6
REAL ESTATE PRICES HIGH, DEALS POSTPONED AS WORKERS RETURN TO OFFICES
November, 2021 / Volume 25, Issue 10
www.business-review.eu
WILL FUTURE ROMANIAN UNICORNS BE BOOTSTRAPPED OR VC-BACKED?
22
IMAGINING THE MARKETING OF THE FUTURE
29
ESG THINKING BEGINS TO PERMEATE LOCAL STARTUP ECOSYSTEM
34
VODAFONE BRINGS DIGITALIZATION CLOSER TO SMEs
www.business-review.eu Business Review | November 2021
EDITORIAL 3
• Editorial •
REAL ESTATE
Anda Sebesi • Editor-in-Chief •
6 Real estate prices still high, transactions postponed as workers return to offices
COVER STORY
Taking a long-term view
8 Vodafone brings digitalization closer to SMEs
MAIN STORY
E
14 Foreign Investment
ven though Romania was hit hard by covid-19, the local
Summit 2021: The road to a sustainable economy must be paved with capital
economy performed better than its European peers last year and is expected to also outperform them in 2021, with
an estimated growth of around 7 percent. Naturally, foreign direct investment (FDI) levels, which had already been stalling for several years, hit a record low, but as the new normal took over, we saw a steep growth of FDI in the first five months of 2021, of 320 percent.
ENTREPRENEURSHIP
Romania’s present situation is far from ideal: we are simultaneously dealing with the critical issue of high mortality rates due to covid-19, a political crisis, and record-high energy prices. But re-
32 Romanian entrepreneurs
gardless of today’s difficulties, we must still take a long-term view.
seize growth opportunities through BVB’s AeRO market
This is one of the most important conclusions of the 8th edition of
34 ESG thinking begins
Business Review’s Foreign Investors Summit. One of the key questions is, how do we see ourselves competing
to permeate local startup ecosystem
as a country and what are the key drivers of growth? Should our growth model be primarily based on manufacturing or rather on services? Romania seems to be expanding in both directions, just
CITY
like Poland, which is a positive development. There are many things that still need to be done in Romania in order to achieve sustainability in all economic sectors, and this translates to a great number of opportunities for investors. Economic sustainability could also be made possible by the funds available through the Recovery and Resilience Plan. But if we want to succeed, we must take a good look at the challenges and opportunities in front of us today.
36 Discover Romania: Maramures Way
37 Don’t miss: The Modern Idol. Henry Moore in the Eastern Bloc
38 Cultural Calendar
EDITOR-IN-CHIEF: Anda Sebesi JOURNALISTS: Aurel Constantin, Mihai Cristea, Romanita Oprea, Oana Vasiliu CONTRIBUTORS: Ovidiu Posirca, Sorin Melenciuc, Claudiu Vrinceanu COPY EDITOR: Anca Alexe PHOTO EDITOR: Mihai Constantineanu PHOTOS: Dreamstime ART DIRECTOR: Raluca Dumitru PUBLISHER: Bloc-Notes Media Network ADDRESS: 82-98 Calea Grivitei, 1st floor, Hotspot Workhub, District 1, Bucharest, Romania SALES MANAGERS: Radu Fireteanu, Alexandra Rosca MARKETING & SALES MANAGER: Luiza Luca PRODUCTION: Dan Mitroi DISTRIBUTION: Eugen Musat EXECUTIVE DIRECTOR: George Moise GENERAL MANAGER: Catalin Alistari USA MANAGER: Oana Molodoi FOUNDING EDITOR: Bill Avery EMAILS: editorial@business-review.eu, sales@business-review.eu, events@business-review.eu SUBSCRIPTIONS on Manpres Distribution Business Review is a member of Fwei
Publicație auditată pe perioada Apr 2015 - Mar 2016
ISSN NO. 1453-729X
www.business-review.eu Business Review | November 2021
4 NEWS
WHO’S NEWS BR welcomes information for Who’s News. Submissions may be edited for length and clarity. Get in touch at mihai.cristea@business-review.eu
Holde Agri Invest acquires stake in agritech firm Enten Systems By Mihai Cristea in these companies within the next five years. Agriculture has evolved extremely rapidly in the last ten years due to the implementation of technology in machinery as well as through the digitalization of certain processes,” said Iulian Circiumaru,
Marius Popescu is the new National Sales Director at Sodexo BRS Romania. He has been with the company since 2000, having started his career at Sodexo Romania in the Customer Relations department, as a specialist, then moved on to the Sales Department to become a senior sales representative, followed by Area Sales Manager and National Telesales Manager roles. For the past two years, he has been a Regional Sales Manager for the small and medium business segment.
Chairman of the Board of Directors at Holde Agri Invest. Enten Systems is a company that provides integrated technologies based on precision agriculture. The company’s solutions and systems are designed to obtain the most
The transaction is part of Holde’s strategy to invest in agritech startups
streamline their investments.
agritech startups. By investing
This is done by installing equip-
nian company that operates
in startups, we can optimise our
ment that constantly monitors
farmland, announced a new
farms’ operational activity by
the microclimate and provides
investment in the agritech
integrating technology as well as
farmers with essential data on
field through the acquisition
have the opportunity to create
the condition of crops and the
of a stake in Enten Systems.
supplementary added value for
potential risks to which they
The value of the transaction
our shareholders. The latter is ac-
are exposed. As a result, farm-
amounts to RON 370,000.
complished through an increase
ers get real-time knowledge
in the valuation and the subse-
about the actions they must
quent monetisation of our stakes
take to obtain healthier crops.
Holde’s strategy to invest in
page 5
production so that farmers can
Holde Agri Invest, a Roma-
“The transaction is part of
Bogdan Putinica is the new General Manager of Microsoft Romania, effective November 1 of this year. He has an outstanding track record and a 20-year career in technology, having joined the Microsoft Romania team from the position of Senior VP at Swedish group Enea – a global provider of telecommunications and cybersecurity solutions. Bogdan is a graduate of the Bucharest Academy of Economic Studies, with a degree in International Finance and Banking.
accurate data on agricultural
Biofarm opens new production facility after EUR 35 million investment By Aurel Constantin Biofarm, one of the biggest drug
plant’s, the new Biofarm factory
manufacturers in Romania,
will support the production of a
recently inaugurated a new
complex portfolio of pharmaceu-
production and testing facility in
tical products as well as further
Bucharest, following an invest-
development with innovative
ment of EUR 35 million.
treatments adapted to the mod-
With a usable area of over
ern consumer. The new site will
10,000 sqm and an annual pro-
have four production streams:
duction flow that will be three
coated tablets/tablets/drops, soft
times higher than the existing
capsules, solutions, and syrups.
The new Biofarm factory will support the production of a complex portfolio of pharmaceutical products
www.business-review.eu Business Review | November 2021
NEWS 5
Affidea/Hiperdia opens its first clinic in Cosmopolis By Aurel Constantin
Gabriel Ivan has been appointed Country General Manager for Romania & Bulgaria by CHEP, following his three years of successful leadership of the local subsidiary. He will coordinate CHEP’s Commercial Operations for Romania and Bulgaria and will also be responsible for leading the P&L process for both entities, which entered the South Eastern region in 2012.
Opus Land Development, the developer of the Cosmopolis residential complex, and Affidea/Hiperdia, one of the most important national networks of medical centres, marked the first real estate-medical partnership in Romania. As a result of this agreement, following investments of over EUR 200,000, the first clinic was inaugurated in the Cosmopolis residential complex under the Affidea brand. The new investment comes in the context in which the north of Bucharest
The new Affidea clinic in Cosmopolis has an area of 140 square meters
and the metropolitan area are “This partnership responds
seeing continuous real estate
Bucharest. The new Affidea clinic
expansion, but as the number
in Cosmopolis has an area of 140
to the growing need for access
of new buildings grows, the
square meters. It is the network’s
to private medical services
area’s population far exceeds
36th centre in Romania and its
in the north of the capital.
the capacity of the private
first clinic in the metropolitan
The best example regards the
sector’s investments in new
area of Bucharest. The invest-
inhabitants of Cosmopolis,
medical clinics and private
ment of more than EUR 200,000
who will have access to both
hospitals. The new clinic in
went into setting up complete
telemedicine and traditional
Cosmopolis will address the
services for family medicine,
medical services,” said Gabriel
more than 12,000 residents of
general medicine, pediatrics, and
Voicu, Executive Vice President
the gated community, but also
gynecology, as well as ultra-
at SVN Romania and project
the other inhabitants of north
sound imaging diagnosis.
manager at Cosmopolis.
Patricia Andrei is the new HR Director of CEC Bank, the largest territorial network in Romania, which includes more than 1,000 units and almost 6,000 employees nationwide. With more than 22 years of experience in HR, Patricia is a graduate of the School of Sociology, Psychology, and Pedagogy of the University of Bucharest, and she also holds a Master’s degree in Consulting from the School of Management of the Bucharest Academy of Economic Studies.
The factory benefits from state-of-the-art equipment and installations and automation software that helps optimise production and logistics flows. All production lines are audited and certified by the national National Agency for Medicines and Medical Devices according to the Guide to Good Manufacturing Practice (GMP), the quality standard that sets the rules for the manufacturing of medicines at European level. The production lines are also EN ISO 9001 certified.
Sorina Florescu has been appointed as Head of Marketing at CTP Romania, where she will manage and oversee integrated marketing campaigns and initiatives to drive further growth. With a background in journalism and PR, Sorina brings over 13 years of experience in the real estate industry. Prior to joining CTP, she held several marketing roles at CBRE Romania and Colliers International.
www.business-review.eu Business Review | November 2021
6 REAL ESTATE
Real estate prices still high, transactions postponed as workers return to offices The value of transactions on the Romanian real estate market in the first 9 months of 2021 declined by 29 percent compared to the same period of 2020, to EUR 570 million. Transactions closed in the third quarter reached a total value of EUR 260 million. The impact of the covid-19 pandemic on the liquidity of the commercial real estate market was more pronounced in 2021 than in 2020. Last year saw a series of largescale transactions for which negotiations began before the pandemic broke out. Prices have been rising slightly both for logistics area as well as for offices
“
By Aurel Constantin
Although several negotiation pro-
from Atenor by Hungarian Adventum Group.
starting to discourage potential new investors.
cesses are likely to close in the fourth
However, the most representative transaction
There have been no significant transactions
quarter, it is hard to believe that this
on this market segment so far this year, both
on the retail market so far in 2021, but the seg-
year’s transactions will be able to reach the
in terms of the competitive sales process and
ment has largely absorbed the shock caused
nearly EUR 900 million recorded in 2020.
the price, was the sale of the Campus 6.2 and
by the pandemic and the quarantine period of
This situation is largely generated by a lack of
6.3 office buildings in the center-west area of
2020. However, it is starting to provide very
supply – many owners are not interested in
Bucharest, where JLL represented the seller,
interesting opportunities for investors.
selling in the current market conditions,” said
Skanska. The buildings, with a total leasable
Andrei Vacaru, Head of Capital Markets at JLL
area of about 38,000 square meters, were
logistics areas, where prime yields shrunk in
Romania.
Prices have been rising slightly both for
purchased for EUR 97 million by S IMMO. This
the third quarter from 8 percent to 7.75 per-
Bucharest remained the top destination
move marked the reactivation of the Austrian
cent, as well as for offices, where yields have
preferred by investors in the first nine months
company on the Romanian investment trans-
fallen over the same period from 7 percent to
of 2021, with 70 percent of the total traded
action market.
6.9 percent. This trend is generated by the regional evolution and the considerable capital
volume – about EUR 400 million. Just like
available for quality products.
in 2020, office buildings attracted the most
INDUSTRIAL AND LOGISTICS SPACES
investments, with about EUR 350 million or
In second place among investors’ preferences
almost 60 percent of the total value.
were industrial and logistics spaces, which
GOING BACK TO OFFICES
attracted investments of over EUR 170 million
Prices remain high on all real estate markets,
corded in the first three quarters of this year
in the first nine months, or 30 percent of the
and that is one of the reasons why investors
was the sale of the Hermes Business Cam-
total traded volume. Interest in this segment
are keeping away. But as employees are re-
pus office complex in the Dimitrie Pompeiu
is very high right now, but the record level of
turning to offices, employers will have to find
area of the capital city, with a total area of
concentration – with the two largest owners
adequate working spaces for them. A study
about 75,000 sqm, which was purchased
controlling over 50 percent of the market – is
conducted by Cushman & Wakefield Echi-
The largest office space transaction re-
www.business-review.eu Business Review | November May 2016 2021
COVER REALSTORY ESTATE14 7
nox titled “Back to the Office” showed that
of respondents want to work from the office
is in regional cities, confirmed by 82 percent
Romanian employees who have had to work
at least one day per week, while in regional
versus 77 percent respectively.
more from home in the last 18 months due to
cities their share is 87 percent.
the covid-19 pandemic wanted to return to
Over a quarter of survey respondents
Other benefits of working from home are financial savings (53 percent), improved
the office, given that more than half of them
would like to have three days per week at
work-life balance (39 percent), more freedom
associated going back to the office with “a
the office and two at home, while 17 percent
to manage working hours (35 percent) or
return to normality” and were affected by not
would like to only work from the office. Pref-
more time for rest (34 percent).
being able to socialise with their colleagues.
