GET REAL: ROMANIAN PROPERTY MARKET NEGOTIATES BRAVE NEW WORLD
Photo: Dreamstime
December, 2018 / Volume 22, Issue 11
www.business-review.eu
6
ROMANIANS GET RICHER BUT URBAN/RURAL DIVIDE YAWNS WIDER
24
BLINK FOUNDERS RAISE USD 5 MILLION TO OVERTAKE BLOCKCHAIN
26
5G TECHNOLOGY SET TO COVER LOCAL INTERNET ‘WHITE ZONES’
38
TOP 100 FOREIGN COMPANIES IN ROMANIA IN 2017
www.business-review.eu Business Review | December 2018
EDITORIAL 3 REAL ESTATE
• Editorial •
Anda Sebesi
6 Get real: Romanian property market negotiates brave new world
• Deputy Editor-in-Chief •
10 Growing supply set to suppress rents in Q1 2019
COVER STORY
Let’s talk about performance: 100 at 100
A
lthough the business world is profit oriented, this is not the only way or even the best way to measure business
14 Top 100 foreign companies in Romania in 2017
performance. There are many other elements to consider
that may be even more important than profit.
MONEY
Profit and turnover are a short-sighted gauge of success. What is more important is sustainability. Sustainability is the characteristic of being able to exist indefinitely. This includes employees, availability of raw materials, machinery and other value-adding elements. In this issue, published as Romania prepares to mark its
24 Romanians get richer but
centenary, Business Review has chosen to publish the Top 100 for-
urban/rural divide yawns wider
eign companies in Romania ranked by turnover in 2017, based on
TECHNOLOGY
data provided by the National Trade Register Office (ONRC). They all represent a major driving force for the local economy, making things happen in Romania. And they confirm that only sustainable,
38 5G technology set to cover
long-term growth is valid in the current macroeconomic context.
local internet ‘white zones’
These are big players like Automobile Dacia, Carrefour, Voda-
40 AI poised to reshape our apps
fone, Arctic, BCR, Blue Air, Sanofi, NN Asigurari de Viata, Ursus
– and our societies
Breweries, household names which have survived what the local economy has thrown at them.
CITY
And we’re talking big numbers: the cumulated turnover posted by the top ten players in the 2017 ranking is about EUR 1.3 billion, while the companies making up the top 100 had a total turnover of EUR 67 billion. Who is driving the list? Cars, of course! The automotive industry (including auto parts) and production are the industries with the most representatives in the top 100, followed by oil & gas, retail, commerce, telecom, heavy industry, pharma, FMCG, energy, finance and transportation. All these sectors have played their part in shaping modern Romania. Here’s to these 100 firms and the next 100 years!
42 State of the art: MNAC showcases 60 years of local history
44 Not Bad: local artist Dan Mihaltianu featured in international Michael Jackson exhibition
46 Cultural calendar
FOUNDING EDITOR: Bill Avery EDITOR-IN-CHIEF: Ioana Erdei DEPUTY EDITORS-IN-CHIEF: Sorin Melenciuc, Anda Sebesi JOURNALISTS: Anca Alexe, Aurel Dragan, Georgeta Gheorghe, Romanita Oprea, Oana Vasiliu, Razvan Zamfir CONTRIBUTOR: Ovidiu Posirca COPY EDITOR: Debbie Stowe PHOTO EDITOR: Mihai Constantineanu ART DIRECTOR: Raluca Piscu PUBLISHER: Bloc-Notes Media Network ADDRESS: 58 Stirbei Voda Street, 3rd Floor, District 1, Bucharest, Romania LANDLINE: 031.040.09.31 EXECUTIVE DIRECTOR: George Moise BUSINESS DEVELOPMENT DIRECTOR: Oana Molodoi SALES MANAGERS: Radu Fireteanu, Alexandra Rosca EVENTS MANAGERS: George Darie, Mara Dragoiu EVENTS & MARKETING: Luiza Luca PRODUCTION: Dan Mitroi DISTRIBUTION: Eugen Musat EMAILS: editorial@business-review.eu, sales@business-review.eu, events@business-review.eu
Publicație auditată pe perioada Apr 2015 - Mar 2016
ISSN NO. 1453-729X
www.business-review.eu Business Review | December 2018
4 NEWS
WHO’S NEWS
said, quoted by Agerpres. The central bank official pointed out
BR welcomes information for Who’s News. Submissions may be edited for length and clarity. Get in touch at anca.alexe@business-review.ro
at the high levels of public debt. “My opinion is that if there is a recession in the global economy, it will not be of the magnitude of the 2007-2009 crisis, with the problems that we have. Public and private debt remain high, even increased in some countries,” Daianu commented. He warned
Christina-Theodora Ilie is the new chief operations officer at Policolor – Orgachim, where she will coordinate operations on both the Romanian and Bulgarian markets. She has more than 20 years’ experience in the field, working for multinationals in various departments including purchasing, logistics and customer service. Her objectives for 2019 are to implement new processes and management tools, to successfully move Policolor to a new factory in Bucharest, and to introduce new production technology in Bulgaria.
that a possible world crisis would automatically affect Romania.
Romania’s greatest vulnerability is the large budget deficit
Global economy to re-enter recession but not as bad as the financial crisis
page 5
will not turn into a recession of the magnitude of 2007-20082009. The evolution of the Romanian economy is linked to the evolution of European economies, to what is happening in the global space, because
By Sorin Melenciuc
we have an open economy, even if the financial markets
The global economy could
thing as a real recession. It can
in our country are thinner and
enter a new recession into the
turn into a real recession if you
our trade depends largely on
near future, but not as bad as
have a cocktail of circumstances
what happens in the European
the crisis of 2007-2009, Na-
like: major international cor-
economy,” Daianu said.
tional Bank of Romania (BNR)
rections, a nine-year economic
board member Daniel Daianu
recovery in the US – it’s a long re-
tion than other economies but
said in November.
covery in the history of economic
its greatest vulnerability is the
recoveries. These corrections are
large budget deficit, according
inevitable at some point,” Daianu
to the BNR official.
“This must be said: a techniAnca Petcu has been appointed chief transformation officer of BCR. The bank’s new unit will coordinate the strategy, project management and process and regulation departments, helping to define and implement all of the bank’s transformation initiatives and activities. A graduate of the Academy of Economic Studies and the London Business School, Petcu has been at BCR since 2013, and has 17 years of experience in financial services, banking and leasing. Before becoming CTO, she was the CEO of BCR’s corporate division.
“So there is this possibility of having a recession, but it
cal recession is not the same
Romania ranks 56th out of 63 countries in World Talent Ranking
Romania is in a better posi-
IMD World Competitiveness Center in its World Talent Ranking 2018, posting an advance of five positions, from 61st place last year. In this year’s report, Romania cane between the Philippines (55th) and Bulgaria (57th) but is considered less attractive to talents than most European countries, including Ukraine (48th) and Russia (46th). Roma-
By Sorin Melenciuc
nia ranks 54th out of 63 in terms
Romania came 56th out of 63
55th in terms of appeal (the
countries analyzed by the Swiss
extent to which a country taps
of investment and development,
Romania is considered less attractive to talents than most european countries
www.business-review.eu Business Review | December 2018
NEWS 5
Electronics and home appliances market to exceed EUR 2 billion in 2018 Dreamstime
By Aurel Dragan Romania’s electronics and home appliances market could exceed the EUR 2 billion (RON 9.5 billion) threshold this year, amid Romania’s appetite for Black Friday purchases and the Christmas shopping season, according to analysis by KeysFin. “The trade of electronics
Violeta Luca is the new general manager of Microsoft Romania, having been at the company since 2015, when she started out as head of strategy and moved on to marketing & operations director. A graduate of the Academy of Economic Studies in Bucharest, as well as several management courses, Luca, 38, has over 17 years experience in IT and retail. She has also worked at Whirlpool, Flanco, eMag and Metro Cash & Carry.
and home appliances is very well-centered around some major investors. Although there are over 600 companies
Romania’s electronics and home appliances market is expected to consolidate
at the national level in this sector, only a few of them are
of the market,” read the report.
tional (eMag), with a turnover
able to survive alongside the
The analysis, which took
of RON 3.31 billion, which rep-
big players, which explains
into account the evolution of
resents 39.7 percent of the total
why the number of companies
companies whose main activity
national business. Also among
dropped last year by 8 percent
is the retail trade of household
the top retailers are Altex
compared to 2016 and by 15
appliances and electronics in
Romania, with a business of
percent compared to 2013. We
specialized stores, shows that
RON 3.28 billion (39.4 percent),
expect the consolidation pro-
this market is highly concentrat-
Flanco Retail (RON 983 million,
cess to continue, with major
ed, with five companies account-
11.8 percent of the total), Euro
investments in retail networks,
ing for 93 percent of the total
GSM Impex (RON 113 million
in logistics and especially in
turnover at the national level.
lei, 1.4 percent) and Gorenje
the online segment, which will contribute to the coagulation
According to data for 2017, the market leader is Dante Interna-
Romania (RON 77.6 million, 0.9 percent).
Thomas Hofmann has been named chief marketing & digital officer at DONA pharmacies, where he will drive the company’s marketing strategy and coordinate the communication, branding and digital activities. Hofmann also led the independent pharmacy network Alphega in Germany for five years. He has over 25 years of experience in senior positions at major companies like Renault, Volkswagen, Intel and McDonald’s and international advertising agencies (BBDO, HAVAS).
into the overseas talent pool) and 52nd in terms of readiness (availability of skills and competencies in the talent pool). According to the authors of the report, data from low-ranking Eastern European economies highlight the overall trend that talent-competitive countries benefit from high levels of quality of life and availability of skilled labor. The IMD World Talent Ranking is based on countries’ performance in investment and development, appeal and Dreamstime
readiness.
Felix Craciunescu is PayPoint Romania’s new IT director. The department coordinates a wide variety of activities related to PayPoint’s operational and internal systems, its terminal network and transaction platform, the implementation of new solutions and payment schemes and ensuring project management. Craciunescu started out as a software developer, and in 2000 he joined Edenred Romania as a software engineer.
www.business-review.eu Business Review | December 2018
6 PROPERTY MARKET
Get real: Romanian property market negotiates brave new world Apartment prices in Bucharest peaked at EUR 2,058/sqm, in March 2008. In November, they were down to EUR 1,637/sqm. Over the same period, rents for offices tumbled from EUR 24.4 to EUR 18.5/sqm/month, while the retail and investment scenes have also endured their ups and downs over the last tumultuous decade. By Razvan Zamfir
Sky Tower’s development took five years due to the crises
HOME TRUTHS
one of the most pertinent barometers of
The past excesses of Romania’s residential
overall sentiment and to a certain extent, this
segment have long made the headlines. Back
remains the case today.
in 2007-2008, prices could jump by 5-10 per-
This is because the bulk of Romanians’
and Romanians went on a spending spree. Nowadays, despite the fact that more than 400,000 new apartments and houses were built between 2009 and 2017, household
cent from one month to another. The all-time
wealth is concentrated in their homes (in
real estate wealth remains nearly 40 percent
record annual growth in Bucharest was nearly
2008, over 90 percent of total wealth was in
below its pre-crisis record. This is because
60 percent (seen at the end of 2005 and 2007).
real estate and just 10 percent in financial
prices languish below the levels seen in the
At the same time, it was not uncommon
assets). As the value of properties (exclud-
crazy days of 2007- 2008 (down by around 40
for a single buyer (including individuals) to
ing land) owned by households more than
percent in Bucharest). The market seems to
purchase over 100 apartments in one go as
doubled between 2005 and 2008, to nearly
have matured to a certain extent as both indi-
“investments”. Residential properties were
EUR half a trillion, morale was riding high
vidual Romanians and developers have been
www.business-review.eu December Business Review | May 2016 2018
PROPERTY COVERMARKET STORY 147
through an economic cycle with an exception-
has since recovered to healthier levels, rents
ally steep downturn.
remain far lower than a decade ago. The scale
Another aspect worth pointing out is that while in 2007-2008, Romanian residential properties were seen as some of the most
increased by a staggering 4.6 fold. In those days tenants were lining up,
is also very different, as the total stock was
with lots of new names that have since
more than four times smaller back then.
become established players on the domestic
Alongside an improvement in tenant qual-
scene, like Peek & Cloppenburg, Deichmann,
overvalued in the EU, if not the most, Europe-
ity, this suggests the market should be better
Bershka, Takko, Hervis, New Yorker, and Zara
an Central Bank economic models now show
prepared to face a new economic correction.
Home. In 2007, since space was limited, many
that Romania is at the opposite end, with
Still, as developers (not just for office) are
of these new players had to take what they
properties actually significantly undervalued
very much re-active
could get and ended
(particularly if the price to income ratio is
rather than pro-active,
up opening their first
taken into account).
building activity has
store not in Bucharest,
intensified greatly in
as would have seemed
exclude a more challenging period for the
the last year amid very
customary, but in
market in the next couple of years as deliv-
favorable economic
towns like Cluj-Napoca,
eries are set to accelerate, while monetary
results in recent years.
Timisoara and Targu
As things look right now, we cannot
policy tightening and the upcoming demise of
Mures.
Meanwhile, other
But the scene would
the state guarantee scheme are likely to dent
cities, such as Cluj-
demand going forward.
Napoca, Timisoara, and
shift rapidly. Fast-for-
even Iasi and Brasov,
ward about a year and it
OFFICE MARKET RINGS THE CHANGES
have become tempting
had become very much
The Bucharest office market has changed
for developers.
significantly in the last decade, moving from a massively undersupplied market to relative equilibrium nowadays. The vacancy rate
Shop ‘til the drop: retail market waxes and wanes At the end of 2006, total modern retail
jumped from just a bit over 0 percent in 2007
stock stood at a very subdued 360,000 sqm
to upwards of 20 percent in the aftermath
nationwide. By the start of the recession
of the 2009-2010 recession, and though it
in Romania two years later, it would have
a tenants’ market. Retailers found that as the economy was cooling off in the second half of 2008, Romanian stores had fallen far short of their expected results, especially outside Bucharest. Developers probably had it worse, especially as banks pulled the plug aggres-
www.business-review.eu Business Review | December 2018
8 PROPERTY MARKET
sively during the second semester of 2008.
more liquid back then, with investment in
rhaging money, domestic banks stopped
Due to the surge in deliveries (especially in
excess of EUR 1.5 billion in 2007, and several
handing out funding in the second part of
2008-2009, projects started when everything
of the big global investors joining the frenzy.
2008 and activity froze.
seemed fine), the select retailers that were
Meanwhile, post-crisis highs barely approach
expanding could afford to be quite picky and
EUR 1 billion in good years (like 2017) and
ket to start thawing and, ironically, many of
some schemes ended up opening with just
were as low as EUR 200 million in 2011 and
today’s sellers are the buyers from back then,
half of the units actually trading.
2012.
often having taken big hits. 2007 probably
Meanwhile, a few developers that suffered
“Today’s market is a bit more challenging
It would take until 2014-2015 for the mar-
remains the historic peak in terms of market
both from a poor tenant mix/positioning and
than a decade ago and it seems noticeably
activity. Bucharest alone saw land deals worth
too much leverage would go bankrupt in the
more difficult to close a deal than in 2007,
over EUR 850 million in 2007 (probably well
post-crisis period, but insolvencies were not
as investors want
widespread.
to make sure they
A significant change compared to those
are not overpay-
years is the fact that Bucharest’s high street
ing. While this is a
retail scene (upwards of 70,000 sqm in 2008,
positive sign in that it
mostly in central locations) has become a pale
heralds a more stable
shadow of its former self, as local consumers
market over the long
have become much more accustomed to go-
run (including during
ing to shopping centers.
downturns), the lack of liquidity (par-
INVESTMENTS GO UP AND DOWN
ticularly compared
Even in Romania’s emerging economy,
to CEE peers) is still
prime office yields reached 6 percent (with
something of a draw-
the America House transaction below this
back in spite of the
benchmark).
recent improvements,” continues Pop.
