INTERVIEW: Ravinder Takkar, recently appointed CEO of Vodafone Romania, tells BR that the focus of the telecom company’s future strategy is on bringing as many Romanians as possible into the digital lifestyle »page 9
ROMANIA’S PREMIER BUSINESS WEEKLY
PROPERTY SUPPLEMENT
JULY 28 - SEPTEMBER 1, 2014 / VOLUME 18, NUMBER 28
APPROXIMATELY 130,000 SQM OF OFFICE SPACE WILL BE DELIVERED THIS YEAR IN BUCHAREST AND REAL ESTATE PUNDITS SAY THAT DEMAND IS ON THE RISE » SEE INSIDE
FDI POSTS TIMID GROWTH FDI to Romania is set to reach EUR 3 billion this year, but poor infrastructure and opaque regulation could reduce the country’s attractiveness, warn economists and investors » page 8 NEWS
PHARMA
Talking strategy
Bitter pill
The EBRD and IMF have visited Bucharest in two separate missions to assess the country’s investment priorities and the state of its public finances
MSD Romania’s sales will fall this year following the delay in updating the reimbursed drugs list, says Fabrizio Giombini, the company’s MD
» page 4
» page 10
www.business-review.eu Business Review | July 28 - September 1, 2014
NEWS 3
NEWS in brief AUTO Operational leasing market grows 12.3 percent in Q2 The local operational leasing market rose by 12.3 percent to over 45,000 units at the end of the second quarter, against the same period of last year, according to data from the Association of Operational Leasing Firms (ASLO). Operational leasing companies registered around 5,400 new cars in the first six months of this year, accounting for over 15 percent of all registrations of cars and light commercial vehicles. The association expects the market to reach 47,000 units by the end of this year.
BANKING Raiffeisen Bank integrates local investment banking arm on group decision Austria’s Raiffeisen Bank International (RBI) has decided to integrate its Romanian investment banking activities, both on the capital market and in the M&A area, into Raiffeisen Bank. The operations are being grouped under a new directorate within the treasury and capital markets division, led by vicepresident James Stewart. The investment banking arm will be coordinated by Dana Mirela Ionescu, the former general manager of Raiffeisen Capital and Investment.
EIB lends EUR 30 mln to BCR Leasing The European Investment Bank (EIB), the lender controlled by EU member states, has granted EUR 30 million to BCR Leasing, a financial leasing firm, which will be used to finance SMEs, midcap companies and public entities in Romania. This is the second tranche of a EUR 75 million loan approved by the EIB, the first tranche of which, EUR 15 million, was disbursed earlier this year. Mihai Tanasescu, EIB vice-president, said that the financing of SMEs and midcap companies was a key objective for the lender in Romania, adding that they represent the engine of growth and job creation. The loan is being granted under the Joint IFI Plan for Growth in Central and South Eastern Europe.
ENERGY
program at its Petrobrazi refinery, which required a EUR 600 million investment. The move will allow the company to process its entire local crude production in one refinery. Following the modernization program, diesel and jet fuel will have a 45 percent share in Petrobrazi’s products yield structure. Diesel production has almost doubled to 1.5 million tonnes.
Hidroelectrica HI gross profit gains 5.5 percent to RON 509 mln over slashed costs Hidroelectrica, the state-owned hydroelectricity producer, said its gross profits had risen by 5.5 percent to RON 509 million (EUR 114 million) in the first half of this year against the same period of 2013, on the back of cost-cutting measures. The producer, which is undergoing judicial reorganization, cut expenses for third-party services by 22 percent, while personnel expenses fell by 13 percent in the first semester. Its bank debt was down to EUR 216 million in June from EUR 841 million two years ago. Hidroelectrica’s revenues fell by RON 110 million (EUR 25 million) to RON 1.49 billion (EUR 335 million) due to the soaring output from renewable producers and lower consumption, which has dragged down the trading price of electricity.
IT Romtelecom works with Cisco to build nationwide 100G network Romtelecom has lit what it claims is the first 100G link in Romania, as part of an investment to modernize its national network using technology from Cisco. This will be the first of multiple 100G connections across the country as the operator increases its network capacity to cope with spiraling bandwidth demand. The new network architecture will be flexible and scalable, reduce network complexity, increase operational efficiency, and allow delivery of a new generation of services, says the operator. The enhancement of Romtelecom’s IP core network began in 2013 and will be finished in 2015.
HUMAN RESOURCES
OMV Petrom modernizes Petrobrazi refinery
CGS opens support center in Targu Jiu, advertises 100 vacancies
Austrian oil major OMV Petrom has completed a four-year modernization
American outsourcing firm CGS has announced the opening of another support
center in Romania, in Targu Jiu. This is the fourth such venue in the country, joining three in Bucharest, Brasov and Sibiu. At first, the US company will employ approximately 100 people in its new facility. The outsourcing firm is currently advertising positions in the HR, administrative, IT and tech support departments. Since the start of this year, CGS has advertised over 350 roles, of which over 150 were in Sibiu, approximately 100 in Brasov, and now approximately 100 in Targu Jiu.
MEDIA Survey: adspend close to EUR 284 mln in H1 Adspend amounted to nearly EUR 284 million (ratecard value) in the first six months of the year, according to the Monitoring of Investments in Advertising, cited by the Romanian Circulation Auditing Bureau (BRAT). The survey analyzed advertising campaigns rolled out through more than 200 national, local and regional publications, eight national radio stations, approximately 3,000 websites, as well as 13 of the biggest OOH companies.Ten sectors of the economy accounted for approximately 65 percent of the total investments in advertising. The line-up of brands that have spent the most on advertising has changed, with Zdrovit and Lidl having supplanted mobile operators Orange and Vodafone. Standard/barter advertising went up by 13 percent while classifieds declined in H1 2014, compared to the same period in 2013.
RETAIL Starbucks opens 8th Bucharest outlet in Novo Park Starbucks will open a 200 sqm branch in Bucharest’s Novo Park this September, Genesis Development, the office project’s developer and owner, has announced. This will be the tenth Starbucks outlet in Romania and the eighth in Bucharest. The lease was brokered by Colliers International. The coffee shop will be located on the ground floor of D building in Novo Park, with direct access from Dimitrie Pompeiu Boulevard. The coffeehouse chain “is in constant expansion in Romania,” added Petko Zahariev, shareholder of the company that recently acquired the Starbucks franchise in Romania. The local franchise was previously owned by Marinopoulos, which opened the first local Starbucks branch in 2007.
WEEK AHEAD August 1 PSD announces presidential candidate PSD will announce its candidate for the presidential elections in November on August 1, according to Victor Ponta’s statements this past month. Health card The Health Ministry will launch the national Health Card. By September, authorities hope that distribution will be completed and, from January 2015, all patients will be required to present the card when accessing medical services. August 5 Political right announces presidential candidate The PNL-PDL joint presidential candidate will be revealed on August 5, according to PDL national leader Vasile Blaga. He says the two parties will run as an electoral alliance in this November's presidential election. August 10 Bucharest Summer University begins This international cultural and academic event, which will take place from 10-24 August, focuses on economic problems and related fields of interest and has as a main objective to promote common academic values. This 10th edition of the international summer school gathers students from all over the world to discuss different topics in the economics field. Together with speakers and professors from top universities and companies around the world, the 55 participants will spend 2 weeks in the campus of the Bucharest University of Economic Studies including one extended week-end exploring particular destinations across the country. More information is available at bsu.ase.ro.