erences for different work models are on one
The report is based on a survey conducted in Bucharest and large regional cities in July among almost 500 employees from more than 10
hand based on the benefits of working from home – the most important being time and money savings – and on the other on the
As for the disadvantages of working from home, the difficulty of separating professional and personal lives is in second place, accounting for 50 percent of responses, while the lack of a proper workspace was indicated
industries, including IT,
disadvantages of leav-
finance, manufacturing,
ing the office space,
the diminished capacity to focus and the
professional or public
with employees
difficulty of managing relationships with
services. The data was
pointing to the lack
clients, partners, and collaborators were each
collected by indepen-
of socialisation
selected by 21 percent of survey participants.
by 32 percent of respondents. Furthermore,
dent research firm
and the difficulty
MKOR Consulting.
of separating work
Globally, in September 2021, about 40 per-
from their personal
cent of employees were working from offices,
According to the
In line with global trends
survey, the first half of
lives.
according to Cushman & Wakefield’s “Return
the year had already marked
83 percent of respon-
to the office” report, which means that Ro-
the return to the office of a large number of employees across Roma-
dents cited the fact that they no longer wasted time in
mania is in line with the global trend. China ranks first, with over 90 percent of employees
nia, with 43 percent of respondents stating
traffic as the main advantage of working from
having returned to office spaces, while office
that they were mainly working from the
home, while 78 percent were dissatisfied
attendance in the other analysed regions var-
office, compared to 36 percent between May
with the lack of socialisation with colleagues
ies between 27 percent and 40 percent.
and December 2020 and 29 percent during
involved in this way of working. Commuting
March-May 2020 (the lockdown period).
time is a problem both for employees living
working from the office in September, with
THE NEED FOR OFFICES
in Bucharest (73 percent were satisfied with
Prague being the region’s top country, with
The need for offices remains high, with only
the fact that they no longer spent time in
approximately 80 percent of employees, fol-
10 percent of surveyed employees saying they
traffic), as well as for those living in the main
lowed by Hamburg (60 percent) and Warsaw
would want to work exclusively from home.
regional cities, where the corresponding
(45 percent). Returning to the office in these
The importance of the office is even more
share is 61 percent. The lack of socialisation
cities is directly linked to the high vaccination
pronounced in Bucharest, where 96 percent
is a more acute problem in Bucharest than it
and low infection rates.
In Europe, 40 percent of employees were
“The opening of schools and kindergartens has allowed more employees to return to the office, especially among those aged over 30 who could not go to the office while their children were taking online classes, because they had no one who could look after them. Moreover, people younger than 27 preferred going to the office in the absence of a proper workspace at home,” said Madalina Cojocaru, Office Agency Partner at Cushman & Wakefield Echinox.
8 COVER STORY
www.business-review.eu Business Review | November 2021
MIHNEA RADULESCU: WE AIM TO BRING OUR DIGITALIZATION EXPERTISE CLOSER TO SMEs. I BELIEVE IT IS KEY FOR THE FUTURE
www.business-review.eu Business Review | November 2021
COVER STORY 9
Consumer behaviour has changed dramatically as a result of the pandemic. While shopping at the store used to be the norm, today stores are rather empty of customers and sometimes even of products due to the exponential growth of online commerce. This change has forced all companies, and not just those in retail, to find ways to rapidly digitalize in order to boost efficiency and productivity. Vodafone Romania is one of the tech companies providing digital solutions for businesses, having been at the forefront of these changes. Business Review talked to Mihnea Radulescu, Vodafone Business Unit Director at Vodafone Romania, to find out how the Romanian business environment has fared through these troubled times. By Aurel Constantin
How has the implementation of digitalization solutions evolved lately? In the last year and a half, customer demand has been very high on all segments, especially in the digitalization area. There is a great need for solutions that add value to our customers' businesses. And it's not about connectivity, because it's already a layer of great need; obviously, we are very close to customers to ensure all types of connectivity. 15 or 20 years ago, connectivity was perceived as an added level of value in the B2B sector. Today, people are much more mobile, and the internet is a part of mobility. Every step of this evolution has brought significant added value in the productive circuit of business, and the value has become even more apparent during the pandemic. Communications are increasingly being perceived as a utility, and the quality of the service, how stable it is, and how quickly it resolves issues are of the utmost importance. But beyond that, all digitalization solutions adopted by companies bring a great value for business, regardless of whether we are talking about the survival of a company or the improvement of its productivity. Everything has to do with digitalization and electronic
www.business-review.eu Business Review | November 2021
10 COVER STORY
devices, all of which rely on connectivity. As we talk to more compa-
and those who are interested can get information directly, without
nies and as the level of education and awareness increases, we see
needing to talk to anyone.
demand for such solutions growing.
We are also focused on the expert advice area, where we have a well-prepared team that’s ready to discuss about anything customers
What are the most sought-after solutions?
may want to know about digital solutions and how they could meet
I would distinguish between small and large companies, as solu-
their needs. Based on their business needs, a consultant can explain
tions are very different for companies of different sizes. In very
to clients what solutions they could adopt and why it would be eco-
large companies, the level of sophistication has increased
nomically feasible to make the investment. The decision
enormously, and they require a very high level of
is up to the customer, but this represents an impor-
customisation. We create integrated, end-to-end
tant part of our relationship with them. This
solutions that incorporate all aspects of the
expert advice is of course provided for free,
business, from payments to signatures. But
and any company in Romania, especially
each client’s specific needs largely depend
SMEs, can understand what digitalization
on the industry in which they operate. For
is with the help of the platform and our
us, our relationship with the client is very
consultants. Vodafone is always making
important; we organise workshops for
efforts to keep all the information up to
various departments within client compa-
date, to help SMEs understand how they
nies in order to be able to create solutions that both satisfy their needs and prioritise them in a way with which everyone agrees.
can benefit most from technology and digital solutions. For example, a client may have a restaurant, and they may want our help to add delivery
Can these solutions be integrated with thirdparty software?
services, receive online payments, get better internet connectivity or find ways to make their customers have
That is highly dependent on the company’s existing setup. It is very
an even better experience. All this dialogue can be carried out with
rare for a company to build an entire system from scratch. There is
a digital consultant who can talk to the entrepreneur about the solu-
usually a system in place to which new solutions and applications
tions they could adopt, what those solutions would bring in terms of
are added. Sometimes integrating new solutions requires changes to
added value and why it would be economically feasible for them to
those systems, but the added value brought by those integrations is
invest. Obviously, all decisions will be made by the entrepreneur, but
much higher than the size of the investment.
I think it is a very important step for the relationship we have with
When it comes to smaller companies, we are talking about a much higher level of standardisation. Their ability to invest in
customers. Of course, all these services provided through V-Hub platform are free, we do not ask for anything for all this information.
customised solutions is much lower, and their needs can usually be met with standard solutions that can be implemented immediately. The level of digitalization among small companies is unfortunately very low. Many companies do not have any digital solutions, and innovation in their case does not necessarily refer to solutions, but has to do with communication and with the training we can provide to them. Entrepreneurs must truly understand what digitalization means; they have no use for buzzwords, especially since there is a misconception that digitalization solutions are extremely expensive, which is not the case. Furthermore, we have added a try & buy option, meaning that
How do you raise awareness about your solutions on the market? We have chosen to innovate through V-Hub, the platform we use to
you can take a solution and test it for a month to see if it is what you need before you might decide to buy it. V-Hub is a platform for everyone, we don’t just focus on certain
communicate with entrepreneurs and small and medium companies
sectors, and we launched it based on the fact that the levels of digita-
across the country. Romania is not the only country with a low level
lization and digital education are very low in Romania. ; we also have
of digitalization, but the problem is big here. That's why it was one
third-party solutions integrated into our portfolio, which have been
of the first countries where we brought V-Hub and, since its launch,
thoroughly tested and guaranteed to be secure, and they are readily
we have added new features and content. We have over 60 explana-
available to customers. This ecosystem of solutions can bring great
tory articles on various topics, from security to productivity tools,
value to any company, regardless of its size.
www.business-review.eu Business Review | November 2021
One of our guiding principles is not to sell customers things they
COVER STORY 11 included in our target. According to studies, the level of digitalization
don't need, because that doesn’t help anyone. So, when they buy a
is below 20 percent in Romania, therefore it is clear where we are
solution from us, they can be certain it’s exactly what they need.
starting from. We want to inform and educate as many entrepreneurs and companies as possible, without asking them for anything in
What percentage of those who have visited V-Hub have returned? First of all, the platform must be made known to the public, which
return. We’ll continue to expand our portfolio of solutions to provide them with everything they need. Romanian companies have the chance to become competitive
is why it needs a good and accurate communication strategy. Then
on the market. SMEs are the backbone of our economy and it is
there are early adopters, who are willing to test every new solution,
important for us to help them not only survive, but thrive. SMEs
but they are a small minority. And let's not forget that we are talking
have a GDP contribution of over 50 percent and they employ over
about a lot of small businesses, which see an internet subscription as
60 percent of the local workforce. The products we provide to these
being an important acquisition, especially in the period we are going
companies are listed on V-Hub and they are financially accessible
through.
and can be implemented immediately. We also provide them with assistance whenever they need it. In fact, one of the big gaps between the desire to digitalize and the decision to do so is the belief that you have to invest thousands and thousands of euros. This is also the reason why our digital solutions are offered based on a monthly subscription model, which means they are not required to make large upfront investments – and that is one of the biggest competitive advantages Vodafone has on the market.
Thousands of entrepreneurs have come in and found out about
How will 2021 end compared to 2020? How will V-Hub evolve?
the platform, and now we have decided to run an information cam-
From a business point of view, we’ve seen an increase on all seg-
paign about the fact that Vodafone is not just a provider of telecom-
ments.. But the greatest growth we are seeing is in this area of digital
munications services, but a provider of technology as well. Since the
solutions, and I am glad that we have managed to be prepared for
launch of this campaign, visits to the V-Hub platform have increased
this rise in demand. The need is huge and we want to take these solu-
exponentially.
tions to a great number of small and very small companies.
Between large and very small companies are the mid-sized ones,
So, we see an exponential growth for digital solutions and I am
with a few dozen or a few hundred employees, and we have already
glad that we were ready to offer them. And we want to take these
developed a lot of solutions for such clients, in various areas, from
standardized solutions to the level of small companies, where the
energy management to waste management, fleet management, and
need is even greater.
others. We are happy that they are demonstrating such great interest
But everything comes back to education, as it’s our only chance
in digitalization solutions because it proves that our strategy is the
to truly evolve. That is why we’re choosing to innovate in the area of
right one and that customers appreciate it.
information and education, because it would be a shame if we didn’t
But it's a long road we stepped on and I don't expect the return to be immediate. I expect the platform to grow step by step and for the
do it. I am firmly convinced that this is the right thing to do. We’ll also be bringing new things to V-Hub, we’ll soon add more
SME area of our business to have good results in the coming years, as
features and tools, including providing entrepreneurs with the
I believe it will be key in our future. I am certain that there is a great
chance to evaluate their digitalization level, which will help them
need there and we are ready to meet that need and I have no doubt
understand their current level and what they need to do in the fu-
that there will be a return.
ture. We also want to draw a link to European funds programmes, to help SMEs understand what kinds of funds they could attract and the
What is your target for V-Hub?
associated conditions. This is also highly dependent on the amount
There are about 700,000 companies in Romania, although we do
of help that these companies will receive from the authorities. All in
not known exactly how many of them are active, so let's say it's
all, V-Hub will continue to advance and I hope that it will become a
somewhere between 500,000 and 600,000. All these companies are
go-to platform for education, information, and expert advice.
www.business-review.eu Business Review | November 2021
12 COVER STORY
Digital transformation driving the transition to a sustainable future The covid-19 pandemic has had a transformative impact on companies across the world, having forced many of them to re-evaluate their entire business models. With the help of vaccines, we can hope for a return to a normal life in 2022, but until then, businesses must find a way to at least survive, if not thrive, and the only way to make that happen is to embrace digitalization.
D
By Aurel Constantin
igitalization can
million. “Businesses have
mean a lot of dif-
moved on from simply
ferent things de-
trying to understand IoT
pending on the business.
to harnessing it to achieve
For a small boutique shop,
their business goals. Lead-
it can simply mean getting
ers have realised that ac-
a computer connected
cess to data and automated
with the cash register or
processes provide a path-
adding an internet connec-
way to digitalization. With
tion. For a corporation, it
this shift comes higher
means building an entire
efficiency, flexibility, and
digital ecosystem with
differentiation. But while
multiple integrated soft-
IoT is more trusted and
ware solutions like ERPs
used than ever before, our
and CRMs, as well as smart
research shows that there
buildings and connected
many organisations are yet
offices. At the heart of all
to make the most of it. This
such digital solutions are
may be due to a growing
technologies like the Internet of Things (IoT), Artificial Intelligence,
belief that IoT has to be part of a wider programme of change to be
and Big Data. Of these three, IoT is the most transformative, as it
truly transformational,” said Erik Brenneis, IoT Director at Vodafone
can be seen as a spider web that gathers data for Big Data to store
Business.
and AI to analyse. The more devices are connected through IoT, the more powerful
POSITIVE RETURN ON INVESTMENT
the Big Data becomes. In its 2020 IoT Spotlight Report, Vodafone
The IoT Spotlight is an independent study conducted by Savanta,
Business talked about “future-ready” businesses, meaning those
which surveyed 1,639 businesses globally. Business leaders were
companies that are well-prepared to embrace whatever lies ahead.
asked about how they were using IoT and how it was helping them
“Future-ready” businesses have a positive approach to change and
be “future-ready.” The report found that IoT was key in improving
are open to new technology. They actively plan for their technologi-
business performance and that it continues to generate real business
cal futures and set detailed strategies. They keep up to date with
value, with 95 percent of respondents seeing a positive return on
emerging trends and, crucially, are able to adapt to new challenges,
investment. The benefits of IoT fall into two main categories: im-
which makes them quicker to market than their competitors. And
proving operational efficiency and creating new connected products
“future-ready” often translates to “IoT-ready,” the report says.
and services.
