Bosnia's Bimal Eyes Increase in Sales as Distribution Network Expands to Middle East, China

Bosnian edible oil producer Bimal expects its sales to rise this year on the back of the company’s expanding distribution network which has recently come to encompass the Middle East and China, the company's general director said.Bimal is constantly increasing production capacity, while its specific orientation towards the Middle East and emerging markets such as China is part of its strategic vision for the future, Ilija Studen, who is also the president of Bimal’s parent company Studen Holding, said in an emailed interview with SeeNews.

Bimal's revenues reached 160 million marka ($89.4 million/81.8 million euro) in 2014, with better results expected this year, the official added.

In 2014, Bimal sold 70,000 tonnes of edible oil, placing over 70% of its production in the Western Balkans, the EU and the Middle East.

Last month, the company announced it will export around 3.5 million l of edible oil to China this summer in a bid to continue to expand beyond the Western Balkans.

Currently, Bimal’s most significant market is the Middle East, including Turkey, Saudi Arabia, the United Arab Emirates, Lebanon and Israel.

The company's development strategy and its robust sales growth has led to accelerated investment dynamics, Studen said, adding that in 2014 and 2015, 3 million marka was invested in the optimisation and enhancement of production capacities at the Brcko-based company.

The Brcko District is a neutral, self-governing administrative unit under the sovereignty of Bosnia and Herzegovina, formally part of both autonomous Bosnian entities, the Muslim-Croat Federation and the Serb Republic.

Although Bimal is export-orientated, it is also the only factory for the production of edible oil in Bosnia and Herzegovina and meets the needs of the domestic market with quality products at competitive prices, Studen also said.

Bimal parent company has begun a new phase of its investment cycle in the food industry of the Western Balkans where it plans to inject some 20 million marka.

Studen Holding is looking to invest outside of Bosnia because of the barriers posed by the country’s absence of a clear legal system which is harmonized with the EU, Studen explained, adding that this is what generally drives foreign investors out of Bosnia.

"From Bimal’s privatisation to date, we can say that the investment enthusiasm of Studen Holding and partners in Bosnia has decreased, which is why the new investment cycle is intended for the countries in the region, while a smaller portion will be implemented in Bosnia”, Studen said, assuring that the headquarters of the group will remain in Brcko.

Bimal was privatised in 2002 by Austrian firm Seed Oil Holdings GmbH, partially owned by Studen Holding.

Since 2002, Studen Holding and its partners have injected over 100 million marka in the development of production capacities and operations. The company now employs over 220 people.

Source: SeeNews