“Indeed, with an office building in Bucharest selling for what is still the all-time low
over the EUR 1 billion mark for the whole
Banks put brake on land deals
country) compared to around EUR 230 million
In parts of Bucharest, land prices increased
last year (or EUR 350 million for the whole
of 5.5 percent in 2007, the local investment
more than tenfold in the years leading up
market was on a par with regional peers and
to the financial crisis. For instance, Col-
country). In certain areas, prices likely remain below
even ahead of some if we take into account
liers’ reports dating back to 2003-2004 note
half of their level in 2007-2008, while buyers
strictly this figure. How things have changed:
that prices in the Herastrau-Aviatiei area of
seem much more cautious. For instance,
nowadays, domestic prime office assets are
Bucharest were around EUR 200-400/sqm. In
when a plot was sold at auction, it wasn’t at
the only ones among the biggest CEE econo-
the first half of 2008, an investor paid around
all uncommon for the starting price to double;
mies (Poland, Hungary, Czech Republic) to
EUR 4,500/sqm in the same region; the all-
nowadays, despite the strong competition,
have yields consistently higher than pre-crisis
time record (and likely still unsurpassed) was
sellers may get some 10-20 percent more.
lows, for office assets,” said Silviu Pop, head
for a small plot in the Aviatorilor area which
of research at Colliers International.
sold for EUR 7,000/sqm.
More importantly, the market was much
As the global financial system was hemor-
Good, but not at all comparable with the past highs, which, say some analysts, will never return.
www.business-review.eu Business Review | December 2018
INTERVIEW 9
The building sector has the highest untapped potential regarding energy efficiency Marius Persinaru, country president for Romania and Republic of Moldova at Schneider Electric, tells Business Review about the company’s services for the energy efficiency of both buildings and electric vehicles.
ABOUT MARIUS PERSINARU Country President Romania and Republic of Moldova, Schneider Electric Marius Persinaru is Country President Romania and Republic of Moldova at Schneider Electric. He has a vast experience on the IT services market and has had an international career, managing several countries, before joining Schneider Electric in 2016.
By Anda Sebesi for medium and small buildings, designed to improve energy efficiency and comfort. HVAC is one of the top expenses in small and medium buildings, followed by lighting and metering, and these parameters can be easily monitored and managed. So, no matter if we talk about large or small buildings, there are convenient ways for energy consumption optimization.
Can you give us some details about The Edge, the building located in Amsterdam, which is the most sustainable building in the world? The Edge is one of our top success stories when it comes to EcoStruxure Building, as
Buildings are a big part of our everyday life:
What can you tell us about the management of both large and medium and small buildings when it comes to optimizing their energy consumption?
we spend almost 90 percent of our day inside
The building sector has the highest untapped
specifically, the Edge produces around 102
them, so they need to be as valuable as pos-
potential regarding energy efficiency: 82
percent of its energy. Basically, our system is
sible both for the companies which invest in
percent still free room for improvement is
the backbone of the building and the smart
this area and the end-users. Nowadays, fast
huge. Our EcoStruxure Building system archi-
sensors gather and analyse data to improve
urbanization makes the efficiency goal even
tecture can accommodate very large sites,
algorithms.
more challenging, as well as the fact that,
such as campuses and multisite real estate
unlike other industries, the efficiency of the
portfolios very conveniently – for example,
construction industry has made little progress
via mobile devices – with outstanding results.
over the last 70 years – according to McKinsey
It allows the data exchange from Schneider
How does Schneider Electric approach energy efficiency when it comes to electric cars?
Global Institute (Reinventing Construction:
Electric and any other management systems,
First of all, the world needs to focus on re-
A Route to Higher Productivity). Our digital
including HVAC, lighting, energy, security,
newable energies – wind and solar – in order
and interoperable architecture, EcoStruxure,
fire safety. The integration across systems is
to decarbonize the energy sector and, also,
which can deliver efficiency for our custom-
what makes the difference between a “tradi-
the second step will consist of electrifying the
ers, has 6 areas of expertise: Power, Building,
tional” and a smart building today.
end-uses of energy. We think that migration
What are the main services that Schneider Electric offers for the energy efficiency of buildings?
Machine, IT, Grid and Plant. EcoStruxure
Although we often come across the mis-
we managed to create a better than zeroenergy usage office building, integrating IoT, analytics, and connected products. More
towards an electric renewable-based system
Building is able to make a building more effi-
conception that automation is only for large
is the right approach and could significantly
cient by combining energy related assets into
buildings, things have been quite different
improve the efficiency of the energy system –
one IoT-enabled platform.
for some time. We have affordable solutions
by making it almost twice as efficient.
www.business-review.eu Business Review | December 2018
10 RESIDENTIAL
Growing supply set to suppress rents in Q1 2019 Despite the traditional spike across university centers with the arrival of autumn, rents remained, on the whole, at a fairly stable level in the third quarter of 2018. By Razvan Zamfir
The interior of a rented house with high quality design
2018, the average rent asked for a
A
Timisoara, Romania’s other two major univer-
The other cities where tenants can rent most
two-room (one-bedroom) apartment
sity centers, stayed at a constant level: a two-
affordably are Resita (where a two-room
categorized as comfort 1 (built between 1980
room apartment with a usable area between
home costs EUR 170 per month), Ramnicu
and 2000) in Cluj-Napoca rebounded to the
50 and 60 sqm remained at EUR 300 per
Valcea (also EUR 170 per month), Zalau (EUR
previous level of EUR 400 per month.
month from the previous quarter. In Brasov,
175), Sfantu Gheorghe (EUR 176), and Slobozia
on the other hand, landlords’ expectations for
(EUR 176).
fter the fall in the second quarter of
A bigger gain came in Bucharest, by far the
Over the same period, rents in Iasi and
most sought-after market in the rental sector,
a similar property increased slightly over the
where landlords marketing two-room apart-
period, from EUR 300 to EUR 310 per month.
ments increased their average asking price from EUR 350 to EUR 370 per month.
The lowest rents are still in Drobeta TurnuSeverin, where a two-room apartment can be
had for EUR 150 month, just like last quarter.
RENTAL PROPERTIES OUTNUMBER HOMES FOR SALE As in the first two quarters of the year, the
www.business-review.eu December Business Review | May 2016 2018
number of apartments and houses available for rent in the six major cities nationwide was significantly higher than the property available for sale; at 21,620 rental properties versus 16,540 homes for sale in the third quarter. The greatest supply of rental homes was naturally found in the biggest cities, standing at 9,900 ads (up from 9,020 in the previous three months). In Cluj-Napoca, the number of offers this type exceeds 4,000, and in Timisoara it approaches 3,000; in Iasi, Constanta and Brasov the supply is below the 2,000 threshold. In Q3, the total number of dwellings available to rent in big cities was up markedly compared to the previous quarter, with a gain of 25.6 percent. Several of the analyzed regional centers marked big growths: Cluj-Napoca (64 percent), Constanta (57.2 percent), and Iasi (43.2 percent). In Bucharest, on the other hand, the supply of rental properties was 11.2 percent higher than during the previous three months, 20 percent in Timisoara, and 8 percent in Brasov. As for fresh rental properties coming onto the market, data for the third quarter of 2018 reveal a more pronounced hike than the previous one. Against an overall increase of 33.6 percent, the most significant gains came in Cluj-Napoca (80.2 percent), Constanta (63.9 percent) and Iasi (56.6 percent). In Bucharest, on the other hand, 17.5 percent more homes came onto the market. Against the same period of 2017, the number of new rental ads was 23.4 percent higher in the third quarter of the current year. Broken down by city, Timisoara saw the greatest rise (47.9 percent) followed by Cluj-Napoca (32.6 percent), Brasov (29.6 percent), Iasi (20.6 percent), Bucharest (16.4 percent) and Constanta (11.1 percent). Given the growth of supply, players expect rents to be slightly down in the first quarter of next year, against weak demand.
Average rents for a two-room apartment in EUR/sqm City
Average rent (asking prices)
Cluj-Napoca 400 Bucharest 367 Brasov 310 Timisoara 300 Iasi 300 Sibiu 250 Tulcea 250 Targu Mures
250
Constanta 250 Ploiesti 250 Botosani 230 Craiova 222 Pitesti 220 Galati 220 Giurgiu 215 Source: imobiliare.ro
COVER RESIDENTIAL STORY 11 14
www.business-review.eu Business Review | December 2018
12 INTERVIEW
Veolia, a strategic investor in optimized resource management in Romania Madalin Mihailovici, CEO of Veolia Romania, talks about the company’s care for resources and the way it combines its local business actions with social responsibility activities, building on current topics. By Anda Sebesi What are the solutions implemented by Veolia Group to ensure a more efficient use of resources? The world must rethink its relationship with resources and come up with new social and economic growth models that are more efficient, better balanced and more sustainable. With 160 years of experience in the field of water, energy and waste, Veolia employs its capacity to innovate worldwide, in order to pursue progress and human wellbeing and to improve the economic performance of the regions where it operates. In order to make a transition from a resource-consumption rationale to a use-andrecover approach in today’s circular economy, Veolia designs and implements solutions meant to improve access to resources, while protecting and renewing the same resources. Internationally, under the brand slogan “Resourcing the World”, Veolia Group focuses on raising people’s awareness and responsibility when it comes to natural resources that are becoming increasingly scarce, as well as on reducing the environmental impact. Every year, the company collects and
What obstacles could stand in the way of this circular economy and integrated resource management? The main obstacle is the human mindset and
by banning the use of lightweight and very lightweight plastic bags, according to the EU legislation on waste (Directive (EU) 2015/720). However, it takes time for the directives to
sorts 250,000 tons of plastic which are then
behaviour. At legislative level, we have the
be translated into practice. People first need
recycled. This avoids 100,000 tons of CO2
“European strategy for plastics in a circular
information to understand why regulations
emissions per year (equivalent to the emis-
economy” adopted on January 16th, 2018,
such as that on bags provided in stores are
sions generated by 14,000 Europeans). All
proposing a change in the way plastic prod-
necessary. And with this information, they
these efforts are aligned to the Veolia Group’s
ucts are designed, manufactured, used and
must further adjust their consumption behav-
vision for the new plastic economy or circular
recycled in the EU.
iour accordingly.
economy, based on the latest technologies to
Based on this strategy, there are several
turn plastic waste into reusable raw materials.
directives in place, standardized and harmo-
mania also undertakes local measures to raise
With these innovative technologies, Veolia
nized between Member States, focusing on a
awareness among the wider public on the
more efficient use of resources.
environmental impact of our daily actions.
has set out to recycle twice as much plastic by 2025, at international level, i.e. 500,000 tons
In terms of social responsibility, Veolia Ro-
Member States must transpose these
vs. 250,000 tons now. Within this context, our
directives into domestic laws. Romania is also
local actions are meant to contribute to this
bound to do the same and, as of January 1st,
How does Veolia Romania convey this care for resources internally?
form of circular economy.
2019, it must reduce its plastic consumption
We always act to make sure that our values
www.business-review.eu Business Review | December 2018
INTERVIEW 13
are reflected in both theory and practice. We
a playful way, how oceans would look if we
that their polluting effect is long-lasting. I
thus encourage the members of our team to
continue at the current pace of irresponsible
strongly believe in what A. S. Exupery used
develop an eco-friendly spirit. For example,
plastic consumption. The diorama looks like
to say: “We do not inherit the earth from our
this year, Veolia Romania implemented an
a water tank that showcases the footprint
ancestors, we borrow it from our children!”
internal campaign called “the bag drawer”.
people leave on the environment.
And I am striving to instill this mindset in the business activities I coordinate.
It was meant as a way to attract and engage our employees in reducing plastic consump– “the bag drawer”, considering that Roma-
Why do you think it is important to educate the public on their impact on resources?
nians collect all sorts of plastic bags to reuse
Plastic consumption has increased alarmingly
What other actions relating to the optimized management of resources are you considering for the future?
them. Veolia employees were encouraged
over the past several years, significantly af-
Water quality and a functional sewerage
to donate some of the plastic bags for which
fecting the aquatic ecosystems. To reduce the
system are priority concerns for us. We aim to
they received a fabric bag and a plant. At the
negative impact, each of us can make small
constantly improve the quality of tap water
end of the first pilot phase of the campaign,
changes in our daily habits. Let’s take plastic
and the water that returns into the natural
over 70 kg of plastic bags were recycled.
bags. Reusing the bags or opting for a bag
circuit, following the wastewater treatment
made of fabric are options through which we
process. In 2019, the Veolia Group is aiming
What actions relating to efficient resource management are you developing externally?
can reduce the excess consumption of plastic.
to raise awareness of the disposal of banned
We wanted to take “the bag drawer” to the
Approximately 5,000 billion plastic residues
long-term commitment towards the envi-
next level and further enhance awareness on
float in the ocean while the livelihood of over
ronment. At group level, we are constantly
the negative effects of using plastic in excess.
3 billion people depends on water resources.
investing in research and innovation pro-
tion; this is how we arrived at the urban myth
To this end, from November 16th – December
Research shows that by 2050, the amount of waste in the oceans will exceed that of fish.
We are placing more emphasis on this mat-
waste in the sewerage system. In addition to specific actions, we have a
grams for our recycling processes and we are
16th, the Grigore Antipa National Museum
ter because it is important to understand that
actively involved in the work carried out by
of Natural History is hostsing an interactive
plastic, unlike other materials, goes through
large organizations such as the World Eco-
diorama developed by Veolia with the aim of
a lengthy degradation process that can take
nomic Forum and the World Business Council
explaining to the people, the wider public, in
from tens to hundreds of years, which means
for Sustainable Development.
14 COVER STORY
Dreamstime
www.business-review.eu Business Review | December 2018
www.business-review.eu Business Review | December 2018
COVER STORY 15
TOP 100 FOREIGN COMPANIES IN ROMANIA IN 2017 Automobile Dacia, Carrefour, Vodafone, Arctic, BCR, Blue Air, Sanofi, NN Asigurari de Viata, Ursus Breweries. What do all these brands have in common? They are some of the major companies operating on the Romanian market that have continued to thrive despite the challenges posed by the local economic environment. They are also among the top 100 foreign companies ranked by turnover in 2017, based on data provided by the National Trade Register Office (ONRC).
T
By Anda Sebesi
he cumulated turnover posted by the top ten players in the
ment. Experts warn that Romania’s economic picture is concealing
2017 ranking is RON 5.9 billion (EUR 1.3 billion)* while the
three major risks.
companies making up the top 100 had a total turnover of
Official data released in March show the national GDP recorded
RON 305.5 billion (EUR 67 billion). The automotive industry (includ-
growth of 6.9 percent in 2017 in real terms, the highest since 2008, to
ing auto parts) and production are the industries with the most
reach RON 858.3 billion (EUR 187.9 billion), from EUR 169.8 billion in
representatives in the top 100, followed by oil & gas, retail, com-
2016. Romania’s GDP last year was larger than Greece’s, estimated at
merce, telecom, heavy industry, pharma, FMCG, energy, finance and
EUR 177.7 billion, for the first time since the 1970s, and ranked 16th
transportation.
among the 28 EU member states.
About half of the names in the top 100 have their registered office
The impressive GDP growth of last year was mainly due to in-
in Bucharest (46), while Arges, Alba, Arad, Bihor, Brasov, Buzau,
creases in agricultural production, up 18.3 percent compared to 2016,
Cluj, Constanta, Dambovita, Dolj, Galati, Ialomita, Iasi, Ilfov, Mara-
the information and communications sector (10.9 percent), profes-
mures, Mures, Olt, Prahova, Salaj, Satu Mare, Sibiu, Suceava and
sional, scientific and technical activities (9.9 percent) and wholesale
Timis also host registered offices of top 100 firms.
and retail, repair of vehicles, transport, storage, hotels and restau-
Last but not least, the companies making up the top 100 employ
rants (8.2 percent). Construction was the only sector which declined
in total about 279,000 people, of whom 47 percent (about 131,000)
locally in 2017, falling by 0.6 percent compared to the previous year.
work for companies that have their registered office in Bucharest. In
“Economic growth has been broadly spread across sectors; only
such a context, it is obvious that the Romanian capital is a real pole
construction did not contribute positively. Services, especially trade,
that attracts a large number of employees, a fact also confirmed by
made the most important contribution. The impulse was given by
the latest stats from the National Institute of Statistics (INS).
the retail sector, but retail has also boosted upstream sectors, logis-
At the end of August 2018, the total number of employees in Bucharest reached 1,016,394, of whom 79 percent worked in the
tics and wholesale, for example,” Horia Braun, chief economist at BCR, told Business Review.
services sector (excluding armed forces and similar personnel), according to the INS. The average gross income in the city was RON 5,709, while the net figure was around RON 3,417 at the end of June.
