Jela conquers regional market - Factory in Jagodina uses the most modern machines for furniture production in east Europe

(Vladimir Petrović)

- Over the last ten years, Jagodina-based Jela has been growing from a small woodwork company to one of the leaders in production of panel furniture in the Balkans. The products of that company are exhibited in 150 furniture showrooms in Serbia, while their furniture sets for children's rooms, bedrooms and living rooms can also be found in Slovenia, Croatia, Bosnia and Herzegovina, Macedonia, Montenegro. The company has recently entered the markets of Greece, Czech Republic and Slovakia, while the market of western Europe is next on the list - Vladimir Petrović, the Director General of Jela Jagodina, announced for eKapija.

- In the following period, Jela will be focused on expansion in the region because our last year's investments in the automation of equipment have tripled our production. The units in Jagodina are equipped with the state-of-the-arts machines made by German manufacturer Komag, which fully cover the whole production process - from cutting to banding and drilling. Further automation of the packaging lines is in the pipeline as well. Two months ago, we put in operation the set of machines for banding and drilling panels, which are one of the kind in east Europe. Due to all these investments, we need to work hard to increase the sales. We have made good contacts with potential partners in Bulgaria, Hungary, Romania, and we are also satisfied with our participation in two trade fairs in Germany. For the time being, about 70% of products are delivered to the domestic market, while the rest is exported - says Petrović.

Our interlocutor adds that the company does not have its own showrooms, but sells the products through the network of distributors. Jela Jagodina in Slovenia collaborates with hypermarket chain Harvey Norman from Australia, while its representative in Croatia covers the territory of the whole country. Petrović says that the way of product placement depends on the situation in the market and that there is no such thing as unique model of expansion.

Jela today has 130 employees and cooperates with the leading suppliers of semi-finished products from abroad, including Homag, Biesse, and Ima. People in the units work on cutting-edge digital CNC machines of the latest generation, which produce 51 elements in 13 colors. The product portfolio of Jela Jagodina enables easy formation of premises: children's room, living room, bedroom and hotel room, anteroom, and office space. All products are characterized by top quality Q1, the certificate for which has been issued by the Faculty of Forestry Engineering in Belgrade.

- We import plywood, which makes about 90% of our products, but we hope that Lapovo-based factory Kronospan will become one of our biggest suppliers - Petrović explains.

He says that the company mainly provides money for investments from banking loans and its own sources, so that there is no need for recapitalization and strategic partners. According to the words of the Director General of the manufacturer from Jagodina, several foreign companies have expressed interest in partnership with Jela, but no concrete deal has been made yet.

- Italians were interested in cooperation with Jela in production of furniture for foreign markets. They would provide money, while we were supposed to provide equipment and know-how.

When asked if they considered the partnership with Ikea, Petrović said that they had not been contacted by that Swedish manufacturer, but he also said that the company was not thinking about that.

- Such deals require a different organization of work than we have at the moment. We hope that Ikea's arrival will raise the level of sales in our country. The network of furniture showrooms in Serbia is smaller and of lower quality than in the rest of the region. The showrooms in Serbia are mainly small in size, opened within the existing facilities, without adequate approach and parking lot. It has been proved in practice that Ikea does not endanger local manufacturers in the countries it enters, but enables them to find their position within the system.

Jela Jagodina is this year's laureate of the Business Partner award.