Nelt Group is planning an income of EUR 500 m- Company is interested in starting up new production, they are considering companies in restructuring as well

(Milos Jelic)

This year, Nelt Group is planning togenerate profit of EUR 500, and they are planning their turnover to reach EUR 1 billion in 2020. As it was said at today’s media conference, they will succeed in it through new organizational structure, portfolio expansion, increased activities in the countries and they are also thinking about starting new production.

- Our strategy until 2020 comprises that, apart from Neoplanta, we start another production. Depending on circumstances, we will decide whether it will be in Serbia, a country in the region or some other place. Since we are good at distribution, if production is defined in line with market demands, we are sure we will have good result. We have not yet decided whether it will be a greenfield or a merger –Milos Jelic, Chief Executive Officer at Nelt Group said.

He said they are considering purchase of some of the offered state-owned companies. They are interested in food producers an as he explained, they have already had opportunity to become familiar with information on potential companies but they are still considering the best option.

Nelt Group was set up in October 2013 after more than two decades of successful business operations of Belgrade-based Nelt Co. During these years, the company became the leader inproviding services of FMCG distribution, logistics services and marketing in distribution.

- New modern organization set up, underNelt Group, developed relations between companies in Nelt’s ownersip structure and long-term strategic business platform was defined. Today, nine companies within our group operate in seven countries on two continents, realizing successful cooperation with more than 40 principals – Milos Jelic said.

Strategic contracts and future plans

Jelic said that in the upcoming period, distribution remains the company core business as well as that they are planning to expand portfolio in the countries of the region and increase business in Africa.

- This year, the most important contracts are with Philip Morris Operations in Serbia as well as with Mars Foods and Hochland in Bosnia andHerzegovina and Mama in Macedonia – he said.

As it was stated at the conference, Arfica is prospective market, in the long run. Neoplanta’s products were launched in Angola and Zambia is the next step.

- We are negotiating with local producers about the placement of their products to Africa but there has been no interested so far– Jelic said.

This year, Nelt has started another activity in Africa – providing marketing services in development of advertising billboards and advertising solutions printing, vehicles branding and development of advertising material.

People

Nelt Group also presented its new management: Sales and Distribution Marketing Manager, Stevan Popevic, Supply Chain Manager, Dragana Skrbc, Strategies and Business Developmnet Executive Manager, Milan Radivojevic and HR Head, Marina Mitic-Jekic.

Nelt development

Nelt was set up in 1992 as the company whose core business was trade. Four years after that, it became adistributor of international corporation Procter&Gamble, for former FRY. Not long after that, it started distribution of products of world famous companies such as Kraft Foods (Mondelez today), Wrigley and SSL, at the territory of Serbia and Montenegro.

In line with the objectives and wish to develop, Nelt is expanding its activities to logistics services. After that, in 2007, with the acquisition of Novi Sad-based meat industry, Neoplanta, their business scope expanded to production as well and in 2008 they privatized Javna skladista Subotica company. In the same year, they started providing trade marketing services for their principals and third entities. As of 2012, Nelt started using SAP.

Today, Nelt firms operate in Serbia, Bosnia and Herzegovina, Montenegro and Macedonia.

Since 2010, it operates in African continent where it is setting up companies in Angola, Zambia and Mozambique andis fast positioning as a leader in distribution and logistics in sub-Sahara cluster.

The list of company’s biggest principals and clients comprises numerous international companies such as Procter& Gamble, Wrigley, Mondelez, Mars, Dr. Oetker, Philip Morris, Reckitt Benckiser, Ball Packaging, Sebapharma, SC Johnson, etc.

M.K.