… AND NOW Romania registered the fastest economic growth rate among
The National Commission for Strategy and Prognosis predicts a 4.4
the 28 European Union member states in the third quarter of this
percent growth in the number of employees in Bucharest for 2018,
year, compared with the previous quarter, of 1.9 percent, accord-
with the unemployment rate estimated at 1.4 percent. The average
ing to Eurostat, the EU’s statistical office. Romania’s gross domestic
net wage for 2018 is forecast at around RON 3,658.
product (GDP) jumped by 1.9 percent in the third quarter of this year compared with the second quarter, the fastest hike in a year, accord-
MACROECONOMICS IN 2017….
ing to an INS flash estimate released in November.
But in what macroeconomic context did the firms making up the top
In the EU, Romania was followed by Latvia (1.8 percent q/q in
100 foreign companies in Romania in 2017 develop? Romania’s gross
Q3 2018), Poland (1.7 percent) and Slovakia (1.1 percent). Compared
domestic product (GDP) grew by EUR 18 billion last year versus 2016,
with the third quarter of 2017, the Romanian economy grew by 4.3
an impressive result for the second poorest European Union member
percent in gross series, the fastest pace this year.
state. However, almost all the extra money was spent straight away
* sums are calculated at an annual average exchange rate of EUR 1 per RON
on consumer goods and services and little was invested in develop-
4.56, source: BNR
www.business-review.eu Business Review | December 2018
16 COVER STORY
Energy sector marked by offshore exploration and legislative change Oil & gas executives have been kept busy in 2018 with constant updates to Romania’s new legislation in the offshore sector that could shape investments worth billions of euros in the coming decades. The development of electrical mobility solutions is starting to catch the attention of utility firms, which have begun to steer investments into this type of infrastructure. Energy has a strong financial presence among the top 100 companies with foreign capital operating locally.
B
By Ovidiu Posirca
lack Sea gas discov-
100 firms in this category. Its
eries are set to help
average number of employees
Romania attain energy
exceeded 13,000. The company
sufficiency and reduce depen-
is jointly developing offshore
dency on imports close to zero.
exploration projects in the
Against this backdrop, Roma-
Neptun Deep block alongside
nian president Klaus Iohannis
American oil major ExxonMo-
signed into law the offshore
bil. These two companies have
draft bill following months
put around EUR 2 billion into
of heated debate in Parlia-
offshore Romania until now,
ment. The investment teams
according to Sorin Gal, presi-
of energy companies have also
dent of the National Agency for
put on hold major development
Mineral Resources (ANRM).
plans, as the first version of the
OMV Petrom’s offshore
law voted by MPs was rejected
Romania investments plans
by the president, who asked
are still unclear after the CEO
Parliament to re-examine the
of the company, Christina
draft bill.
Verchere, said that no decision
In short, the ruling coalition
on investments would be made
wanted to make sure that Ro-
this year, citing delays in the
mania gets as much gas for the
approval of the offshore law.
domestic market as possible,
“The decision to continue
alongside additional amounts
the Neptun Deep project is a
in taxes. Meanwhile, oil &
priority given its importance in
gas majors that have already
our business,” said Verchere in
invested close to EUR 3 billion in offshore exploration were looking for stable legislation and a tax
early November. The daily production of the Neptun Deep field, estimated by Exx-
structure that can become commercially viable once gas extraction
onMobil in its financial reports, is 17.8 million cubic meters, which
kicks off.
means 6.5 billion cubic meters per year, at maximum uninterrupted production, according to the Romanian Petroleum Exploration and
ENERGY COMPANIES AMONG LARGEST PLAYERS WITH FOREIGN CAPITAL IN ROMANIA
Production Companies Association (ROPEPCA).
The main energy companies looking for gas in the Black Sea are also
percent to RON 2.66 billion in the first nine months of 2018 versus
some of the largest firms with foreign capital operating in Romania.
the same period of last year. The average group realized crude price
Austrian OMV Petrom was the second biggest such company by turn-
rose 44 percent to USD 62.83 per barrel. Meanwhile, the company’s
over, with RON 14.7 billion (EUR 3.2 billion), according to data from
total hydrocarbon production fell by 5 percent to 43.9 million barrels
the National Trade Registry Office (ONRC), which provided the top
of oil equivalent (boe) in the first three quarters.
Rising oil prices saw OMV Petrom’s profits grow sharply by 44
www.business-review.eu Business Review | December 2018
Black Sea Oil & Gas is another player looking to gas in the area
COVER STORY 17 Electricity provider Tinmar Energy and CEZ Vanzare recorded
that is still pondering an investment as it considers the business
turnovers of RON 1.8 billion and RON 1.3 billion respectively. Among
implications of the new offshore law. Nonetheless, in November the
the largest utility players in Romania there is also Delgaz Grid, the
company is seeking to build the infrastructure to take the potential
supplier of natural gas, which registered a turnover of RON 1.4 bil-
gas resources onshore. It has signed a deal with Transgaz, the state-
lion.
owned operator of the gas transmission network, to book capacity.
The need for new investments in energy production capacities is
The contract covers 15 years with a first gas delivery date on Febru-
critical for the economy as old generators are put out of order. Com-
ary 1 2021 at a transmission capacity of 1 billion cubic meters yearly.
panies belonging to AmCham Romania said it takes up to five years
The second largest energy company by turnover was the refining
for an energy project to move from the planning to the generation
arm of KMG International, Rompetrol Rafinare. It recorded RON 11.1
stage. The association warned that private investments in the sector
billion (EUR 2.4 billion) in turnover and had an average of 1,061 em-
have practically ground to a halt in the past few years due to legal
ployees last year. The firm controls the Petromidia and Vega Ploiesti
provisions that hamper the financing of such projects.
refineries in Romania. For its refining operations in Petromidia, it said that production reached a historic high of 5.6 million tonnes of materials processed. The fuels division RompetromDownstream saw
WHAT THE NEW OFFSHORE LEGISLATION MEANS FOR COMPANIES
RON 8.8 billion (EUR 1.9 billion) in turnover last year.
An estimated 200 billion cubic meters (cbm) of gas could be un-
During the summer, negotiations for the sale of a 51 percent stake
earthed from the Black Sea and this figure is 50 percent sure, said
in KMG International to China Energy Company (CEFC) broke down.
the minister of energy, Anton Anton, this autumn. Considering that
Transaction talks had started at the end of 2016.
Romania’s annual consumption stands at around 11 to 12 billion
Meanwhile, Russian oil major Lukoil ranks tenth among the companies with the most foreign capital present in Romania. Last year, it recorded a turnover of RON 5.9 billion (EUR 1.29 billion) and close to 2,600 employees. The company has also tapped offshore Romania in search of gas, having invested around EUR 500 million in this process up to now, said Gal at the start of 2018. The Russian company is looking for gas in the Black Sea perimeter alongside Romanian stateowned gas producer Romgaz.
cbm, the minister added that the country should work to increase domestic consumption. “Why are we consuming so little? Because just one third of the population has access to natural gas,” said the minister in October. The new offshore law has some provisions that aim to secure jobs and natural gas production for the local economy. For instance, 50 percent of the offshore gas production has to be sold by companies on the Romanian energy stock exchange market.
ONRC data further show that Lukoil’s refining business netted
Furthermore, tax-resident Romanian citizens have to account for
RON 4.69 billion (EUR 1 billion) in turnover last year, employing 445
at least 25 percent of the average headcount of energy companies
people.
extracting gas from the Black Sea.
Another energy company in the top 100 is MOL Romania, which
The state will apply a progressive tax ranging from 30 to 70 per-
had a turnover of RON 5.46 billion (EUR 1.19 billion) and 228 em-
cent on the additional income recorded by companies from the sale
ployees. The main utility firms in Romania that are subsidiaries of
of offshore gas. The proceedings will be used by the government to
foreign players are also among the largest companies in the ranking.
extend the gas network and for investments in transport infrastruc-
French Engie, which provides gas and electricity, posted RON 5 billion in turnover, while Italian Enel is present in the top 100 with two subsidiaries selling electricity, which reported a combined turnover of RON 4.1 billion (EUR 899 million). Enel X, the advanced energy services arm of Enel, plans to install
ture. Companies will be able to deduct investments worth up to 30 percent of the additional income tax. The law has other provisions that aim to provide fiscal stability for companies extracting gas from the Black Sea. These provisions
2,500 electric charging stations across Romania in the next four
will come into force during the period in which the firms have rights
years and to spend up to EUR 15 to 20 million.
to drill for gas in certain perimeters.
www.business-review.eu Business Review | December 2018
18 COVER STORY
Automotive industry continues growth drive The two car manufacturers and suppliers of various vehicle parts employ close to 80,000 people in Romania and recorded a combined turnover of more than EUR 14 billion last year. This makes them some of the most influential players among the top 100 companies with foreign capital operating locally.
C
By Ovidiu Posirca
ar maker Automotive
tive field, German Bosch has
Dacia, controlled by
remained among the largest
France’s Renault, was
foreign players in the economy.
the largest foreign company
Bosch Automotive recorded
present in Romania last year,
a turnover of RON 1.7 billion
with a turnover of RON 23.1
(EUR 372 million) and over
billion (EUR 5 billion) and an
2,700 employees in 2017. This
average of 14,261 employees in
year, Bosch kicked off the con-
2017, according to data from the
struction of a new engineering
National Trade Registry Office
headquarters in Cluj-Napoca
(ONRC). Last year, the company
worth EUR 25 million. Car safety parts maker
made 313,883 cars, which was a 2 percent decline in output
Autoliv Romania, which has
versus 2016.
six plants in Romania, aims to reach almost 11,500 employ-
“The production dynamics
ees, according to company
from 2017 versus 2016 were
officials. Last year, the manu-
mainly due to the development of preparation stages for the manufacturing of the new Dacia Duster
facturer employed on average 9,758 people and recorded a turnover
model and the new versions of the Logan and Sandero models,” said
of RON 3.9 billion (EUR 855 million).
the Association of Car Makers in Romania (ACAROM). In the first eight months of 2018, Dacia manufactured 211,962
For all the companies in the automotive sector, the slow development pace of infrastructure remains one of the biggest challenges,
cars, up 4 percent year-on-year. Aside from the manufacturing
alongside soaring labor costs and a lack of skilled workers. Western
platform, Renault has an engineering center and a complex testing
Romania has remained the central ground for companies manufac-
facility for vehicles.
turing car plants due to more efficient routes for export. “The big
Elsewhere, American Ford, the second largest carmaker in Roma-
cities need to be connected to the western highway network. More
nia, has kicked off production of the new SUV EcoSport model. The
clever approaches are necessary in this field, like connecting Brasov
company is also making car engines in Craiova and remained the
to Sibiu instead of trying to go over the mountains,” said Continen-
largest employer in the county. In 2017, Ford had a turnover of RON
tal Automotive Romania CEO Christian von Albrichsfeld during the
4.8 billion (EUR 1 billion) and counted 3,201 employees on average,
Foreign Investors’ Summit organized by Business Review at the end
according to ONRC data. Over 61,000 people were employed last year
of October. Continental has 19,700 employees in Romania, and has
by car parts sup-
invested EUR
pliers working
1.4 billion in 10
with the two car
locations. Some
manufacturers.
5,700 people
With two
are engineers
manufactur-
working in R&D,
ing plants and a
and the rest are
research & devel-
active in the
opment center
manufacturing
in the automo-
field.
www.business-review.eu Business Review | December 2018
COVER STORY 19
Retailers bank on rural expansion Much of Romania’s economic expansion is the product of a consumer bonanza, stimulated by years of government policy promoting wage-led growth. By Anda Sebesi
O
fficial data show that
Metro extended its La Doi Pasi
household consumer
retail chain.
expenditure, the index
Last year, for the second
measuring what people spend
year in a row, Profi was leader
on goods and services to meet
when it came to national ex-
their needs and wants, rose 10.2
pansion, with about 200
in 2017 on the previous year.
new stores opening (all store
The Romanian consumer
formats but mainly Profi Loco).
market increased by more than
In addition, it is ranked first by
EUR 10 billion in 2017, to EUR
the number of stores, followed
114.5 billion, due mainly to
by Mega Image and Carrefour
higher wages paid by employ-
(which integrated the Billa
ers. The total wage bill rose
retail chain last year).
from EUR 57.7 billion in 2016 to a record level of EUR 67.7 billion in 2017, according to
As for 2018, Euler Hermes tips proximity and expansion in rural areas as two of the
Eurostat data. “We also had an increase in investment last year, but
main trends in the sector. Retailers are focusing on towns with pop-
only on the private investment side, coupled with an advance in
ulations of fewer than 15,000 citizens while adjusting their formats.
credit for investment purposes. There was a spike in activity on the
In addition, players that had focused on Bucharest, where modern
residential building side,” Horia Braun, chief economist at BCR, told
retail accounts for about 70 percent of the total market, have become
Business Review.
interested in other cities (for example Mega Image is interested
According to ONRC data, last year Kaufland, Carrefour, Lild
in Cluj-Napoca and Timisoara). According to the same source, the
Discount, Auchan, Mega Image, Profi Rom Food, Metro Cash&Carry,
expansion continued this year too, with Profi aiming to reach 1,000
Selgros Cash & Carry, Rewe and Artima posted a cumulated turn-
stores and Kaufland 10 new ones by the end of this year.
over of RON 50.99 billion (EUR 12.27 billion)* with the help of about
The affordable premium concept has gained ground in Romania,
74,000 workers (26.5 percent of the total number of employees of the
too. Retailers’ private labels – which now contribute over 10 percent
top 100 foreign companies ranked by turnover in 2017).
to discount stores’ business – still have room to grow, as they repre-
According to credit insurance company Euler Hermes, the value of the local modern retail market is estimated at EUR 17-20 billion.
sent one third of discounters’ total sales in Western countries. From the real estate perspective, real estate consultancy com-
The firm says that retailers’ territorial expansion – with over 350 new
pany CBRE says that 367,000 sqm is currently under construction
stores opened in 2017, the majority of them being in rural areas – was
on the local retail market, which will be delivered this year and in
one of the things that boosted the retail sector last year. According to
2019. At present the modern retail stock stands at 3.52 million sqm,
the same analysis, retailers banked on discount formats and proxim-
of which 59 percent is in shopping centers and 41 percent in retail
ity stores in 2017, focusing on getting close to their customers. For
parks. It comprises projects in cities like Bucharest, Constanta,
example, Mega
Cluj-Napoca, Iasi,
Image expanded
Timisoara, Oradea,
outside Bucharest,
Brasov, Ploiesti,
Carrefour extended
Suceava, Craiova
its Carrefour
and Pitesti.
Market concept,
* sums are calculated
Auchan imple-
at an annual average
mented its My
exchange rate of
Auchan stores in
EUR 1 per RON 4.56,
gas stations while
source: BNR
www.business-review.eu Business Review | December 2018
20 COVER STORY
Financial players push ahead on growth market Some of the biggest companies with foreign capital operating in Romania are found in the banking and insurance industries, posting higher financial results on the back of an expanding economy. By Ovidiu Posirca
I
Elsewhere, BRD, the lender
n 2017, the banking sector registered the biggest profit
controlled by French Groupe
since the financial crisis,
Societe Generale, recorded
around RON 427.8 billion (EUR
a turnover of RON 1.7 billion
1.2 billion), due to increased
(EUR 372 million) and reached
demand for loans. Lenders’
close to 7,000 employees,
assets also rose to a new high of
while Austrian Raiffeisen Bank
EUR 94 billion, while the return
had a turnover of RON 1.27
on equity (ROE) stood at 12.51
billion (EUR 278 million) and
percent. By June 2018, assets
5,219 employees in 2017, ac-
had expanded to RON 434.6
cording to ONRC data. One of the biggest changes
billion (EUR 93.6 billion), while the return of equity improved
to impact the banking sector
to 15.71 percent, according to
this year was the approval of
data from the National Bank of
new indebtedness limits on
Romania (BNR).
loans granted to individuals. The new raft of measures ap-
BANKS TO OPERATE UNDER NEW INDEBTEDNESS LIMITS FOR INDIVIDUALS
proved by the BNR will kick in in 2019.
