Serbian furniture competitive at European market -Boreal from Kraljevci at Ruma exports 90% production

I produce all furniture per order which is a world trend - small series for a familiar buyer and product quality always comes first. No one produces thousands of pieces since this valuable and authentic furniture is not made to be on stock . I do not know exact number of pieces made so far but I am satisfied with business and I live from that and work is heading at the right direction.

This is how Petar Borovic, a founder and the head of Boreal from Kraljevac at Ruma, is staring the story about his entrepreneurial attempt. He set up the company in 1998 after he spent some time at a few carpentry workshops and leant the job. Although late nineties was a pretty difficult period for business, in his interview for eKapija he says he decided to risk and start business since “there is only one life”.

Boreal started as a small carpentry company which today has 20 people among which there is the largest number of craftsmen and cooperation with designers who create new products. The company has been generating stable growth and gradual expansion over 17 years of business so that today it exports , 90% of production.

Massive wood as a symbol of quality furniture

Boreal mainly produces tables, dressers and shelves ad a part of the company operates with interiors, equipping of restaurants, office premises and private houses. Massive tree is something they are recognized for but when doing an interior they use other materials as well – stone, glass, leather, composite materials, stainless steel, steel, etc.

- Our target group are people who run households who can recognize price and quality and they want to have for instance quality table in their home when they celebrate their Slava day. Today’s lifestyle brings different artificial materials, plastics and similar which can be excellent but a touch wood provides is irreplaceable –Borovic thinks.

He says they procure raw materials mainly at the local market since “Serbia has quality wood, especially in Srem”. He specifically outlines woods along the Sava river on good land, relatively sub water which is a great environment for quality oak as well as large areas in Macva.

- We mainly use oak, local nut and partially American nut and ,ash and when it comes to other materials, we use metal, leather, grass, stainless steel and a bit of stone.

Boreal uses classical carpentry machines for production and they are planning to procure CNC machine which would enable production of even more quality pieces. They exhibit their products in sale saloon of their partnership firm in Belgrade and that is the road from Serbian market and a large part of production is exported.

As for the competition, Borovic says that it is strong in the region and makes companies to work in more quality manner. He estimates that there are excellent companies in Serbia in this field but that at the moment Bosnia and Herzegovina has the strongest wood industry. He outlines craftsmen approach and cheaper labor force as competitive advantage.

Job for the government – business environment creation

Petar Borovic is satisfied with the market in Serbia and he says that even though we are a poor country there is still a group of people who know about real values and they now that furniture pieces made of wood are evergreen. He claims

- Our economy got used to a kind of a responsible economy and support fo the state is always required. I think the company should be profitable and operate at the market or it should not exist if it cannot generate profit. The job of the government is create favorable environment such as customs-free benefits for Russia or WE countries or funds for development for initial investments but funds i.e. money or subsidies for parasite companies should not be expected. Unfortunately, it’s a remnant of communism and an idea that the duty of the state is to save companies –Borovic says.

He says that so far Boreal has not had major difficulties in business u or unpaid affairs and the main challenge for the company and its owner is constant learning!


Marko Andrejic

Boreal d.o.o. Ruma