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Korovin Olexiy Vasilyovych w w w . t o r p a l . c o m                                                                 Pri...
Description of the BusinessThe company provides complex services in shop fitting tolaunch, supply and support retail chain...
Organisation / Employees   Basic production equipment:   Woodworking equipment:                                         Th...
Financial InformationThe following financial results were prepared in accordance with Ukrainian Accounting Standards. Fina...
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Torpal Profile

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Torpal Profile

  1. 1. Korovin Olexiy Vasilyovych w w w . t o r p a l . c o m Private entrepreneur (Torpal) Our company TORPAL, has been working since 1994 and our pace of development and achievements have made us a successful, flexible and innovative company in the field of retail shop fitting. The company supplies its products to clients in Ukraine and abroad, and we are keen to expand the boundaries of the business. The company’s strategic goal is to work with global retail chains in the CIS and in the World. Company TORPAL provides top quality products and service thanks to its professional market approach. The company aims to create new design concepts for retailers in order to exceed existing standards, generating new ideas for our customers and incorporating our customers’ desire for innovation. Our successes in the Ukrainian and Russian retail markets have prepared us to expand into new markets. We are sure our products and services will infuse a fresh spirit into the shelving and display equipment of European retailers, improving the shopping experience for their customers. Mr. Aleksey Korovin, Owner Company TORPALPurpose of the PresentationThe purpose of this presentation is to provide some basic information about the company in order to attract newcustomers and business partners in the launching, supplying and supporting retail chains with display shelving.General BackgroundMain activities of TORPAL Company: Equipping of retail chains and outlets, including the creation of unique retail display concepts for chain stores, custom-made shelving and other types of shop equipment; Consulting to develop innovative solutions for commercial spaces and training programmes for retail chains.The company work includes supplies and consults with retailers with open or closed store displays. Over time, the com-pany has developed the “Easy-to-Understand Store” trade concept, based on the main principles of maximising sales andachieving optimum use of store space.TORPAL Company pays special attention to the specifics of each storowner’s needs. The company provides more than just parts makesa significant contribution to the store atmosphere, this helps toencourage customers to make purchases. The company isable to support large and small retail chains through itsrepresentative offices in the Ukrainian largest cities:Kyiv, Kharkiv, Donetsk, Zaporizhya and in Russia inBelgorod. This network also provides a service supportsystem that helps the company to meet high profes-sional standards and provide proper supply mainte-nance regardless of their size and location.Since 1994, TORPAL Company has equipped more than300,000 sqm of sales space across Ukraine and Russia.In 2005, TORPAL Company opened its own 4,000 sqmcomplex to showcase company products andconcepts. In 2007, the company’s New DevelopmentsDepartment was registered as a separate divisioncalled the “I see - shopconcept” Studio. TORPAL Com-pany began operating in Russia in 2008.Mr. Aleksey Korovin founded the company and is its sole owner.General Director of TORPAL Company is Mr. Aleksey Kolesnik.
  2. 2. Description of the BusinessThe company provides complex services in shop fitting tolaunch, supply and support retail chains in non-foodsectors with shelving and store display items. The companyalso provides consultationservices to retail chains relying on TORPAL Company’s“I see - shopconcept” Studio (www.isee-shopconcept.com),which helps retailers maximise sales thanks to optimisedshop layout, design and product display. Adidas overstock sporting goods BergHOFF kitchenware stores stores Key Company Strengths: Complex approach to business: TORPAL Company provides comprehensive services to retail chains – fromThe TORPAL Company system of support is designed to concept to manufacture and installation of each unit.provide prompt and professional support retail chains. Thefull spectrum of products and services includes: Industry research: The TORPAL Company team of profes- sionals has spent years studying how to maximise Product supply of each facility (shelving, mountings, customer responses to retail display areas, and our years brackets, etc.); of success in the industry are a direct result of this Supply of additional systems for lighting, in-store research. customer navigation and display exhibits; Supply logistics for all products; Facilities and Equipment Equipment installation; The company’s main manufacturing and administrative Demounting services; complex covers 1.5 ha and includes: Guaranteed maintenance; and production facilities (total area of 3,600 sqm); Post-guarantee service. offices (532 sqm);TORPAL Company has a leading position in the Ukrainian storage facilities (564 sqm); andmarket for retail shelving supply. Its market share in thefashion segment alone, as of the third quarter of 2008 is auxiliary facilities (fire fighting station, transformer18%. substation).The bulk of TORPAL Company sales (65%) is to supply retail In 2009, the company plans to put into operation officechain outlets. In addition, the majority of Russian brands space of 1,000 sqm and 600 sqm of additional storageentering the Ukrainian market at present are working with space.the company. TORPAL Company supplies 10 of the 16 major The company consists of the Design and EngineeringRussian retail chains in Ukraine. Department, the Quality Control Department, theIn 2008, the company entered the Russian market. Outsourced Contractors Department, a Marketing andCurrently, TORPAL Company services four nationwide retail Sales Department and manufacturing workshops.chains. Negotiations to supply several others are ongoing. TORPAL Company outsources the supply of 23% of itsThe company supplies the following retail chains: products.Delta Sport Nike (stock-chain), Sportmaster, Kira Plastinina, The company’s production capacity allows it to produceAdidas (stock-chain), GJ, Savage, InCity, LTB, Woolstreet, goods that can equip more than 180,000 sqm of salesHouse, Sportland, Megasport, BergHOFF and many others premises per year. It produces 2,000 tonnes of sheet(a full list can be found on the company’s website: metal, 500 tonnes of metal brackets and relatedwww.torpal.com/eng/our_projects/). jointing/reinforcing pieces and 120,000 sqm of chipboard and medium-density fibreboard (MDF). InCity fashion stores GJ jeans clothing stores Company manufacturing facilities. Company shaping equipment