Among the top 100 companies with foreign capital present in Ro-
INSURANCE GROWTH SECURED BY LIFE SEGMENT
mania are three banks ranked by their turnover from 2017. BCR, the
The insurance industry continued to grow in 2017. The amount of
lender controlled by Austrian Erste Bank, posted a turnover of RON
gross written premiums rose by 3.5 percent year-on-year to RON 9.7
2 billion and had on average 6,077 employees last year, according to
billion (EUR 2.12 billion), mainly due to the consolidation of the life
data provided by the National Trade Registry Office (ONRC).
insurance segment, according to the Financial Supervision Author-
This summer, BCR was overtaken in the ranking of the biggest banks in Romania by Banca Transilvania, which climbed to first place
ity (ASF). “While between 2012 and 2014 life insurance activity was falling
based on assets. While BCR’s assets reached RON 70.2 billion (EUR 15
from the perspective of gross written premium volumes, in 2015 it
billion) in the first semester of 2018, BT’s assets came to RON 75.3 bil-
resumed growth and in 2017 the growth was due to the life insur-
lion (EUR 16.1 billion) following the acquisition of Bancpost. BT also
ance segment,” said the ASF. The market was dominated by the gen-
fared better than BCR in terms of profits, with RON 865 million (EUR
eral insurance segment with RON 7.6 billion (EUR 1.6 billion) in gross
185.6 million) versus RON 697 million (EUR 149.5 million).
written premiums, while the rest went to the life segment last year.
TOP 5 FINANCIAL COMPANIES IN 2017 Position Company
Sector
Turnover (RON/bln)
1
BCR
Other activities of monetary intermediation
2
2
BRD – Groupe Societe Generale
Other activities of monetary intermediation
1.7
3.
Allianz – Tiriac Asigurari
Other insurance activities (except life insurance)
1.4
4.
Groupama Asigurari
Other insurance activities (except life insurance)
1.4
5.
Raiffeisen Bank
Other activities of monetary intermediation
1.27
Source: ONRC
www.business-review.eu Business Review | December 2018
COVER STORY 21
TOP 100 FOREIGN COMPANIES ACTIVE IN ROMANIA RANKED BY TURNOVER IN 2017 Rank
Company
Sector
Turnover (RON)
Average number of employees
1
Automobile Dacia SA
Car manufacturing
23,143,498,839
14,261
2
OMV Petrom SA
Extraction of crude oil
14,764,836,448
13,322
3
Rompetrol Rafinare SA
Manufacturing of
petroleum products 11,192,755,314 1,061 4
Kaufland Romania SCS
Retail
5
Rompetrol Downstream SRL
Wholesale of fuels for motor
10,086,636,311
13,519
vehicles in specialized stores
8,873,204,128
561
6
British American Tobacco
Romania Trading SRL
Wholesale of tobacco products
8,870,586,009
679
7
Star Assembly SRL
Manufacturing of car parts
7,328,061,605
1,811
8
Carrefour Romania SA
Retail
6,748,911,268
9,939
9
Lidl Discount SRL
Retail
6,510,008,485
4,815
10
Lukoil Romania SRL
Wholesale of fuels for motor 5,922,290,967
2,599
11
vehicles in specialized stores
Mol Romania Petroleum Products SRL Wholesale of fuels for motor
vehicles in specialized stores
5,469,740,835
228
12
Orange Romania SA
Telecommunications
5,364,891,173
2,361
13
Auchan Romania SA
Retail
5,223,286,301
9,290
14
Engie Romania SA
Commercialization of gas
fuels through pipelines 5,069,546,912 618 15
Mega Image SRL
Retail
4,910,452,187
9,313
16
Ford Romania SA
Car manufacturing
4,824,809,466
3,201
17
Profi Rom Food SRL
Retail
4,730,021,461
11,662
18
Metro Cash&Carry Romania SRL
Retail
4,729,779,600
3,908
19
Petrotel Lukoil SA
Manufacturing of crude oil products
4,697,167,886
445
20
Arcelormittal Galati SA
4,661,907,896
5,682
Manufacturing of ferrous metals
in primary forms and ferro-alloys
21
Wholesale trade of electronic
Samsung Electronics Romania SRL
components and telecommunications 4,227,369,794
190
22
Autoliv Romania SRL
Manufacturing of car parts
3,921,743,766
9,758
23
Mediplus Exim SRL
Wholesale of pharmaceuticals
3,888,023,746
1,002
24
Vodafone Romania SA
Telecommunications
3,653,902,366
2,508
25
Selgros Cash&Carry SRL
Retail
3,645,073,094
4,341
26
RCS & RDS SA
Telecommunication activities
via cable networks 3,339,403,562 11,703 27
Dante International SA
Wholesale trade of articles
and household appliances in specialized stores 3,309,942,013 1,990 28
Continental Automotive Products SRL Manufacturing of tires and chambers;
rebuilding and restoring tires 3,130,805,436 2,423 29
Renault Commercial Roumanie SRL
Trade of cars and light vehicles
3,067,956,220
171
30
Rewe (Romania) SRL
Retail
2,996,698,015
4,190
31
Ameropa Grains SA
Wholesale trade of grain, seed,
forage and unprocessed tobacco
2,961,385,659
0
32
Farmexpert DCI SRL
Wholesale of pharmaceuticals
2,954,723,113
959
33
Porsche Romania SRL
Trade of cars and light vehicles
2,904,687,484
144
Source: National Trade Register Office (ONRC)
www.business-review.eu Business Review | December 2018
22 COVER STORY
TOP 100 FOREIGN COMPANIES ACTIVE IN ROMANIA RANKED BY TURNOVER IN 2017 Rank
Company
Sector
34
ADM Romania Trading SRL
Wholesale trade of grain, seed,
Turnover (RON)
Average number of employees
forage and unprocessed tobacco
2,901,474,202
67
35
Hella Romania SRL
Manufacturing of car parts
2,735,581,988
3,684
36
Cofco International Romania SRL
Wholesale trade of grain, seed, 2,598,601,895
67
forage and unprocessed tobacco
37
Manufacturing of tires and chambers;
Michelin Romania SA
rebuilding and restoring tires 2,564,597,480 3,282 38
Alro SA
Aluminum metallurgy
2,480,775,721
2,501
39
Philip Morris Trading SRL
Wholesale of tobacco products
2,378,469,259
233
40
Robert Bosch SRL
Manufacturing of car parts
2,285,588,976
2,491
41
Cargill Agricultura SRL
Wholesale trade of grain, seed, 2,284,158,302
159
forage and unprocessed tobacco
42
Manufacturing of tires and chambers;
Pirelli Tyres Romania SRL
rebuilding and restoring tires 2,255,260,255 3,053 43
Coca-Cola HBC Romania SRL
Manufacturing of non-alcoholic
beverages, mineral and other bottled waters 2,218,998,534 1,476 44
Arctic SA
Manufacturing of home appliances
2,217,159,118
2,822
45
Enel Energie Muntenia SA
Electricity trading
2,134,172,210
223
46
Mercedes Benz Romania SRL
Trade of cars and light vehicles
2,078,419,089
239
47
Delphi Diesel Systems Romania SRL
Manufacturing of car parts
2,075,725,930
2,011
48
Oscar Downstream SRL
Wholesale of solid, liquid and gaseous
fuels and derived products 2,048,715,688 424 49
Banca Comerciala Romana SA
Banking & finance
2,043,746,336
6,077
50
Enel Energie SA
Electricity trading
2,008,643,340
220
51
Schaeffler Romania SRL
Manufacturing of car parts
1,981,310,236
4,366
52
Farmexim SA
Wholesale of pharmaceuticals
1,965,596,477
794
53
Blue Air Aviation SA
Passenger air transport
1,919,817,947
1,240
54
Tinmar Energy SA
Electricity trading
1,813,979,308
57
55
Silcotub SA
Manufacturing of steel tubes, pipes,
hollow profiles and fittings
1,785,980,667
1,723
56
Romania Hypermarche SA
Retail
1,772,976,330
3,951
57
Bosch Automotive SRL
Manufacturing of car parts
1,772,494,278
2,718
58
Holzindustrie Schweighofer SRL
Wood processing
1,769,381,279
1,945
59
Glencore Agriculture Romania SRL
Wholesale trade of grain, seed,
forage and unprocessed tobacco 1,745,092,057 53 60
BRD Groupe Societe Generale
Banking and finance
1,734,966,558
6,930
61
Bunge Romania SRL
Manufacturing of oils and greases
1,726,232,067
313
62
Ursus Breweries SA
Manufacturing of brewing beer
63
Coficab Eastern Europe SRL
Manufacturing of other electric
and electronic wires and cables
64
Manufacturing of veneers
Egger Romania SRL
1,705,841,267
1,651,014,446
419
and wood panels 1,536,948,231 730 65
Marquardt Schaltsysteme
Manufacturing of other electric
equipment 1,520,950,512 2,874 66
Yazaki Romania SRL
Source: National Trade Register Office (ONRC)
Manufacturing of car parts
1,497,007,378
10,052
1,443
www.business-review.eu Business Review | December 2018
COVER STORY 23
TOP 100 FOREIGN COMPANIES ACTIVE IN ROMANIA RANKED BY TURNOVER IN 2017 Rank
Company
Sector
67
Delgaz Grid SA
Distribution of gaseous fuels
Turnover (RON)
Average number of employees
through pipelines 1,487,774,196 3,946 68
Procter and Gamble Distribution SRL
Wholesale of other
household goods 1,469,749,224 46 69 Artima SA Retail 1,453,119,130 2,986 70
Allianz Tiriac Asigurari SA
Insurance
71
Azomures SA
Manufacturing of nitrate
1,448,189,040
1,331
and nitrite products 1,447,333,215 1,252 72
Aptiv Technology Services & Solutions SRL Manufacturing of car parts
1,427,653,123
4,909
73
Groupama Asigurari SA
74
Lear Corporation Romania SRL
Insurance
1,412,297,695
1,503
Manufacturing of car parts
1,376,246,816
75
6,232
CEZ Vanzare SA
Energy trading
1,351,980,176
76
55
Huawei Technologies SRL
Wholesale trade of electronic
components and telecommunications 1,347,363,735 1,352 77
TRW Automotive Safety Systems SRL
Manufacturing of car parts
1,304,908,521
2,974
78
Raiffeisen Bank SA
Banking and finance
1,270,361,109
5,219
79
Autonet Import SRL
Wholesale of parts and accessories
for motor vehicles 1,268,948,301 1,344 80
Columbus Operational SRL
Retail
1,257,024,008
2,987
81
Adient Automotive Romania SRL
Manufacturing of car parts
1,253,325,316
4,546
82
Tiriac Auto SRL
Trade of cars and light vehicles
1,245,262,139
985
83
Heineken Romania SA
Manufacturing of brewing beer
1,160,229,860
1,157
84
Celestica (Romania) SRL
Manufacturing of computers
and peripheral equipment 1,149,043,844 1,240 85
Smithfield Prod SRL
Meat processing
1,139,904,838
1,081
86
Omniasig VIG SA
Insurance
1,134,400,962
1,167
87
Expur SA
Manufacturing of oils and greases
1,132,742,748
443
88
Porsche Inter Auto Romania SRL
Trade of cars and light vehicles
1,113,890,284
474
89
Sanofi Romania SRL
Wholesale of pharmaceuticals
1,101,172,456
170
90
JT International Romania SRL
Wholesale of tobacco products
1,086,551,930
686
91
Eaton Electro Productie SRL
Manufacturing of electricity
distribution and control equipment 1,077,701,832 2,162 92
Cameron Romania SRL
Manufacturing of extractive
and construction equipment
93
Manufacturing of steel tubes,
TMK Artrom SA
94
pipes, hollow profiles and fittings
1, 069,839,527
1,112
1,065,470,332
1,324
Euroins Romania
Asigurare Reasigurare SA Insurance 1,055,400,781 603 95
Holcim Romania SA
Manufacturing of cement
1,051,272,937
755
96
Webasto Romania SRL
Manufacturing of car parts
1,049,131,163
1,167
97
Toyota Romania SRL
Trade of cars and light vehicles
1,032,633,778
59
98
Oracle Romania SRL
Software development
1,029,332,399
4,142
99
NN Asigurari de Viata SA
Life insurance
992,602,805
405
100
Daewoo Mangalia Heavy Industries SA Shipbuilding and floating structures
988,608,575
1,988
Source: National Trade Register Office (ONRC)
www.business-review.eu Business Review | December 2018
24 MONEY
Romanians get richer but urban/rural divide yawns wider Romanians have accumulated a lot of wealth during the past two decades as economic growth, investment and EU funds have spurred wage increases and welfare across the country, but the income gap between major cities and rural areas is now larger than ever. Experts say that the future wealth of the nation depends on the development of the large cities. By Sorin Melenciuc
W
Dreamstime
ealth has been associated with cities since the dawn of human civilization. The wealthy citizens
of ancient Mesopotamia or Egypt dwelt in the metropolises of that time – and wealth accumulation allowed powerful leaders from the past to build architectural marvels, or sponsor art and literature. But behind these affluent leaders, millions of poor people worked hard to provide their daily bread – and this was the norm for most of our history. Two centuries ago, industrialization changed everything in Europe and in other parts of the world, and a major effect of the industrial age was large-scale and fast urbanization. In the 17th century, most people in Europe
Romanians are maybe for the first time in history wealthier than almost all neighboring nations
were still living in villages and were dependent on crops – and the weather – for their
although another part, largely rural, has re-
(or USD 42,282 per adult) in 2018 based on
food and livelihoods.
mained cut off from this economic revolution.
national household balance sheets (HBS) or
Now, most people live in big cities and
household surveys.
depend largely on their education and job
GETTING RICH QUICK
market trends to live better or worse.
Although its rural areas lag behind, Roma-
correlated variables, Romania’s total wealth is
nians are now, maybe for the first time in
considered much smaller – of USD 317 billion
the 19th century and experienced only a par-
history, wealthier than almost all neighboring
(or USD 20,321 per adult).
tial industrial revolution during the 20th cen-
nations, according to a recent Credit Suisse
tury. The consequence is that its urbanization
report.
Romania missed the industrialization of
is incomplete as almost half of the population
But by “regression estimates” using likely
There are huge differences between Romanians’ affluence, according to the study. Some
In 2018, the wealth per adult in Romania is
62 percent of Romanian adults hold less than
estimated at USD 42,282, compared with USD
USD 10,000 in assets (financial or non-finan-
41,118 in Hungary, USD 30,224 in Bulgaria,
cial), while 35.4 percent own between USD
history to be a step towards a new type of
USD 19,582 in Serbia, USD 5,204 in Ukraine
10,000 and USD 100,000, and only 2.5 percent
economy – a third wave based on information
and USD 3,837 in Moldova, Credit Suisse’s
between USD 100,000 and USD 1 million.
and digital activities.
Global Wealth 2018 report indicates.
still live in rural areas. But industrialization proved throughout
Romania entered this third wave much
However, Romanians remain much poorer
Just 0.1 percent of Romanians are wealthy enough to own assets of more than USD 1 mil-
sooner than it entered the second wave, as
than their Western European counterparts
it benefited from its young, technically edu-
like the Britons (USD 314,842 per adult),
cated urbanites.
French (USD 281,339), and Germans (USD
over the last two decades, but started out
250,856). Credit Suisse analysts say Romanian
from a very low base.
The result was a rapid connection of part of Romania to the latest technological trends,
adults have a total wealth of USD 659 billion
lion, according to Credit Suisse. Romania has posted breakneck growth
In 2000, Romania had wealth per adult
www.business-review.eu Business Review | December 2018
MONEY 25
of only USD 3,300, much lower than that of
for filling the secondary city gap, so they are
Bank indicates that human capital accounts
Hungary (USD 11,882) or even Georgia (USD
likely to be very attractive places for migrants
for 50.5 percent of Romania’s total wealth,
4,494), as widespread poverty and corruption
in the future. Whether these two cities man-
being much more important than natural or
were the norm.
age to keep their leadership position also
produced capital.
