Track record of success OJSC Arnest

TRACK RECORD OF SUCCESS

OJSC Arnest is one of the most successful enterprises manufacturing perfumery-cosmetic products and household chemicals in Russia and the countries of the former Soviet Union. Mr Igor Gubenko, marketing director of the company, talks about the fundamental advantages of the business. Vanja Svacko reports.

Three main industrial sites – OJSC Arnest, located in Nevinnomyssk in the Stavropol region, Aerozol Novomoskovsk in the Tula area and Divi in Moscow – are working towards the business goal of developing fully integrated systems for high quality manufacturing. From 1971, when the Nevinnomyssk factory for household chemicals was established, until 1993 when it was transformed into the open joint-stock company Arnest, some new brands were created through major innovations. The hairspray Prelest became the number one beauty product in the Russian cosmetic market. Parallel to it, the newly developed insecticide Dikhlofos opened new marketing horizons for Arnest, securing it a place among the five leading competitors in the field of repellents and insecticides.

One of the most pressing concerns for the modern company is an environmentally relevant approach to the production process. “Our company is actively pursuing an ecological agenda and was the first aerosol producer in Russia to switch to eco-friendly hydrocarbon propellants in 1996,” says Mr Gubenko. In 2004, Arnest was certificated ISO 14001 for complying with environmental policies.

Advanced product range

Today Arnest offers more than 350 different products. There are three main categories: perfumery and cosmetic products in polymeric and aerosol packaging, household chemical goods (different cleaning products, footwear, furniture and car care products) and insecticidal products and repellents as well as antistatic agents. Arnest also produces its own aluminium spray cans, valves and spray caps, as well as aerosol propellants.

Arnest provides a variety of services at every step of manufacturing, storage and distribution, including the quality control of products in its own laboratory, storage of finished products and logistic infrastructure and delivery through its own railway track. In addition, Arnest has a strong sales structure. The company distributes not only its own brands, but also the brands of its partners.

Arnest has always been customer oriented. “Our company keeps up with the times, constantly improving levels of professionalism and taking care of customers and partners,” explains Mr Gubenko. “In 2012 we released a new line of ecological laundry detergents, Garden. This year the line has been enlarged with ecological dishwasher gel concentrate and some other sanitary products. As far as perfumery-cosmetic industry is concerned, we have launched a new winning hair colour product Prelest Professional, which in addition to 100 per cent grey coverage, has a unique innovative feature, a 3D complex that gives hair an extra volume effect. A company like ours cannot keep winning the race by standing still, thus we are constantly developing new products.”

Reliable manufacturing partnership

In 2005 Arnest started signing manufacturing contracts with famous European companies. L’Oreal, Unilever, Schwarzkopf

& Henkel, Procter & Gamble, Oriflame and American air freshener company Sara Lee are just some of the large enterprises that entrusted their production to Arnest. Rexona, Dove, Gliss Kur, Ambi Pur are among many brands manufactured by the Russian company. All partners are offered the full range of services in production, storage and distribution logistics.

In 2010 Arnest was listed among the 300 fastest-developing companies in Russia, with a more than 60 per cent share of the aerosols market and more than a quarter of the styling market. “In 2007 and 2008 we acquired Aerozol-Novomoskovsk (Russia) and the Barony Universal (UK), and in 2011 the Russian brand leader in shoe care Dividik along with its production capacities. 2012 was marked by the acquisition of the Italian factory Alpatec,” says Mr Gubenko. To handle the enlarged production and to fulfil all commitments from the manufacturing contracts, Arnest has implemented programmes of training, education and research, as well as applying contemporary management methods while still adhering to the core values of its business such as responsibility and innovativeness.

Expanding horizons

Speaking about the markets, Mr Gubenko explains that their main market is in the territory of the Russian Federation, with special attention paid to the markets of the former Soviet Union and Europe. “It is always very important to actively explore similar markets but also to be aware of the market competitors,” says Mr Gubenko. Having a long experience in the industry, Arnest understands the importance of innovations and proactive corporate policy in being a successful business. “Our company is not standing still and we are seriously considering expanding to the markets of North and South America, as well as to Asia.”

Mr Gubenko believes that the company’s growth will be a result of the synergy between organic growth and the acquisition of new businesses. The major goals for the future of Arnest are “its active participation in shaping European markets, maintaining its leading position in Russia and rapid expansion into American markets. In order to achieve all this, Arnest will have to keep on offering unique and innovative products.” n

Visit: www.arnest.ru