ROMSTAL: Stability on the installation equipments and products market

Romstal is the biggest sanitary ware distributor in Romania and one of the largest companies in the field in Eastern Europe, with more than 200 specialized stores in Romania, Republic of Moldova, Ukraine, Italy, Bulgaria, Russia and Serbia. The headquarters of the company is located in Bucharest and the turnover in 2013 overcomes 110 million EUR. For current year, the company's main objective is to obtain an advance of 12%, which means a faster growth than the one that will be registered at the market level, expected to be around 10%. The group is present in Romania for more than 20 years and consolidated its leader position through a strategy of emphasizing on quality products. This goal was reached by promoting famous brands and in the same time by offering a high professionally services. The most important firms in the holding, which are active on the construction materials segment, are Romstal Imex, Valrom Industry (producer of plastic pipe systems) and Valplast Industry (specialized in the manufacture of PVC pipes and fittings). The product portfolio covers in a complete manner the requests of specialized companies. The predictions of Romstal management team for 2013 were confirmed, and now the sector is placed on a level of maturity, although some divisions communicated recently a stagnation of sales. In the opinion of Romstal officials, after a tumultuous period before the recession outset manifested by uncontrolled growth of demand and supply, followed by several years when the companies have experienced a strong decline of activity, at the moment the construction industry and real estate development activities send clear signs of revitalization. The biggest challenge for present days is not constituted by obtaining high turnovers or reporting spectacular growths of distribution network, but by strengthening the existing quotas, improving business relations with traditional partners and maximizing profitability. The most significant increases were observed, in the last period, for the range of products and premium brands such as Viessmann, Vaillant, Buderus (Bosch), Grundfos, and the segment of sanitary ware (Villeroy & Boch, Keramag, Hupp, Ideal Standard, Gardenia Orchidea etc.).