In 2020, Vodafone Business reached the key milestone of 100 million IoT connections worldwide, and today it has more than 118
The survey was conducted at the height of the pandemic, and 84 percent of IoT adopters felt that IoT was a key factor in maintaining
www.business-review.eu Business Review | November 2021
COVER STORY 13
business continuity throughout the period. While this meant some
the gateway to build large new data sets quickly and to gain vital
projects had to be paused and resources reprioritised, the crisis
insights to help organisations compete effectively in whatever the
prompted 73 percent of IoT users to accelerate the pace of adoption.
new normal looks like. IoT’s role in remote working increased in
About 86 percent of respondents said IoT had changed the way they
importance in this year’s survey. 84 percent of adopters now view
approached analytics and the value of data and 87 percent agreed
the integration of IoT devices and data with remote workers as a
their core business strategy had changed for the better as a result
high priority. With remote working expected to be a key part of the
of adopting IoT. The survey found that 73 percent of adopters were
new normal, adopters are expected to increasingly use IoT to sup-
confident that companies that will have failed to embrace IoT with-
port this change.
in the next five years will have fallen behind, meaning that IoT is expected to create sustainable, long-term competitive advantages. The adoption of IoT has continued this year too, as companies
IOT FOR A CLIMATE-NEUTRAL EUROPE IoT, AI, Big Data, and other digital solutions are key facilitators of
have found that the technology can generate value and a good
sustainability in a wide range of industries, from smart agriculture
return on investment, with 61 percent saying that these returns are
to smart logistics, smart cities, and smart energy. In addition to ben-
significant.
efits of automation such
Half of respondents
as increased productivity
(50 percent) pointed to
and reduced costs, IoT-
improved employee pro-
based solutions have the
ductivity as a key benefit
advantage of increased ef-
of IoT deployments, while
ficiency, both operational-
42 percent defined asset
ly and in terms of resource
uptime (consistency
use, which translates into
and reliability) as a core
lower energy and fuel
advantage. More than a
consumption, low emis-
third of adopters were
sions, and a reduction of
able to innovate their
pollution and waste. It is
offerings through IoT.
not a surprise that the EU
Some 34 percent saw IoT
has pledged to become
directly generate new
climate-neutral by 2050,
revenue streams, while
as part of the European
34 percent saw existing
Green Deal, and become a
revenue streams increase
global climate leader. The
by an average of 24 percent. Collectively, 82 percent experienced a
Green Deal provides an action plan to boost clean, affordable, and
rise in revenue as well as in market share (81 percent) since adopting
secure energy, cleaner industries and production processes, energy
IoT. Strikingly, IoT had enabled over half (55 percent) of surveyed
efficient buildings, sustainable and smart mobility, sustainable
businesses to decrease their operating costs by an average of 21
agriculture, and biodiversity restoration.
percent. As a result, 39 percent of all adopters said that IoT allowed for greater flexibility when supporting their customers.
“This is shaping the world in which we want to live; a world where we use digital technologies to build a healthier, greener society,” said European Commission President Ursula von der Leyen.
HELP IN PANDEMIC TIMES
Achieving a fair and sustainable transition to a climate-neutral Eu-
The research demonstrates that organisations that have adopted
rope by 2050 will require action and investment in digital solutions
IoT seem to have fared better during the covid-19 pandemic than
across multiple sectors including agriculture, energy, mobility, and
those that have not. During this time, IoT has become vital for busi-
construction. In recognition of this, the EU has pledged to allocate
ness resilience. Not only has it enabled some tasks to be automated
37 percent of its Recovery and Resilience Facility fund to drive
and work to be carried out remotely, but it has also helped priori-
green investments and reforms, while 20 percent has been allocated
tise manual work to cope with reduced labour and protect those
the digital transition.
employees doing vital work. For example, energy providers can
Vodafone has implemented many projects across Europe,
remotely check utility installations from a distance rather than go-
including Romania. Intelligent logistics, measures to reduce fuel
ing into the field themselves.
consumption, smart farming and precision farming, smart city solu-
It’s unsurprising then that 77 percent have reconsidered their
tions to improve the efficiency of energy-intensive services such as
approach to IoT following their experiences this year. In addition,
public transport, road networks, and street lighting – these are just
as businesses enter the new normal, they are recognising that IoT
a few of the projects that have already been implemented by Voda-
provides them with the data they need to understand what the
fone. And it is clear that digital transformation will only accelerate
new normal looks like and to plan and act accordingly. IoT provides
in the coming years.
14 MAIN STORY
www.business-review.eu Business Review | November 2021
Foreign Investment Summit 2021: The road to a sustainable economy must be paved with capital The 8th edition of Business Review’s Foreign Investors Summit brought together representatives of large companies, consultants, legal advisors, and strategic investors on the Romanian market to debate key topics related to foreign investments and discuss the top concerns of people who do business in Romania. By Aurel Constantin
www.business-review.eu Business Review | November May 2016 2021
T
COVER MAIN STORY 15 14
he pandemic wiped out most of
the high share of IT in our value-adding out-
2020’s global economic growth. And
put, an area where we rank well. Romania’s
even though Romania was also hit
competitive approach has mainly been based
hard by covid-19, the local economy per-
on cheap labour and technology adoption
formed better than its European peers last
supported by foreign direct investments. In
year and is expected to also outperform them
the context of economic convergence and
in 2021, with an estimated growth of around 7
increasing labour costs, these growth drivers
percent. Naturally, foreign direct investment
are slowly being wiped out. Therefore, Ro-
(FDI) levels, which had already been stalling
mania needs to compete more on quality and
for several years, hit a record low, but as the
less on low costs. Raising labour productivity
new normal took over, we saw a steep growth
is crucial, and this requires major improve-
of FDI in the first five months of 2021, of 320
ments in the areas of education and health-
percent.
care. And we also know that more foreign di-
The fiscal and monetary measures
rect investments could be attracted provided
adopted by Romanian authorities to help
that the country’s institutional framework
businesses cope with the effects of the
and infrastructure are improved.
Cristian Secosan, Foreign Investment Council: The unprecedentedly high prices on the energy market are caused by the lack of investment in the sector and the country’s inefficient production capacities. There are also factors that are out of Romania’s control, but there are still plenty of internal issues that we ought to address.
pandemic have certainly helped the recovery, and it seems that the local economy can still
DIGITALIZATION
offer good opportunities for foreign inves-
Addressing the four areas where our country
tors. There are plenty of factors that make
significantly underperforms would most
Romania an attractive destination for FDIs –
likely lead to better technological absorption
consumption is on the rise, real estate yields
and generate further domestic investment
are still good, and the local share trading
and innovation, where we also score very
market is growing. At the same time, we can-
low. According to the European Innovation
not overlook warning signs like the shortage
Index, Romania is the least innovative EU
of qualified workforce, rising energy prices,
country. We are lagging well behind the EU
public debates over suspending fiscal facili-
average in the vast majority of indicators,
ties for key industries or even the everlasting
other than internet access, venture capital,
political crisis.
medium and high tech exports, and sales of
All these things are having an impact on Romania’s competitiveness, one of the most
Ramona Chiriac, European Commission: Romania’s economic growth this year is estimated by the EU at 7.4 percent, outperforming other countries. For the growth to remain sustainable, it is important to ensure that it is supported by investments and reforms made through the Recovery and Resilience Plan.
innovative products. “Demography is also a huge long-term
important aspects that have to do with the
challenge. According to Eurostat, we might
attraction of foreign investors. In order to
record a 37 percent drop in active population
improve the country’s competitiveness, we
by 2060. We are placed towards the extreme
must take a good look at the challenges and
end of this spectrum,” says Bogdan Ion. Ileana Gutu, EY Romania: Romania has a great capacity to absorb investments, and I would say it's extremely competitive in terms of its overall tax rate, at 20 percent of the total profit, which is far lower than the rates of the other countries in the region.
opportunities in front of us today, as Bogdan Ion, Country Managing Partner at EY Romania & Moldova and COO of EY South-East & Central Europe and Central Asia, noted in his opening statement at FIS 2021. Romania’s present situation is far from ideal: we are simultaneously dealing with the critical issue of high mortality rates due to covid-19, a political crisis, and record-high energy prices. But regardless of today’s difficulties, we must still take a long-term view. One of the key questions is, how do we see ourselves competing as a country and what are the key drivers of growth? Should our growth model be primarily based on manufacturing or rather on services? Romania seems to be expanding in both directions, just like Poland, which is a really positive development. Another good aspect is
Bogdan Ion, EY Romania & Moldova: Romania needs to compete more on quality and less on low costs. Raising labour productivity is also crucial, and this requires major improvements in the areas of education and healthcare.
Cristian Ilie, InvestRomania: We need a proactive approach in promoting Romania as an investment destination and we need to establish what the country needs and what it can offer, and then promote it intensively in order to build a sustainable economy.
www.business-review.eu Business Review | November 2021
16 MAIN STORY
Achieving a higher GDP per capita level
Lara Tassan Zanin, European Investment Bank: Romania must decide what it wants to look like in the future, what it can do to strengthen its economy, what types of investments it wants to attract in order to have a greener and more sustainable economy, and how it should try to obtain those investments.
Antoniu Panat, Vastint: There is a direct link between rent levels and market investment levels. If rents are low, then profit margins are also modest, which leads developers to cancel or postpone investments in new buildings.
as one of the biggest sources of hope. “Roma-
something we want. Romania has a 44
nia’s economic growth this year is estimated
percent gap with the EU in GDP per capita.
by the EU at 7.4 percent, outperforming
“At the end of the day, this translates into sig-
other countries. For the growth to remain
nificant potential for our country, especially
sustainable, it is important to ensure that it is
if we look at the last 10 years, when we have
supported by investments and reforms. The
consistently exceeded the EU’s average GDP
EU has made the necessary steps to disburse
economic growth rate,” said Ileana Gutu, As-
a total amount of EUR 29.2 billion to Romania
sociate Partner for Economics and State Aid
by 2026, of which EUR 3.8 billion will be re-
Services at EY Romania.
leased in the pre-financing stage of the plan,”
What Romania needs is sustainable growth, which may come through European
said Ramona Chiriac. The plan is built on six pillars, from the
funds, and we also have the capacity to
green transition and digital transformation
absorb private investments, thanks to an ex-
to economic, social, and territorial cohesion,
tremely competitive overall tax rate. “Inves-
health and institutional resilience, and poli-
tors should be aware of the available state aid
cies for the next generation. The Green Deal
schemes and of those that might come next.
can have a huge contribution to reaching the
And we can refer to two such schemes that
set targets of reducing 55 percent of green-
are working very well already: one for major
house gas emissions by 2030 and reaching
investments of over EUR 1,000,000 and
carbon neutrality by 2050. This creates a
another related to job creation, which is ap-
huge need for investment, and 41 percent of
plicable when creating more than 100 jobs. I
the investments laid out in Romania’s plan
think they are very relevant and have already
will be going towards green projects. EUR
been proven to work,” Gutu added.
1.8 billion will go to urban mobility for green transportation, while EUR 855 million will be
THE GREEN DEAL
Patricia Wruuck, European Investment Bank: We can see a difference in development among EU municipalities with large income gaps. This can be seen in housing conditions, but also in healthcare, and it can be addressed through investments.
Recovery and Resilience Plan came up often
based on a decreasing population is not
allocated to renewable energy production.
According to Ramona Chiriac, Head of the
The EU and the European Investment
European Commission Representation in
Bank may provide financial assistance and
Romania, foreign investors are important in
advisory services, but it remains Romania’s
generating robust growth for the Romanian
job to design its own future. “Romania
economy. As this year’s summit was focused
must decide what it wants to look like in
on better understanding where foreign direct
the future, what it can do to strengthen its
investment stands and on addressing inves-
economy, what types of investments it wants
tors’ hopes and concerns, the EU-funded
to attract in order to have a greener and more sustainable economy, and how it should try to obtain those investments,” said Lara Tassin Zanin, the Head of the European Investment Bank. Romania also has plenty of opportunities related to the available transition and structural funds, and all of these should be used more in order to generate added value in the economy, which means that authorities must have a medium- and long-term vision
Laura Stefan, Mastercard Romania: HoReCa Together is an educational platform that provided all kinds of information, from global education tools to local best practices, and taught entrepreneurs how to digitalize their business and make sure that they can get through this period.