  3. 3. Organisation / Employees Basic production equipment: Woodworking equipment: The company is managed by the General Direc¬tor, Mr. Altendorf sizing cloth-cutting machines (Germany), Aleksey Kolesnik. The company’s top management Holzma automatic centering saw (Germany); includes the Financial Director, Commercial Director, Brandt automatic edge banders (Germany); Development Director, Production Director, HR Director, Ventura automatic woodworking centre (Germany); Services Director and an Administrative Director. All Gridgio multi-spindle panel boring machines (Italy); report to Mr. Kolesnik. and The staff of TORPAL Company can be broken down by Botero automatic edge-bevelling machines (Italy); position according to the following chart: Metal working equipment: Director and top management 9 Durma semi-automatic guillotine (Turkey); Mid-level managers 11 Bystronic automatic laser cutting complex (Switzerland); Lower level managers 8 Durma semi-automatic sheet formers (Turkey); Specialists 70 Pedrazzoli semi-automatic circular clipping machines (Italy); Manufacturing personnel 98 Variostar (Austria) and Argus (Italy) semi-automatic welding machines; Total 196 Garboli scarfing machines (Italy); and Electron automatic conveyor line for powder coating Considerable attention is focused not only on increasing with iron phosphate surface treatment (Turkey). personnel as needed, but also on their work efficiency and their development within their specific department specialisation. Attention is also paid to the development of a strong company culture, which values personal creativity and career development. TORPAL Company provides a company staff training plan that requires regular and active participation in department-specific training sessions. All staff in the Marketing and Sales Department have good English skills. Company cutting equipment Company edge-bending equipmentSupplier Export ExperienceThe majority of materials and accessories used by the TORPAL Company signed its first export contract with acompany are foreign (from Austria, Poland, Germany and Russian retail chain in April 2008. The volume of productsItaly). TORPAL Company sources in Ukraine use high- sold for export to this retailer was €100,000 as of Octoberquality materials that are locally produced. The company’s 2008. Company clients in Russia now include nationallong-standing partnerships with its suppliers guarantee chains Woolstreet, Sportmaster, Russian Jeans Center and Profisport. Expansion plans target growth to €2.5 million inthe company flexible supply conditions and short delivery the near future based on deals currently being negotiated.terms.Research and Development Certification and Quality ManagementTORPAL Company ’s main research and design works are Quality management at the company is handled by itsperformed by its Design and Engineering Department Quality Management Department. The department’sand the “I see” Shop Concept Studio. The D&E Department system ensures that all company products correspond toconducts research and implements new technologies in the requirements of applicable national productthe sphere of metal and wood working, while the devel- standards in Ukraine and Russia as well as to Europeanopment of new product types and display concepts is one norms and technical specifications.of the core activities of the “I see” studio. Quality management begins with the inspection ofThe company’s various lines of retail shelving space imported parts, as well as in-house production controlmerchandise includes the lines RAF, ACTIVE, DOT, LITE and and conformance standard testing, including for newlyCHERRY. All products are certified by Ukraine’s national designed products. All serialised products are certified bystandards body, UkrSEPRO. the state. Furthermore, regular communication with clients ensures that products are well maintained, and any problems are quickly addressed.
  4. 4. Financial InformationThe following financial results were prepared in accordance with Ukrainian Accounting Standards. Financial reports based onUAS differ in various respects from those prepared according to IFRS. Operational results (€) Year ending Dec. 31, 2007 Year ending Dec. 31, 2008 Gross revenues 3,793,445 4,921,364 Operating income 205,228 420,581 Income before tax 300,094 420,581 4,3 66000 253 196 2,5 39000 2007 2008 2007 2008 2007 2008 Tutnover, min €* Equipped Facilities, sq. metres* Amound of Employees, pers*Strategy and ProspectsThe company’s main strategic goals are: to enter other international markets, particularly in association with multi-national clients in the retail sphere; to continue modernizing company equipment and production facilities in order to boost production; and to make complex services in the shop fitting.Contact Information N.B.: Ukraine is two hours ahead of London and one hour ahead of Western and Central Europe (GMT+2).Mr. Dmitriy GrinchenkoDevelopment director Distances from Kharkiv to major European destinations (in km*):TORPAL Company62370 Ukraine, Kharkiv region, Amsterdam 2,468 Warsaw Belarus RussiaSolonitsevka, Berlin 1,816 PolandZavodskaya 49/9 Brussels 2,577 Kiev L’viv Kharkiv Helsinki 1,633Tel.: (+38 057) 783 6630/37 Slovakia Ukraine Dnipropetrovs’k London 2,892 BratislavaFax: (+38 057) 783 6631 Madrid 4,049 Budapest Moldova Donets’k Kishinev Odesa HungaryEmail: grinchenko@torpal.com.ua; Paris 2,869 Romania Sea of Azov info@torpal.com.ua Warsaw 1,248 Bucharest SerbiaOnline: www.torpal.com; Vienna 1,765 Black Sea www.isee-shopconcept.com * including 540 km from Kharkiv to Kyiv. Kharkiv International Airport has regular flights to Kyiv and other major European destinations. This publication was developed under the EU funded project “Support to the Development of Business Capacity of Ukrainian SMEs – International Dimension”. http://sme-int.com.ua The contents of this document are the sole responsibility of the TORPAL Company and can in no way be taken to reflect the views of the European Union or WYG International. This project is funded by Project implemented by the European Union WYG International led Consortium

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