“I expect the number of players on the market (in Romania i.e.) to decline. It is a process that cannot be avoided,” Sven Dinsdorfs, CEO of Latvian-held IT&C wholesaler Elko, which posted EUR1.5 billion revenue in 2017, told ZF.
The local subsidiary of Elko is the second leading wholesaler in its sector in Romania, having posted 278 million lei (EUR60 million) revenue in 2017, the same as in 2016.
The Latvian group plans to stay on the local market and actively participate in the potential deals that will reshape the industry, its official added.
The market leader in Romania is NOD, held by one the most powerful local entrepreneurs, Iulian Stanciu.
The market consolidation will have a positive impact, because once they have become larger, the companies will be able to provide a wider range of services and better prices, Dinsdorfs says.
The Elko group, which was established 25 years ago, has more than 700 employees and represents 210 manufacturers, 80 of which added in the past two years. Elko has about 8,000 customers in 30 countries.
The top 60 players on the local IT&C wholesale market posted RON4.4 billion revenue and RON84.6 million net profit in 2016, according to the data ZF has.
The market has growth potential, but it will definitely see the number of actors decrease, says Gabriela Gheorghe, CEO of Elko’s Romanian operations.
“We have one of the big countries in SE Europe and the potential we see both in statistics and on the market is a yet untapped potential, there is still room for growth. On the other hand, the wholesale market as we see it in Romania will definitely undergo consolidation in the coming years and we will be one of the major players on the market, it is one of our goals to remain one of the major players on the market whether it develops or not,” Gabriela Gheorghe told ZF. (EUR1=RON4.6303)
(English version by Loredana Fratila-Cristescu)