READY FOR NEW CHALLENGES The SBA Group is one of the largest holding groups in Lithuania, comprising 26 companies operating in the furniture, apparel and other sectors. It operates in Lithuania and beyond, supplying almost 40 countries. Victoria Hattersley talks to Egidijus Valentinavicius, the vice-president of business development, to find out more about the group’s various activities and plans for diversification.
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he SBA Group was established in 1990 at a time when Lithuania was making its first steps as a free market economy. Today, following several strategic developments, it is a major holding company which is active in several business areas, although the largest part of its revenue comes from furniture and clothing. It currently has five furniture factories in the domestic Lithuanian market and two dedicated to the production of clothing. The majority of the group’s product lines are aimed at the mid-range segment of the market, which is where it is planning to stay. Mr Valentinavicius explains: “In both our eastern and western European markets we try to focus on the middle segment. The reason for this is
that we have a great deal of proven experience in this area and our customers know we can offer good value combined with quality.”
Three furniture lines SBA’s furniture business currently contributes most to its turnover, and within this area it operates across three distinct strands. The first of these is production for large retail chains, in particular the Swedish giant Ikea. In fact, at the end of 2012 it will be opening a new production facility in Russia, dedicated solely to producing furniture for Ikea. This will include value-added furniture covered in natural veneer and lacquer, combined with chipboard and solid wood. Also produced here will be flat-pack items of furni-
ture such as cabinets and chests of drawers. Because of this opening of this new facility, SBA expects to see a great deal of growth in this market in the coming years. The second key branch within the furniture production area is SBA’s development of its own product lines under the PARRA brand name. This includes bedroom, diningroom and living room furniture and is mainly sold on the Russian market through franchising agreements or its own retail outlets. The third major line is the development and branding of upholstered furniture, mainly sold throughout western Europe – particularly Germany – and Scandinavia. Mr Valentinavicius tells us: “In this business line, we are expanding