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4 EUR 100 mln resort to be built near Olimp
5 Romania, first in Europe at
International Physics Olympiad
www.business-review.eu Business Review | July 28 - September 1, 2014
4 NEWS COSMETICS
ECONOMY
Ivatherm sales up 18 % in H1
International lenders arrive in Romania
B
I
vatherm sales grew by 18 percent in the first six months of 2014, yearon-year, officials have announced. Last year, the firm has sold almost 200,000 anti-aging dermo-cosmetics products, making it the fourth biggest such company in Romania. Locally, its products are sold exclusively through pharmacy chains, where they are available in more than 1,000 units nationwide, generating almost 70 percent of total sales, and online, via its official website. Currently, online sales generate 5 percent of the total sales volume. “Consumers, both Romanian and those from other markets, spend an average of almost RON 200 (EUR 50)”, says Rucsandra Hurezeanu, founder and general director of Ivatherm. Although the Herculane thermal spring water used in Ivatherm products comes from a saline spring in Romania, research is carried out and the products are made in France. The packaging comes from the UK, Spain, Italy, Greece and Slovenia, with the cardboard element provided by a supplier in Romania. Hurezeanu says that the largest pathology for dermo-cosmetics is acne, followed by seborrhea dermatitis, atopic dermatitis, sensitive skin, xerosis, and anti-aging. However, in Asia and the Middle East, the most popular products are solar and skin whitening treatments. Currently, the company’s products are sold in Egypt (its major international market), Ukraine and Hong Kong, and they will go on sale in Jordan and other regions of China. After participating in international fairs in cities such as Shanghai and Istanbul, discussions are in advanced stages with countries in Asia and the Middle East. On the Romanian dermo-cosmetics market, Ivatherm competes with Avène, Eucerin, La Roche-Posay and Vichy. In a study released by PMR Research Company in June 2013, Romania and Poland were the only two countries found to be sustaining the growth of the cosmetics market, which was evaluated at EUR 8.6 billion for Central Europe. ∫ Oana Vasiliu
Courtesy of presidency.ro
Photo: Mihai Constantineanu
Rucsandra Hurezeanu of Ivatherm
oard members of the European Bank for Reconstruction and Development and delegates from the International Monetary Fund (IMF) have travelled to Romania over the past fortnight on separate missions to discuss the country’s investment requirements and the state of its public finances. IMF experts came to Bucharest to discuss the first budget rectification of this year, according to Agerpres newswire, which quoted official sources. The country has an ongoing EUR 4 billion standby arrangement with the IMF and the European Commission, the executive arm of the EU. The loan deal is linked to a massive reform program that spans various sectors, and includes the privatization of state-owned companies and the deregulation of energy prices. Meanwhile EBRD board members met with President Traian Basescu, Prime Minister Victor Ponta, government ministers, central bank governor Mugur Isarescu, partner banks, and representatives of the private sector and NGOs. The board members were on a four-day mission and were also scheduled to visit Buzau and Ialomita counties, near Bucharest. President Basescu said that Romania needed the EBRD’s expertise in attracting
President Traian Basescu during an official meeting with members of the EBRD board
foreign investments, the food industry, infrastructure, the absorption of EU funds and the energy sector. The visit was part of a consultation process to establish the EBRD’s strategy for Romania for the 2015-2017 period. The group of ten representatives due to arrive in the country included Romanian Virginia Gheorghiu, alternate director for Turkey, Romania, Azerbaijan and the Kyrgyz Republic at the EBRD. The EBRD is the biggest institutional investor in Romania, having put EUR
6.7 billion into the country. The bank recently paid EUR 73 million for an 8.6 percent stake in the privatization of Electrica, the electricity distributor and supplier. The company was listed in July on the Bucharest Stock Exchange (BVB) and the London Stock Exchange, with a free float of 51.2 percent. Electrica raised around EUR 444 million from its listing, making it the biggest initial public offering (IPO) in the history of the BVB. ∫ Ovidiu Posirca
ONLINE
Romania trails rest of EU for broadband penetration, leads for speed
D
espite continuing to make progress in fulfilling the targets of the Digital Agenda for Europe, Romania is still playing catch-up with some telecom indicators, according to a report published by the European Commission on the state of the telecom markets in the 28 EU member states over 2012-2013. Fixed broadband coverage reached 90 percent in Romania. But while fixed broadband penetration increased to 18.9 percent, this is still the lowest rate in the EU and well below the bloc average of 29.9 percent. The number of fixed broadband lines in Romania reached over 3.79 million in January 2014, the ninth most lines in the EU. What Romania lacks in broadband penetration, it makes up for in speed. Fast broadband penetration, of at least 30Mbps, reached 10.5 percent of the country, which is well above the EU average of 6.3 percent. Ultrafast broadband penetration, of at least 100Mbps, reached 4.6 percent, also above the bloc average of 1.6 percent. Mobile broadband coverage reached 99.7 percent, while mobile broadband penetration stood at 40.7 percent, one
Mobile broadband penetration in Romania is one of the lowest in Europe
of the lowest rates in the EU. In January 2014, there were over 8.15 million mobile broadband users in Romania. Three telecom operators in Romania were offering LTE services, as of October 2013, with a focus on urban areas. The RoNET project, which aims to
support the deployment of backhaul networks in ”white areas” of Romania – where broadband is not yet available – which was in an incipient phase for five years, was finally tendered out in December 2013 by the Ministry for Information Society. According to the EC report, in 2011, revenues in the electronic communications sector amounted to EUR 3.65 billion. Investment in the telecom sector decreased by 1.7 percent in 2011 but rebounded by 8.8 percent in 2012. Telecom investment as a proportion of revenue in 2012 stood at 17 percent, above the reported EU average of 13 percent. In 2012, Romania ranked 14th by investment in the sector out of EU member states, amounting to EUR 605 million out of the total EUR 41.9 billion, and came 16th by revenues in the market, which stood at EUR 3.65 billion out of a bloc total of EUR 324.3 billion. The Romanian Digital Agenda Strategy must still be completed by the Ministry for Information Society and will be sent to the commission services for consultation, according to the EC report. ∫ Otilia Haraga
www.business-review.eu Business Review | July 28 - September 1, 2014
NEWS 5 ENERGY
IT
CIT Grup plans to triple turnover ADX Energy to invest up over next three years CIT Grup, a seller of refurbished IT products, is planning to expand its footprint in Romania by opening new offices. Founder and CEO Dan Iliescu tells BR what the refurbished concept is all about and outlines the company’s plans. ∫ OTILIA HARAGA “In Romania, CIT Grup was the first IT distribution company to launch the refurbished concept, but later the term was also used by Microsoft when it introduced Refurbished licenses on the Romanian market,” Iliescu tells BR. He adds, “Unfortunately, in Romania, second hand products are also being sold under the refurbished label. For us, this is a threat, and this is precisely why we are trying to impose our own standard by creating the Refurbished by CIT Grup brand and positioning it as such on the market.” This concept usually involves professional branded products that have already been used or have spent some Refurbished IT products can be time on the shelves. Such products acquired at lower costs typically go through a complex retechnologization process. “Equipment still on the shelves sold Lufthansa, ABN Amro Bank, Fornetti, as new products is at least 20 percent UPC Romania, ProTV and Petrom. The state has also been a client. cheaper. For a previously used model, we are talking about 40 percent sav- “We have delivered several hundred ings on average but in some cases it computers to the Ministry of Finance, could even reach 80 percent, depend- and to schools, universities and the ing on how old the model is and how local administration,” says Iliescu. At the moment, the company’s long it was used for,” Iliescu explains. Companies that have used refur- team numbers 30 people, of whom 15 bished products from CIT Group in- work in sales, where the firm is conclude McDonalds, UniCredit Tiriac stantly recruiting. “We are thinking Bank, Vodafone, Realitatea TV, TVR, about opening new offices across the
