#makeithappen: The success story of a Romanian-German joint venture: the Romanian multinational in Mures county

Ioana Erdei 22/11/2019 | 10:27

Business Review continues its #MakeItHappen campaign to promote Romanian entrepreneurship. So far, we have presented dozens of inspirational stories about Romanians who transformed their passions, hobbies and knowledge into successful businesses. We’ve revealed the stories behind domestic businesses, regardless of their sizes and the sectors to which they belong, because we wanted to highlight the diversity and creativity of the Romanian business environment. Through this campaign, Business Review and CEC Bank are strengthening their commitment to be the primary source for information and financing for Romanian entrepreneurial initiatives. #MakeItHappen continues with the story of DAW Benta, a company that manufactures construction finishing materials, with a presence of over 18 years on the Romanian market and more than 280 employees.

18 year ago, young entrepreneur Remus Aurel Benta began to write the story of a brand that today makes history in our country and abroad. He had the vision and courage to propose a joint venture between a Romanian family business and a longstanding German family business, with a history of over 134 years in the paint sector – the Murjahn family, the owners of the company Deutsche Amphibolin-Werke (DAW). This is how DAW Benta was born, as one of the biggest manufacturers of paints, varnishes and other construction materials in Romania.

“The principal mission of the newly-created company was promoting German construction finishing materials brand CAPAROL on the Romanian market, as a professional, quality option for various finishing systems,” the entrepreneur tells Business Review.

This mission, he says, is supported on the one hand by three production units located in Sancraiu de Mures, which manufacture paints and plasters, adhesives for heat insulation systems and expanded polystyrene used in heat insulation for buildings, and on the other hand by commercial operations managed by the company’s own sales team.

Enthusiastic from the very beginning

Remus Aurel Benta recalls that when he started the company, there were “a handful of enthusiastic people,” driven by the desire to succeed. “We wanted to make the Caparol brand known on the Romanian market.” Not only have they achieved their goal, but they’ve also expanded the business to neighbouring countries Bulgaria and Moldova.

Remus Aurel Benta, founder of DAW Benta

Today, that “handful of people” expanded to 280 employees who manage sales, logistics and manufacturing operations both at the headquarters in Sancraiu de Mures as well as in the company’s branches across the country. 

DAW Benta’s consolidated turnover in the three countries where it operates commercially – Romania, Bulgaria, and Moldova – is estimated at EUR 30 million for 2019, the entrepreneur says.

As for the products, Remus Aurel Benta knows their every detail. “The products that define the Caparol brand are the washable paints of various kinds, the structured outdoor plasters and the heat insulation systems. Besides these, there is a wide range of decorations for walls, epoxy protection systems for floors and many other products that support our market presence,” he explains.

Times of crisis

In fact, having such a good knowledge of the company, products and clients was one of the things that helped him survive on the market during the financial crisis.

“The financial crisis years and the sharp decline of the construction sector was a major challenge for all the players in the market, but despite the harsh economic conditions, DAW Benta continued its development plans. In 2008 we opened a logistics centre in Bucharest, which serves the South Romania and Bulgaria areas. In 2013, we inaugurated a new production unit for Caparol paints on the Sancraiu de Mures platform – a complex project, co-financed through European Funds and supported by CEC Bank, which led to an increase in our paints production capacity, an increased storage capacity for raw materials and semi-fabricated materials, as well as optimising production,” the entrepreneur recounts.

He says that the crisis taught him that every decision must be weighed very carefully. “We were flexible and we adapted and recovered quickly as a result of changes and new market conditions.”

Future investments worth EUR 7 million

The company has big expansion plans. “At the end of October, we inaugurated two new production units for heat insulation adhesives and expanded polystyrene in Sancraiu de Mures, using an advanced technological systems and with attention given to the environment and people’s health, at a total investment value of EUR 7 million. We are delighted that this investment was made in Sancraiu de Mures and that this way we can stay close to the community where we started out 18 years ago, create new jobs and have all of our production units on the same platform,” the businessman tells us.

The inauguration of two new production units at DAW Benta on October 31, 2019

The company thus doubled its Caparol products manufacturing capacity and consolidates its position as a strategic player on the heat insulation systems market.

For 2020, the company aims to consolidate the Caparol brand’s presence on the local and regional markets, including a few countries in South-East Europe. “We also want to be recognised as a major supplier of professional systems for the civil and industrial construction market,” states Remus Aurel Benta. 

In his view, the market on which he operates still has a big development potential, “but this trend can be influenced upwards or downwards by the general economic and political context of the upcoming period.”

DAW Benta’s strategic plans for the following years are: 

  • Maintaining a consistent presence in all market segments interested in finishing materials, whether we are talking about professional users, builders and architects or different categories of investors in construction projects.
  • Imposing the Caparol range as a leader in quality and innovative solutions in the markets in which we operate
  • Develop a range of support services that complement sales, so that the company and the products it promotes become a long-term reliable solution for all those interested in finishing and renovating.
  • Further development of regional production capacities both in terms of volume and in the types of manufactured products, so that we can be closer to the trends in the demand for finishes and to the markets on which we activate.

 

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