Lucian Enaru, Schneider Electric: Over the past few years, we’ve seen significant investments in hospitals, especially in the private sector, which has been providing high quality services. Recent investments have addressed critical aspects such as power availability and digital infrastructures.
in place. Confidence in the economy Poland and Hungary have so far been better than Romania at attracting foreign investments, therefore our country must develop a solid strategy. Various initiatives and projects are being carried out by different institutions, but a common vision is still missing. “We need a proactive approach in promoting
www.business-review.eu November Business Review | May 2016 2021
COVER MAIN STORY 17 14
Romania as an investment destination and
need to be addressed in a more comprehen-
we need to establish what Romania needs
sive manner. “Digging a bit deeper, we can
and what it can offer, and then promote it
see a difference in development among EU
intensively in order to build a sustainable
municipalities with large income gaps. This
economy,” said Cristian Ilie, General Director
can be seen in housing conditions, but also in
at InvestRomania.
healthcare,” said Patricia Wruuck. After the
Since 2014, the Foreign Investment Coun-
pandemic hit, more local investments went
cil has been releasing reports about inves-
towards digitalization and social infrastruc-
tors’ confidence in the economy. The latest
ture. But municipalities in the lesser devel-
one, from September 2021, showed that
oped regions tended to retain a greater focus
the economy seemed to be performing well
on basic needs, such as urban infrastructure
overall, but there were three areas where
and utilities.
things were not looking so good, Foreign
The European Union’s financial support
Investment Council President Cristian Seco-
helps address issues of access to finance,
san explained. The first was the pandemic
but governmental capacity remains key in
crisis, where the situation remains critical as
making the most of these opportunities.
the measures taken by the authorities came
Authorities must address regulatory barriers
too late. As a result, many companies have
to investment, including those existing at
postponed or cancelled development plans.
the local level, in order to unlock economic
The second was the political crisis, which
transformation opportunities.
seemed to have no end in sight. And the third
Education platform for entrepreneurs
was the energy crisis, as prices have risen to
In the last year and a half, digitaliza-
unprecedented levels. One of the causes of
tion has been visibly speeding up in the
the rising prices is the lack of investment in
real estate sector. Buildings can now be
the sector and the country’s inefficient pro-
controlled by computers and smartphones.
duction capacities. There are also factors that
Energy efficiency and health measures are
are out of Romania’s control, but there are
also more important than ever inside build-
still plenty of internal issues that we ought to
ings, whether we’re talking about offices or
address. Under these circumstances, confi-
residential compounds. “The notion of a safe
dence in the Romanian economy is currently
building acquired a new meaning once the
at low levels.
covid-19 pandemic hit,” said Antoniu Vastint,
Diana Buzoianu, Member of Parliament: A digital nomad is someone who wants to visit new and different places and still be able to work while they do so. We must change our legislation to implement the nomad visa, just as countries like Greece or Estonia have done.
Manuel Fernande Amezaga, Sodexo BRS Romania: Trust, freedom of choice, and compensation are the most important things for the new generation of employees. They want to have flexibility and to be able to balance work with their personal lives. Employers can see an increase in employee productivity when these criteria are met.
Managing Director at Vastint Romania.
MUNICIPAL INVESTMENTS
Digitalization is on the agenda of every
Investments at the municipal level are just as
company, including that of Mastercard,
important as national ones, as the develop-
which is not just a payment provider, but a
ment the cities can significantly improve
Ana Visian, BestJobs: The young generation is digitally native and whatever they do, they look at it through a screen. Companies need to open up more entry level positions and internships for young people.
citizens’ lives. An EIB report found that local investments have started to pick up the pace since 2017, with northern Europe recording higher levels than the southern parts of the continent. Before the covid crisis, EU municipalities made more investments in digital and social infrastructures and in climate change mitigation. But, as EIB Economist Patricia Wruuck pointed out, municipalities find that important gaps have remained, notably in terms of urban transport and digital infrastructures, as well as in the area of climate change mitigation and adaptation. One area worth a closer look is the social infrastructure; about a third of municipalities are recording an investment gap in this area. Social housing, healthcare for children and the elderly, and the education system all
Oswald Kolb, Continental Sibiu: Last year, many automotive factories closed, even in Germany and other developed countries. But with the help of state aid programmes, we’ve managed to keep our workforce intact.
Loreda Dragomir, Adecco: Education is the key to the future and the solution for today’s workforce-related problems. There are many private initiatives, vocational programmes, and even coaching programmes for school leaders, all of which can improve the education system.
www.business-review.eu Business Review | November 2021
18 MAIN STORY
global technology company. Digitalization
H.E Mrs. Laurence Auer, French Republic Ambassador: Romania is the best member state in the EU in terms of sustainable economic transformation because it has received the green light for all its mechanisms and policies. Financing is available through the PNRR and EU structural funds.
Healthcare – and hospitals more specifi-
has a major impact on our lives, and that
cally – have naturally also attracted a lot of
is why we need better IT&C education in
interest during the pandemic period. Over
schools. And the economic importance of
the past few years, there have been signifi-
digitalization was confirmed – albeit in an
cant investments in the private healthcare
unfortunate manner – by the pandemic, as
sector, with many hospitals providing high
we experienced an urgent need for a shift be-
quality services.
tween the offline and online modes. With the
One critical aspect for a hospital is its pow-
pandemic having strongly hit the hospitality
er availability, and electrical systems in old
sector, Mastercard has created a programme
hospital buildings are struggling to keep up
to help these businesses, called HoReCa
with demand, which also generates major fire
Together. “It is an educational platform
risks there have been significant investments
that provided all kinds of information, from
in the private healthcare sector, with many
global education tools to local best practices,
hospitals providing high quality services.
and taught entrepreneurs how to digitalize their business and make sure that they can
THE WORKFORCE IS STILL TROUBLED
get through this period,” said Laura Stefan,
When the pandemic hit and the economy vir-
Business Development Director at Master-
tually shut down for several months, many
card Romania.
companies may have struggled to survive and keep their workforce, but they received the support they needed through state aid
Jan Demeyere, Speedwell: We have our own internal procurement team. We take into account the sustainability of every material we use in our developments, and we also try to buy local products and develop projects with local teams.
programmes. Being able to retain employees turned out to be very important, as when pandemic restrictions eased, the difficulties of finding new workers returned – and big investments are not possible without an adequate workforce. A stable workforce is one of the pillars of
Anna Cohen Hagag Development Europe: Investors, municipalities, and governments should work towards making cities more sustainable. The real estate industry also has a crucial role in providing durable solutions and it should try to integrate as many green elements as possible.
Tivadar Runtag, Chimcomplex: Whenever we talk about investors, they always want a good return at a relatively low risk. You cannot go wrong with sustainability; it might not provide the fastest returns, but it’s definitely the best long-term investment.
a sustainable economy, and sustainability is on everyone’s minds today. For Romania, achieving economic sustainability is made possible by the funds available through the Recovery and Resilience Plan and the other EU structural funds. Sustainability plays a big part in the private sector as well, influencing the way companies choose their suppliers and partners. The guiding principle here is to prioritise local products. Sustainability can also represent an opportunity for foreign investors, as it promotes a circular economy, which recycles and repurposes materials used in manufacturing processes. But there are many things that still need to be done in order to achieve sustain-
Alex Souras, Alenosor: We should be focusing on building communities, because the carbon footprint of traffic and of the materials used in construction is huge. All stakeholders – local authorities, governments, EU institutions, financial institutions – should work together and learn how to do things properly.
Iulian Sorescu, Noerr: Romania offers some of the best conditions and incentives for investors, thanks to its low taxes and high yields, and projects that foster sustainability and green development will receive significant support through a variety of state aid schemes for many years to come.
ability in all economic sectors, and this translates to a great number of opportunities for investors. Romania offers some of the best conditions and incentives for investors, thanks to its low taxes and high yields, and projects that foster sustainability and green development will receive significant support through a variety of state aid schemes for many years to come.
www.business-review.eu Business Review | November 2021
ADVERTORIAL 19
Technoelectric - The Best Business Performance In 2021 AbuDhabi Ports, which totals a total area of 100,000 m2 of storage. This project’s system installation included seven ammonia compressors for the KIZAD logistics warehouse. The automation incorporates many energysaving elements, such as the efficiency of the refrigeration installation, the control of the coolers, and the optimizations obtained from the equipment coordination. One of the main benefits brought to the customer by the mixed inter-departmental team of Technoelectric is translated by the reduced operating costs generated by the integrated energy-saving solutions. In addition to the projects carried out, the company implemented this year an Employer Branding campaign that concluded the vision over the company’s development chapter. The #PeopleOfTechnoelectric campaign aims to consolidate the company's presence on the Romanian market in a different way than before, to highlight the people who are part of the team. I am convinced that through all the activities we have been involved in this year, Valter Laurentiu Carp, General Manager of Technoelectric
T
like complex projects or campaigns that show another dimension of the company,
echnoelectric - a company with
low risk. The indicators' comparative evolution
we consolidated our successes and built an
Romanian capital that produces
followed by the top makers places us, in recent
organizational culture in which people can
automation systems in refrigeration
years, above the industry average, which makes
communicate effectively, and find the sup-
installations - is in the 13th place in the Top
us happy and obliges us to maintain the same
port they need to evolve professionally. Only
100 companies in Romania, a ranking based
standard of excellence in the coming years,
together will we grow in the same way in the
on the CANE code, in which it rose one step
says Valter Laurentiu Carp, General Manager
coming years, making Technoelectric a refer-
compared to 2020. Remarkably, Technoelec-
Technoelectric.
ence company in the industry at a national
tric is the only company out of the 13 evalu-
To these performances are added in 2021 the
ated with very low risk on all four indicators:
national and international projects in which
financial, trend, P&L, and benchmark.
Technoelectric was involved. Internationally,
and international level, says Valter Laurentiu Carp, General Manager of Technoelectric. Technoelectric is a Romanian capital
it is worth mentioning that at the beginning of
company founded in 1994 that produces
benchmarks: turnover, assets, profit, and eq-
the year, the Technoelectric team provided an
electrical panels and integrates systems for
uity, the company obtained a high score. The
automation system for the Omran Jameel brew-
automation in refrigeration installations.
indicators about the company's evolution,
ery in Iraq. Simultaneously, the team together
Since 2010 began the process of interna-
namely the dynamics of turnover, assets,
with Daikin Middle East and Daikin Africa teams
tionalization through complex automation
profit, and equity, have a high score of up to
carried out two large-scale projects in the United
projects implemented in the Middle East
100%, like profitability indicators.
Arab Emirates and Saudi Arabia.
(Lebanon, Qatar, United Arab Emirates, Saudi
Regarding the size of the company
2021 is the year in which the company
Arabia), the former Soviet Union (Russia,
mark score of 1.5, higher than 72.43% of
acheived another major success namely the
Belarus, Ukraine), and Western European
the companies in the industry, which is the
largest refrigeration project to date in terms of
countries (Italy, France, The Netherlands,
equivalent of a risk class A, meaning a very
the size of the refrigeration plant - 17 MW - for
and the United Kingdom).
Our company obtained a P&L A FT Bench-
www.business-review.eu Business Review | November 2021
20 SUSTAINABILITY
Sustainability as a guiding principle For Chimcomplex CEO Tivadar Runtag, sustainable development is a mission, not a source of income. However, he tells Business Review that he is aware that it must also be economically attractive. His company’s goal around sustainability is to be recognised for innovative solutions, processes, applications, and for a focus on environmental protection. By Anda Sebesi simply means col-
make decisions about strategic investments,
lecting products
the availability of special “sustainability” aid,
at the end of their
loans can push them towards choosing eco-
lifecycles and using
logical solutions. For me personally, sustain-
them as feedstock in
able development is a mission, not a source of
a new process. With
income – but I am well aware that it must also
this, we can reduce
be economically attractive.
the demand for limited raw materials and utilities, and
What does Chimcomplex intend to do in order to access such funds?
at the same time we
Chimcomplex is in a unique position to build
How can the chemical industry apply the concept of sustainability and what are its implications?
reduce the amount of polluting waste. The
its Green Strategy. Financially strong, with a
circular economy is no longer science fiction.
long tradition in chemistry (the foundation
There are many new technologies and devel-
of chem-cycling), and an enthusiastic team.
It is clear today that activities that harm the
opments, several of which have already been
We have drawn up a very exciting scheme of
environment cannot be successful in the long
applied, either in test mode or at full scale.
“renewable energy + recycled raw materials
run. The common practice is to interpret sus-
But such technologies are not cheap. They
+ zero pollution technology = green prod-
tainability in its narrow ecological sense, but
must be applied along the entire value-chain
ucts.” At this moment, we are working on the
for us in the chemical industry it means much
and are mostly beyond the capabilities of any
technical and economic details, which will be
more than that. Yes, we have to increase en-
single company. Therefore, sustainability
presented as part of our strategy to relevant
ergy efficiency, reduce the use of fossil fuels,
goals set by politicians must be coupled with
stakeholders in Romania and the EU. Most of
and minimise waste. But additionally, as
commitments by governments to allocate
these developments are eligible for central
President of the Romanian Chemical Produc-
investment funds.
funding, as they will result in increased energy efficiency and hydrogen production
ers’ and Distributors’ Association (APDCR), I can tell you that the chemical industry is the
capacity, investments in a photovoltaic park,
collected waste can be “broken down” into
We know that waste collection, as a part of the circular economy, requires large investments. What can you tell us about the role central funds play in this process?
molecules and re-built into new materials.
Waste is at the end of a linear economy – and
What is the company’s sustainability strategy?
