15.09.16The development of the JUMP project. Dividends will be!
- Aleksandr, I know that at the beginning of the year your wrote JUMP program which was established in connection with the development of your company. What can you say about it?
- Yes, indeed, we have written JUMP program, which connects market research, our substantial capabilities and algorithm procurement and delivery of new production lines for the implementation, execution and achievement of the objectives of marketing and commercial part of the JUMP program.
We have already introduced a number of new products and some old items such as cabin air filters production of which was increased more than in 2 times More than in twice we have already increased production of air filters for cars. It have already made a large amount of work but we have to do no less in the future.
- When do you think the JUMP program should be implemented?
- JUMP program was to be implemented by October 1, 2016, but we moved the official implementation of the program at 1 December 2016, as not all of the equipment, unfortunately, received, and some of the equipment has not yet been shipped. As you know, it does not always depend on us, equipment suppliers often delayed execution of the order, it is a normal practice. A lot of equipment, and various forms, we produce and design ourselves, there is also, unfortunately some delays. But in general, all goes according to plan with a lag of about 2 months. Of course, the development of the holding companies and the holding occurs on a regular basis, but sometimes you need growth jumps, now it is a such a period. Now there is almost a natural import substitution, as our products are much cheaper than similar products supplied from abroad.
- What is the exchange rate of the dollar good for the company?
- Objectively - the higher, the better. Of course this is not the most optimal, since difficult to buy goods from abroad, but our Russian goods become more attractive in price .I can assure you that even in these circumstances, the situation is not easy, the competition is large and the market is mature.
- The company is public. What plans do you have?
- We have just the one plan - to develop and to increase the capitalization of the holding company. For example, this year we launched a new plant for the production of trimmer line - "Plant of trimmer line" Trimit. "The marketing research of 2008, which in accordance with our order provided company" Dun and Bradstreet Nord ", volume of the market for 2007 amounted to 1 5 billion. rubles in Russia. Of course, it is much smaller than the filter market, but manufacturers are not so many.
Despite the seeming simplicity, it is a very high-tech product and to create it, even with the equipment it is not an easy task. There are so many tricks and a lot of technological nuances. So, now we have the largest capacity in the CIS, and we can create a very wide range in a variety of packaging. But this work is not easy too. If within 5 years we will control 20-25% of the Russian market and this is, accordingly, 300-400 million. per year and this is the real sum, I believe we will achieve a great success. Thus, for example, already next year we become supplier of a trading chain "OK", the contract has been signed and the first shipment will take place in February 2017. Also at the moment we are negotiating with other retail chains.
- But each project needs money.
- Yes, of course, to make deliveries to retail chains we need a payment delay of 90 days and these costs we will incur, we simply have no choice. We invest money in it, these money we get from the profits of the company, as well as our shareholders and investors. Even developed filter market also requires large investments. Frankly speaking, nobody wants to make an advance payment for our filters. All right, and vice versa. Everywhere it is needed a long loan from our company, always need a delay of payment. Banks do not lend almost small and medium Russian business and provide to high interest rates on loans, it is not difficult to guess what reality is. Our shareholders who are engaged in an independent business understands more than I've been told. In such conditions we have to work (he laughs).
- Say a few words about the common and preferred shares on the market and dividends. Many people ask this question via e-mail.
- According to the preferred shares -the situation became clearer to us. The new release is waiting for its customers and sale goes not through the order book, we sell through brokers such as "Otkrytie" (Moscow office) and our St. Petersburg company "Eltra".
I know that the shareholders are disappointed that it was not the last payment. We are saddened by this situation, too. My personal opinion is that it was necessary to pay, notwithstanding that it carried the company's direct losses due to the situation that has developed around the additional issue of preferred shares, but the CFO of the holding with the team firmly embarked on the pragmatic attitude and common sense. I realized that they are absolutely right, but the heart demanded other action, soI was forced to submit. A major argument was the fact that we have a lot of shareholders who have bought our ordinary shares, and they just are not interested in losing money by the company because of wrong actions of managers. Many of them have lost money on the stock exchange, and we just have to think about them and also to remember and to do everything possible in their interests. Our goal is always the same purpose: the return value of ordinary shares - 316 rubles. I know that many do not believe that this is possible, but in fact many did not believe that from 67-70 rubles par value preferred stock reached 100 rubles, and it's happened. Of course, if we had any magic words or magic solutions, we would have used them, but we are the market company without any support from anywhere, with no access to cheap credit, but we work, and try to do our best, and the development of the JUMP project is a proof.
- Alexander, thank you for the interview. I wish you all the best and further development of the company.
Interview by Anna Vern