country, because the market potential points in this direction. Our target by 2017 is for turnover to exceed EUR 10 million, which would represent a threefold growth compared to 2013,” adds the founder. “Distribution is our main business and we will grow in this direction.” CIT Grup has developed a network of over 3,000 re-sellers throughout the country. “We created a dedicated line for packaging servers, computers, monitors, laptops, points of sale (POS), UPS, printers, and more recently tablets,” says Iliescu. CIT Grup has a warehouse with merchandise stock worth nearly EUR 2 million, and can deliver any product within 24 hours. “Apart from the warehouse, in Timisoara we have a showroom with a surface of 354 sqm and we have planned an expansion of up to 700 sqm, which would make it the largest IT store in the country,” says the CEO. “The demand for PCs and laptops is growing, and the acquisition of servers has stepped up. (…) This growth in demand has made us develop the capacity to deliver on demand a physical stock of 100,000 products, evaluated at several millions of euro.” otilia.haraga@business-review.ro
R&D
South Korea and Romania team up for joint IT research center
T
he South Korean Science Ministry and the Romanian Ministry for Information Society have just opened an information technology research center that will conduct a handful of IT projects in Romania over the next three years, according to representatives of the Korean authorities, quoted by Yonhap News Agency. The two countries will inject USD 1 million each to fund projects at the center, which is based in Bucharest. The facility will map out pilot projects in the IT industry, focusing on the expansion of broadband networks and improvement of public key infrastructure (PKI) and information securities. “Through the establishment of the IT
cooperation center in Romania, we hope the two countries will be able to forge deeper ties in the technology industry,” said the South Korean ministry. According to South Korean officials, Romania has one of the fastest growing IT markets on the back of fully-fledged government support. Technology companies from the East Asian country will also be able to pursue business opportunities through the center. Romania can therefore act as a bridgehead for the firms to tap more deeply into the European market, as they can expand shipments of verified IT solutions to surrounding nations, according to the Yonhap article. In August 2012, Romania and South
Korea signed an IT&C memorandum. The South Korean ministry is planning to open a similar research cooperation center in Colombia in November. The East Asian state has conducted three-year projects in Mexico, Chile, Turkey, South Africa, Bulgaria and Vietnam since 2003. The South Korean ministry has invited the Romanian Ministry for Information Society to the 19th International Telecommunications Union (ITU) Plenipotentiary Conference which will take place in Busan, around 450 kilometers south-east of the capital Seoul, between October 20 and November 7. ∫ Otilia Haraga
to EUR 100 mln in local concession
A
DX Energy has invested several million euros in its Parta concession in western Romania and is ready to lift the sum to EUR 100 million if the explorations show viable hydrocarbon deposits, according to Paul Fink, technical director of the exploration company, which is listed in Australia. The firm started to gather 3D seismic data this winter and will drill an exploration well in the second stage to test any potential discoveries of conventional resources. The concession agreement was ratified by the government in November 2012. ADX Energy said the Parta concession was located in an area with productive oil and gas fields. Aside from the concession, the company has also secured prospecting permits in Romania, allowing it to search for oil and gas, with no obligation from the government to start investments. “Further concessions – of course – are always interesting for us,” Fink told BR. “The investment climate and respective legislation in Romania is encouraging capital investment, the bidding processes for concessions are in line with the European Union regulations and were open, efficient and transparent in the last bidding round.” He added, “It is occasionally only at local level that some people think Romanian state law or European regulations can be completely ignored and that the modern times will never reach their village, except EU agriculture subsidies, of course.” ADX Energy is the operator of the project in western Romania and is responsible for all the safety and environmental aspects, but it has a joint venture with RAG Austria, an oil and gas company that has extensive experience in areas of heavy agricultural use, according to Fink. The oil company is registered in Romania as ADX Panonia and has two offices in Bucharest and Timisoara. Fink said that ADX would like to work with Romanian sub-companies to carry out the local investment. Aside from Romania, the company has secured oil and gas permits in Tunis, in North Africa, and Italy. ∫ Ovidiu Posirca
www.business-review.eu Business Review | July 28 - September 1, 2014
6 WHOS FINANCE
WHO’S NEWS BR welcomes information for Who’s News. Submissions may be edited for length and clarity. Get in touch at simona.bazavan@business-review.ro
Ionut Bordei
Catalin Jaloba
is now business development manager at JLL. He is a member of the Royal Institution of Chartered Surveyors RICS, with more than ten years of experience in the real estate sector. Over time, he has held various roles such as senior valuer, expansion manager, managing director and euro-counselor on EU integration matters. He is a Law graduate, holds a master’s degree in International Law and graduated in 2014 from the EMBA program of the Maastricht School of Management.
Sylvia Kerzbek
formerly marketing and events manager at OBI, has become marketing director for retailer Domo. Before working for OBI, she held the position of head of marketing production department at Kaufland Romania. Kerzbek is a graduate of the Foreign Languages
Faculty at the University of Bucharest. German DIY retailer OBI initiated a process of stock clearance earlier this month, getting ready to make way for the Greek Jumbo, a major global toy seller. OBI, part of Tengelmann, sold its Plus supermarkets at the start of 2010 to Lidl and will exit the local DIY market by the end of August.
Bogdan Neacsu
35, is now vicepresident of Volksbank Romania. With over ten years’ experience in the banking sector, including five in risk management and governance, Neacsu will coordinate the operations of the legal entities business department. The new department will initiate and maintain business relationships with corporate clients and SMEs.
Photo: Mihai Constantineanu
has joined DTZ Echinox as director of the land investment and residential projects development department. He will coordinate a department that will offer consultancy for all the development stages of new residential projects: land buying, construction, marketing and sales. Bordei has over 14 years of experience on the residential market, having worked for 11 years for Eurisko/CBRE and then for three years as managing director at Cordia Futureal Romania, the developer of the Parcul Privighetorilor project. In 2000, Bordei set up Eurisko’s residential department, which he coordinated until 2006, when he became partner, at which point he also started and subsequently developed the land investment and residential projects development department.
Women entrepreneurs increasingly seek local bank financing
Norica Nicolai
will be vicepresident of the Alliance of Liberals and Democrats for Europe (ALDE) group in the European Parliament after the Liberals elected her last week following her nomination by ALDE leader Guy Verhofstadt. Nicolai took the individual decision to stay with the ALDE after her re-election in May on the ticket of the National Liberal Party of Romania, which decided to switch to the European People’s Party, according to Agerpres newswire.
