Dejan Simic, GM at Paracinka - Candies from Paracin arrive to Middle East soon

This year, Paracin-based Paracinka is celebrating an important jubilee, 90th anniversary – and as of 2011, when trade company Silbo became majority owner, it is one of the rare successful examples of privatizations in Serbia.

Summing up the impressions of the jubile, Dejan Simic, GM at Paracinka, in his interview for eKapija, reveals he is satisfied with the company business since plans are achieved. In the first nine months, the company generated sale increase of 8% compared to the same period last year. Export markets have been expanding so, except from ex Yu republics, Paracinka exports to Bulgaria, the Czech Republic, Sweden and Russia and they have been negotiating with Belarus, Belgium and Iraq.

eKapija: How much candies did Paracinka produce during 2013 and what are the 2014 forecasts like?

- In 2013, we produced 950 tons of finished goods and we aim at optimal maximum in our stocks. For 2014, we are planning 1.020 tons but due to May floods and halts we will have to change it to 980 tons most likely.

eKapija: Are you expecting sale increase and to what extent?

- In the first nine months, we generated sale increase of 8% compared to the same period last year and we will be satisfied. Our objective is to keep the trend until the end of the year because all statistical data show consumption fall in Serbia as well as at regional markets.

eKapija: What would you estimate as your biggest competitive advantage?

- Currently biggest advantage, and the situation is never permanent at open markets, is recognition of trademarks, fair price and quality ration an well-organized system of sale and distribution which Silbo does.

(Photo: paracinka.rs)

eKapija: Have you been thinking of implementation of new groups of products such as crisps and chocolate?

- As for now, we haven’t. In these times, it is smaller problem to provide financial assets for investments compared to problem of market perspective of a new product. It is not easy to make a new product and it is more expensive and difficult to position it at the market.

eKapija: Which part of production is planned for export and how much goods will be exported by the end of 2014? Have you been generating sale boost abroad?

- In the first nine months this year, we generated growth of 12%, compared to the same period last year. Export markets have some 70% of our product range and candies have been taking bigger stake. By the end of the year, we expect to export 150 tons.

eKapija: Apart from ex-Yu republic, where are Paracinka products available and whether expansion plan of export markets is underway?

- Outside ex-Yu markets, we export to Bulgaria, the Czech Republic, Sweden and Russia and we are negotiation on export to Belarus, Belgium and Iraq.

eKapija: In three years, since Paracinka went private, until today, EUR 2 m was invested. Which investments can we expect in the upcoming period?

- Further investments will be set depending market requirements and needs which means the focus will be on equipment and marketing investments. Scope and position will depend on business activities and economic situation.

eKapija: What will be company’s priorities in 2015?

- The priority will definitely be increase of production scope and sale as existential function, especially in the context of negative trend in economy and definite further consumption fall. All other priorities are behind that and in function of the first one. It means greater and better work on existing and opening of new markets and buyers, more creative marketing approach with constant maintenance of technological production security.

Ivana Bezarevic