So, for us, the concept of sustainability is an
in the middle of a circular one. Selective
Our aim is to be recognised for innovative
ecological commitment, a business impera-
waste collection is a decision that requires
solutions, processes, and applications and
tive, and an exciting challenge.
not just money, but also good will and proper
for our focus on environmental protection, as
planning. Cleaning up our surroundings costs
well to be a safe working place and a learning
In what ways is sustainability an opportunity for the circular economy?
a lot more than keeping it clean to begin
organisation. Investing in green technolo-
with. Central funds have an important role in
gies can help safeguard existing assets and
The European Green Deal is based on three
stimulating the circular economy. Dedicated
the business value of our main products. For
key commitments: climate neutrality, zero
funds raise the attention of governments,
us sustainability is not an option, but our
pollution, and the circular economy, which
companies, and entrepreneurs. When they
decided way to act.
only industry that can be an integral part of the circle. Through chemical recycling, the
and chem-cycling of PET waste.
www.business-review.eu Business Review | November 2021
ADVERTORIAL 21
You already know why more active means healthier? Discover four extra reasons! World Health Organization also states that exercise is extremely important in the fight against COVID-19. Moreover, during this period, the WHO doubled the daily period of recommended moderate exercise each week, from 150 minutes to 300 minutes! Put your health where it belongs, on your daily list of priorities. When you realize the amazing changes that exercise brings to your life, it will be the time when you make the best decision for health, immunity, and longevity: transforming movement into a lifestyle. Medical studies show that regular swimming reduces stress, anxiety and depression and improves sleep quality. Along with muscle relaxation comes mental relaxation.
M
ost people could name some or all of the benefits of being
In addition, working out in a different envi-
STRENGTHENS YOUR LUNGS TO FIGHT COVID-19!
ronment, free of external distractions, will help you completely relax and forget about
To get your lungs into better shape, top critical-
everyday worries. Then, we can talk about
are to avoid illness, disease and injury, look
care pulmonologists agree that the best option,
increasing confidence and self-esteem,
better and have more energy. Not to men-
hands down, is regular old physical activity, the
which comes from the figure transforma-
tion proper weight management, stabilized
kind that gets your heart rate up. Over time, the
tion that you will go through. Do not forget
blood pressure, protection against many
muscles that support your breathing become
that physical fitness is to our body what
chronic diseases such as obesity, diabetes
weaker, lung tissue loses elasticity and the air
fine tuning is to an engine. It enables us to
and cardiovascular conditions. But there are
sacs inside your lungs become baggier. Studies
perform up to our potential. Fitness is actu-
some additional benefits as well!
show exercise can slow that decline and boost
ally a condition that helps us look, feel and
lung function. Aerobic activity also helps air get
do our best. Are you still home on the couch?
into the deepest parts of your lungs that you
Time to get up and pick your most comfort-
don't use when you are sedentary.
able sports equipment and nothing else.
physically fit. Some of which
1. EXERCISE CAN HELP STRESS CONTROL
For long-lasting results, you can rely on the
Some chemicals called neurotransmitters,
strongest team of health & fitness experts in
exercise. These neurotransmitters mediate
4. EXERCISE MAKES US A LOT MORE PRODUCTIVE IN ALL ASPECTS OF OUR LIFE!
our moods and emotions, so they can make
A study published in the Scientific Journal of
clubs throughout the country.
us feel better and less stressed.
Workplace Health Management showed that
produced in the brain, are stimulated during
Romania, waiting for you in all World Class Group fitness, cycling, personal training
workday exercise, not only improves well-being
and gym classes are all at your disposal,
2. AND THERE IS MORE TO IT
but participants noted a 72 percent improve-
together we take our daily dose of health
Exercise can keep your immune system
ment in time management and workload com-
and good mood training.
STRONG. Research has shown that during
pleted on days when they exercised!
moderate exercise, several positive changes
There you have it. All the reasons that you
Fist step: download the World Class app from Google Play or AppStore, sign up and
occur in the immune system. Various im-
need to set a reminder on your telephone and
discover the group fitness schedule at the
mune cells circulate through the body more
schedule at least 30 minutes of moderate-to-
nearest Wold Class club to your home or
quickly, and are better able to kill bacteria
intensive physical exercise daily. The official
workplace. When you need to stay home,
and viruses.
recommendation has changed! 300 minutes
you can enjoy the online training platform
of exercise a week, not 150! Are there enough
provided by World Class. And don’t forget:
reasons to make a change also? The COVID-19
#BeHealthy is a lifestyle and Exercise is
pandemic could be another serious reason. The
Medicine!
3. THE BEST BENEFIT FOR THE PERIOD WE ARE LIVING IN: EXERCISE
www.business-review.eu Business Review | November 2021
22 UNICORNS
Will future Romanian unicorns be bootstrapped or VC-backed? Startup founders have become more ambitious lately, many of them creating regional or global businesses from the start instead of strictly targeting local markets. Repeat founders have also become more prevalent, but what is the best way to grow? Should you seek an investor or go with bootstrapping, which means completely self-funding your development? By Claudiu Vrinceanu local funds are also increasingly building global connections and experience in foreign expansion very quickly. The region has created tremendous success stories, especially in enterprise software, With the increasing presence of international funds, internationalisation is easier than ever before
O
thanks to some of the best tech developers in the world. However, many of these successes have been bootstrapped for a long time, and
ne of the most exciting phenomena
mark transaction for the region. As a result,
the region still lacks an intense VC scene,
is the fact that a third (31 percent)
we’re also seeing CEE getting more attention
especially at later stages, beyond series A.
of Central and Eastern European
from western investors.
(CEE) unicorns were bootstrapped, compared
“Unlike in the 1990s and 2000s, founders
Estonia, Romania, and Poland have created the most startup value since 2000, though
to just 7 percent across the rest of Europe,
now think internationally from day one. The
UiPath predominantly drives Romania’s
according to a Dealroom study. This confirms
biggest challenge for startups in the region
ecosystem. Scaling is accelerating in CEE: in
that available capital has been scarce and that
has been growing internationally. There have
the last ten years, startups have taken almost
the region has solid entrepreneurial funda-
been several reasons for that, but recently
a third of the time to hit unicorn status com-
mentals, creating sustainable and scalable
there has been marked improvement in these
pared to the first generation. Romania’s list
businesses.
areas,” says Maciej Cwikiewicz, the CEO of
includes UiPath, eMag, FintechOS, Bitde-
PFR Ventures.
fender, TypingDNA, DCS+, and Elefant.
Titled “Coming of age: Central and Eastern European startups,” the report by Google
Access to money has been a hurdle in the
The quoted report shows another record-
and Dealroom looks back at the expansion of
past, with a funding gap that was particularly
breaking year for the region. Companies
startups in the region over the last 11 years.
noticeable at later stages. Still, there has also
founded in CEE now have a combined
During this time, the CEE region has seen
been a lack of skills and capabilities which
enterprise value of over EUR 186 billion (up
the value of firms soar from around EUR 10
are necessary to grow.
19x since 2010), VC investment soared to
billion in 2010 to EUR 186 billion this year.
This is changing. With the increasing pres-
EUR 4 billion in the first nine months of 2021,
According to the study, this year’s IPO of
ence of international funds, which provide
projected EUR 5.4 billion by the end of the
Romania-founded UiPath on the NYSE, at a
capital, know-how, and network, interna-
year, and the number of CEE-born unicorns
valuation of over USD 30 billion, was a land-
tionalisation is easier than ever before. But
has reached 34.
www.business-review.eu Business Review | November 2021
ADVERTORIAL 23
Canadian-born Topolinskis make The Family Difference in sustainable and responsible business real estate business in Romania.” Michael IV is the project manager of InteRo’s premium development NorthLight Residence in North-East Bucharest. Spanning 13,000 sqm, it provides the 110 apartments with an exceptional view of the lake, 4,000-sqm of green spaces, playgrounds, and a 320-sqm pool. His brother Tyler manages InteRo’s most recent project – New Confort City, a residential complex in Popesti Leordeni with 280 apartments. “We took over an unfinished project that was causing discomfort to the neighborhood, resumed construction works and committed an important budget for landscaping and design so as to create a unique, much-needed green area for the community. This has given us great satisfaction since we L to R: Tyler, Michael, Ashton and Michael IV
M
enthusiasm to current and future residents,”
ichael Topolinski made his
the world who seek premium opportunities in
first Real Estate investment
dynamic markets.
in Romania in 2006. What was
feel that we bring unprecedented value and
“Having global investors on board for our
Tyler says. With the operational side running at fast speed in an increasingly competitive
initially just business eventually became
Romanian projects was a first,” Michael added.
market, Ashton’s job in aligning communica-
the milestone for a new life for himself, his
“But huge interest from investors in North
tion and marketing to the business strategy
children - 29-year-old Michael IV, Ashton (25)
America, Asia, and nearby countries clearly
is essential.
and Tyler (27), and his mother Edith (79), the
validated the country’s long term potential. 2021
latest from the family to move to Romania.
has been extremely busy and we are looking at
rooted into our core family values – indepen-
an even more exciting 2022.”
dence, unity, uncompromising commitment
“I’ve been truly fascinated by Romania
“Our approach to business is deeply
since my early days,” says Michael Topo-
Having assets of over EUR 120 million and
linski, “and I managed to instill this same
debt of only EUR 7 million, InteRo Group is posi-
that create wellness communities. This is
feeling to my children who joined me after
tioned for long term low-risk growth.
The Family Difference, the core unit behind
gaining business experience in Toronto. For
For the Topolinski children, there has hardly
to upmost standards, design and innovation
a solid and responsible business structure.”
more than a decade, we have been an active
been a dull moment since coming to Romania.
developer and investor in local real estate,
While enrolling in an intensive program to learn
forges a character better than challenging
witnessing its step-by-step transformation
the language and integrate the community, they
oneself and having a greater purpose; hence
and contributing to the steady upgrading of
are also entrusted with major projects, as each
civic responsibility is a constant in their
quality standards and market expectations.”
of them plays a key role in the management
lives. In the past year, they have donated
team.
NGOs a total of 2,245,500 medical masks and
15 years later, the family business InteRo Property Development – manages
“Being part of an investors’ family comes
The Topolinskis believe that nothing
310,000 RON. Ashton volunteered for United
a solid and diversified portfolio in Bucha-
with great effort and responsibility,” says
Way’s Reading Club dedicated to children
rest and the surrounding areas and is now
Michael Topolinski IV. “We dream big and work
in educational centers. The family supports
looking to expand to Brasov. Moreover, the
hard for every breakthrough. Our goals are
the Kola Kariola Association and dog shelter,
company has launched an investment arm
focused on impact and legacy, with an aim to
having funded most of the cost for a new
addressing potential partners from all over
become the most accomplished private family
sterilization center.
www.business-review.eu Business Review | November 2021
24 M&A
New M&A trend: transactions between Romanian entrepreneurs In addition to takeovers by private equity funds and founders exiting to make way for international strategic investors, a new positive trend is emerging on the mergers and acquisitions (M&A) market: transactions between Romanian entrepreneurs. It is a sign of maturity of the local business environment. By Claudiu Vrinceanu
O
ne recent example was the move made by the Scandia Food group, led by entrepreneurs Gaspar and
Crestin, which took over sausage producer Agra’s from Alba County from founders Dan Sarmasan and Ligia Sanda Stincel. The transaction had a value of over 10 million euros. Present circumstances are favourable for M&A and investments. The total value of
Present circumstances are favourable for M&A and investments
transactions concluded in Romania in the first nine months of 2021 reached USD 3.8 billion, increasing by 58 percent compared to
Autodesk, ongoing contracts with clients, rel-
the same period of last year. Of the 105 deals,
evant certifications, including the Autodesk
number of takeovers and investments in the
just six transactions accounted for two thirds
Gold Partner status, as well as all the know-
medical services industry. For example, the
of the total value, according to EY Romania
how. Graphein will pay the RON 2.2 million
Dent Estet group, which is part of MedLife,
data on the mergers and acquisitions market.
to Dendrio in cash in four instalments until
took over 60 percent of the shares of the
Elsewhere, the Agroland store network,
Other similar transactions include a
September 2023. The resulting capital will
Somestet clinic in Cluj-Napoca. The clinic
owned by entrepreneur Horia Cardos from Ti-
be reinvested to develop Dendrio’s strategic
was founded in 2001 by doctors Smaranda
misoara, took over the the Avicola Mihailesti
business lines – cloud and security – as well
Buduru and Rares Buduru.
platform, a producer of consumer eggs and
as to potentially fuel future M&A transactions
day-old chicks, which includes six farms lo-
in these areas.
cated on a 30-hectare area in Giurgiu County. The trend is also visible in the IT sector.
“The main objective of our expansion through mergers and acquisitions is to be-
Based on these moves, we can conclude that 2021 looks promising in terms of M&A activity, given the interest in the local business environment.
Dendrio Solutions, part of the Romanian
come an integrator of services and products
IT group Bittnet Systems, sold its Autodesk
that will facilitate the digitalization of the
dence, despite the fact that the covid-19 pan-
division to local topography engineering
Romanian construction sector. Next, we aim
demic has had an extraordinary impact on
company Graphein for RON 2.2 million.
to acquire Proptech companies that can bring
people and businesses. The influx of liquidity
The agreement provides for the transfer
innovation in the way people rent, buy, sell
from markets and the pressure on capital
to Graphein of all operations related to the
or manage a property,” said Graphein CEO
allocation strategies are factors that favour a
relationship with American technology seller
and co-founder Eugen Ursu.
dynamic trading situation.