Dan Sandu
45, has been appointed vicepresident of Volksbank Romania. He will be in charge of the business retail department. Sandu has over 22 years of experience in the banking sector, the last 10 of which have been spent in top management positions at lenders such as Citibank, Millennium Bank and Nexte Bank.
Ufuk Tandogan, CEO of Garanti Bank
A
lthough small and mediumsized enterprises in Romania are grappling with high debt levels and limited liquidity, women entrepreneurs have been actively seeking fresh financing sources for their companies. There are 400,000 women entrepreneurs in Romania, accounting for 36 percent of the shareholding structure in Romanian SMEs, said Ana Maria Mihaescu, regional manager at the International Finance Corporation (IFC), a member of the World Bank. In an official ceremony last week, the IFC signed the approval of a EUR 35 million loan to Garanti Bank, out of which EUR 20 million will target SMEs run by women. This was the second loan taken out from the international financial institution. The bank received a financing loan of EUR 22.5 million in early 2012 that was fully used by 160 SMEs active in various sectors. Ufuk Tandogan, the lender’s CEO, pointed out that the 500,000 SMEs in Romania employ around 2.6 million people. He said this was the “most dynamic” business segment in the country. Garanti Bank, which is owned by Turkiye Garanti Bankasi, has 25,000 clients in the SME segment, out of which 2,700 have women as board
members or managers. The bank has seen an average growth of 20 percent in loans provided to SMEs annually since 2010, with its current exposure getting close to EUR 300 million. At the same time, deposits made by SMEs have risen by an average of 42.5 percent yearly. Representatives of Garanti Bank said that the loan volume granted to SMEs managed or owned by women had soared by an annual average of 41 percent in the last four years, while deposits had grown 48 percent. Most of the companies in this segment are active in trade, healthcare and retail. Women entrepreneurs typically took out loans to finance working capital and for investments. Ioana Maria Dumitru, head of commercial & SME banking at Garanti Bank, said that there are 24 SMEs per 1,000 inhabitants in Romania, against an EU average of 41. She said that there is a growth potential both for SMEs and women entrepreneurs in Romania. According to IFC data, women generate 50 percent of household income in more than 50 percent of households globally and start 70 percent of new businesses. Furthermore, 60 percent of annual college graduates are women. ∫ Ovidiu Posirca
www.business-review.eu Business Review | July 28 - September 1, 2014
7
CEO CORNER George Catalin Costache CEO Siemens SRL
Nobody is perfect, but a team can be The football mania of the past couple of months stretched the nerves and emotions of many. Big surprises, champions that didn’t succeed, falling leaders and rising stars. An exciting show repeating itself every four years. The World Cup gave us a good overview of competitiveness, team spirit and results. We’ve all been inspired – I know I have. In the business arena, just as in football, the true test is effectiveness. Sure it’s nice to control the ball with lots of tiki-taka, but, at the end of the game, it is goals that count. You must work hard, play hard and win. Both business and football rely on managing people and teams, be it to win games or customers. As a leader or coach, you have to work with people’s motivation, their discipline, and base your management
on rules and strategies. You have to build a game style that your team can relate to and a vision that members can follow. Every team wants to be the best. No successful com-
pany in history set its goal to be an average company – just as no football team went to the World Cup in Brazil to be average. Everybody is eager to win, and if a great team comes together, it could even be a 7-1 win. However, no matter how good your strategy or how inspiring your vision, you need a team culture that is just as strong. No business, project or World Cup was ever created by one person. You have to convince your top performers that if they work in the interest of the team, both individual and team results will get better. Sharing common goals, team commitment and collaboration are three very important pillars leading to success. In business, just as in football, the leader needs to take a whole system approach, taking advantage of the interdepend-
ency between the team’s members through greater coordination and communication. Nobody is perfect, but a team can be. At the end of the day (or the season), football and business are not only about reaching your goals. It is just as important how you get there. If you want your organization to be sustainable, you can’t win at all costs. There will be unlucky moments and only time will confirm if you are going in the right direction. In business, this happens in every fiscal exercise. In football, you might need to wait another four years.
www.business-review.eu Business Review | July 28 - September 1, 2014
8 FOCUS
Weak infrastructure, unpredictable policy to curb FDI growth Although foreign direct investments (FDI) to Romania rose 13.9 percent to EUR 1 billion in the first five months of this year, economists and foreign investors say the country has to tackle issues such as its poor road infrastructure and sudden changes to regulation to secure FDI on the long term. ∫ OVIDIU POSIRCA FDI to Romania rose to a four-year high of EUR 2.7 billion in 2013, up 26.8 percent on the previous year, when the indicator registered its first growth since the start of the financial crisis.
number of FDI jobs created in Romania in 2013, down 13 percent year-on-year, according to EY’s European Investment Monitor 2014
311 number of FDI projects in Romania implemented between 2009-2013, down by 301 compared to 2004-2008, according to EY’s European Investment Monitor 2014
Radu Craciun BCR chief economist
deterrents to doing business locally. Different 50 km sectors of highways were under construction in June, and the road agency CNADNR carried out tender feasibility studies for another 1,800 kilometers earlier this year, according to business daily Ziarul Financiar. Craciun suggested Ukraine’s pro-EU approach could turn Romanian into a regional center with access to the Ukrainian market. However, Romania would have to compete with Poland, which has better road infrastructure, for this role.
