Elgeka Ferfelis projects 55% growth this year

The Elgeka Ferfelis Romania group, one of the most important players on the domestic distribution market, has budgeted turnover worth 65 million euros for 2006, 55% higher year-on-year.

Distribution activities carried out by Elgeka Ferfelis account for the highest volume in the group”s turnover, 57 million euros, with the remainder of turnover contributed by the Cera Villa Design construction materials firm, in which Elgeka Ferfelis holds a majority stake (70%) and the branch the group it is to open in Bulgaria.

“Investment plans for 2006 support the goals set for this year,” stated Ioannis Ferfelis, chairman and CEO of Elgeka Ferfelis Romania, a branch of Greek company Elgeka SA.

Elgeka Ferfelis has drawn up investment projects worth 5 million euros for this year. Investments will go to the acquisition of modern warehouses, the renewal of the car fleet and are also aimed at specialising personnel. “According to our strategy for the future, all spaces Elgeka Ferfelis uses for operations, will be held by the company,” Ferfelis also said.

The company also plans to expand to the Bulgarian market by taking over 70% in a Bulgarian distribution company. “This project emerged in the wake of discussions with some of our current suppliers, which lacked a strategic partner in terms of distribution in Bulgaria,” stated Ferfelis.

The company”s intention is to operate 5 strategically located warehouses in Bulgaria”s major cities, including Sofia and Ruse.

The company”s estimate for investments in this project revolves around 3 million euros, which will mainly come from the company”s own resources, with the rest being secured from banking loans.

This month, the company will expand the portfolio of products it distributes by taking over the distribution of Antrefrig pates, after having started working with Pan Group Craiova, one of the most important companies in Romania in the milling and bakery market, earlier this year.

“Distribution of FMCG products is our company”s core activity and this is where our focus will be in the future,” added Ioannis Ferfelis.

Besides the FMCG (fast moving consumer goods) sector, Elgeka also has a presence on the non-food segment.