Uzice curtain rods to Europe - The "Mega" company is planning to increase revenue by 30%

(Nikola Lojanica)

The "Mega" company, which almost two decades ago has started in Uzice with making of curtain rods and decorative elements made of metal, has become today's leading domestic manufacturer and distributor of products for interior furnishing. Apparel of the company has over the years been completed by the program of curtains, draperies, fabrics, wallpaper and self-adhesive foils, which are available to customers in 20 cities in Serbia, as well as in the markets in the region. The aim of the company "Mega", which is one of the first Serbian companies with a precise franchise concept, is to open a dozen of retail outlets in our surroundings by that system and to become a market leader in the surroundings. Revenues of the company have increased by 30% in 2009 compared to 2008, and the same operating result is expected in the 2010. The program of Uzice based manufacturer is now available through a network of distributors in Bulgaria, Romania, Macedonia, Montenegro, Bosnia and Herzegovina, and the goal is to win the Slovenian and Croatian markets, said for "eKapija" Nikola Lojanica, Director of the company "Mega".

The Franchise

- Clear franchise concept has been established this year, and until now, we have been present in foreign markets through one or more vendors. We first began to develop the franchise system in Serbia and soon this model will be used for opening shops in Pristina and in Kikinda. Franchising system has taken a little bit different path, so to speak spontaneously, because our customers eventually decided that we become their main supplier. Our potential partners are offered not only the products but a complete "know how", a different concept of operations and years of experience - Lojanica explains, adding that a company that wants the franchise must be prepared to accept the new concept of operations, to pass the training, to invest in their retail space and modern design solutions.

In foreign markets, "Mega" is mainly appearing with its program of curtain rods coming out of the plant in Uzice, while the finalization of curtains, draperies and fabrics is done in Belgrade. Manufacturing program for rods and accessories, as emphasized by Lojanica, uses high quality materials such as brass, stainless steel, aluminum and wrought iron, and raw materials are procured from Sevojno. The capacity of the factory "Mega" in Uzice is enough to supply the Southeastern Europe market with rods and accessories.

- Current capacity suits the requests of "Mega"s customers, but the organization of production and machining facilities allow much larger series. Currently it is only worked in one shift, and new export markets, expanding of the market share in existing markets and the growing number of customers can cause recruitment of new employees and work in two or even all three shifts - explains Lojanica.

- We concluded that we have with the program of curtain rods which is the most competitive in the market of Southeast Europe, because we offer a real relationship of quality, design and price. As for the other products that we offer, we usually do finalization which accounts to 60% of the finished product. We have developed our own brand for mable fabrics (brand "Mable Rabble") and a luxury brand for curtains and draperies, "Fillenc", and raw materials are mainly imported from Belgium and Spain. Fabrics are purchased from the European Union and Turkey, and wallpapers are coming from Germany and Italy. Also, we are exclusive agents of the greatest European distributors of curtain such as "Sati", "Aznar", "BRU Textiles", "Prestigious Textiles" ...

Curtain rods and associated equipment under the brand "Mega" can be found in a wide distribution network in Serbia, and the company apart from its franchise stores, supplies also furniture manufacturers, hypermarkets ("Home Center", "Tempo", "Mercator "...), iron stores, bookstores, etc. Apart from manufacturing, importing and distributing of products for interior furnishing, the company provides services of furnishing hotels, offices, public buildings, houses and apartments, according to the system "key in your hands", which is one of the priorities for further development and growth.

- From year to year, "Mega" is recording remarkable growth, 2009. was ended twith a turnover of 276 million dinars, with a gain of nearly 12 million and an increase of 30% compared to the 2008. Ambitions for the significant growth exist in 2010 as well, but we have in mind the difficult general economic situation. Planned growth of 30% is considered to be realistic and achievable - says Lojanica.

Mega operates at two locations: the production of curtain rods is located in Uzice, where it employs 10 workers. In Belgrade, there are warehouses and management with commercial sector, marketing sector and other supporting services. "Mega" employs a total of 64 people, out of which 32 is in the production and it should be noted that an important part of the company are 5 designers.