Boromir Industries

I. Business description

1.1 Company Outline

The Boromir Group, the second biggest player on the market of milling and bakery products, was established in 1994, with an eye for tradition, but with a modern perspective over such an old and yet scarcely exploited domain in our country, Romania, under the name of „Boromir Ind Commercial Society”, developping and diversifying its activity by offering both traditional products and new ones, which the Romanian market needs.

From the tiny grain mill built in 1994 in Ramnicu Valcea, whose production capacity did not exceed 24 tons a day, over the course of only 10 years, Boromir developped at a dynamic pace, managing to currently control approximately 10% of the milling and bakery activity throughout the entire country, by acquiring three mills located in different places in the country: Sibiu, Buzau, Deva, these locations having the advantage of discovering new outlets and attracting new clients. Boromir’s production capacity reaches the number of 1300 tons a day as we speak.

The Boromir Group holds bakery plants in Buzau, Valcea, Sibiu and Deva. The group also possesses the Cibin mill in Sibiu, two units of Comcereal, Amylon Sibiu and Extrasib Sibiu type, while the Boromir gas stations and the Hardwood lumber plant are held by five natural persons Romanian shareholders. The Group also detains 27 own small-sized stores in the cities where it has the bakery plants.

Out of the bakery, pastry and confectionery group, the society creates a wide array of products, the main balance being held by white bread with reduced grams, specifically over 70% of the total bakery products. The milling products group comprises the entire flour range. Half the quantity produced is destined to usage among the group. From the total of Boromir businesses, the milling division has a 55% balance, followed by sweets and cookies which hold 20%, the bakery division had a 15% balance, while the rest of the activities represented by stores, distribution and gas stations covers 10% of the business.

Thus, in 2009, SC Boromir Ind SRL established a turnover rate of 180 million lei (43 million euros), decreasing by approximately 20 million lei (4.7 million euros) in relation to its 2008 level. And the total incomes of SC Boromir SRL have decreased in 2009 with another 20 million lei, reaching 202 million lei, while the profit was a million lei.

Graphic of the turnover rate evolution

Boromir Ind SRL has had an increasing turnover rate from 1999 up to 2008, with the exception of year 2005, when it had a value of 96.634.875,00 RON. From 1999 to 2008, the turnover increased with 191.710.144,00 RON, meaning 2.246,13 %. The highest turnover value arose in 2008 – value: 200.245.283,00 RON, whereas its lowest value was in 1999 – value: 8.535.139,00 RON.

Graphic of income evolution

The incomes of Boromir Ind SRL are in constant expansion starting with year 1999. From then until 2008, the incomes rose by 213.631.543,00 RON, meaning 1.981,54 %. The highest incomes were obtained in 2008 – value: 224.412.626,00 RON, whereas the lowest ones were in 1999 – value: 10.781.083,00 RON.

Graphic of the income/expense evolution

Having 840 employees, SC Boromir Ind SRL had, on the 31st of December 2009, a social capital of 710.000 lei and total liabilities of 80 million lei. Boromir Ind SRL’s shareholder structure is the following: : Constantin Boromiz - 36%, Mircea Ureche - 34%, George Frîntu - 16%, Gheorghe Boromiz - 11%, Mariana Boromiz - 3%. In 2008, Boromir Group registered a turnover of over 165 million euros, increasing by 25% in relation to last year. In 2007, the first three bakery producers’ turnovers increased with over 50% in relation to the previous year, and, by the end of 2007, Boromir was recording a business advance of 70% in comparison to the 2006 runway. Moreover, Boromir Group’s profit was affected in 2008 bu the differences in the exchange rate. From the total Boromir businesses, the milling division has a 55% balance, followed by sweets and cookies, which own 20%, the bakery division with 15% balance, and the rest of the activities, represented by stores, distribution and gas stations, cover 10% of the business. The internal milling and bakery market values approximately 2 billion euros.

1.2 The Mission and Vision of Boromir Ind

The mission of Boromir Ind assumes reaching the leader position on the national market of milling and bakery, so that it would promptly respond to the most diverse customer demands, whether it’s about the quality of the products or their diversity.

In order to promote the company’s and its products’ vision, the main factor used is emotion:

Pentru promovarea viziunii companiei şi a produselor se apelează în special la emoţie:

Credo: “Boromir places full client satisfaction in the center of its concerns, aiming for clients that come back everytime for quality products, which are conceived and offered in a professional manner, so that it answers to all their requests and aspirations.”

Boromir Group’s slogans remind of tradition and aim to highlight the fact that its products are made the same way a housewife would make them in the comfort of her own home: “Your family’s bakery” or “A mountain of snowhite flour”.