The same study indicates that Romania
depends on how well they are managed, not
has 19,000 inhabitants belonging to the 1 per-
only on pure market dynamics,” World Bank
of USD 107,022 per inhabitant in 2014, the
cent of wealthiest people in the world.
experts say.
second-lowest among the 28 European Union
Romania has 16,000 millionaires, 443,000
According to economists, development
The study found Romania had total wealth
member states, after Bulgaria (USD 81,878).
individuals belonging to the world’s 10 per-
spills over from the most dynamic cities to
Out of the total wealth in Romania, human
cent of richest people in the world and 19,000
the surrounding areas, and this is a key dy-
capital accounted for USD 54,014 per inhabit-
among the richest 1 percent of people on the
namic of the development process.
ant (50.5 percent), while produced capital
planet.
“Without strong cities, one cannot have
stood at USD 41,163 (38.5 percent) and natural
strong regions or a strong national economy,”
capital, USD 17,265. Net foreign assets have a
World Bank experts argue.
negative contribution, of -USD 5,420/inhabit-
BIG CITIES POWER WEALTH Many experts associate wealth with the economic health of big cities – and this correlation gives Romania a lot of opportunities in the future. According to the World Bank, Romania’s growth rate between 1992 and 2016 was 1 percentage point higher than the average for upper middle-income countries and more than three times the rate of the EU and developed countries. And compared with the rest of the world, the result was notable. “Most impressively, Romania managed
Studies show that the eight largest cities
to catch up with the economies of Brazil and
in Romania – Bucharest, Cluj, Timisoara, Iasi,
Mexico, which in 1992 had a GNI per capita
Constanta, Brasov, Craiova and Ploiesti – are
countries are based on wage regressions used
that was 3 respectively 4 times as high as
home to around 22 percent of the population
to compute expected earnings for individu-
that of Romania,” stated the Magnet Cities:
and generate around 53 percent of the coun-
als over their lifetimes by gender, age, and
Migration and Commuting in Romania report
try’s gross domestic product (GDP).
education level.
recently released by the World Bank.
“When looking at the larger area of
ant. Estimates of the human capital wealth of
The natural capital of Romania is com-
influence of the eight growth poles (in this
posed of forests (USD 1,950/inhabitant),
during the last two decades, Romania still
case, the one-hour driving areas around the
protected areas (USD 3,248), cropland (USD
lags behind its main economic rivals in the
growth poles), the strength of these urban
5,459), pastureland (USD 5,070) and subsoil
region.
centers becomes even more evident. Thus,
assets (USD 1,899), World Bank’s experts say.
But despite its strong economic growth
“Currently, Romania has a 7-10 year devel-
the areas in the map below, amass around 50
According to the study, wealthy nations
opment lag over other Central and Eastern
percent of Romania’s population and generate
are not necessarily those with huge natural
European countries like Poland, Slovakia,
around 75 percent of firm revenues in Roma-
resources, but those with high human capital.
Hungary, or the Czech Republic and a 35-year
nia,” the study found.
development lag over OECD counties,” the report says. According to experts, Romania will not be able to bridge this gap without strong and
Experts point out that these are some of Romania’s main economic growth engines,
inhabitant), is among the richest in the world
and Romania is in this respect no different
– with total wealth of USD 1.466 million/in-
from all the other EU countries.
habitant – due to its very high human capital
competitive cities. “All things being equal, it is likely that Bu-
In Europe, a country with half the natural capital of Romania, Switzerland (USD 8,531/
(USD 1.022 million/inhabitant).
HUMAN CAPITAL
Romania is globally considered an upper-
charest will remain the most attractive place
World Bank experts also point to a different
middle-income country, having a similar level
for migrants in the future. (…) Cluj-Napoca
perspective on wealth. The Changing Wealth
of total wealth to China (USD 108,172/inhabit-
and Timisoara are likely to be the runners-up
of Nations 2018 study published by the World
ant) or Mexico (USD 110,471).
www.business-review.eu Business Review | December 2018
26 ENTREPRENEURS
Eye on the ball: Blink founders raise USD 5 million to overtake blockchain Andrei Grigorean and Mihai Ciucu, the two founders of Blink. network, convinced Polychain Capital and Polkadot Ventures along with smaller investors from America and Europe to pledge USD 5 million to help them develop an alternative to blockchain. Their prototype is being developed under a protocol called Blink, using DAG-chain structure. BR talked to the two young entrepreneurs and found out how they managed to raise the money and what’s next for their prototype. By Ioana Erdei
ABOUT MIHAI CIUCU CEO & CO-FOUNDER Mihai is the CEO/co-founder of Blink and the creator of the protocol. Prior to Blink and CS Academy, Mihai worked as a software engineer at Full Tilt Poker. In 2009 he build the world’s best Texas Hold’em Poker AI. Mihai is leading Blink’s development efforts. ANDREI GRIGOREAN COO & CO-FOUNDER Andrei is the COO/co-founder of Blink. A Forbes Romania 30 under 30 winner and ex-Googler, Andrei also has a vast experience with algorithms and data structures. He is an International Olympiad in Informatics silver medalist.
supports three transactions per second on average across the world – even Mega Image probably has more than that in Bucharest! The second problem with blockchain is the confirmation time – if you’ve made a transaction, how long do you have to wait to make sure it’s confirmed by the system and accepted by all the computers in the network?
So what is new with your technology? How is it better than blockchain? Our prototype supports 20,000 transactions Photo: Mihai Constantineanu
per second and the time it takes for the first confirmation – which for bitcoin is 10 minutes and it’s actually recommended that you wait about an hour for the final confirmation – is under one second and we believe final confirmation usually comes after 20-30 seconds. So, From left to right: Andrei Grigorean and Mihai Ciucu, Blink.network
in short, we solve the same problem, but our performance is much better.
What do you do?
difficulty is in addressing all the challenges
What’s it called?
We solve a problem. We’ve found an extreme-
resulting from the decentralized nature of the
The protocol is called Blink, the same as the
ly scalable solution to a general problem – dis-
network because there’s no one to coordi-
company name, and the structure we use
tributed ledger technologies (DLT), a general
nate the network activity. You have said it’s
instead of blockchain is called DAG-chain.
theoretical problem that needs to be solved.
a better alternative to blockchain. Block-
It’s basically a database which exists in a peer-
chain is simply one solution – it was the first
So it can be used in any industry?
to-peer computer network that essentially
functional solution to the theoretical problem
Yes, but for most industries even our 7,000x
anyone can access. Every node (computer)
of implementing a DLT. Blockchain as it is
performance compared to blockchain is still
holds a complete copy of that database. The
used with bitcoin is very limited. Bitcoin only
not enough.
www.business-review.eu Business Review | December 2018
ENTREPRENEURS 27
Which industries could optimally adopt your technologies right now?
Not really. Most of the other cryptocurren-
recommendations – I can’t say any more than
cies are nothing more than other versions of
that they came from very well-known and
This is a question everyone is asking in the
blockchain. Blockchain itself has some theo-
competent people in the crypto world (not
crypto world. We’re also trying to find com-
retical limitations. The goal is to solve the DLT
Romanians). We sent them e-mails and they
mercial partners who might need our technol-
problem – blockchain is a solution and many
looked at our whitepaper and thought we had
ogy. We’re caught between two extremes – on
companies focus on optimizing that solution,
a good idea. That’s how we found success.
the one hand, there are processes that need
and growing blockchain’s performances. But
much less than we offer, and on the other
we found a completely different solution and
know that in order to be successful, you can’t
hand there are others that need a much better
no matter how much those other companies
go through the front door. That doesn’t mean
performance than we can offer. For example,
try to optimize blockchain, they’ll never be
you need to have connections – in Roma-
Google Search needs a much better perfor-
able to reach our performance.
nia it’s all either through the front door or through connections. There are trustworthy
mance – its need to store data is much higher than any DLT can ever offer.
How did you end up developing this solution?
I think readers would be interested to
How long did it take you to develop your technology from the moment you realized what the issue was?
individuals who have the time to do their due diligence and recommend you – and that’s how we reached big investors.
We’re still working on the product, but we
After we got these recommendations
Our background is actually not in blockchain
found the theoretical solution quickly, in a
we saw a big difference in the way we were
or crypto, but algorithms and data structures.
few days. Now we’re at the point where we
treated.
Before Blink, we were developing a competi-
have a functional prototype; we started work-
tive programming platform called CSAcad-
ing on it in December last year. But we still
emy.com where we used to hold weekly
have to make it more secure. It’s not secure
programming competitions. We would have a
enough for us to launch it.
set of problems and users all across the world
You went to the US and pitched your idea.
How much money did you raise and who did it come from? We raised around USD 5 million, mainly from
would solve them. Then, Mihai was invited to
Did you try to do it in Romania too and were
Polychain Capital and Polkadot Ventures,
a crypto conference last year and that’s how
unsuccessful or did you go straight to the US?
plus seven or eight smaller investors – not all
he started to learn what blockchain actually
The first time we went to the US was in
investment funds, two or three were individu-
does. We were all aware of bitcoin and I even
March and we spent three weeks there. We
als, American and European. We met with
had a little bitcoin of my own (but I didn’t
didn’t have a clear plan, we just bought plane
them in the US, not in Romania.
make any profit from it). At the conference,
tickets on the spot and went to San Francisco
when he found out more and understood
and thought we’d see what was happening
what a DLT was, he thought since we already
there because that seemed to be the place
What’s the next step now that you’ve managed to raise this money?
know about algorithms and data structures,
where you could find serious investors. It was
We have to complete our implementation of
it seemed like the kind of problem we could
our first contact with the US – it wasn’t for
the protocol, our version of blockchain.
work on.
nothing, but it wasn’t a big success in terms of fundraising, either. A few leads have material-
Why is your solution revolutionary? Has nobody else developed an optimized version of blockchain at the level you did?
ized since then. When we came back to Romania, we managed to reach large investors through
How do you plan to raise awareness about it? How long will it take you to finish implementation? We hope we’ll finish within the next six
www.business-review.eu Business Review | December 2018
28 ENTREPRENEURS
months. Then we’ll also have to figure out ex-
but Mihai was one year ahead of me. Actually,
actly what the product’s direction will be – we
most Olympiad participants know each other
How long did Mihai spend at Full Tilt Poker, and when did he get back to Romania?
basically have a high performance technology
since there aren’t that many of us in one gen-
I’m not sure how long he spent there. We
but from that to developing a product and,
eration. Mihai got the silver in the Balkaniad
reconnected around 2012, when he took part
eventually, a company, a few more steps are
(?) and I got the silver in the International
in a contest and I was part of the committee.
required.
Olympiad.
The contest was also related to programming
We’re also working to find the product’s
After the Olympiad, Mihai went to work for
and algorithms. He had returned to Romania
direction from a business development stand-
Full Tilt Poker in Ireland. He studied Comput-
and I think he entered the contest for fun –
point.
er Science and Mathematics at the Bucharest
and won. I was surprised to see him there; I
University. I am a college drop-out – I went to
thought he was still in Ireland.
What’s the general view you have of your product right now?
the same university and left in year two. I’m not sure why. Looking back, if I could go back
What does CS Academy do?
There are two main directions, both of which
in time and give myself some advice, I would
It’s conceived as a recruitment platform for
involve several different aspects. The first
tell myself to finish university.
software engineers worldwide, based on
would be doing a public implementation, a network similar to blockchain on which you
weekly contests. We didn’t manage to take
private decentralized database solutions that
Why? It seems like more of a personal responsibility thing, not something related to professional development, since you’ve been very successful despite not graduating.
we could personalize and sell. When several
Yes, that’s prob-
legal entities transfer assets to each other and
ably true. But
don’t trust each other, there is a problem. For
you never know
example, when banks make international
when you’ll
transfers, they have this kind of problem – a
need that diplo-
bank in China will certainly not trust a bank
ma. There’s a lot
in the US and vice versa, but they still have
of bureaucracy
to send money to each other. A decentralized
both here and in
database solves this problem of lack of trust.
the US, both in
Another example: supply chains – when you
the public sector
want to keep track of stuff, there are different
as well as in the
entities interacting with each other and you’d
corporate world.
need a database where each entity can track
It’s a risk I took in a very stupid way.
can develop things like cryptocurrencies or smart contracts, for example – an infrastructure to develop decentralized apps. The second idea would be to develop
the process.
Even so, you ended up doing what the university would have taught you to do.
Do your US/European investors all have the same vision for what you’re about to launch? Which version of your product do they prefer?
I’ve been very focused on algorithms and
it too far because the Blink project came up and we thought it was much better for us. It grew organically. At the end of last year, we
were trying to find some partners in the US to help us connect with US-based companies. We already had a great database of engineers. We didn’t end up speaking with any investor,
data structures. I’ve taught many students
but we’ve seen some interest in the Academy
who have participated in the Olympiad.
recently, while we were already working on Blink. We might try to work on both of them, but the main focus right now is Blink. We’re
exception, and the European investor is on
So can you say that this was your first job? Tutoring others?
board with what the US investors want to do.
Yes. I’ve never been employed except for two
body else because we can’t spend time on it at
internships at Google during university, in
the moment.
All our investors are from the US with just one
I don’t think there’s necessarily a consen-
also trying to hand CS Academy off to some-
sus among all investors about what we should
the California headquarters. Then I decided
do, but I’m more inclined to think they prefer
I wanted to spend at least the next few years
the first version, the public network.
in Romania. I didn’t like Silicon Valley at the
Do you think there are other people who can plan the contests?
time. I’m not sure why. I think it was my age
Not in Romania. We’re trying to find people
Tell us more about the two of you. How old are you, what did you study, where did you start?
and the pace of things and lifestyle there were
abroad to hand the project off.
better place for me – but it’s still not ideal. It
Have you opened an office in the US?
We’re both 30 years old. We met at a comput-
would just be easier to live there now than
We are going to open it soon, in San Fran-
er science contest (Olympiad) in high school,
when I was 20 years old.
cisco. It depends on how long it takes for me
not my cup of tea. Now, at 30, I think it’s a
www.business-review.eu Business Review | December 2018
ENTREPRENEURS 29
to obtain the visa (O1 visa) – related to special
The crypto world currently has a big problem:
transaction. So any type of transaction that’s
skills.
there aren’t any use cases besides the cryp-
below a certain value is not viable due to
tocurrency market. It’s like a closed circuit
these fees. That’s the reason why there aren’t
How do you see your expansion in the future? Are you planning to only use the USD 5 million or do you intend to raise more money?
where on one hand you have some cryptocur-
any micro-transactions.
built on the crypto networks that also work
Do you think you could develop microtransactions?
For now we’re not looking to raise any more
with the crypto world. The link between the
This is one of the main things we want to
money; we’ve only just completed this round.
crypto world and the rest of the economy is
focus on. Our platform is strong enough
Everything depends on how we’re going to
very weak – it’s like a bubble.
to support these micro-transactions. Visa,
build a product around the technology, how quickly we do it. If the product is promising, we’ll need another fundraising round to develop it.
rencies that nobody uses to buy real-world goods, and on the other hand there are apps
This is the challenge – to bring the crypto world to the masses. We’re also thinking of creating our own cryptocurrency, but I don’t think we’d be able
for example, has an average of about 4,000 transactions per second and its peak was around 56,000 at one point. We are currently able to support 20,000 and with the help of better hardware we could reach 50,000,
Do current investors own a part of the product or is it still fully yours? How is the investment structured?
and there are also other ways we can improve.
investment round,
How long do you think it will take to at least finalize these goals, and perhaps later pitch or reveal them to the world?
where it’s clear – you
I think we have a
pay a certain amount
number of very
of money and get a
different goals
certain number of
with very different
shares. For a seed
expectations. For
round, it’s like a loan
example, we need to
that will convert
finish work on our
It’s a little more complicated. We’ve essentially gone through a seed round, not a regular
into shares in the
protocol and techni-
next investment round (by the same or other
to compete with traditional currency – when
cally complete our DLT. That’s our first goal,
investors) – that will be a Series A round.
you create a currency, you have to compete
before we manage to integrate micro-trans-
with the dollar, euro and yen, and I don’t
actions between various global platforms.
Have any investors rejected your proposals?
think this is really an option.
That’s going to take a while – several years,
Oh, yeah. There were more who said no than
Between these two goals, we also have other
was sometimes frustrating when we knew
So when you launch this crypto you’d only want it to compete with other cryptos, not all the world’s currencies?
a certain investment fund was looking for
Yes, that’s what I mean. I don’t think it’s pos-
something like our project. When a fund was
sible for a cryptocurrency to compete with
only partially compatible with our product,
traditional currencies (called fiat), at least not
What exactly is the next development phase? Is it when you decide between the two product directions?
it wasn’t that bad. But when the fund was
at the moment.