M&A markets have been ruled by confi-
www.business-review.eu Business Review | November 2021
26 TECHNOLOGY
NFT marketing booming worldwide What do Elon Musk, Kings of Leon, Lil Baby, Aphex Twin, MF Doom, Gucci, Delia or Stefan Popa Popa’s have in common? When art and digital meet technology and blockchain we get NFTs (non-fungible tokens), the latest buzz in the artistic world. Most NFTs are part of the Ethereum blockchain. Any piece of digital content can be minted into an NFT, from songs, photographs, and works of digital art to tweets, memes, published articles, and podcasts. By Romanita Oprea and Victor Fota. The works were auctioned on the withfoundation and OpenSea platforms and could be bought with the Ethereum cryptocurrency. The two collaborative projects were 360° immersive scenes, mulled fully in VR over 10 sessions each, then postprocessed and animated by Mihai Cojocaru from One Night Gallery. In June, WWF’s innovation division WWF Panda Labs and Carbonbase launched a pilot project that combined digital art and blockchain technology in order to provide direct financing to nature preservation projects in Romania. The NFTs can be bought on the Project Ark platform. The first piece in the collection was created by Topher Sipes and Allauras and titled “Woolly Ridges.” It uses topological data from the Carpathians in order to 3D sculpt the bust of a wisent. The embedded satellite images have the role of highlighting the relationship between wildlife, ecosystems, and geography. The NFT is available for 68 buyers, exactly the number of the free wisents in Magura Zimbrilor. But the most anticipated were the limited edition “NFT eggs” which are available in four options: bronze, silver, gold, and platinum. Half of the sales went to projects by WWF Panda Labs Romania, and the rest went
W
to the artists and Carbonbase. As the funds are spent, NFT users will receive reports Interest in NFTs, or nonfungible tokens,
about the land conservation project’s evolu-
they create a file that lives on
surged this year, reaching USD 2.5 billion in
tion and results. What’s more, in the case of
the blockchain, which means it
sales by July 2021, compared to “just” USD
the digital eggs, once the goal is reached, the
13.7 million in the first half of 2020.
egg hatches and makes chicken, so that the
hen someone “mints” an NFT,
cannot be copy and pasted, edited, deleted
person who bought it may receive another
or otherwise manipulated. Each NFT can be bought and sold, just like physical assets,
MEANWHILE, IN ROMANIA
surprise NFT, through Chainlink. The pilot
but the blockchain allows for the ownership
In March, the first new media art gallery in
project aims to be a first step towards forming
and validity of each asset to be tracked. It has
Romania, One Night Gallery, launched its
a direct connection between preservation
also led to an additional source of income for
first unique works of art on blockchain, cre-
teams in the field and financers and artists
many creators.
ated in virtual reality by artists Raluca Bararu
worldwide, through different digital and
www.business-review.eu Business Review | November May 2016 2021
COVER TECHNOLOGY STORY 27 14
play elements. In the meantime, the goal is
gates the artworks’ materiality and digitali-
brought many pleasant surprises and a lot of
to create dynamic NFTs whose value will
zation. “This will age really well!” set out to
satisfaction.
grow or drop depending on the success of the
explore the different performative becomings
preservation project.
of materials and embodied practices by mir-
BEST FEATURES
roring them in the digital ecosystem, where
What are the main characteristics of NTFs?
Carbonbase want to set higher sustainability
their ethereal bodies remain fixed while they
According to Raluca Turcanasu, they work
standards throughout the entire digital art
go through other sorts of convergences. This
as double-edged swords, in the sense that
market that uses the blockchain system. All
dualist approach between an ever-degrad-
certain features may be advantageous for a
the NFTs in the project are released through
ing materiality and an immutable digital
certain group, but not so much for another.
the Polygon network, a Proof-of-Stake-type
counterpart was examined through physi-
She would say they are quite democratic,
blockchain which is able to eliminate 99.8
cal works in the exhibition space and NFT
as anyone could virtually jump on the NFT
Furthermore, WWF Panda Labs and
works. The latter
wagon, but looking at it more closely, one
were both offered as
understands that this “anyone” in fact
giveaways on-site
translates to “anyone within our expanded
(limited pieces) and
bubble:” people who own smartphones,
made available for
people who are digitally savvy enough to
purchase (through
install a crypto wallet and mint or buy NFTs,
various e-wallet
and people with enough disposable income
solutions).
to afford investing.
Leilei Gallery’s
“I think their main quality is the fact that
mission is to support
they offer novel financial possibilities for
young contemporary
young artists, who can thus elude the art col-
artists during the
lectors & institutional buyers format and still
pandemic period,
earn from their work. Their non-fungibility,
which has obviously
namely the fact that they cannot be split into
impacted the art
smaller units, translates into only one owner
market significantly
per artwork, which I reckon is also a positive
and has severely
aspect, avoiding potential complications.
limited artists’ abil-
Their most important advantage is probably
ity to make a living
the fact that they help monetise digital assets
through their work.
that have an inherent high social value (in
“We looked at the
the digital realm) but could not have been as-
NFT framework as
signed a financial value prior to the develop-
a positive, alterna-
ment of NFTs. I am of course talking about
tive way for artists
famous memes, such as Bad Luck Brian or
percent of the carbon dioxide emissions as-
to boost their incomes. So, the “This aged
Nyan cat, which have been traded at ridicu-
sociated with NFTs.
really well!” exhibition worked as a starter,
lous amounts,” Leilei Gallery’s communicator
a booster if you like, for artists to look into
remarked.
In July, A10 by Artmark hosted the first auction to include digital art created by
this trend and learn how they can use it for
Romanian contemporary artists in the NFT
their benefit, in an ethical manner. Moreover,
the gallery with the same name, said that tra-
format, also accepting cryptocurrency pay-
it served as a flagship project targeting the
ditionally, ownership of an artwork has been
ments. The moment marked a historic first,
general public, sparking local conversations
linked to its medium. You own the painting,
and not just for Romania, as A10 by Artmark
around NFTs and the associated opportuni-
you own the artwork. In digital art, it is hard
became the first Eastern European Auction
ties (such as collecting these virtual assets
to overcome the need to physically “own” the
House to include a section dedicated to NFT
to potentially sell them in the future) and
piece. “NFTs are a big step forward in solving
digital art. The auction also presented the
threats (their ecological footprint),” said
this problem, as it unequivocally decouples
first NFT-based church art works, created by
Raluca Turcanasu, communicator & member
ownership from medium, and I hope this will
painter Daniel Codrescu, the National Cathe-
of the curatorial team.
pave the way to an exciting new wave of digi-
dral’s iconographer.
For her part, Ioana Marsic, the execu-
In her turn, Anca Poterasu, the owner of
tal artists. I also believe that the smart con-
tive director of Leilei Gallery, noted that it
tract feature of NFTs is especially advanta-
exhibition in July and August, split into 4
wasn’t an easy project to work on and it did
geous for artists who can receive a traceable
chapters where time, as a force that enhances
feel quite intimidating in the beginning. But,
share of every transaction carried out with
and weakens, is the arch concept that interro-
even though it was difficult at the outset, it
their work, so there are many aspects feeding
Leilei Gallery presented a multi-layered
www.business-review.eu Business Review | November 2021
28 TECHNOLOGY
back into the practice of a global, decentral-
various degrees of individual freedom, which
ised art market,” she stated.
is already conditioned by a mediatic society
overlap,” said Anca Poterasu. “We see an exquisite value in the time
that facilitates the dissolution of the self
capsule moments the artist captured through
came close to being taken over by dotcom
and authenticity. The NFT collection was
his fine art. The NFT validates the unique-
neoliberalism, and just as social media
launched on Blockchain.art (BCA).
ness of the moment. We feel privileged to
In Poterasu’s opinion, just as the internet
underwent its Social Dilemma, the crypto-
Designed by art world profession-
work with Popa’s and digitalize his most
related danger for art is being limited to
als for art world professionals, BCA is a
valuable collections, starting with Leaders Of
recirculating influencer brands, to the mere
database+marketplace for digital art forms
The World – a collection of 100 world lead-
regurgitation of name value-spreading,
that applies a dedicated blockchain infra-
ers the artist has met in different historical
while making art is forgotten. Outlining an
structure to the art market. “Occupy the
circumstances, whom he painted in his
aesthetic depends on how artists respond to
blockchain” featured a special live sound
unique style, and to whom he eventually offered their own portraits back as gifts. We are helping others NFTise their products or services as well. It's the natural evolution of this sector, going along with the trend. If you are thinking two or three steps ahead, there is always an indefinite time that you need to wait for things to develop and deploy. For example, we had been waiting for the NFT hype and mainstream adoption since 2017-2018,” said Lucian Stefan Rosu, the representative of Ptarth Timisoara. The PTARTH Network focuses on digitalization and blockchain transformation. Its goals are to offer quality and expertise as B2B services to other companies or startups that are looking to integrate blockchain technology into their operations or services. Between October 15th and November 10th they hosted an exhibition of the “Leaders of the world seen by POPA’S” collection at the Banat National Museum in Timisoara. The project aims to be a time capsule that marks historic moments, as well as to create a direct connection between the world leaders and
relaunching a Tactical Media manifest, occu-
performance by dyslex, invited through the
the art collectors who buy the NFTs. Through
pying the medium with their own messages.
AFCN project eART35.
PTARTH, Stefan Popa POPA’S also created
And who is more suited for the blockchain
“It was an amazing opportunity to work
a 3D gallery of the world’s biggest visual art
occupy movement than street-artists, who
with the best Romanian street-artists in
event – the 2021 International Salon of Press
are themselves shaped by the guerrilla-fight
dialogue with kinema ikon – the internation-
Cartoons and Satirical Visual Arts.
against the normalisation the public space? It
ally-acclaimed experimental multimedia
is within this context that Anca Poterasu Gal-
group. Their work speaks volumes on the
brand and product, encourage interaction,
lery launched a unique NFT collection gath-
rapid changes and the need to have a more
and even increase your conversion rate and
ering the most important Romanian graffiti
decentralised view on the art system. I am
profit. Think of it this way: anyone can have
artists and muralists: ACVM/Tudor Chiliman,
hopeful that we’ll see fewer boundaries and
a copy of a painting, but only one person
Ada Musat, Aeul, Alex Baciu, ATOMA, ERPS,
a welcome destabilisation of the status-quo,
can have the original. For the first time in
HOMEBOY LDJ, Irlo, Kero Zen, Lucian Sandu
and I am happy to be part of the change.
the history of the internet (the last 30 years),
Milea, Obie Platon, Ortaku, Pisica Patrata,
Digital art is a radical form of democracy,
“NFTs can help you raise interest in your
any artist, brand, company or individual can
as it knows no borders or class hierarchies.
upload any pack of data on the internet and
The NFT is based on an amazing technology,
make sure it’s validated as being their own,
infuse NFT platforms with a critical discourse
but it’s only the tip of the iceberg when it
and that it cannot be edited nor deleted. It's
regarding various technological, political
comes to digitalization. End-consumers are
a ‘notary’ digital contract whose unique ID
or biological control strategies. To this end,
now ready to own digital properties in virtual
is written into the blockchain,” added Lucian
they were debating how technology impacts
worlds, leading the real and the ineffable to
Stefan Rosu.
Pandele, robert OBERT, SeReBe. The purpose of the collection was to
www.business-review.eu Business Review | November 2021
COVER MARKETING STORY 29 14
Imagining the marketing of the future Diversity. Autheticity. Simplicity. Environmentally-friendly. Those are not just empty words, but key points on every marketing specialist’s agenda, in 2021 and beyond. Consumers can no longer be fooled by simple statements, and statistics are proving this: for example, 63 percent of Americans believe that brands that issue a statement in support of racial equity need to follow up with concrete action. By Romanita Oprea creative markets in Eastern Europe. And this phenomenon is still on the rise as we see more companies starting to drop convenient and comfortable communication to switch to a bolder type of marketing. Gabriel Eremia, marketing & product management director at Arctic, says that the last two years have brought many changes to the industry and have had a major impact on digital marketing. Consumer behaviour has changed significantly, and brands and companies are doing extensive research to better understand how this period has changed customers and the industry in general. “Marketers are using and will continue to use these insights to tailor their strategies and messages. Brands have turned to digital channels even more and have invested significant budgets in various platforms, in e-commerce, chatbots, Roxana Dinescu, Betano
A
Raluca Mihaila, Utopic Brain
applications, AI, VR. I believe that brands that use emerging technologies will become leaders in their industries,” Eremia argued. He has seen a shift in focus towards social
ccording to Mathew Sweezey, partner
last two years on the Romanian marketing
at Salesforce Futures LAB, in 2020,
scene? According to Roxana Dinescu, market-
responsibility, ethics, and ecology, and many
the Salesforce State of Marketing
ing manager - brand and communication at
companies and brands are making major
report found marketers’ number one focus
Betano, marketing is turning into a mirror
efforts to refine their business practices and
last year was innovation. All brands had to
of what is happening in society, and thus it
content strategies to meet their commitments
pivot as a result of covid-19 forcing a transfor-
changes along with the society and its needs.
to sustainability. “We will increasingly see a
mation timeline that many had not planned
“Just like food turned into fast food, like
sort of anti-consumerism approach, espe-
on executing so soon. Brands were forced
fashion started to set trends in fast fashion,
cially during the holidays. This period has
to accelerate adoption of many elements of
for some time now we’ve been seeing fast
also had a major effect on mobile devices. It
marketing transformation, and that is a trend
marketing that is reacting, responding, and
has accelerated changes in user behaviour,
that will certainly continue in the years to
constantly adapting to the customer’s needs.
including increased video streaming and
come. “Many brands have had to embrace
Romanian marketing is very much con-
mobile shopping. In this context, many strat-
agile methods replacing long build cycles with
nected not only to the trends of the local
egies have been rewritten with a much better
a test and learn approach. This move is a core
market, but also to global trends,” Roxana
omnichannel approach,” Eremia added.
tenet of marketing transformation as agile
Dinescu said.
