Boiler business, a magnet to investors

Selling boilers, one of the trendiest businesses on the Romanian market over the last few years, has attracted both companies specialising in this field and those operating in different fields, yet interested to engage in a business that is sure to help turnover up.
Two such companies, both of them among the leading players on their respective markets, Koeber (paints) and Corina Gealan (PVC carpentry) have entered this segment and one of them even began to actually make boilers.
Paints producer Koeber last spring started to make heating and hot water systems and launched its own brand, the Motan boilers last fall, sources on the market say. They added the paint producer had managed to sell about 1,000 units by yearend, for approximately $600/each. Koeber’s 2003 boiler sales are expected to be higher than last year.
Another player to have entered this business towards the end of last year, is Corina Gealan. It sold 10 Wolf boilers imported from Germany in 2002, collecting about 50,000 euros, Corina Gealan’s general manager Marin Crutescu says.
A boiler sold by Corina Gealan costs 1,000 to 7,000 euros, depending on the capacity.
“Romania is a small market, so that in order to boost our turnover, I thought of offering our clients a broader service pack, which also includes supplying boilers and solar collectors. I hope sales of boilers and solar collectors will reach 300,000 euros in 2003,” Crutescu estimates. He holds 99.5% in Corina Gealan, one of the most important players on the thermoinsulating glass market.
The heating and hot water systems market sees hundreds of players competing, with Romstal, Viessmann, Vaillant, Bosch and Buderus as the most significant. Annual sales total 200-250,000 units, as Romstal estimates. If considering 1,500 euros as the average price per boiler, then the market should be worth more than $300 million.