Arabesque: Romanian capital needs an identity

Romanian capital needs an identity and must be aided onto other regional markets, states Cezar Rapotan, general manager and owner of Arabesque, Romania’s biggest construction materials distributor, estimates 450m-euro sales this year.
Arabesque is already present in the Republic of Moldova and Ukraine and plans to launch operations in Serbia and Bulgaria. “We have the financial power that we have. Romania is moving at optimum speed. What we need is a business community,” explained Rapotan.
He believes that the difference between Romanian capital and foreign capital is that Romanian firms have to be more concerned about the profitability of investments.
“One must tend to every flower. Foreign capitals’ single aim is to take hold of a market, irrespective of the involved costs. I have to drive every centre into the black after six months, otherwise I cannot stay on the market,” states the Galati-based businessman.
Last year, Arabesque acquired Budmax, one of the top three players on the Ukrainian construction materials market, with an estimated turnover of 50m euros for this year, and has further investment plans to expand in Serbia and Bulgaria.
Rapotan believes that noticeable regional development in south, east and north neighbouring countries provides Romanian companies with several opportunities, especially as business links need to be strengthened, in particular transportation possibilities, which, at present, are being neglected.
Rapotan believes that, at the moment, the biggest threat to the Romanian economy is the loss of motivation.
The housing boom witnessed in the last 3-4 years has encouraged Arabesque’s business. As a result, the company’s turnover has skyrocketed in the past 5 years, leaping from 60m euros in 2002 to 333m euros in 2006 and to an estimated figure of 450m euros for 2007.
The company currently employs 3,200 people. Arabesque is specialised in the distribution of construction and finishing materials to firms.
Rapotan adds that the market of construction materials distribution is complex.