acquiring new markets, the group focuses on development through investment in innovative new products, and cooperation with science.
Innovation is pursued by the implementation of the ERP Microsoft Dynamics AX 2012 that supports key management processes within the Group. Due to the complexity of this implementation, there are continuing efforts to stabilize, improve the performance and tune the system to the operations of Selena. Accordingly, the first impact of the implementation is expected in the second half of 2016. The ERP system will contribute to increased efficiency in the Group, and thus the cost-effectiveness of its operations.
The company is trying to enter the market with new products. “We are still working also on innovative, high-margin products and in the coming quarters we have high hopes for the new product category” said Jarosław Michniuk, the CEO of Selena FM S.A., the master unit in Selena Group.
Cooperation with science takes place through participation in projects such as BRIdge Alfa. This is an agency functioning at the National Centre for Research and Development, whose mission is to fund research projects and facilitate their implementation in industry.