Investors grapple with policymakers’ short-sightedness Foreign investors have mentioned red tape and opaque policymaking as some of the ingrained issues besetting the country, which hinders their ability to make long-term plans locally. “Political stability and predictability are probably the biggest concerns of Austrian investors in Romania. An investment requires long-term planning and calculation. With the frequent changes of government personnel in leading positions, it becomes very difficult for investors to rely on a steady strategy,” Rudolf Lukavsky, commercial counselor at the Austrian Embassy in Bucharest, told BR. He said that Austrian investments in Romania reached close to EUR 11 billion at the end of 2012, making it the second biggest investor in the country, with an 18.5 percent share of the total FDI to Romania. The country is home to over 6,700 companies with registered capital from Austria, which have created over
Courtesy of Austrian Embassy
6,157
Courtesy of BCR
Prime Minister Victor Ponta commented last week that the advance in foreign investments this year proved the “interest and trust” of investors. He added that these were investments made in the real economy, in industry, production and services. In a report also released last week, Garanti Bank projected that FDI to Romania would reach EUR 3 billion in 2014. “We expect FDI to stay in the area of EUR 2-3 billion annually in the coming years for several reasons. First, Europe’s economic growth will remain rather modest compared to the US or emerging markets, which will see more relocations being carried out to markets with high growth rates than Central European countries,” Radu Craciun, chief economist and director of financial markets research at BCR, the biggest lender in Romania by assets, told BR. “Second, the modest pace of the development of Romanian infrastructure is not expected to generate a radical change in the strategy of foreign investors.” The poor infrastructure, mainly the underdeveloped highway network, has been cited by all major foreign investment communities as one of the main
Courtesy of AHK Romania
FDI to stay in EUR 2-3 billion band
Sebastian Metz GM of AHK Romania
100,000 jobs locally. Lukavsky also pointed out that emergency ordinances seem to have become “the instrument of choice for the Romanian government in implementing its policies.”“This makes policies even less predictable. A more parliamentarian approach would help to make the decision-making processes more transparent and predictable. Further, overwhelming bureaucracy is an issue, not unique to Romania, but nonetheless a severe impediment for foreign investors. High rates of black market labor and tax evasion make it difficult for international corporations to compete,” said Lukavsky. Other troublesome areas for foreign investors are the lack of transparency in public tenders, corruption and the judiciary. Sebastian Metz, general manager and member of the board of directors at the German-Romanian Chamber of Commerce and Industry (AHK Romania), said that authorities often lack “professionalism”, adding that they should cooperate more with the private sector. “Unfortunately the essential issue is commonly the different timeframes for planning between the private sector and political decision makers. This is why companies want a line to exist between the relevant economic themes that can be pursued consistently, independent of political coalitions,” Metz told BR. AHK Romania currently has around 530 member companies, making it the biggest bilateral chamber of commerce in the country by the number of members.. Romania has attracted EUR 6.5
Rudolf Lukavsky, commercial counselor at the Austrian Embassy
billion of German investments, making it the third biggest generator of FDI locally. Metz acknowledged that the local authorities have also moved to help the business environment, for instance by approving a new employee inventions law, which should increase Romania’s profile as a destination for research and development (R&D) activities. A survey by professional services firm Deloitte Romania published last week found that 81 percent of participating local companies were planning to increase their expenditure on R&D in the next three to five years. The survey also found that more than half of the respondent companies spend up to 3 percent of their turnover on R&D. According to Deloitte, R&D expenditure in Romania amounts to 0.49 percent of GDP, which is the lowest figure among the 10 CEE countries surveyed. Lukavsky of the Austrian Embassy commented that investors are also looking for skilled labor, and suggested the Austrian dual education system would be a fit. Some technical schools have already emerged in Romania with support from German, Austrian or French companies. Essentially, the dual education system allows students to attend classes while working part time for companies that are mainly active in the industrial sector. Economists say this system has given Germany, for instance, a very low youth unemployment rate (under 8 percent). In Romania, the figure stands at over 20 percent. ovidiu.posirca@business-review.ro
www.business-review.eu Business Review | July 28 - September 1, 2014
INTERVIEW 9
The democratization of the digital lifestyle Ravinder Takkar, recently appointed CEO of Vodafone Romania, tells Business Review how he sees the democratization of the digital lifestyle of local consumers and all-size businesses, its transformational power and achieving simplicity as a key to successful leadership in the telecom industry. cessful. Can m-pesa do it? It can and it is. There are venture capitalists with a lot of money and large companies with access to it. But when you get down to smaller businesses and individual entrepreneurs in rural areas, that doesn’t exist. Our colleagues in Kenya have used this platform to say “I have EUR 500 extra that I can lend to entrepreneurs.” There is no innovation limitation on this platform; it depends on the creativity of those who use it.
∫ ANCA IONITA
CV Ravinder Takkar, 45 • appointed CEO of Vodafone Romania on May 1, 2014 • CEO of Vodafone Partner Markets from January 2012May 2014 • EBU (enterprise business unit) director and strategy director of Vodafone India • group product development manager for Vodafone Live • CTO for Vizzavi • member of Vodafone India and Indus Towers • joined Vodafone in 1994 • management consultant at DMR Group prior to joining Vodafone • has a Bachelor’s Degree in Computer Science from Loyola Marymount University, Los Angeles
tary wanted to pay the salaries of their personnel there on m-pesa. The Afghan government, for example, switched to paying government employees on mpesa; it’s safe and secure in that environment. It doesn’t require a sophisticated device – the cheapest mobile phone is enough. It works on SMS. The service is there for everybody, that’s the beauty of it. How does it actually work? The m-pesa platform is the actual money platform, where people register, get accounts, and transfers are made. It’s a very robust, financial services platform connected to a bank. Since we are not a bank – we don’t have an e-money or banking license – the money itself is with a bank, 100 percent protected. Consumers cannot lose their money. We are an e-money operator licensed by the National Bank, and the bank we are working with here is Raiffeisen. We have to build a distribution network to make the service available to as many people as we can, not only in Vodafone stores and dealers, but in other retail
chains. The whole idea is convenience and confidence: I’m not far away from my money and if I want it back, I can go down the street and get it. The digitalization of companies is the next big challenge for the local business environment. Where would you be in this game? We have a role to play, along with IT firms and the government. We are playing a very central part as the communication and connectivity provider, the starting point for digitalization and improvement of these companies’ infrastructure. There are synergies between us and some IT firms around solutions we can bring together. Other things can happen in infrastructure, such as smartmetering, a project the government can start to energize today. This is why I’m excited about bringing more to enterprises, because there are plenty of opportunities to transform and digitalize businesses. One of the innovations that came from m-pesa in Kenya is a micro-financing platform that runs on the platform – it is very suc-
Photo: Mihai Constantineanu
What is the focus of Vodafone’s future strategy? Bringing as many Romanians into the new digital lifestyle, and that starts by connecting them to the Internet and then helping increase their productivity, which has a direct impact on GDP. There are opportunities to bring innovation to the market, which I’d classify separately. One is around enterprise corporate customers, where we are a market leader. We have done clever things with some enterprise customers, but the key is to scale them up to more organizations, including small businesses, where we can add value and bring more productivity. There are more innovations in the pipeline, certainly in a new area like machine-to-machine, properly known as the Internet of things. We are in the early stages, but those opportunities are transformational for business environments, changing the way some bricksand-mortar firms are run. Eventually they will reach consumers, which is a second focus for us. The third thing is a leap of faith, an experiment. It’s something we’ve had a good history with in other countries and we want to bring to Romania – a step toward financial services. We recently launched a product called m-pesa, which was successful on other markets. On paper, our demographic and social information on Romania seems conducive to such a product. It’s a bit tangential to our core business, but has a nice affinity with our products. It will take time to build. You need to build confidence in the service, consumers need time to understand what are we offering, but even from a regulatory perspective, since it’s a financial service. We are a telecom company, and we have to build regulator confidence that we can provide the service. We are working with them closely as the product is developed. In a place like Kenya, where we launched the service and it’s very popular, we’ve seen creative things, innovations that consumers developed based on our core platform, which, frankly, we were not expecting, such as NGOs using m-pesa for fundraising! This is the kind of innovation I’m talking about. We’ve launched m-pesa in Afghanistan and the US mili-