provides brands with a method of creating
The Betano representative is very proud
AI IS THE GAME CHANGER
that many Romanian marketing projects
“Seeing marketing change in real time based
have won or been nominated for prestigious
on behaviour is closer than we might think,
RECENT CHANGES
International Marketing Awards, which has
mainly due to the rising technology stars of
What have been the biggest changes of the
positioned our country as one of the most
this decade, namely machine learning and
better results faster,” Sweezey noted.
www.business-review.eu Business Review | November 2021
30 MARKETING
artificial intelligence,” said the Betano rep-
the future of marketing, data-wise, will be
forced to pay to not see commercials is an
resentative, pointing to one of the most im-
an intersection between the main principles
example of an unethical model of marketing,”
portant trends – AI. As chatbots are becoming
of the cool “disciplines” marketers often use
Mihaila conclued.
a customer service standard, in many cases
today: behavioural economics (because we
replacing live agents altogether, as machine
need to understand consumer triggers in
are living in an age in which consumers are
learning algorithms are growing increasingly
behaviour and how the mind and emotions
more careful regarding their acquisitions,
complex and emulating human beings with
work; it’s an absolute necessity for a marketer
and they value ethical and purpose-driven
almost spooky accuracy, we may find that the
to have knowledge of psychology and address
brands that take sustainable actions. In fact,
future we used to think about is already here.
market needs through those lenses), agile
sustainability is becoming the new digital,
Marketing is becoming more conversational
methodology (adaptation is very important,
as the pandemic has also brought the heavy
and personalised, with chatbots enabling
just like the scrum pillars are very important:
environmental and social issues we are facing
business owners to take advantage of this
have a clear focus on where’re you’re headed
to our attention.
with your brand, commitment
From a consciousness point of view, we
“When it comes to sustainability, our
towards you goals and team,
mission – for all three brands in our portfo-
courage to take bold decisions
lio – is to educate consumers to act, as each
and understand your relevance,
of us has the power to be part of the change.
respect for clients, diversity,
We support our consumers throughout this
solutions, and openness to learn,
journey, right from the beginning – through
grow, and adapt), design think-
our eco-friendly products for a healthy
ing (empathy in prototyping
planet (to name a few: washing machines and
gives makes the human-centred
washer-dryers with EcoTub made of recycled
approach a top priority), lean Six
materials, BioCycle Refrigerators whose
Sigma (improve results through
durable components are made from eggshell
cost optimisation), and foresight
waste and bioplastics or dishwashers with
(use the present to explain the
AutoDosing systems that dispense just the
past and see into the future).
right amount of detergent, avoiding waste)
“The salt and pepper of this pragmatic mix comes from the growing mindset of a CEO
and through our actions and initiatives,” the Arctic representative explained. Still, according to Eremia, the next shift
who’s willing to contribute and
will be to the widespread adoption of artifi-
trend without additional strain on manpower
add genuine value to their customers’ lives.
cial intelligence, both at home and at work,
and resources.
Turnover and an obsessive need for growth
not to mention in services. In a not-so-distant
is not enough to build a sustainable brand,”
future, homes will operate in smart ways
Mihaila added.
that minimise energy consumption. Voice
And AI doesn’t stop there, of course. Google is already running AI-powered ads to optimise campaigns by identifying the
In addition, Mihaila noted that in terms
search and voice marketing are on the rise
best-performing ad designs and copy and au-
of value-added communication, the human-
too, and the marketing world is looking into
tomatically adjusting based on user engage-
centric approach is better than product-ori-
these powerful tools that create a personal
ment.
ented sales campaigns. She believes that we
connection between brands and prospective
need leaders to make bold decisions and that
customers.
“I am happy to say that we have already
“The marketing of the future will also
started building a path towards this future
products should be promoted for how they
at Kaizen Gaming, where the company has
benefit our lives and not through perhaps
have to deal with the fact that consumer
already developed an Artificial Intelligence
convincing, but contentless campaigns. For
purchasing decisions are becoming more
Detection System for Responsible Gaming
instance, IKEA’s gesture to refund the govern-
and more complex and harder to pinpoint.
which is able to more quickly and accurately
ment with all the subsidies it received to sup-
As more accurate metrics will continue to
identify possible patterns of members who
port employment costs during the pandemic
emerge, customisation gains ground as well.
may be at risk, then allow its training RG
was a unique and unexpected gesture that
Integration is key in this context, and so is
agents to support them in the best possible
impressed their loyal customers and certainly
the holistic approach. Inside our marketing
way. This innovation was awarded at the EGR
attracted new ones.
department, we are working in squads – this
Marketing & Innovation Awards in 2020 and
“In terms of sustainability, ethical market-
means that each project has a core team from
I am sure that this is only the beginning,”
ing, transparency, responsibility, communi-
all areas of marketing, collaborating and find-
Dinescu added.
cating value instead of scarcity (FOMO-driven
ing synergies, bringing their core expertise
advertising) will be more in focus. What
to the table to generate the best results every
consumers are experiencing today by being
time,” Gabriel Eremia said.
According to Raluca Mihaila, Markendipity Architect & Managing Owner at Utopic Brain,
www.business-review.eu Business Review | November 2021
32 INTERVIEW
Romanian entrepreneurs seize growth opportunities through BVB’s AeRO market AeRO, the small-cap growth market of the Bucharest Stock Exchange (BVB), attracted 17 new companies this year, with more entrepreneurs and investors looking to tap the platform. BR sat down with BVB CEO Adrian Tanase to learn more about AeRO and understand how businesses can use it as a launchpad for listing on the main market. By Ovidiu Posirca In 2021 alone, 19 new companies have listed their shares, two of them on the main market, with EUR 60 million each, and 17 on our small-cap growth market, AeRO, with an average ticket size of roughly EUR 2 million. In addition, so far we’ve had 25 bond issuances on the stock exchange as well as nine government bonds, worth almost EUR 1.4 billion. This year’s evolution has once again proven the potential of our market in terms of attracting new companies, from different business sectors, as well as new retail investors.
How has the BVB’s AeRO platform performed during the pandemic economy and what are your plans for this market going forward? The BVB has been providing financing opportunities for startups and SMEs since 2010, through the Alternative Trading System (ATS). In 2019, the ATS became a Multilateral Trading System (MTS), based on the European Union’s MiFID requirements. This way, the BVB contributes to the development of the business environment and provides financing for companies' projects, including startups and SMEs, to support their growth. At the same time, the MTS brings in new opportunities for investors. Since the beginning of this year, the AeRO market has recorded more than 265,000
How are entrepreneurs, especially startup founders, perceiving the local capital market in terms of business opportunities?
development of their companies, offering op-
trades, an almost threefold increase over the
portunities which may be otherwise inacces-
previous year. The total value of trades on the
sible. There are also complementary results
AeRO market is close to RON 1 billion, which
In the last couple of years, we’ve seen a
that the local capital market has brought to
means an increase of 182 percent compared
change in entrepreneurs’ perception of the
entrepreneurs, including increased visibility
to 2020. The average daily trading value has
Bucharest Stock Exchange (BVB), as more
and a new approach to business, based on
reached RON 4.6 million. The AeRO mar-
and more of them are starting to view the
increased transparency and enhanced com-
ket has a capitalisation of RON 15.7 billion,
stock market as a source of financing for the
munication.
the largest figure since the launch of this
www.business-review.eu Business Review | November May 2016 2021
COVER INTERVIEW STORY 33 14
market in February 2015. Since 2019, 21 new
reports. As for quantitative criteria, to list on
deposits exceeded RON 420 billion (EUR 85
companies went public on the AeRO market,
the AeRO market, a company must meet an
billion), a 14 percent year-on-year rise, one of
with a total market capitalisation of RON
anticipated market capitalisation of at least
the highest of the last decade.
1.74 billion. All these numbers demonstrate
EUR 250,000 and list at least 10 percent of
both individual investors’ growing interest
its shares (10 percent free-float) or have 30
have impacted the participation of local
in this market as well as the fact that it is an
shareholders.
investors in the stock market, rough numbers
excellent opportunity for Romanian entrepreneurs.
In terms of how these additional savings
show an increase of almost a third in the number of retail investors since the start of
currently available on the MTS for entre-
What kind of feedback have you received from companies listed on the AeRO market? Are any of them planning to go public on the main BVB exchange?
preneurs and investors. Through this new
We already have an example of such a move:
perspective, we will be better positioned
Bittnet, which was the first IT company to
in the region, Romania included, but there is
to support Romanian companies on their
list on the AeRO market, made this step in
significant room for improvement. We cur-
path to development through capital market
2020. Bittnet is a model to follow for many
rently have a large number of local projects,
mechanisms.
companies in Romania, it is a story of accel-
as we believe there is significant growth
erated growth on the stock market, a compa-
potential in Romania. Successfully finalis-
the first index for this market. 16 out of 20
ny that accessed all the development support
ing this project and developing the futures
companies that are currently part of this new
mechanisms offered by the stock market.
market for securities and energy as well as
The AeRO Growth Market will evolve to encompass all the financial instruments
We also recently launched BET AeRO,
index are companies that have gone
the pandemic. In June 2021, data pointed to a total of 70,000 individual investors with stock exchange accounts. Foreign investors are certainly very active
setting up clearing mechanisms
We are talking about capital
public over the last few years.
for the spot market are top
increases by capi-
priorities for us, and
talising
achieving these ob-
What are the main operational and cost factors entrepreneurs should take into account when looking to list their company on AeRO?
jectives would add a very important missing link to the Romanian capital market. We have also started to
First of all, they
introduce ESG
should fully under-
standards on the
stand what listing a
Romanian capital mar-
profits
company means and decide
ket and we’re seeing grow-
and cash contri-
whether they really want to
ing interest from companies to
butions from shareholders,
take this route. They need to understand that the capital market provides access
bond issues, stock option programmes for
implement these standards, as this topic is
to various financing mechanisms depending
team members, securing financing for the
gaining prominence in investment decisions
on their needs and their company’s stage of
acquisition of other companies, and the list
for both local and international investors.
development.
goes on. Recently, two additional AeRO-list-
Another very important issue we’ve ad-
ed companies – Life is Hard and Holde Agri
dressed is developing a broader analysis of
tion of a simpler, faster, and more efficient
Invest – have announced their intention to
local companies and we’ve managed to offer
listing procedure on BVB’s Multilateral
progress from the AeRO market to the main
investors a free tool in this regard through
Trading System, which includes the AeRO
market.
the BVB Research Hub, where analysts from
We recently announced the implementa-
both Romanian and international brokers are
market, starting with 2022. The new procedure is intended to further facilitate access to funding for entrepreneurial companies through capital market mechanisms.
What’s missing from the domestic capital market right now? I would like to phrase that as what can
publishing reports on companies that have not been previously covered. We believe that if we manage to success-
be improved on the capital market. Indeed,
fully implement our projects and deliver on
are more accessible than those on the Regu-
we would like to have more retail investors,
our promises, and if Romanian companies
lated Market. For example, companies on the
and the growth trend has already begun. The
keep delivering strong results, local and
AeRO market are subject to reporting annual
increase in savings during the pandemic was
foreign investors will take notice and their
and half-yearly results, while Regulated Mar-
a global trend, and it was visible in Romania
interest will grow even further in the coming
ket companies must also submit quarterly
too. At the end of 2020, non-government
years.
Listing requirements on the AeRO market
www.business-review.eu Business Review | November 2021
34 ENTREPRENEURSHIP
ESG thinking begins to permeate local startup ecosystem Environmental, social, and governance (ESG) factors are starting to become a crucial part of sustainable investing and the European Union has been providing companies with a related regulatory framework. The concept will apply to all companies located or doing business in the EU, and new startups could emerge as the competition for the highest ESG scores intensifies. By Ovidiu Posirca provides scores from 0 to 100, according to CB Insights.
SUSTAINABLE TRANSITION ACCELERATED BY THE PANDEMIC Ionut Tata, the CEO of Iceberg Plus, a startup consultancy, suggests that startups innovating by embedding green technologies or components into their core offer of products and services will likely find new investors, partners, client bases, and opportunities under this new framework. “Discussions about the widespread legal and financial repercussions, newly imposed standards, as well as sourcing funds and cost-effective ways to implement required changes are at the forefront of how entrepreneurs and funds relate to environmental and social responsibility standards,” Tata tells BR. “Additional resources may need be redirected to meeting the new requirements, some KPIs may have to be reconsidered or postponed until new provisions are set in place, while pricing and cashflows may suffer alteraMonitoring ESG performance should come easily and naturally for startups
I
tions. Entrepreneurs and investors in sectors such as energy, transportation or agriculture should be the wariest of these changes,” he adds.
n terms of environmental matters, a
Regulation (SFDR) became mandatory for as-
company can be assessed on its energy
set managers, venture capital funds, private
use and the way it handles waste and
banks, and other financial market players,
comes on the backdrop of the health crisis,
limits pollution. For the social component,
wrote Isabelle de Cremoux, CEO and manag-
which has highlighted many social and
what matters is the way in which a company
ing partner at VC firm Seventure Partners, in
health inequalities. The VC industry, which
engages with customers, employees, and
an article for sifted.eu.
backs startups, can play a part in tackling
other members of the community. On gover-
In short, ESG encourages companies of all
The focus on the sustainable transition
some of these challenges under the ESG framework.
nance, factors such as company leadership,
sizes to incorporate sustainability into their
internal auditing, and shareholders’ rights
operations. There are a number of different
are key.
scoring mechanisms currently being used on
point out that VCs have the chance to help
the market. For instance, MSCI ranks firms
companies integrate ESG factors during their
on a scale of CCC to AAA, while Refinitiv
formative years, embedding ESG perfor-
Last spring, ESG disclosure obligations under the EU Sustainable Finance Disclosure
Representatives of professional firm PwC
www.business-review.eu Business Review | November May 2016 2021
ENTREPRENEURSHIP COVER STORY 14 35
mance into the culture of the company as well as its operating principles as the business scales. Sustainability is gaining prominence in the purchasing decisions of younger generations. Companies’ efforts to become carbon neutral are also getting scrutinised. Matei Dumitrescu, senior partner at startup investment fund Roca X, says that having specific EU regulation might set the bar for everyone in matters of standards. This could harness the creation of a new breed of startups. “Startups require a different approach than a conventional company, so rather than adopting new policies, startups need to integrate them into their core from the very beginning. A startup will need enough room for maneuver in its early days, so an ESG framework will need to take this into account and not restrict or discourage any actions,” Dumitrescu tells BR. He adds that monitoring ESG performance should come easily and naturally, alongside all other normal reporting that goes on
to ESG could be beneficial for early-stage
port services for the implementation of the
between VCs and companies. In practice,
startups that seek financing or for older
legislation. The CEO of Iceberg Plus says
without clear guidelines, such reporting can
entrepreneurial firms planning to go public.
this will include companies gathering data
become a burden for most, discouraging
For instance, VCs invested some USD 60 bil-
and doing environmental, social, and risk
lion in climate tech
them from pursuing improvements
between
in this area.
