MEDIA

The Roses of Pavlikeni Exported to the Country of Tulips

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Newspaper Business News/Bulgaria
04/09/2004
Author: Kalina Leiling

“Entrepreneurship is in the skill to use the weather conditions and the economic situation”

While the manager of Odexim Ognian Denchev was holding a meeting I had a chance to look at his office. True to the principle “One manager learns throughout his whole life ”the engineer-economist keeps on his desk “The Small Business Handbook.” The laptop is also a necessity. He has on his desk a picture of his heir George who studies Business Relations in Maastricht. Holland is not only the country which educates his son, it is the main investor and a partner of Odexim, and an exporter of its products.

From 2002 to 2003 on 40 hectares of land, located between Pavlikeni (a city in Northern Bulgaria) and Mihaltsi (a village near Pavlikeni) 3 million roses are planted. The 80 precisely selected roses imported from Portugal, England, Holland and Poland meet the market requirements of the European Union and have proven quality. For the rose production is used Dutch technology. The ready rose roots are stored, cooled and packed in installed refrigerating cameras, and after that they are exported to Holland. The conviction that this project will be successful comes after a thorough analysis of the business situations in Holland and Bulgaria. Although the Netherlands is a world leader in the production and export of flowers whose demand grows on the European market, the production of rose roots in Holland doesn’t grow and the investments in the garden sector go down. On the other hand, in Bulgaria, the foreign investments hardly reach their destination mostly because the agricultural sector is considered too risky which is a result of the old technologies used. However, entrepreneurship is exactly in the skill to use the favorable climate conditions, the fruitful soil and cheap labor. Estimating the precise investments and the forecasted profits, the Dutch company Evrogreen and the Bulgarian firm Odexim decided to cooperate. The long term goal of the partners in the next 10 years is to develop the garden and plant sector in the Pavlikeni region following the Dutch standards.
The beginning of the project becomes a huge success at the local level because it invests in the local production and opens almost 60 (plus 200 seasonal) work places. The producers work full time. Half of them have Roma origin which has a social effect- it helps with the integration of minorities in the municipality. The goal of Ognian Denchev is for his business to have an impact on improvement of the trade balance of the country through export expansion of rose roots to England, Germany, France, Portugal and other countries. He is sure that development of the agrarian potential is realistic only if know-how is integrated, foreign capital is injected and the business relations between the Bulgarian and foreign companies are deepened.

Еngineer Stefan Stefanov, Mayor of Pavlikeni Municipality
“The Investment Attracts New Capitals”
“My help for the realization of this project is both, two-way and multi-way directed. In the beginning, from my position as a mayor I gave municipal land to Mr. Denchev, which was as a result of a long and challenging session of the City Council. I have always supported the manager of Odexim and I intend to do that for the future. The project contributed to the development of the municipal infrastructure. It led to the opening of new jobs, training and qualification of the Romas working there, which is part of their integration in the municipality. The project also targeted students from the Technical School of Mechanization and Agrarian Business. They had an opportunity to monitor closely the industrial process and this guaranteed the successful future realization of the beginners.

This project injected another serious (third) Dutch investment in the municipality. I am sure that it is an important step towards new investments in the Pavlikeni region. Three Dutch projects are about to be completed this year. The hard work and long experience of the people from Pavlikeni in growing flowers and bushes are already famous to the world thanks to the new technologies. I am proud that Odexim levels the quality of the Pavlikeni production with the European standards. I dare to say that this project generated huge profit for the municipality and maintains the regional economic development”.

Interview with Ognian Denchev: “We surprised the Dutchmen with fast construction”

-Mr. Denchev, why did it take so long before the launch of the project? Wasn’t it risky to start this business in the hard economic situation?

-My work before the project launch was to deliver 200,000 roses on time to my partner overseas, Ian Taisen. He used to buy and distribute them to the store chains in Holland without being interested in our archaic way of manufacturing. In 1996 my partner and I decided to start a 2-year experiment to estimate the strong and weak sides of our entrepreneurship. We applied partial Dutch technologies in the flower production and the results were encouraging. Emboldened, Mr. Taisen and I decided to start a new project with a big scale. The launch was November 1, 2001; the end was December 31, 2003.