Do you have plans to launch a TV service in the near future? Connecting people is not enough. Real change starts when people use applications and services. So our vision is to bring people relevant content, whether music, sport or videos, and letting them decide how to use it, as opposed to saying, “I just want to be another TV player.” TV is important in the Romanian market, no question, but the current TV format – predominantly linear, sitting in front of a not very smart TV box – while interesting to consumers, is not that interesting for our business, which is digitalizing people’s lives. If you mix in other devices, tablets, smartphone screens, then it becomes interesting. Is it really TV? I’m not sure. What is your definition of leadership? Everything we do, in a complex world, is about the employees. Hire the best people, thereby creating the best foundation for your business, and then let the machine run, empower employees, give them time, enthusiasm, tools, money, things that they can use to compete on the market. If you don’t do that, it’s difficult to be successful. As a leader you have to take personal responsibility for making sure the environment you are creating is conducive to your business. At Vodafone we have this concept: speed – simplicity – trust. Which is a paradox. How can such a complex business be simple? This is where leadership comes in. Simplicity is the hardest thing to achieve. Exposing complexity is very easy. This is my job, to make complex things simple. Don’t underestimate it! It is hard work, but with huge value. Our customers don’t buy complexity, they buy simplicity. anca.ionita@business-review.ro
www.business-review.eu Business Review | July 28 - September 1, 2014
10 PHARMA
MSD Romania hit by delay to update of reimbursed drugs list Fabrizio Giombini, managing director of innovative drugsmaker MSD Romania, predicts the company’s sales to fall to around RON 390-400 million this year, mainly because no new drugs have been approved for reimbursement on the market. ∫ OVIDIU POSIRCA
CV Fabrizio Giombini January 2014-present managing director, MSD Romania June 2011-January 2014 executive business unit director, primary care, Merck Sharp & Dohme January 2008-2011 regional business director, general management of MSD Italy, key macroregion (Lazio, Abruzzo and Sardinia) Holds an MBA-ISDA, Istituto Superiore Direzione Aziendale, in Rome for competition – on the market before the next generation or next competitor arrives, and we did not have this opportunity here in Romania,” protested the managing director. The Ministry of Health has pointed out that the 17 innovative drugs, which are used to treat rare diseases, were included on the list at the expense of the public budget. Giombini said that the claw back would not include the innovative drugs that are waiting to get on the list, according to a draft that is under discussion with officials at the Ministry of Health. He added that the authorities are also looking into a new methodology for cost-volume agreements. “The methodology is still not clear and is currently being debated. The first point of the Ministry of Health was: Let’s open up the list, but keep the innovative medicines out of the claw back. Let’s see if the authorities keep their promise this time,” said Giombini. “This is something new for Romania. In other countries, for example Italy, it is already in use. You need to grow a
Photo: Mihai Constantineanu
He expects the list of reimbursed drugs to be updated at the end of October, warning that the growing claw back tax cannot alone plug the healthcare system’s funding gap. Giombini came to Romania this winter in a challenging period for the pharmaceuticals sector. The market is facing stagnation this year, following a six-year delay in the approval of new drugs. Having previously spent almost four years in Italy, Giombini has been working for MSD (known in the US and Canada as Merck & Co) for 25 years. “Our sales last year were around RON 420 million. This year they will be below that, and again this shows the difficulties facing the company. In 2014, we expect sales to be around RON 390-400 million. It is very difficult for a company with innovative drugs to grow without getting new drugs on the market,” Giombini told BR in an interview. MSD Romania has a staff of 150, out of whom 100 are medical representatives selling drugs and providing consultancy services to physicians. The MD says he is confident that something will happen “this time” regarding the update of the list, citing as the first concrete step the inclusion of 17 orphan drugs on the list earlier this year. “Looking at what the Ministry of Health is promising today, the plan is to have the new reimbursement list approved at the end of October this year so that in 2015 Romanian patients could have access to new innovative medicines on the market.” MSD Romania has four medicines awaiting the authorities’ approval for inclusion on the reimbursed drugs list. One is a treatment for Hepatitis C, another is in the immunology area, and two are in the diabetes and oncology areas. Giombini commented that the patent on these drugs is not close to expiring, but the company was expecting to launch some of them threefive years ago. “Now, because we have had to wait, the risk is that new or second-generation drugs will arrive on the market at the same time. We do not think this is fair, because we should have been allowed enough time – and this is good
bit and then you can start to give some discounts so that the level of discounts is proportional to the level of future growth. I am not sure the Romanian authorities interpret the costvolume analysis this way, but the good news is that a joint team from the Ministry of Health, the National Health Insurance House (CNAS) and the local industry association are to come up with a common fair and sustainable methodology for the future.”
Claw back places financing burden on pharma industry The managing director pointed out that the public budget for medicines is at the same level as three years ago, which is one of the key issues that the pharma industry has put on the table during discussions with the Ministry of Health. “We believe that we need to increase the budget, because today it is insufficient, and the difference between the budget and consumption is paid by the company – this is the claw back. Today, there is a little bit of concern because the claw back tax is increasing every quarter. We believe
that we need to increase the budget now, at least to the level of current consumption,” said Giombini. He added that the claw back tax stood at 15 percent last year, while in the first half of this year it rose to 21 percent of sales. The MD expects MSD Romania to pay an estimated RON 50-60 million in claw back this year. The claw back mechanism was adopted by the government in late 2009 after the financial crisis had started to bite. The tax was supposed to be temporary but has been changed four times to date and no official announcement has been made regarding its removal, which has been called for by the industry. The claw back tax has been used in other EU countries to curb the excessive consumption of drugs, according to experts. Pharmaceutical companies have also proposed a change to the calculation formula for the claw back to make it more sustainable for firms, according to Giombini. This, along with the review of the budget for pharmaceuticals and the reimbursement of the drugs, is under debate by the pharmaceuticals industry with policymakers, he noted. “The solution will be to find other ways to co-fund healthcare here in Romania. We are open to collaborating with the government in a risksharing kind of approach. Today, everything is on us,” said the managing director.
Potential for clinical studies MSD Romania has a lot of ongoing studies in several areas in Romania, supporting research & development (R&D), according to Giombini. “Romania is becoming more and more interesting in terms of investment in clinical trials because there are very good quality centers, there are a lot of patients here that need new drugs, and again the quality of delivering clinical studies is improving. So Romania, I think, is one of the countries in Central and Eastern Europe with the highest number of clinical trials, at least for MSD. This tells you about MSD’s commitments to the good health of Romanian patients, and we will continue to invest in the future,” said Giombini. ovidiu.posircaa@business-review.ro
www.business-review.eu Business Review | July 28 - September 1, 2014
11
ADVERTORIAL
Ursus Cooler lands Gold Effie for the “Beer and lemonade mix. Only Cooler” launch campaign In July 2014, the Effie Awards, the event that gives recognition to the most effective advertising campaigns in Romania, rewarded once again Ursus Breweries this year. The company received The Gold Effie prize in the Alcoholic Beverages category –Beer with the launch campaign of “Beer and lemonade mix. Only Cooler”/ “Mix de bere și limonadă Ursus Cooler”. The campaign was signed by Graffiti BBDO. Through an integrated campaign “Beer and lemonade mix. Only Cooler”/ “Mix de bere și limonadă. Dar Cooler”, Ursus Cooler launched a new refreshing challenge for the beer lovers by giving them the occasion to enjoy a cooler summer. From revolutionary TV ads which illustrate, in the Ursus brand style, the spectacular bound between beer and lemonade to the Facebook application “Find out how cool you are”/“Află cât de cool ești” or the beach volley championship in Mamaia” Ursus Cooler Master Beach Volleyball”, this new product entered the flavored beer market with a refreshing solution, available also in nonalcoholic version – a first in Romania on the flavored beer market. Thereby, Ursus Cooler, whose success story starts right from its name, associated with a brand with prestige, managed to overcome all expectations by the end of the summer 2013, following an upward evolution in consumer preferences for flavored beer. But Cooler. “The Gold Effie, received for the launch campaign of Ursus Cooler, confirms once again the fact that due to an integrated communication campaign we managed to attract around this product the optimism and joy of life with which we develop the campaigns for the Ursus brand, bringing at the same time a perfect refreshing solution for when you have fun with friends. Furthermore, we are happy that our strategic planning had excellent results, overcoming the initial objectives and has thus proven good management of resources, as well as new communication channels,”said Marian Olteanu, Senior Brand Manager at Ursus. A year later, URSUS Cooler continues its innovation streak, by intro-
The winning team who worked on the launch campaign, on stage to receive the award: Marian Olteanu, Senior Brand Manager Ursus (speaking); (behind, left to right) Vlad Lazar, Creative Director with Graffiti BBDO; Eleodor Ghenoiu, Strategic Planner with Graffiti BBDO; Octavian Toma, Head of Art with Graffiti BBDO
ducing this summer the new special can with cooling sensor which indicates when the beer is at perfect temperature to drink. Thus, Ursus Cooler strengthens its position on the beer mixes segment after a launch awarded with Gold Effie for the most efficient advertising campaign in the beer industry. The launch campaign was developed by the Graffiti BBDO team: Vlad Lazăr, Creative Director; Octavian Toma, Head of Art; Viorel Samoilă, Graphic designer; Alexandru Mălăescu, Art Director; Cristian Scurtu, Copywriter; Eleodor Ghenoiu, Strategic Planner; Roxana Mălăescu, Group Account Director; Delia Arghir, Account Director; Cristiana Plăvicheanu, Senior Account Executive and Liviu Isop, AV Producer, in close collaboration with the Ursus Team: Marian Olteanu, Senior Brand Manager URSUS; Ioana Tănasă, Senior Innovation Manager; Loredana Catană, Brand Activation Manager; Victor Teioșanu, Brand Manager; Alina Martinescu, Junior Brand Manager; Iulia Dobre, Junior Brand Manager and Mihai Bârsan, Vice President of Marketing Ursus Breweries.
