From an economist career to toilet paper

After having abandoned a business dealing with plastic materials, an economist opened a small workshop in Deva to manufacture tonnes of toilet paper monthly. Having only two employees, he does business worth dozens of millions every month.

Ioan Enut graduated the Economic University in 1988 and worked in the trade network from Hunedoara for three years.

In 1991, he decided to drop his career and opened a small plant for plastic material manufacturing in his native town, Dragasani-Valcea, where he produced plastic caps from processed plastic waste.

As credit interest rates soared to 130-140% at a certain moment, the business turned unprofitable and Enut moved to Deva, where his family lived.

In the fall of 1999, the young businessman rented a space located in the outskirts of Deva and started to manufacture toilet paper. He had to sell the equipment from Dragasani and buy a new Romanian technological line to manufacture toilet paper.

The equipment cost 7,000 dollars. “I thought this field could provide a steady profit over the entire year and that there were no large sales fluctuations from one month to another,” Ion Enut says.

Enut called his new company “7×7 SRL”, as he thinks 7 is his lucky number. He started the production with only two employees, still there today, which were trained for one week by an expert from the company having delivered the equipment. The two workers produce seven-eight tonnes of toilet paper rolls every month.

The company intends to launch perfumed toilet paper this spring. “The carton core and the toilet paper are soaked with perfume essence during the manufacturing process. We ran some tests and I am happy with the results,” Ion Enut says.

The company has registered between 70-80 million lei in turnover every month since it was established.

The raw material, a special paper, is brought from Calarasi. “I think it is the best paper produced in Romania,” Ion Enut says, motivating the choice of a distant supplier. Enut brings four-five tonnes of raw material at each transport, in ballots weighing between 150-200 kilos.

The most difficult problem faced by the owner is how to increase the company’s turnover. According to him, this can only be possible if his products (toilet paper and paper tissues) are sold in the neighbouring counties, Timis, Arad, Bihor, as long as the consumers’ number from the northern area of Hunedoara county, his main outlet, remains unchanged.

Even though his business is profitable, Ion Enut, the company’ unique shareholder, is not content with the business environment in Romania. “My main concern is the inflation rate. When I began this business, I paid 3,600 lei for one kilo of paper. Now I pay 7,600 lei for a kilo of paper bought from Calarasi.

The price of a toilet paper roll is 645-795 lei, VAT not included, depending on the weight and type. I offer 3% discounts for acquisitions exceeding three million lei,” Ion Enut maintains.