Elgeka wants to be No.1

Elgeka Romania, a Greek consumables distribution firm with national coverage, has so far invested 13 million dollars and plans to become the first distributor on the Romanian market within three years, by offering an integrated commercial services system.

“We want to be number one, as well as to build up market leader positions for our international suppliers and promising local brands,” the firm’s marketing director, Diana Voicu, told Ziarul Financiar.

Elgeka entered the market in January, when it took over one of the largest national distribution firms, Cosmos Trading. The share capital, worth 13 million dollars, is held by Elgeka Greece (80%) and by Cosmos owners (20%). The mother-firm, Elgeka Greece, is the largest consumables distributor in Greece, with turnover standing at 100 million dollars in 1999.

Size-wise, Elgeka comes third on the market, following Interbrands and Overseas firms, Diana Voicu estimates. Since entering the market, it has registered a rise in sales by 365 percent. At the level of August, its sales reached almost 16 billion lei. Turnover forecast for the entire year amounts to 17-18 million dollars, and it is estimated to go on profit at the end of this year.

Elgeka plans to become a leader through a policy that is different from that of other large distributors that particularly work with multinational firms and offer as a rule logistics services (stock administration, storage and transportation).

The firm’s representatives say that, on developing markets, which cannot develop exclusively on the basis of imports of large brands, market success also consists in investing in local brands characterised by a high growth potential, either in advertising for the respective brands, or in production capacities.

“We have a policy of brand builders because we offer the brands we distribute not only distribution, sale and logistics services, but also marketing, communication and information services. We also have a quite high proportion of important products in our portfolio, but we plan to attract some companies to produce locally, namely create brands on the local market,” specifies Diana Voicu.