About URSUS The attention for an authentic experience brought to the Ursus beer international recognition. Ursus Premium has 24 medals gained at international competitions on 3 continents. It’s the winner of a gold medal in 2008 at the “World Beer Cup” – the most important competition for beer industry worldwide. Ursus Black has been awarded 4 times at European Beer Star in Germany. Ursus Premium gives a unique experience. Due to the formula with 100% malt and 2 types of hop we obtain a beer with gold color, a rich taste, truly of a king’s taste. Ursus Black in turn has its own formula with 3 types of malt: one for the taste, one for the color and one for the flavor. Ursus nonalcoholic offers a beer like taste, thanks to a unique European patented recipe. Ursus Cooler with its 2 types of beer reaches the consumers with a new offer, combining the authentic taste of Ursus Beer with refreshing lemonade which has low alcohol levels. About Ursus Breweries Ursus Breweries, a subsidiary of SABMiller plc group, is one of the biggest
beer producer in Romania. Ursus Breweries brands are: Ursus, Timișoreana, Ciucaș, Peroni Nastro Azzurro, Grolsch, Azuga, Redd’s, Stejar and Pilsner Urquell Ursus contribution to the state budget reached 259 million euro in 2012, representing excises, VAT, social insurance taxes, and other taxes. SABMiller is the world’s second largest brewing company with partnerships with beer manufacturers companies or distribution agreements on 6 continents. The group’s brands include premium international beers like: Grolsch, Miller Genuine Draft, Peroni Nastro Azzurro and Pilsner Urquell and also an exceptional range of local beer brands in leader positions like: Aguila (Columbia), Castle (South Africa), Miller Lite (USA), Snow (China), Victoria Bitter (Australia) and Tyskie (Poland).SABMiller plc is also one of the biggest companies in the world that bottles products like Coca-Cola.
For more information about Ursus Breweries and its programs please visit: www.ursus-breweries.ro and www.desprealcool.ro.
www.business-review.eu Business Review | July 28 - September 1, 2014
12 TOURISM
The beauty beyond Bucharest If you don’t have time to strike out and tour the whole of Romania – don’t despair! Within easy reach of the capital are several special destinations where you can escape the city and wind down – from monasteries and palaces with fascinating histories, crystal-blue lakes and lush greenery to luxury resorts. ∫ OANA VASILIU
Peles Castle 110 km north of Bucharest, Sinaia town, Prahova county; www.peles.ro
Stirbey Palace 20 km north of Bucharest, Buftea town, Ilfov county; www.palatulstirbey.ro The Stirbey Palace complex comprises the palace itself, a wide lawn, church, chapel, summer pavilion, park, water tower and lake. Construction started in 1850 by order of Barbu Dimitrie Stirbei, then prince of Wallachia, but the structure was not completed until 1863, under Alexandru Barbu Stirbei. Gothic elements can be detected both inside and outside the building, but what really impresses is the princely sumptuousness and prestige of the palace. These charms attracted the great and the good: the building was often used to receive the noble guests of Alexandru Stirbei: public figures, cultural and political personalities, scientists and merchants.
Peles Castle was built at the behest of Romania’s King Carol I in 1914, to serve as a summer residence. Since 1953, it has been a national museum, open to the public, while the other estates in the Peles complex were turned into board-
ing houses for writers, artists and musicians approved of by the communist regime, which can now be visited by the public. Peles’s architectural style is a romantically inspired mixture of Neo-Renaissance and Gothic Revival similar to Schloss Neuschwanstein in Bavaria, after Carol I rejected three previous architectural proposals. Saxon influence can be observed in the interior court-
yard facades, which have allegorical hand-painted murals and ornaments in the German style Fachwerk, similar to that seen in northern European alpine architecture. The interior decoration is mostly Baroque influenced, with heavy, carved wood and exquisite fabrics. Peles Castle has a 3,200 sqm floor plan and over 170 rooms, many with themes inspired by world cultures.
Snagov Monastery and Lake 40 km north of Bucharest, Snagov village, Ilfov county; www.snagov.ro Snagov Monastery is located on an island on the far side of Snagov Lake and could only be accessed by boat until recently, when a bridge was built. One hundred years after the church was constructed (1364), Vlad Tepes (the inspiration for the figure of Dracula) added the fortress walls and a dungeon. A plaque on the floor of the church marks the grave that is said to contain the remains of the legendary count.
www.business-review.eu Business Review | July 28 - September 1, 2014
TOURISM 13 Mogosoaia Palace and Lake 14 km north-west of Bucharest, Mogosoaia town, Ilfov county; www.palatebrancovenesti.ro Mogosoaia Palace, which stands on the shores of Mogosoaia Lake, embodies the Brancovenesc architectural style, featuring traditional Romanian staircases, balconies, arcades and columns. Built by Constantin Brancoveanu, the Walachian prince, between 1698 and 1702 as a summer residence for his family, the palace features a beau-
Cantacuzino Castle 130 km north of Bucharest, Busteni town, Prahova county www.cantacuzinocastle.com Built between 1901 and 1911 at the behest of Prince Cantacuzino, and designed by architect Grigore Cerchez, the castle stands out for its large, imposing stone and brick building. With a built area of nearly 3,200 sqm, it is constructed in the neo-Romanian style. Brancovenesc, Byzantine and Celtic influences can also be detected in the building. The castle is composed of a basement, ground floor and first floor with concrete foundations and walls of carved stone. Covered with
tiful Venetian-style loggia on the facade facing the lake and a balcony with intricate Brancovenesc-style carvings overlooking the main courtyard. Today, the palace houses the Brancovenesc Museum, whose exhibits include valuable paintings, wood and stone sculptures, gold and silver embroideries, rare books and precious manuscripts. Inside the complex is a church built in 1688 and decorated by Greek artists. The original interior murals have been well preserved and one includes a depiction of Brancoveanu, his wife, Maria, and their four sons and seven daughters, all in royal dress.
tiles, it has only five bedrooms. Tourists can admire the castle’s original stained glass windows, made by Murano specialists, as well as the original parquet and floor, comprised of Florentine ceramics. The old-time ambience is kept alive by stucco marble, fireplaces fashioned from the stone of Arbesti, Mures county, festooned with polychrome mosaics, large wooden doors with panels into which the coat of arms of the Cantacuzino family is carved, a staircase whose steps are made of Carrara marble and banisters from wood, stone and wrought iron. Only one original chandelier remains in the whole castle, hung in the lobby of honor, which hosts a heraldic collection that is unique in Romania.