2013
analysis, firms offering green transactions and statement services, companies ensuring green, high performance supply
SIGNIFICANT GROWTH IN CLIMATE TECH FUNDING
chains or suppliers of ESG monitoring and
Roca X has seen two
evaluation services, all
main approaches from
of which will find new
investors following
markets and client pools. “The challenge here,
the sustainability trend.
in my opinion, is being
There is a focus on startups and
that solve environmental
2019, of which
challenges, as well as one on in-
USD 7 billion in Europe,
vesting in businesses with social returns
able to detach from trying to superficially adapt current workflows, expectations, and concepts to the
according to a report by PwC. During this
new regulations. I think the process requires
period, the compounded annual growth
a fundamental restructuring of business
agement companies have had an easier time
rate (CAGR) in the total capital deployed in
processes and that, in all likelihood, it will
integrating new ESG policies into investment
climate tech stood at 84 percent.
deliver a stronger blow to rigid and robust
such as education or healthcare. “While classic funds and other asset man-
decisions in listed companies, the process for
There are 43 climate tech unicorn startups
organisations that are unwilling to imple-
VCs has been much more difficult. Appar-
with valuations topping USD 1 billion, of
ment such radical changes. One relevant
ently, although many VCs are claiming that
which 30 are in the mobility and transport
comparison here is with the initial COVID-19
their policies are in line with ESG principles,
sectors.
lockdown, where, across sectors, companies’
in reality very few manage to monitor ESG performance,” Dumitrescu explains. Nonetheless, a well-articulated approach
In the short term, the industry that will
capacity to embrace radical changes was the
be built around ESG policies will foster the
main predictor of their potential to either
development of companies that offer sup-
thrive or fail,” Tata concludes.
www.business-review.eu Business Review | November 2021
36 TOURISM
Discover Romania: Maramures Way A local NGO from the Maramures region has created an alternative map to help tourists discover the wonders of northern Romania. BR talked to Matei Tiboc, president of the Origini Maramures Association and initiator of the Maramures Way project. By Oana Vasiliu will not encounter people
legends, creativity in handicrafts, simplicity
dressed in folk costumes
in country life, joy in music, and more.
Photos courtesy of Maramures Way
in Baia Mare, for example, but that they will be able to
What is Maramures Way and how did you come up with the idea?
find great craft coffee there.
Do you see this project as complementary to other existing activities in the region?
The project aims to increase
This project also includes some well-known,
the amount of time people
short-distance mountain trails, and it also
spend in Maramures, by
aims to gather multiple tourist services in the
offering a diverse choice of
region: not only natural and cultural attrac-
activities and improving the
tions, but also craftspeople, experiences (like
quality of tourist services.
on Airbnb), accommodation, and restaurants. There are many other such routes in the
ties. It can be seen as the backbone of the
Can you present some of the experiences included in this programme?
Maramures region as well as a chance to make
We want to show
history. The route is designed to be completed
people that there
on foot or on a bike, and on it tourists will find
is a Maramures for
extraordinary landscapes, ancestral traditions
everyone, especially
and customs, adventures, relaxation, and all
for those who like
kinds of tourist attractions and beautiful peo-
taking walking trips
ple. But most of all, they will find themselves.
and have a desire to
On this fairy tale road, travellers will discover
dedicate more time to the area. We also target
world: Camino in Spain, Lycian Way in Tur-
stories, legends, characters, and places that
those who are passionate about traditions
key, Juliana Trail in Slovenia, Via Francigena
can enrich and heal the mind and the soul.
and folklore, nature lovers, creative people
in Italy, and many more. In Romania, the
We were inspired by Via Transilvanica and
or those who just want to take a break from
first route of this type was Via Transilvanica,
other similar routes from all over the world,
everything.
which took shape 2018, while Maramures Way
Maramures Way is a 700 km tourist circuit route that connects and develops communi-
such as El Camino de Santiago in Spain, but
Maramures Way offers all kinds of experi-
we adapted it to our region, which is unique
ences, from learning about a local family’s
in many ways.
household chores to pottery, horseback riding or even experiences that give you an adrena-
Why the need for such an initiative in one of the most well-advertised regions of Romania?
line boost, such as tandem paragliding.
It is a project that was born out of passion for
What types of travellers are you looking to engage?
one of the most special places on earth, Mara-
Maramures Way has something to offer to all
mures. We want to offer tourists more ac-
kinds of people, with all kinds of motivations.
curate information in order to create realistic
Tradition is, indeed, at the centre of life, but
expectations. They must be aware that they
there is also spirituality, nature, history and
followed in 2019.
www.business-review.eu Business Review | November 2021
ARTS 37
Don’t miss: The Modern Idol. Henry Moore in the Eastern Bloc Until 6 February 2022, the Romanian National Museum of Art (MNAR) and the Institute of the Present are hosting the exhibition titled The Modern Idol. Henry Moore in the Eastern Bloc, which presents a contextualisation of the Henry Moore tour of 1966-67, when the famous artist travelled to Bucharest, Bratislava, Prague, and Budapest. By Oana Vasiliu unofficial channels. “The discussions surrounding the exhibition did nonetheless offer evidence that the local artistic and cultural life was stimulated by Moore’s presence, in some cases shaping individual artistic careers or reinforcing ideas and tendencies already present within the cultural landscape of these Photos courtesy of MNAR
countries in the 1960s. Accordingly, Moore’s exhibitions constituted a shared tool for both British and local authorities in their own cultural diplomacy,” organisers add. Henry Moore’s touring exhibition represents an exceptional moment in the post-war Explore the art of Henry Moore
U
history of art in the Eastern Bloc. Revisiting such an event from a transnational point
ntil 6 February 2022, the Romanian
authorities in Romania, Czechoslovakia, and
of view can significantly contribute to the
National Museum of Art (MNAR)
Hungary, the exhibition featured works—
understanding of the intricacies of 1960s
and the Institute of the Present are
sculptures and drawings—spanning over five
cultural politics. At the time, MNAR bought
decades, from 1924 until 1964.
a sculpture by Henry Moore, which is still in
hosting the exhibition titled The Modern Idol. Henry Moore in the Eastern Bloc, which
The current research explores the stories
the museum’s collection.
presents a contextualisation of the Henry
of these shows in Bucharest, Bratislava,
Moore tour of 1966-67, when the famous art-
Prague, and Budapest, investigating their
lyst of the British sculptural renaissance that
ist travelled to Bucharest, Bratislava, Prague,
role in taming the political tensions and the
followed his rise to fame in his own lifetime.
and Budapest.
conflicting ideologies after 1960. “The exhibi-
Henry Moore is considered to be the cata-
In 1977, he founded the Henry Moore
“The Modern Idol. Henry Moore in the
tions were the result of a cultural exchange
Foundation, which still deals with the heri-
Eastern Bloc” is a collective research project
programme with the Eastern Bloc managed
tage. In August 1986, Henry Moore died in
initiated by art historians Alina Serban
by the British Council: in exchange for hosting
Perry Green at a moment seen as the pinnacle
(Bucharest), Daniel Véri (Budapest) and Lujza
Moore’s show, these countries had the chance
of his career. A few years before his death,
Kotočová (Prague) and it contains a series of
to organise similar events in the UK. The
he had become the best-selling living artist
interviews with witnesses of the exhibition in
timeline presented in the current exhibition
in auctions. Sales records were broken in
Romania, the Czech Republic, and Hungary:
explores such bilateral connections between
2012 when the 1951 piece “Reclining Figure:
art historians Ioana Vlasiu, Krisztina Passuth,
the UK and the three socialist countries.
Festival” sold for USD 19.1 million. He is the
Márta Kovalovszky, and Péter Kovács; paint-
Furthermore, it highlights events related to
second most expensive British artist, after
ers Constantin Flondor and László Gyémánt;
Moore that took place in the Eastern Bloc
Francis Bacon.
sculptors Grigorie Minea, Peter Jacobi, and
(Poland, Bulgaria) and Yugoslavia,” the organ-
György Jovánovics; and intermediate artist
isers note.
At the time of his death, Moore had created just over 1,000 sculptures, over 700
The reception of Moore’s work was differ-
graphics, and almost 5,500 drawings, leaving
historians Márta Kovalovszky & Péter Kovács.
ent in each of these countries due to the spe-
an incredible wealth of material to be remem-
At the time believed to be the artist’s largest
cific artistic and political conditions and the
bered. To a certain extent, Moore secured his
international retrospective, organised by the
varying degree of awareness towards Moore’s
own legacy with great acts of generosity, par-
British Council in collaboration with local
oeuvre, acquired earlier through official or
ticularly through gifts to public collections.
Adéla Matasová.Krisztina Passuth, and art
www.business-review.eu Business Review | November 2021
38 CITY
Cultural calendar Norma November 14, Bucharest National Opera
By Oana Vasiliu
The 31st edition of the National
Starring Laszlo Matray, Ilinca
Theatre Festival is going to take
Harnut, Zsolt Bogdan, Ada Cond-
place online, due to pandemic-
eescu, Cuzin Toma, Manuela
related restrictions. Critics Oana
Harabor.
Cristea Grigorescu, Cristina Rusiecki, and Claudiu Groza, this edition’s curators and artistic directors, announced the list of performances at FNT 2021. This year’s concept is “Cre-
Under the theme Dreamtigers,
ation. Recreation. Re-creation”
the event pays homage to Argen-
and it also subsumes FNT sec-
tine writer Jose Luis Borges and
From several points of view,
tions, which have 38 selected
also marks 100 years since the
“Norma” represents the typical
shows nationwide. Performative
birth of Astor Piazzolla with a
situation of the romantic opera
installations, visual installations,
programme of works by the com-
in its southern lyrical essence.
foreign productions, and related
poser. In Bucharest, the festival
Intensely melodic, with a pri-
events will all be part of the
is taking place at the Romanian
mordiality of vocality, “Norma”
festival.
Athenaeum, Sala Radio, the Auditorium Hall of the National Mu-
has anthological pages (among them especially Casta Diva) that fully justify the aura of legend
Obie Platon - CNNCT/ DSCNNCT (Connect/ Disconnect) Until November 28, Kulterra Gallery
UrbanEye Film Festival November 10-14, online
seum of Art (MNAR), Bragadiru Palace, Club Expirat, Guesthouse Club, and Fratelli Studios.
that surrounds it and Wagner's enthusiastic judgment: “I admire
The Obie Platon - CNNCTD-
Norma's melodic inspiration,
Night Patrol Film Premiere From November 19
united with a deep realism of the
SCNNCT exhibition, presented by Kulterra, includes a new
most intimate passions; a great
series of artworks that are no
score that addresses the heart, a
longer just about the present, but
creation of genius.” The audi-
also aimed towards the future,
ence will have the opportunity
towards the painstaking effort
to listen to the internationally
of untimely updating an entire
renowned soprano Elena Mosuc
society that is not yet ready for
in the title role, in a production
it. It’s more than obvious that
directed by Alice Barb.
National Theatre Festival November 6-14, online
evolution – as change – waits for For this edition of the festival,
no one to get ready. The series
UrbanEye 2021 brings films about
of images some sort of algorithm
seemingly utopian communities
will convince you to behold
that hide less pleasant secrets,
describes a phase of an ongo-
about exemplary revitalisations
Directed by Iosif Demian, “Night
ing process. It is the moment to
of declining areas, about the fight
Patrol” tells the story of sev-
decide what stays and what is
for truth and saving the past,
eral actors who find themselves
left in the past in terms of values,
about silent conflicts, but also
locked out of their dressing
structures, dogmas, ideologies,
about architects who marked the
rooms. They are forced to leave
and whatever else is necessary to
history of urban aesthetics.
the theatre wearing their stage
define the new era we are about
costumes. Without IDs, money,
to enter. Both at a rational and
car keys or mobile phones, their
an emotional level, this process
identities are fading. One by one,
of transformation pervades
across a dark and hostile city,
everything – from individual to
they start their journey home.
society.
SONORO Festival Until November 14, Bucharest, Brasov, Sibiu, Cluj-Napoca
