Growth of a global leader EMAK

GROWTH OF A GLOBAL LEADER

The Italian company EMAK is a leading European manufacturer of machinery for maintaining gardens and woodland. With two plants in Italy and another two in China, as well as eight commercial branches distributed between Europe, the US and China, it operates in 95 countries, across five continents and from 25,000 sales points. Ümit Hussein spoke to Giovanni Masini, EMAK’s marketing director, to find out more.

EMAK was established in 1992 following the merger of two companies: OleoMac, founded in 1972 by Ariello Bartoli; and Efco, created in 1978 by Giacomo Ferreti. Oleo-Mac specialised in chainsaws, while Efco excelled in the manufacture of brushcutters during a period when there was an increased demand for these machines. The executive decision to combine the know-how of these two companies to their mutual advantage led to the creation of EMAK.

Today the company has 1000 employees, 400 of whom are in Italy, while the other 600 are distributed throughout its other plants. In 2009 it generated an income of €195 million. Products, sectors and brands

EMAK principally serves the gardening, forestry and small- and medium-scale agricultural sectors. Its customers are home gardeners, semi-professionals and professionals, including contractors, landscape gardeners and farmers. It has a wide range of products which are constantly being renewed. It is particularly renowned for its high quality and innovative lawnmowers in the gardening sector, as well as the brushcutters and chainsaws it produces for the forestry sector. Its key products for the agricultural sector are its rotary tillers, motorcultivators, pumps and mistblowers.

EMAK’s high quality machinery is sold under four different brand names: Oleo-Mac, Efco, Bertolini and Nibbi. Oleo-Mac products are sold to servicing dealers operating in the gardening and forestry business, while Bertolini and Nibbi (for these two trademarks the product portfolio is limited to tillers, cultivators, cutterbar mowers and transporters) are distributed through dealers more focused on small agricultural equipment.

Markets and investment plans

Because of its continuous pursuit of quality, EMAK is present in all of the world’s principal markets. A large proportion of its business is in Italy and Europe, including eastern Europe, namely Russia, Ukraine, the Czech Republic and Poland. Other significant business areas are represented by Latin America and the

Far East. EMAK has now set its sights on conquering the North American market. As far as any major or minor investment plans for the near future are concerned, Mr Masini assured me that his company does indeed have plans for some “very important” investments, but that they are, as yet, “confidential.”

A turning point

When asked if he could name a moment in the company’s history that he regards as a key turning point, Mr Masini replied without hesitation: “When we decided to go to China.” This momentous expansion took place in 2004 and marks a crucial point in the company’s development, as it allowed EMAK to introduce more competitively priced products to its range without compromising its high standards and quality. As a consequence of this enterprising step it was able to penetrate ‘price sensitive’ markets.

Every company has its own formula to which it attributes its success and I was curious to know what Mr Masini considers to be the secret behind EMAK’S triumphs. “Being able to offer continuously new products,” he replied. EMAK launches between eight and ten new products each year “in order to stimulate the demands of the market.” Mr Masini also believes in the importance of controlling the market and creating other structures as a means of establishing control “on a worldwide scale.”

Combating competition

The gardening and forestry sector generates fierce competition and EMAK defends its place in the market against some serious rivals, both national and international. Its principal competitors are the German company Stihl, the Swedish company Husqvarna, and GGP, which is also Italian.

EMAK does, however, have its strategies namely imposing a level of stringent quality in line with that of its more powerful competitors. This is in addition to offering “more competitive prices.”

Socially responsible and ethical

EMAK places both the environment and the wellbeing of its employees at the top of its priorities, on a par with the high standards it demands from its products. For this reason it is 9001, 14001 and SA 8000 certified.

Inevitably, EMAK has been affected by the current global crisis, although the good news is that it has now emerged from the worst of these effects. On a worldwide level its profits were reduced in 2009, but, starting from 2010, it is making a rapid recovery, owing to “very healthy accounts management,” indicating that EMAK will continue to be a key player on the world market for many years to come. n