Comana National Park 40 km south of Bucharest, Gradistea village, Giurgiu county www.comanaparc.ro Comana National Park is known as Bucharest’s delta for its ecosystems and biodiversity, which are similar to those of the Danube Delta. This protected area is home to several endan-
gered species of flowers and animals on the European red list, which ranks the conservation status of almost 6,000 European species. It offers almost 58 kilometers of bicycle routes, boat rides among the reeds and fishing potential. History buffs and Dracula enthusiasts won’t want to miss Comana’s Monastery, founded by Vlad Tepes. The location has also a beautiful resort, Casa Comana.
Greaca Domain 45 km south of Bucharest, Greaca village, Giurgiu county; www.domeniulgreaca.ro
Cernica Lake 14 km south-east of Bucharest, Ilfov county; www.ilfov.djc.ro The 19th-century orthodox complex of Cernica, on a small island in the middle of Cernica Lake, is one of Ro-
mania’s most idyllic monasteries. Two churches, some chapels, a cemetery, religious art and a typography museum are contained within the complex. The forest and lake are popular with families, offering clean air and a quiet place to spend a day in nature.
This holiday resort provides accommodation in a Neo-Romanian style mansion, and amenities include a restaurant serving Romanian and Mediterranean cuisine, wine cellar and two outdoor pools. Covering an area of 32 hectares, it is located close to the entrance to the village of Greaca. The mansion houses guests in 15 rooms and a suite, with prices starting at EUR 55.
www.business-review.eu Business Review | July 28 - September 1, 2014
14 CITY FILM REVIEW
In Order of Disappearance (Kraftidioten) DEBBIE STOWE Director: Hans Petter Moland Starring: Stellan Skarsgard On at: Cinemateca Union, Elvira Popescu, Grand Cinema Digiplex, Hollywood Multiplex Stellan Skarsgard makes an unlikely Charles Bronson-style vigilante. Known for playing mild-mannered characters (such as his virgin professor in Nymphomaniac), it is in this understated style that he starts out here, as Nils, a Swedish snow-plough driver who has assimilated so well into his adopted Norwegian community that he’s just been made Citizen of the Year. But this Scandinavian hinterland has a darker side. While Nils is being bigged up at a pleasant civic ceremony, his only son Ingvar is meeting his demise at the hands of drugs traffickers who suspect him of ripping them off. The murder is staged to look like a heroin overdose, but Nils disputes the official version, which is swallowed by the inept local police, and resolves to seek vengeance. A tip-off leads him to drug gang flunky Jappe, out of whom Nils beats the name of the next man up before dispatching him. The fledgling vigilante proves equal to the brutal task he has assumed, gradually working his way up the chain of command. At its pinnacle sits cartoonish villain Greven, or the Count as he is known (Pal Sverre Hagen), a playboy mobster who has struck an uneasy truce with a rival Serbian crime syndicate over airport narcotic routes. He, too, has a son. It is not difficult to see where things are heading. In Order of Disappearance is extremely violent, and flinch moments abound. With a running time of close to two hours, and little doubt about the narrative trajectory, it would be tempting to write the movie off early
as another grim slice of Scandinavian slaughterhouse chic, with its penchant for snow-based torture, gruesome killings and child abuse. But don’t – because despite the premise, In Order of Disappearance is hilarious. The title alludes to the film’s custom of acknowledging the death of each character with a black screen indicating the recently departed’s name, birth and death dates and religion. This funereal touch becomes a running joke, particularly when about a dozen deceased have to share the screen after a deadly Mexican standoff. The movie is particularly funny when skewing the foibles of contemporary European life, from co-parenting to politics and immigration. The Count, for example, must balance the demands of running an international drugs ring with those of modern parenting – a bitter custody battle is underway with his ex-wife, with a major point of contention being his son’s breakfast options (you will never have heard the term “Fruit Loops” spat out with such venom – or certainly not in a Norwegian accent). The script nods to Tarantino with several amusing “gangsters do banal chat” scenes, in one of which a Serbian drug trafficker extols the virtues of the Norwegian prison system, which not only offers good food and no rapes, but also free access to dentistry. “Civilized people…” observes the ex-con, without irony. An interesting theory on why cold countries produce the best welfare states is also developed. And it seems that political correctness is an issue among the criminal fraternity too. During pre-crime small talk, a hitman known as “Chinaman” is politely asked, “It must be cold here for a Chinese?” “I’m Danish,” he replies. Visual gags also punctuate the bleak snow-covered landscape: with that toxic combination of lots of money and bad taste, the Count lives
FOUNDING EDITOR Bill Avery PUBLISHER Anca Ionita EDITOR-IN-CHIEF Simona Fodor JOURNALISTS Otilia Haraga - senior journalist, Simona Bazavan, Ovidiu Posirca, Oana Vasiliu COPY EDITOR Debbie Stowe PHOTO EDITOR: Mihai Constantineanu
ISSN No. 1453 - 729X
LAYOUT Beatrice Gheorghiu ART DIRECTOR Alexandru Oriean
Snow joke: comedy and carnage combine in Hans Petter Moland’s Norwegian revenge film, starring Stellan Skarsgard
Blood in a cold climate: Nils tackles a criminal
in a ludicrous minimalist show home that the director mines for laughs. It is this wit that lifts In Order of Disappearance far above generic revenge flicks, and this is beautifully expressed in the final scene, the inevitable one-on-one showdown. That could perhaps have come a little earlier – the repeated bloodshed is wearying, especially in the context of the predictable plot. But overall, the refreshing humor
debbie.stowe@business-review.ro
EXECUTIVE DIRECTOR George Moise SALES & EVENTS DIRECTOR Oana Molodoi SALES & EVENTS Sales managers: Ana-Maria Nedelcu, Oana Albu, Raluca Comanescu MARKETING Ana-Maria Stanca, Ana Maria Andrei, Iulia Mizgan PRODUCTION Dan Mitroi DISTRIBUTION Eugen Musat
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makes this Nordic noir a blackly comic treat. The twangy guitar soundtrack may have the whisper of a Western, but that is not where Kraftidioten’s dark heart lies. (How many Westerns feature a gay kiss?) The blood-on-ice theme has attracted comparisons with the Coen brothers’ Fargo, but director Hans Petter Moland has crafted something far funnier.