-Who sponsored the project and how much was the investment?
-The Dutch agency Center gave us a credit for 1 million euro. The investment included installment of agrarian and packaging machines and fridge cameras. The workers and managers were trained to produce roses by Dutch technology.
-Which were the most difficult moments during the project?
-We needed a lot of time to change the work habits of the laborers. Although they distrust the new technologies I am confident that the achieved results are a promise for overcoming of the retrograde thinking and this year we will manage to attract a new workforce. The public should know that in the hard moments I received support from the Mayor of the Municipality, Mr. Stefanov.
He helped me overcome many obstacles which were blocking the Western investments. These were most often corruption and bureaucracy. Expecting endless procedures my Dutch partner was surprised when he heard that we built the base in 5 months (instead of 2 years), precisely because of the great job done by the local authorities.
-Is there a discrepancy between the goal set by your company and the final result?
-The goal which Odexim set was to transfer know-how in the Bulgarian flower production considering the climate conditions. Now I can gladly share that the project is one of the most successful projects of the Dutch government financed in Bulgaria.

"Elite" Company Dresses Prince Charles

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Newspaper Business News /Bulgaria
01/21/2005
Author: Kalina Leiling

“I like to always be well informed about the fashion trends” says the manager of the Pavlikeni company.

The entrance of the textile enterprise “Elite” in Pavlikeni greets me with three frisking flags- the Bulgarian, the European Union’s and the company’s. They are a symbol of the continuity and collaboration among the three structures.

The corridors of the building are in blue, and in front of the director’s office I see the signs “High Standard Enterprise,” “No smoking” (smoking was allowed indoors for the public until May 2012 when it was officially banned). Then I see posters of famous Bulgarian beauties like Elena Tihomirova, Miss Bulgaria 2002. All these beautiful girls wear clothes from “Elite.”

I enter the office of the secretary, and she is reading an open letter to somebody on the phone, in which the client asks the company to produce a sample by the end of next week. I wonder how it is possible in such a short period of time to complete the order. At this moment the executive director comes in- not tall, energetic and direct. I ask him: “Is it possible for such a short time to complete an order?” Hristo Tsolov replies briefly: “We do that on a daily basis.” The company won its prestige precisely because we stick to the deadlines. Maybe led by a superstition Tsolov knocks on the table so the devil doesn’t hear him. I am about to learn what else makes “Elite” attractive for many foreign partners, who produce their attire in Pavlikeni. The answer is formal: “We achieve certain quality, which Eastern countries like China and Moldova cannot achieve. Furthermore, we cannot make a compromise with the quality when we export to Italy, Germany, England, France, Belgium, and the USA. This year we started working with Austria too.”

“Elite” company produces men’s, women’s and children’s sportswear, clothes for the free time, work uniforms and thermo wear (jackets, coats and union suits). Five production lines operate in the fabric. On each production line work 35 people and this facilitates the elaboration of very complex models. With full production capacity, 10,000 pieces may be produced monthly. In the whole process are involved 250 people, plus 90 subcontractors. The manager points out that the work schedule is fixed and the salaries are on time. When I ask about the remuneration, Tsolov admits that it still doesn’t meet the European standards: “5 eurocents (7 US cents) per minute is not a wage, equal to the price of the labor. It is hard to fit in this money with competition goods. However, we do it.”

A phone call interrupts our conversation, which gives me a chance to look at the office of the manager. The table next to his desk is covered with British and Italian fashion magazines. Later on, Tsolov will share that he likes to be well informed about the fashion trends. I notice the pile of magazines with the name “Barbour.” The manager of “Elite” explains that this is the name of a world famous company, which is the largest client of the Pavlikeni firm and Prince Charles wears attire with its brand. The list of the clients includes “Colmar” and “Bella Vita” from Italy, “Comoditex” and Henri Duvillard from France, Gonzo and Pionier Sportive from Germany, Allsport from Austria. I guess that’s why I see the map of the world in the office of Hristo Tsolov as a symbolic message of the discovered opportunities and the ones coming. “Our last client is Georgio Armani, says Tsolov thrilled. We start sawing an Eastern sports collection for the company.”

Interview with Hristo Tsolov: “We produce attire for leaders!”
-Mr. Tsolov, are there any serious obstacles in front of the small and medium enterprises in our country?
-On a national level there are many obstacles- lack of flexibility, fear of self-expression, seeking for fast ways to get rich. People don’t make long-term plans. In addition to that, it is hard to work with this organization, technique and mentality of Bulgarians.
-What is wrong with our mentality?
-Bulgarians are craftier than hard-working.
-But the company you are a manager of has 10% annual growth. Why aren’t you satisfied?
-I am not satisfied, because there is not enough information. We don’t know what the intentions and priorities of the government are. In 5-6 years the light industry may decline completely. The taxes rise constantly. It will be also more difficult because of the growing competition.
-Why do you think that Western Europe will keep working with “Elite”?
-Because we strive to always be informed and perfect in every aspect- production, ethic, etc. Look at the hygiene inside and outside of the enterprise. Can you imagine a foreigner coming here and seeing dirt? He will immediately pick another company to work with.
-What does “Elite” produce?
-Attire for leaders.
-What is the formula of success?
-Work, work and many contacts.