Yes, and when we find the right partners for
who said yes. It wasn’t discouraging, but it
promising to invest in our type of project it was more difficult for us to accept.
What are your expectations for your technology? What will it revolutionize? What’s your unique selling point?
probably. And that’s if things go as planned. objectives.
However, I think they can enable other
the path we choose. If we choose the second
types of transactions and payments which are
path, that would be the moment when we’ll
not currently possible using fiat. For example,
really have to integrate and recruit a sales
if you wanted to buy something that costs 1
team to sell it to commercial partners. At that
cent today, you couldn’t, because Visa’s fee
point, the money we have now will probably
alone is around 20 cents + 2.5/3 percent of the
no longer be enough.
www.business-review.eu Business Review | December 2018
30 ADVERTISING
From fitness to forests – mobile apps get creative In the US, according to eMarketer and quoted by John Koetsier for Forbes, mobile advertising was to drive 75 percent of all digital adspend in 2018, while mobile adspend was predicted to grow 20 percent to over USD 70 billion. Moreover, according to the Interactive Advertising Bureau (IAB), in 2017 mobile video ads were up by 65 percent from the same period in 2016, notching up USD 2.6 billion in revenue. And players say the local industry is not too far behind the global leaders. By Romanita Oprea
Sorina and Mikael Fredholm, Monday app
G
Cora Diaconescu, Tribal Worldwide
lobal mobile advertising spending
MORE CATEGORIES, MORE INNOVATION
campaign that targeted both HoReCa and final
has grown from USD 19 billion in
But how is the situation in Romania? In
consumers. It was an important element of
2013 to USD 133 billion in 2017. The
2018 more and more creative apps took over
the campaign, really involving them in the
fastest rise took place in 2013, 2014, when
the market, both for CSR and sustainability
Pilsner Urquell experience, through the in-
year-over-year mobile adspend jumped more
purposes, and for brands, both big and small.
teractive component,” said Georgiana Bercu,
than 100 percent. This year it’s projected that
Pilsner Urquell, along with the project for the
brand manager for Pilsner Urquell & Grolsch.
companies will collectively spend USD 166
recruitment of the first tapster in Romania,
The brand’s team worked with the agency
billion, roughly 25 percent up on the previous
launched a consumer education innovation
Kubis for several months from the idea of
year.
regarding the right way to serve a beer. For
creating an app to the end result. After the
two weeks, Bucharest drinkers could learn,
design was finished, it was a challenge to find
dicts that mobile advertising will account for
through an app, how to pour a perfect pint of
the technical solutions for the app’s imple-
30.5 percent of global advertising expenditure
beer, with the help of their mobile phone.
mentation, as outdoor display options on the
At the same time, Zenith Optimedia pre-
in 2020, up from 19.2 percent in 2017.
“The application was part of a bigger
market are currently limited.
www.business-review.eu Business Review | December 2018
ADVERTISING 31
community of health experts within nutrition,
the development of more commercial mobile
This autumn, Greenpeace Romania launched
physical activity and lifestyle coaching to help
apps. Most of the time it is more difficult
Forest Guardians, a mobile app that allows
them achieve their health goals. Its mission
to design and launch an app than a mobile
users to get actively involved in the protec-
is to help people live a healthy lifestyle, con-
website; therefore when it comes to com-
tion of forests, especially virgin ones, by
stantly offering new solutions through which
mercial campaigns that cover a finite period,
identifying illegal logging and reporting it to
users can live the life of which they have
it is more cost and time effective and also
Mobile apps also have more serious uses.
dreamed. “Previously someone who went to the gym, had a protein shake and ate a steady meal afterwards was considered to be living an optimum lifestyle. But things are changing rapidly and there is a new health revolution that has given rise to health coaching, which is the fastest growing career in the US right now. But despite health coaches’ knowledge and passion, they are limited to face-to-face consultations or online programs delivered the authorities. The app was developed with
over e-mail, Skype and blogs and writing a
recommended to launch websites, either
the help of MReady and is available in the
book is the most scalable tool for them. It is
responsive or mobile websites exclusively.
Google Play Store and the AppStore, for free
this problem we set out to solve with Monday
Mobile apps involve a long-term strategy with
download.
– to give health coaches and experts a tool to
long-term objectives, while mobile sites have
scale their knowledge and passion and for
fewer limitations, can be developed faster
identifying and protecting virgin and semi-
the end user to get access to world renowned
and therefore are a more suitable choice for
virgin forests, the most valuable forests in the
experts. We had the idea for about three years
short-term strategies and specific, short-term
country and part of our history and cultural
and from the time we decided to execute
commercial objectives,” said Diaconescu of
identity. These forests, which we’ve called
it until the current version of the service it
Tribal Worldwide.
the Secular Land, are the result of thousands
took one year. But this is just a first version
of years of evolution and are in danger of
that was created to validate the idea in a test
“Greenpeace Romania takes action by
What about the never-ending question of free apps and the importance of in-app
being destroyed by a lack of
purchases’? In Fredholm’s
responsibility and respect for
opinion, nothing is ever free
their value. Despite environ-
and it’s a misconception
mental NGOs’ efforts and
that just because a service is
pressure from civil society
delivered through a mobile
in recent years, the Ministry
application it is or should be
of Environment and Water,
free. You either pay for it by
the authority responsible for
giving your personal data
the protection of the virgin
or you pay money for it be-
forests, has not made an
cause you think the service
inventory of them, so nobody
is worth that money. “But of
knows exactly how many and
course it can contain a free
where they are,” said Ciprian
trial or offer limited services for free, just the same way
Galusca, coordinator of Greenpeace Romania’s forests’ campaign.
market which was Romania. We have now
that it is free to go into a bookstore and flip
validated the model in Romania and we are
through the pages of a book. In our case we
Worldwide, believes that mobile apps can
currently working to launch it internation-
offer a free trial for the first three days of any
influence a lot of things for the better, even
ally by attracting international experts as well
plan, which gives the user a very good idea if
happiness levels in certain cities or countries.
as continuously adding new features,” said
this service is something for them.”
One of her favorite “country changing” apps
Mikael Fredholm, co-owner of Monday.
Cora Diaconescu, head of digital at Tribal
In turn, the Tribal Worldwide representative says that brand apps should be free all
is Forest Inspector – a Romanian app where citizens can check on their mobile phone
TO FREE, OR NOT TO FREE
the way: they are meant to be used as a new
whether a log transport is legal or not, by
“We can identify a certain positive shift
channel of communication and brand experi-
entering the registration number of the car
regarding the openness of Romanian clients
ence with customers and potential custom-
carrying the wood. Another type of app, Mon-
towards launching mobile apps, but still,
ers; therefore they should be accessible to
day is a platform that gives users access to a
there are some cost limitations that hinder
anyone, anytime.
www.business-review.eu Business Review | December 2018
32 NEW TECHNOLOGIES
Virtual and augmented reality infiltrate art and communication scene Virtual and augmented reality are changing the creative industries and putting a bigger and bigger imprint on the way markets such as media & advertising, arts and architecture are developing and evolving on the Romanian landscape. By Romanita Oprea human anatomy. The VR section features The Real Thing documentary, by the director Benoit Felici, which offers the viewer a virtual trip in a parallel universe whose action develops in China’s false cities.
FROM ART TO EDUCATION AND BACK Besides being a form of art and technological exploration, VR can be a method of confronting one’s own fears and finding the necessary courage to confront them. Richie’s plank, the app proposed by Loop Virtual Reality Solutions, challenges the public to confront their fear of heights. The action takes place on the top floor of a skyscraper. The same category also includes Box of Fears, which brings together over 100 human phobias presented by Wikipedia. Also connected to the centenary, through the launch of the project Acum 100 Augmented reality is changing the way people are interacting with art
A
ani (100 years ago), Historia Rediviva marks the start of the concept Visual History, an immersive, gamefied approach, a dramatized
ccording to the Digital Recap 2018,
tors to explore creative content in a new con-
manner of presenting historical informa-
created by The Bridge – Golin’s social
text and from an immersive perspective. At
tion, brought into the present through visual
media & digital hub – and blogger
the same time, it provides a space where the
means, using 3D technology and virtual real-
Alex Ciuca (Hoinaru), Augmented Reality
visitor interacts with digital projects in the
ity. In this way history becomes entertain-
(AR) is making changes to the interaction
art, gaming and entertainment, social, and
ment. The project targets mainly the young
between brands and consumers, and will
commercial fields, produced by international
generation, using technology as an authentic
therefore raise the mix of offline-online
studios, as well as by the local digital sector.
interaction tool, based on empathy.
experiences through viral elements added in
The expo also includes projects that
“Romania has a very passionate connec-
real time to a store visit or while looking over
propose a new perspective on education and
tion with the AR and VR industry. It certainly
a flyer. A growing trend is Virtual Reality (VR),
immersive ways of learning. Representative
has huge potential and a creative spark. I
powered by the diversity and increasing ac-
of that is the app created by Vreestory that al-
personally know at least four to five local VR
cessibility of VR glasses’ models.
lows the vivid reliving of the Great Union on
studios, entrepreneurship examples right
December 1 1918. In Romania’s centenary year
here in the capital. We are friends and work
val, a project initiated by The Institute, aims
the exhibition’s visitors will have the unique
closely with Gateway VR Studio, who on
to celebrate the digital industry through VR,
opportunity to interact with major personali-
the second edition of Bucharest Technol-
AR and the digital installations exhibition,
ties of that time, recreated with precision.
ogy Week have enriched the city with V/ART
Internetics Interactive Expo. The exhibition
The same category includes the project The
– Where Reality Meets Street Art, an event
showcases the way that digital technologies
Anatomy Lesson, created by UniVRse, which
where I appreciated collaborations on live
and creative industries interact, allowing visi-
allows the didactic exploring, in depth, of
painting with street artists such as Ortaku,
Marking its 18th edition, Internetics Festi-
www.business-review.eu Business Review | December 2018
NEW TECHNOLOGIES 33
Sweet Damage Crew at the third edition of One Night Gallery Serebe, D21, Lucian Sandu-Milea and Irlo Doi-
VR AND AR GO NATIONWIDE
pass them. “Timisoara also had the Simultan
doi,” commented Andrei Bucureci, co-owner
And Bucharest is not the only city where
Festival, which in 2017 had its 12th edition,
and creative director of Creionetica.
VR and AR exhibitions and events are tak-
called Possible Future. The aim is so simple
The agency itself (Creionetica), is now
ing place. Since 2016 Cluj-Napoca has had
and representative: creating a platform for
building in Bucharest and Romania its own
its own VR club and this year, during Cluj’s
contemporary cultural projects which use
special project: A4Activism – Activist Poster
Days, the first VR app exploration of the
technology as an artistic mean of expression.
Week. This is a platform building a bridge
city, Experience Cluj, was launched. The
Moreover, Cristian Vieriu, with his busi-
between associations and organizations
app currently offers three different virtual
ness Wild Draft, is also constantly pushing
of civil society (environmental and social
tours, created as three unique experiences,
boundaries and provided a few years back
Developed by the stage designer Adrian
that allow 360º panoramas, with users able
some interesting 360 documentary videos
Damian and BRD - Groupe Société Générale,
to move at a height of 70 meters and with an
of performances at the Jazz TM festival in
it proposed a new experience in augmented
average speed of 50 km/hour. More virtual
Timisoara. His portfolio includes a lot of
reality, letting the public interact in unique
tours are set to be added soon. Moreover, Cluj
digital tech animations and sound designs
manners with a series of written works by
is the host of Clujotronic tech and culture
such as Interior8. Last, but not least, I have to
famous science-fiction writers. Guests were
festival, where VR and AR fans can enjoy
mention The Funky Citizens NGO, who have
able to interact with the installation through
various experiences. A virtual museum, in
used AR very interestingly with an interactive
Hololens glasses with a hologram and LEAP
VR and AR, will also be created in Timisoara,
expo of photographs: Protest, which came to
Motion sensors following their hand move-
the app being able to “tell the stories” of
life for the audiences experiencing it through
ments.
Timisoara’s historical buildings, when users
their smart phones,” added Bucureci.
causes) and artists/designers, both local and international. This year, inspired by One Night Gallery, they approached Pisica Patrata - Alexandru Ciubotariu, the first Romanian street artist, also an engaged artist who has worked with WWF-Romania and architect associations, and created social comic books on human rights. Another big brand, this time a bank, BRD - Groupe Société Générale, took part at the 25th edition of the Gaudeamus International Trade with the installation Laboratorul de Imaginar (The Imaginary Laboratory).
www.business-review.eu Business Review | December 2018
34 LEADERSHIP
Driving success: ‘Leaders should always be mindful of clients’ expectations’ Christophe Dridi, manager of the Dacia plant in Mioveni, told Business Review that the power of his leadership credo resides in simple exercises, which he practices in compliance with Socrates’ Test of Three: Is it true? Is it said with good will? Is it useful?
ABOUT CHRISTOPHE DRIDI, MANAGER, DACIA PLANT IN MIOVENI Since October 2016, the Mioveni Dacia Vehicle Factory has been managed by Christophe Dridi. The Frenchman has 23 years of experience in the Renault and Nissan Group. Together with his team of around 7,300 employees, Dridi is responsible for the production activity of the Dacia models range.
By Daniela Oancea What are a few resources you would recommend to someone looking to gain insight into becoming a better leader? Being open, staying humble and listening to one’s teams. But at the same time, being demanding, determined and ready to take decisions. Always be an example and give meaning. Teams need to know where we are heading to, what the common goal is. It is thus very important for a leader to show the way as clearly and simply as possible. Leaders should remind themselves as often as necessary of this common goal, which should always be customer satisfaction. Simply said, a leader, in order to improve, should always be mindful of clients’ expectations.
What is one characteristic that you believe every leader should possess?
Millennials’ expectations. Plus, spending too
What are you doing to ensure you continue to grow and develop as a leader?
little time with their teams and not listening
Practice is for me the best way to improve.
Please allow me to mention a few, that are
to them enough is one of the mistakes leaders
Every day, I put the maximum energy into
interlinked: leaders have to have a clear strat-
make most frequently today.
listening to my teams, but also to advice coming from people surrounding me and taking
egy, they should be capable of motivating and having their teams grow, and be close to their
the necessary distance to analyze the bigger
teams while actively listening to them. From
Is there someone who has had a tremendous impact on you as a leader?
experience, I have noticed that the best ideas
What I can tell you is that this person taught
come from field teams. The best ideas are the
me a lot about being humble, showing empa-
ones that have most chances of being applied,
thy, behaving exemplarily and speaking the
since they come from people that will imple-
truth while complying with the three Socratic
What advice would you give someone taking up a leadership position for the first time?
ment them. It is very important for a leader to
questions: Is it true? Is it said with good will?
Be honest, make it simple, trust in people,
listen, to listen carefully and to make regular
Is it useful? I try to ask myself these three
listen, help their teams grow, be fair. One has
field visits. Reality is down there, and not in
questions as often as possible, since they can
to stay true to oneself. If someone positions
presentations in the meeting room!
be applied in the professional world, as well
him or herself as a leader, it is not by chance;
as in the private one, with family and friends.
it means that he or she has already proven the
What are the biggest challenges facing leaders today?
If you ask yourself these three questions, you
qualities of a leader, more specifically the ca-
definitely listen carefully, show empathy, and
pacity to listen, to motivate, in order to reach
To continuously adapt, getting the bigger
also get the necessary distance, then this is
results, and to have his or her team members
picture in all circumstances and to rely on
the best behavior for me, to become a better
grow. And then, one needs to stay humble,
digital and on industry 4.0, while integrating
leader.
since one learns every day.
picture.
www.business-review.eu Business Review | December 2018
36 COMMUNICATION
Superbrands drive Romania forward Business Review sat down with Catalina Rousseau, president & CEO of BDR Associates - Strategic Communication Group, to learn about Superbrands, one of the company’s flagship projects, and how the firms that gain such recognition can change Romania’s image. By Anda Sebesi
ABOUT Catalina Rousseau president and ceo, bdr associates - strategic communication group Catalina Rousseau founded BDR Associates Communication Group back in 1995. She has more than 22 years of experience in strategic communication and crisis management, and is highly specialized in designing, planning and coordinating PR and communication strategies to assist private national and multinational companies, governmental or international institutions in Romania, Republic of Moldova, and other markets.
What can you tell us about Superbrands, one of your flagship projects?
and motivated from one edition to another
What is new this year?
to be more creative and innovative. Our key
Superbrands TV (SBTV) is now one of the
Each Superbrands edition represents a beauti-
target is to keep putting brands in full light,
important trends developed by Superbrands,
ful year-long journey for all those on board:
bringing recognition to their substantial
at global level. This is the new tool which
brands themselves, their talented brand
contribution to building strong pillars for the
we would like to put forward to brands
guardians, distinguished jury members, com-
economic development and prosperity of us
in our market for the new edition of the
petent researchers from the IPSOS institute
all, in Romania. We are committed to paying
Superbrands Romania Program. It is an in-
and the local Superbrands team, which have
responsible tribute to brands’ genuine perfor-
novative tool making high visibility possible
made things happen, for almost 13 years now.
mance and to keep telling the beautiful story
worldwide for all brands whether global, or
The previous edition was dedicated to Roma-
of those outstanding companies and people
local. SBTV have proved practically immedi-
nia’s centenary, under the evocative title, 100
who make the difference in this market
ate results being a simple and effective way
Years, Centuries Ahead. We are encouraged
through branding culture.
to showcase a brand’s achievements and
www.business-review.eu Business Review | December 2018
COMMUNICATION 37
Superbrands status through a digital delivery
progress in a competitive market. High-per-
cal framework. Market stability and predict-
platform, helping brands to quickly promote
formance brands help economic stability. At
ability are key factors feeding investors’ trust
their brand values, current initiatives and
the same time, they confirm values and pro-
and making them come and invest here. We
social corporate responsibilities to consumers
mote high quality standards, they build solid
depend to a large extent on such friendly mar-
and key individuals.
pillars for market development, they educate
ket conditions which generate and increase
consumers, they influence our lifestyle, they
demand for specialized services like ours. So,
world have discovered that SBTV provides
offer models to follow. The Superbrands are
the market conditions are the first to be im-
a quick and practical platform to educate
invincible heroes, making the country move
proved in order to make the communication
employees and staff about the interesting
forward and communities prosper. They keep
industry stronger.
and unique story of the brand, as well as
their promises in spite of the unfriendly busi-
its latest products, developments, initia-
ness environment. Above all, they represent
tives, and achievements, allowing brands to
the strongest guarantee that Romania has
Is it similar to its CEE peers? What differentiates it from them?
engage with consumers, via social media,
a future, preserving Romania’s reputation
I would say that Romania is the second larg-
and inform them about the history of the
against all odds, at a time when the country
est strategic communication and PR market
brand and its newly awarded ‘Superbrands
needs, more than ever, recognition, respect
in the region, after Poland. Over the years,
Status’. It is amazing how it worked abroad.
and a good image in Europe and in other
we have had many project opportunities in
So we hope to value it when promoting
markets through showing its professional,
neighboring countries, either through the
brands’ performance in Romania, offering
creative and innovative force. I think that all
Hill+Knolwton Strategies network with which
Using this new tool, brands all over the
concrete examples of how brands around the
we have partnered since 2003, or teaming in
world have used SBTV to reach market goals,
key situations with other big consultancies in
increase business, and convince consumers
the WPP Group, or with regional public affairs
to remain loyal. At the same time, they can
networks.
share achievements with key audiences from
We have also worked as an independent
senior management, shareholders, investors
agency assisting our own clients with Euro-
and major clients and suppliers, to journal-
pean or global representation in markets like
ists, researchers and academics and PR and
Hungary, Bulgaria and the Czech Republic,
advertising agencies.
but also in Ukraine. For the last 15 years, we have had significant representation in the
What do you most want to highlight at Superbrands 2018?
Republic of Moldova, a small but interesting
As I said, we do need even more creative
by international donors like the EU, World
vision for this new edition. Looking around
Bank or USAID for institutional and economic
at other European markets, we are seeing so
development. Having said that, the clear
many Superbrands gala events at outstanding
perception is that Poland is the CEE leader in
market, relevant mainly for projects funded
standards, taking place in many EU capitals,
those hundreds of brands getting the Super-
our field, being the preferred communication
lately (the latest one in Lisbon on November
brands status year by year represent Roma-
hub by global companies, in Central, Eastern
14). We have already received many questions
nia’s true and most loyal friends, building our
and Southern Europe. I don’t see any differ-
from local brands about the start of the new
future, at home.
ence between Romania and these markets in terms of professionalism; yet, I always feel
edition. We’ve noticed significant interest in the independent research results, having in
the touch of class when teaming with col-
partner, and because of the international
How would you describe the Romanian PR market now and how do you think it should be improved?
dimension of the program, allowing the shar-
Generally speaking, the PR, PA and strategic
One other difference is the existence in
ing of experience with other markets. For sure
communication consultancies have grown as
these other markets of strong industry associ-
this new edition will bring good news. We
a market in the last 20 years. Our industry has
ations, with significant membership and his-
want our Superbrands to be happy because
proved strong capabilities and it is absolutely
tory. This confers more force and consistent
they make our life better and brighter.
undeniable that the creativity, strategic
image capital on all agency members, hence
thinking and level of professional assistance
many business benefits. We are trying to con-
What is the value added that the Superbrands project brings to the local market?
are at least equal (if not better in many cases)
solidate such good practices in Romania as
to those of any highly reputed agency from
well, under the auspices of the ARRP. One big
It is a fact that Superbrands of Romania brings
abroad. Yet, growing the business in our field
step made forward by the ARRP was its affili-
value added to the sustained efforts made
is highly influenced by economic develop-
ation to ICCO, as until recently Romania was
by the business community as a whole, in
ment, by the profitability of companies as
the only country not part of this most highly
helping the economy consolidate and make
targeted clients, and by a stable legal and fis-
reputed global organization in our field.
view the prestige of IPSOS, our traditional
leagues from company hubs or consultancies in Poland.
www.business-review.eu Business Review | December 2018
38 INTERNET
5G technology set to cover local internet ‘white zones’ The internet in Romania is one of the paradoxes of the IT industry: we have among the highest download and upload speeds in the world, but only a little more than half of the population is connected and using the world wide web. By Aurel Dragan broadband internet speed this year based on measurements made over June 2017-May 2018. The average speed was 38.6 Mbps, up by 81 percent compared to 2017, putting Romania behind only Singapore (60.4 Mbps), Sweden (46 Mbps), Denmark (44 Mbps) and Norway (40.1 Mbps). The average takes into consideration all the settlements in the country, so is quite low compared with speeds found in towns, usually over 100 Mbps. Also, connections with 500 Mbps or 1,000 Mbps are not unusual, especially since the prices of monthly subscriptions are the lowest in the European Union.
HOME CONNECTIONS The highest number of monthly subscriptions in Romania can be found for cable TV, Dreamstime
at over 7.3 million, covering 98 percent of households. But for fixed internet the penetration is only 58 percent, up 4 percentage Romania ranks fifth in the world by broadband internet speed this year
T
points and more than double in urban areas (3.4 million connections) than in rural (1.4 million). The number of monthly subscrip-
he local development of the internet
Regulation in Communications (ANCOM)
tions has reached 4.8 million. The number of
goes back more than two decades
identified 3,251 villages without Next Genera-
fiber optics has almost doubled, reaching 1.1
when the first connections with the
tion Network (NGN). Over 350,000 dwellings
million, while most connections (67 percent)
outside network were made. Small, neighbor-
and almost 1 million people were found in
allow speeds of over 100 Mbps, 11 percent
hood networks started to build and connect
these “white areas”, according to the National
between 30 and 100 Mbps and only 9 percent
more and more buildings and dwellings. In
Institute of Statistics (INS). The Minister of
below 10 Mbps.
time, the big providers bought most of the
Communication has a project underway,
Providers are highly concentrated, accord-
small companies as a normal step towards
called Ro-Net, valued at EUR 85 million,
ing to ANCOM data from the end of 2017, with
new technologies like fiber optic networks.
meant to cover all settlements with broad-
the leader (RCS&RDS) holding 40 percent, the
Fiber-to-the-home (FTTH) was just a dream in
band internet. The construction of the infra-
second placed firm holding 21 percent (Tele-
the coaxial cable era, but today it’s the normal
structure was awarded to Telekom Romania,
kom Romania), and the third having a market
connection for many houses.
but the project that started in 2013 is not yet
share of 13 percent (UPC, now Vodafone). The
finished and there are still hundreds of small
others divide a share of 17 percent.
Still there are thousands of villages without any fixed internet connection or broadband. At the beginning of the year the National Authority for Administration and
white zones in Romania. Meanwhile, a report by M-Lab Test revealed Romania ranks fifth in the world by
Fixed internet coverage stands at 71 percent in urban areas and 41 percent in rural ones, and is growing slowly in towns and a
www.business-review.eu Business Review | December 2018
INTERNET 39
bit faster in small settlements. This is not a
connections still in place because those will
monitoring and control of energy grids and
surprise if we consider that the population
be perfect for a huge array of devices and sen-
telecommunication towers.
of the country is ageing and the people who
sors to communicate with the main server.
have not kept pace with technology are not
At the end of 2017, of the total mobile
Through IoT, pieces of equipment can communicate with each other without the
connections in Romania, 38 percent were
intervention of a human operator, thus
4G and 42 percent 3G, meaning high-speed
reducing response times in critical situations
5G IS COMING
connections for 83 percent of users, spread
and eliminating human error.
And there is another twist: mobile internet.
among the major industry players, Orange,
In the past 20 years, the growth of mobile
Vodafone, Telekom and Digi.
interested in the internet.
phone coverage has rendered landlines
The 5G networks are to be ready in 2020
Through its Orange Fab start-ups such as BOX2M, Orange tested the network’s capabilities in Alba Iulia and Constanta. The
largely redundant. Today, there are 22.4 million active users of mobile phones, while the number of landlines is decreasing every year, having reached just 3.9 million. Mobile internet might just be doing the same thing, even if we will not probably see the same evolution over the coming years since the connections are already in place and are still cheaper and more reliable than mobile ones. But things will change dramatically for mobile internet after the implementation of 5G technology, which will allow speeds 10 times higher than the 4G network. “5G will mean a real industrial revolution and a
and are now already in the testing phase. The
two projects are aimed at the utility networks
chance to reduce the gaps in development
future is already undergoing testing with in-
(lighting, water, gas, energy) as well as the
in Romania. Studies show that the effects
termediate networks, like the LTE-M network
industrial and retail sectors. BOX2M also inte-
of 5G implementation will be seen in the
built by Orange. The network is available as
grated its designed IoT devices in the Orange
Romanian economy by generating revenues
of this November to Orange B2B customers
Live Objects, a secure device and customer
of over EUR 4.7 billion, creating over 250,000
and it is the first national network
jobs and increasing the turnover in smart
dedicated to connecting low-
industries from USD 3.7 billion in 2020 to USD
power devices in Romania,
9 billion in 2026. We propose that by 2025
spanning over 3,100
all urban centers, highways and modernized
localities.
railways, ports and international airports be
LTE-M is standard
data platform that covers the main functionalities required for any IoT project: selection of the IoT devices, connectivity adapted to each customer’s needs, administration of data col-
covered with new technology. Also, in order
technology from the
to maximize the socio-economic benefits, we
3GPP family, capable of
lected and stored, control
want to have seven pilot projects distributed
connecting devices and
and business intelligence.
throughout the country,” said Sorin Grindea-
sensors directly to the 4G
nu, president of ANCOM.
network. It stands out from
The 5G network is destined for industry
other IoT network technologies
The LTE-M network comes in addition to the Orange portfolio of IT&C solutions, such as Cloud Computing, Business Wi-Fi, Retail
and businesses rather than consumers. While
through its voice (VoLTE) and SMS capa-
4G connections allowed users to watch live
bilities, as well as its suitability for mobility
TV and stream videos, 5G will give companies
projects. The most common areas of use
the opportunity to connect all the devices
involve smart meters, asset tracking applica-
technology is estimated at EUR 2.3 billion. By
and sensors they need (Internet of Things) in
tions and the connection of high-density
December 15, 2019, ANCOM will hold a tender
order to get more accurate data about their
sensors, with applicability in smart city and
granting the rights to use the 700 MHz band
activity. We shall see, in the years to come,
agri-tech type solutions, retail, industry 4.0
frequencies and the other target bands for the
the disappearance of 4G and 3G connec-
projects involving automation of production
provision of fixed and mobile communica-
tions, taken over by 5G, but with 2G and 2.5G
lines, critical infrastructure projects such as
tions associated with 5G technology.
and City Analytics, and Cyber Security. The value of the investment needed for 5G
www.business-review.eu Business Review | December 2018
40 ARTIFICIAL INTELLIGENCE
AI poised to reshape our apps – and our societies Artificial Intelligence (AI) is the word on every techie’s lips these days. Experts say there are no apps in the making that are not likely to use AI in one way or another. It is a broad use of the term meant to show that we are giving more control to machines to do what humans are not equipped to.
Dreamstime
By Aurel Dragan
AI will still be part of companies’ recruitment process
R
evolution 4.0 is developing before
machines to become intelligent is knowledge,
rating candidates for software developer jobs
our eyes. And we are getting used to
which means that that we must provide this
and other technical posts in a gender-neutral
it without really noticing. If we look
to the program. Of course, what we feed the
way. That was because the computer model
back we can see how we got used to terms like
machine with is very important. “If we put
was based on observing patterns in resumes
cloud, software-as-a-services, platform-as-a-
garbage in, then we get garbage out. If we put
submitted over a 10-year period, most of
service, big data, internet of things. It is now
intelligence in, then we will get intelligence
which came from men, so the system taught
time to accept AI as a normal thing even if the
out,” says Marian Popa, CEO of DB Global
itself that male candidates were preferable
way we use it might not be the right one.
Technologies Romania.
and penalized resumes that included words
AI covers a whole area of computer science
A good example of the limitations of AI
like “women”, including colleges with women in the name.
that emphasizes the creation of intelligent
is Amazon’s automatization of its recruit-
machines. Among the first uses of AI were in
ment process. Officials at the online retailer, a
speech recognition, learning, planning and
company whose success is based on automa-
banded the team, but it shows the limitations
problem solving. It went on to perception,
tization, wanted to find the perfect machine
of the machine’s learning process. AI will still
reasoning and the ability to manipulate and
to review 100 resumes and pick out the top
be part of companies’ recruitment process,
move objects. The most important thing for
five. But they found that the software was not
and, in the future, it will become more and
Amazon closed the program and dis-
www.business-review.eu Business Review | December 2018
more important, but the final word will be
ARTIFICIAL INTELLIGENCE 41
Stefan Baciu, country leader at SAS Romania.
and turning it into coherent apps. Already, all the major cloud platforms, Microsoft Azure,
said by a human, not a machine – at least for
Business analytics can be used in all
the next four or five years, say experts. “How
departments of a business, from customer
Amazon Web Services and Google Cloud, give
to ensure that the algorithm is fair, how to
relations to credit risk scores. One of the best
access to running machine learning models.
make sure the algorithm is really interpretable
examples of data used by software is the
and explainable – that’s still quite far off,” said
analysis of the info publicly displayed by us-
that IoT data will grow exponentially after
Nihar Shah, who teaches machine learning at
ers on social media. The software can identify
the launch of 5G, which is only a year away.
Carnegie Mellon University.
groups of users of a certain service, in telecom
“While the 4G network was closer to the
for example, and can identify the issues
retail customer, 5G will be important for
uses for AI. “The amount of data from the last
they have with the service or the product.
companies, for the different industries that
5,000 years has doubled in the last two years,”
“The program gets to the point where it can
will be able to connect a lot more sensors and
says Dirk Haeussermann, head of platform &
identify the informal leader of the group and
gather more data from each one,” says Pascal
data management MEE at SAP, adding that
recommend a special offer to that person so
Giraud, senior director for Cloud at Oracle
“change is happening fast and it will never be
they brag about the product or service they
EMEA, which also states that all unnecessary
slow again.” The amount of data we have can-
got and turn the groups’ feelings about the
technologies will be rejected by the market,
transform data into instructions. It is not “Ar-
company,” says Baciu, explaining social media
giving the example of RFID technology (radio
tificial General Intelligence”, or “true AI” or
analytics.
frequency identification) that didn’t find
This doesn’t mean that we don’t have any
The possibilities for AI are endless, given
not be analyzed by humans so the need for machines will only grow in the coming years. While common sense and reasoning will still be a problem for machines, problem-solving for specified tasks is underway right now. Mathematical analysis of machine learning algorithms and their performance is a well-defined branch of theoretical computer science often referred to as computational learning theory – or simply as machine learning, a process developing a program able to take certain decisions regarding specified activities. SAS Group representatives refer to this type of AI as “Narrow Artificial Intelligence”, systems that
“real AI”, which is supposed to be the system
Telecom and banking are the main sec-
many uses. Artificial Intelligence is here to stay even
that understands the world like humans do.
tors in Romania where business analytics is
But this kind of AI exists right now only in
already in use, but all businesses will need
if it is not the real AI that we are scared of,
science-fiction movies and there is no near-
this type of AI programs in order to keep pace
the one that can think like a human and take
future in sight. Human brains are not able
with the competition. “Another example of a
decisions in our place. But all repetitive jobs
to do calculations in billions without help or
business analytics program is that, based on
will eventually be taken over by machines
remembering millions of repetitive data, but
patterns from the past, it can predict three
and people will be forced to stay creative in
the calculations that hundreds of billions of
months in advance that a certain client will
order to keep a job. A machine can analyze
neurons do every moment are not equaled by
leave the company, with 90 percent accuracy,”
a million brain tumors and have 90 percent
any machine.
says Baciu.
accuracy in identifying them, while the best
Right now AI machines are covering a
“In the future we will see data generating
doctor in the world has an accuracy rate of 40
niche left open by the human brain. Gathering
applications, while in the past there were
percent, but the complexity of surgery will
and analyzing all the data from the Internet of
apps generating data. Completely new ser-
not be entrusted to machines anytime soon.
Things (IoT) is huge task and getting some-
vices and products will come out of the data
A person who speaks Chinese can understand
thing out of it is of most importance. It is what
we collect and the possibilities are fantastic,”
the written words and interpret the spoken
SAS calls “business analytics”. “Doing nothing
says Haeussermann. Basically, what AI is
language, but for a machine these are two
– this is the main enemy of any business,” says
doing right now is making Big Data usable
different abilities.
www.business-review.eu Business Review | December 2018
42 CONTEMPORARY ART
State of the art: MNAC showcases 60 years of local history For the first time in its 18-year history, the National Museum of Contemporary Art (MNAC) is launching a long-term innovative project looking at Romanian contemporary art history (1947-2007). Business Review went behind the scenes with Calin Dan, director of the museum.
Photo courtesy of MNAC Bucharest
By Oana Vasiliu The idea is simple:
someone has to deal with it. Where contem-
as an institution, we
porary stops, here’s the key. It stops quite far
have to decide the
back to give us time to come back. A contem-
area of activity and
porary art museum is meant to look first and
coverage of MNAC.
foremost at the recent past. And we consid-
Given what’s going
ered 2007 a good closing point because then
on in other museums
the paradigm changed again with entry into
displaying new art,
the EU and in this way we closed a 60-year
20th-century art, it
interval over which we leaned with the tools
seems pretty obvious
of art history research and using the objects
that the post-1947
we have in the collection.
period is not covered by anyone. Since we have works from
What should a visitor expect from Seeing History?
the 40s and 50s, we
The visitor now sees a diachronic display
have decided that
where works are associatively joined and a
our portfolio covers
regular museum-goer can see it. Secondly,
Since you became the director of MNAC, you have been working with artists and curators, exploring a wide array of mediums of creativity. For this incredible exhibition, how do you share these responsibilities and how do you deal with the issue of shared authorship?
from World War II until now, because we also
the visitor is guided strictly by the minimum
have the contemporary in our portfolio. We
information the labels contain. Thirdly,
have to deal with what should have been
the description of the timeline will soon be
resolved before, namely the writing of the
available in English, the resume of the his-
history of Romanian art since the post-war
tory of art 1947-2007. The next step will be a
period. At least one major book on the topic
micro-fiche of the work that is exhibited, of
In art, things are like at any company: people
by Magda Carneci,
meet regularly, exchange information, deter-
but the period is still
mine the next steps, and the overall strategy
missing monographs,
comes from the board of directors or CEO.
thematic books,
It is not a big difference: I came up with the
theoretical analyses.
concept of this exhibition and then, from
We have a consistent
ongoing discussions with my colleagues, we
historiographical fo-
finally managed to give it shape and make it
cus, but it is far from
happen. We undertook research, reading and
sufficient to under-
lecturing, gathering information, restoration,
stand this period.
has been published, Photo: Clara Durán, courtesy of MNAC Bucharest
but also other things more or less spectacular.
The important
Collective curating should not be understood
question is where we
differently from any activity involving a num-
stop, not where we start, because it is obvious
those works that have historical significance
ber of people.
that something happened after the war, the
in the sense that they are representative of an
country was profoundly changing politically,
artist who is clearly representative of a certain
economically and socially with the new re-
period of time, and that work can be mapped
gime and with that the cultural paradigm, so
in a wider context.
What does the Seeing History exhibition seek to investigate?
www.business-review.eu Business Review | December 2018
ADVERTORIAL 43
Environmental policy sets standards in challenging business • Reduce CO2 emissions by 25% before 2025; • Establish, maintain and intensify dialogue with stakeholders and employees to ensure and achieve environment objectives and goals through continuous improvement. Michael Proschek-Hauptmann, Head of Sustainability and Compliance with Holzindustrie Schweighofer, details the company’s environmental policy: “We have decided on very ambitious targets, especially concerning the fields of climate protection and enTake a large, multinational company, whose
consume all and any potential surplus. As a re-
ergy efficiency, because our mills are already
activities could impact the environment.
sult, for example, sawdust and chips are used
equipped with state-of-the-art technology.
to produce ecologic heating materials (pellets
The environmental policy should also have
Add in an increased care for the areas where
and briquettes).
a strong internal effect and should motivate
it runs its business and you get a recipe for a
• Promote a corporate culture in which respon-
our employees to act in line with the goals
brand new environmental policy, which aims
sible use of resource and effective environ-
we have defined.”
at standardising procedures and achieving
mental management are an integral part of
the ultimate goal of protecting the environ-
the economic activities, supporting innovation
All the Group’s production units are slated
ment.
and success;
to be ISO 14001-certified by 2022, with Holz-
• Buy exclusively certified material by 2025 and
industrie Schweighofer Baco in Comanesti
Such an example is Holzindustrie Sch-
publicly report progress against this target
acting as the frontrunner in the matter. The
weighofer, one of the leading companies in
annually (sourcing policy);
blockboard factory was the first in Romania
the wood processing industry in Romania.
• Fully comply with national and international
to obtain the ISO 14001 standard certificate
With more than 2,700 employees in the
environmental requirements with the objec-
back in 2009, while the Group’s newest
country, it runs three sawmills and two
tive of exceeding the requirements, thus mov-
sawmill, Holzindustrie Schweighofer Reci,
panel factories, producing high-quality wood
ing towards a higher level of environmental
received the ISO 14001 certification this
products for industrial customers, both in
protection;
September.
Romania and in over 70 countries worldwide.
• Contribute to protecting biodiversity and actively engage in forest restoration actions;
For more information visit
Efficiency is the name of the game and
• Reduce electrical and thermal energy by 30%
https://www.schweighofer.at/en/responsibility.html
transparency is the means to uphold sound
before 2025;
principles of sustainability, in all aspects of the everyday business. Holzindustrie Schweighofer only sources sustainable wood and makes use of 100% of the valuable resources, in a move of minimising its carbon footprint and capitalise on all of its by-products. The leading wood processing company undertakes to: • Maximise the re-use of side products, by tailoring its production process design to
www.business-review.eu Business Review | December 2018
44 CONTEMPORARY ART
Not Bad: local artist Dan Mihaltianu featured in international Michael Jackson exhibition Romanian Dan Mihaltianu is one of 48 international artists contributing to an exhibition about Michael Jackson’s impact on contemporary art at London’s National Portrait Gallery. Business Review went to London to investigate. By Oana Vasiliu
Captions from Dan Mihaltianu’s performance
O
ne name, one legend: Michael Jack-
100,000 at the Bucharest National Stadium.
son. Nine years since his demise,
Mihaltianu’s installation meditates on the
Jackson’s legacy as a pop culture
Regarding his art, Mihaltianu recalls, as written on the wall of the exhibition: “My interest
remarkably high-capitalist gig that was Jack-
in Michael Jackson … was raised through the
icon is explored in an exhibition at London’s
son at his peak, and the response to him from
preparations for his concert … The entire Ro-
National Portrait Gallery, heading also for
a newly post Communist society.
manian society was impatiently waiting for
Paris, Bonn and Finland. Michael Jackson: On
His work of art is “based on images (por-
the close encounter with the Megastar … only
The Wall features paintings, photographs and
traits of politicians, intellectuals workers,
a few years after the collapse of Communism
sculptures from artists such as pop art pio-
unemployed, street kids, homeless people
and the social, political and economic tur-
neer Andy Warhol, German sculptor Isa Gen-
etc) printed in the Romanian newspapers of
moil that followed. It was the first time that
zken and US photographer David LaChapelle,
the time”.
people would use their freedom to take to the
but also Mihaltianu, with a film of Jackson’s
The installation, Last Days of Michael
streets driven by art and not by the hardships
Dangerous tour concert in Bucharest back in
Jackson in Bucharest (inkjet, pressed card-
of everyday life or the dysfunction of the
1992, representing the onslaught of Western
board, halogen light, 1992-2013), was the only
transition government in power.” The exhibi-
propaganda which arrived in the region after
one using a video of the artist, featuring his
tion is currently available in Paris (France) at
the fall of communism. Jackson performed
performance from the 1992 tour, courtesy of
the Grand Palais from November 23, 2018 to
a sold-out show to an audience of around
MJJ Productions / Sony Music Entertainment.
February 14, 2019.
www.business-review.eu Business Review | December 2018
RESTAURANT REVIEW 45
NEVER TAKE A FRIEND’S ADVICE
I
>>> Grano, 40 Putul Lui Zamfir, 0743 035 074 <<< But what was remarkable was the nerve
have a friend who dines out every
RON 18. Romanian brands of equal quality
night. So I reasoned that he must have
cost no more than RON 3 for an entire liter.
of the House to offer ravioli with truffle
a wealth of restaurants under his belt,
This portent of unashamed greed was to
cream at RON 55. I asked if the truffle was
a far greater number than mine. He raved
manifest itself when we saw our overpriced
fresh, or truffle oil. It was neither. It was
about Grano; to him it was “the best/the
bill.
a concoction straight from a supermarket
most romantic/greatest food, etc”. So I had
Well, can they screw up a simple, stan-
glass jar of truffle ‘something’ mixed with
to bow to his ‘experience’ and check the
dard selection of Italian salami as a starter?
cheap mushrooms. I saw the wretched
place out.
Of course they can. I expected a plateau of
thing with my own eyes, as the House was
salamis, but the greedy House offered two,
selling the jars as a take-away deli dish.
But as I sat in Grano, the awful truth dawned on me: the only reason he dines
yes, a vast selection of TWO choices of slices
out every night is because he can’t cook,
of salami at RON 55. No thanks, House!
and therefore knows nothing about food. Picture me sitting in a restaurant
Since the theme of the place was Italian,
I was still hunting for a good dish, when I threw expense and caution to the wind and ordered a fillet steak (RON 75) in black pepper sauce. It was not a fillet
the House did the usual
recommended to me by a
steak, rather a hard dry
insult to the
gastronomic Neander-
slice of meat of which
cus-
I could not identify
thal.
the cut. A disas-
It is a charm-
ter, with the
ing little place,
black pepper
small and cozy. But a small
sauce being
restaurant
the House
serving small
staple ac-
portions of
companying almost every
food is where
dish of ruc-
small ends,
cola and cherry
for the prices are anything but
tomatoes.
small! My friend told
The only memora-
me it was a Mediterranean chophouse, but naturally he got it
ble dish was another pasta
tomer’s ex-
dressed in a (basil) pesto sauce.
perience by dominating
wrong, as it was yet another, pseudo wan-
the menu with pasta dishes. Here is a news-
It was so simple, it was impossible for the
nabe Italian joint.
flash: Italians do NOT live on pasta, and half
House to screw it up. I enjoyed it.
So my pal phoned me as I perused the
the country avoids it by choosing rice, fish
OK, is there anything good enough to
menu and told me I just had to have the
and meat. Pastas outside Italy are reserved
recommend Grano? There is. The bread
salads. No I didn’t. Everything was based
for ignorant tourists or stupid Bucharest din-
is excellent (of course you will pay for it,
upon ruccola and cherry tomatoes (a nice
ers who think it is de rigueur to eat pasta in
even if you haven’t asked for it) and the
money spinner for the House) and as they
bullshit, so-called Italian restaurants.
staff are an absolute delight. The clientele
were all priced between RON 45-60, they
As for me, after 20 years of eating (and
are the epitome of cool. All aged thirty-
are surely taking the piss out of you. I
regretting) Italian food, here I am suffering
something, casual with nothing to prove.
passed on my favorite – a tuna salad – and
‘pasta fatigue’, and since the mainstay of this
But if the extent of your food ambitions is
priced at a ludicrous RON 50 I expected
House was pasta, I was forced to have the
to eat expensive, average food with all of
fresh tuna. But no, the tuna was straight
stuff. So I had a penne pasta ‘quattro forma-
the ‘Italian’ ingredients being available in
out of a supermarket tin.
ggi’, namely pasta with four cheeses. For
your local supermarket, Grano is the place
my RON 40 I received a tiny, mean little dish
for you.
And while we are talking about ludicrous prices, consider this: Blondie asked
of pasta with the ‘four’ cheeses (were there
for water and was presented with a small
really four?) melted into the pasta. Utterly
bottle of the Pellegrini brand at a whopping
unremarkable.
Michael Barclay Mab.media@dnt.ro
www.business-review.eu Business Review | December 2018
46 CITY
Cultural calendar
By Oana Vasiliu
Madrigal Choir Christmas Concert Dec 8-9, National Museum of Arts (MNAR)
Christmas shopping Bucharest Christmas Market Nov 30 - Dec 26, Piata Constitutiei
No winter holiday would be com-
popular musicals of recent years,
plete without this magnificent
returns to the Bucharest stage.
choir, the Romanian chamber
Not only will you will feel the
and materials can be found here.
choir Madrigal – Marin Constan-
classic ABBA vibe, but you will
Don’t miss it.
tin, who will bring you the spirit
also escape winter as you are pro-
of Christmas. Ticket prices from
jected to a Greek paradise island. The smash-hit musical is a story
Dichisar de Iarna Dec 8-9, Impact Hub
RON 80 to RON 250.
Probably the most eagerly expected Christmas Fair, where
Looking for a place to pick up
cleverly told through the timeless
tradition meets contemporary
some handmade presents? Or
Mamma Mia! Musical Dec 28, Sala Palatului
and takes us on a journey to
just want to see some beautiful
Mamma Mia!, one of the most
from RON 100 to RON 325.
Santa Claus land. Live concerts
designer goodies? This is the
and mulled wine will feature for
place.
sure.
Noblesse Palace Christmas Fair Dec 6-8, Noblesse Palace
Pink Martini concert Dec 1-2, Sala Palatului
Home deco and designers’ magic meet and greet you for an exquisite Christmas present.
Targul Cadourilor de Craciun Dec 7-9, Romexpo
Guess who’s back in town: the
From Christmas decorations
one and only Pink Martini, pre-
to jewelry, cosmetics, toys and
senting their winter repertoire,
many surprises, this is probably
with festive music from all over
the biggest Christmas fair in
the world. Get ready for two
Bucharest.
nights of Ukrainian, French, and Italian carols, winter songs from
Mezanin Market Dec 8, Palatul Universul
Israel, Scotland and Germany,
After inspiration from Romanian
famous White Christmas sung in
designers of all types? An infu-
Japanese! Ticket prices from RON
sion of creativity for both objects
130 to RON 290.
Chinese New Year tunes and the
of love, friendship and identity, songs of ABBA. Tickets prices