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Fishing and fish farming Positive balance sheet and mild growth - freshwater and marine fishery showing positive trends in business

Vladimir Nešović, Avon Kozmetika Direct sales grew by almost 5%, which confirms people have recognised the advantages and possibilities of improved profits Website connecting people travelling towards the same destinations making more effective use of car sharing



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Croatian Business & Finance Weekly Established in 1953 Monday / 10th September / 2012 Year V / No 0212




pvinternational pv international C R O A T I A N






Exports to the EU dropped by 14.7%; exports to CEFTA countries increased giving Croatia a continuing foreign trade surplus Igor Vukić espite the deep crisis and negative economic indicators, total Croatian exports were only 0.01% lower during the first seven months compared with the same period of 2011. According to data provided by the Croatian Bureau for Statistics, exports totalled €5.5 billion, whilst imports increased by 1.6% to €9.7 billion. Foreign trade deficit for the first seven months stood at €4.2 billion


Shipbuilding influences exports Exports of food and beverages played the most important role in keeping exports at last year’s level, with the sector exporting €0.55 billion, up by 12.9%. Exports of industrial materials, at €1.88 billion, increased by 1.1% compared with 2011. Exports of petrol and lubricants increased by 4.4%, reaching €0.76 billion, and the export of products for broader consumption increased by 4.2%, totalling €0.84 billion. On the other hand, it is obvious that exports have been sorely affected by stagnant shipbuilding. Until a new investment cycle in privatised shipbuilding companies starts, their exports will

suffer a 22% drop. The export of ships totalled €0.53 billion, €0.15 billion less compared with the same period of 2011. The processing industry exports fell by 1.7%, although the wood industry is one activity that is still holding up. Exports of wood products increased by 7.5%, totalling €0.22 billion. Furniture manufacturers achieved even better results with exports increasing by 12.8%, to reach €0.15 billion. Clothing and leather manufacturers in surplus Clothing manufactures saw growth of 6.5%, to €0.24 billion and leather products increased by

7% to €0.16 billion. The pharmaceutical industry increased its exports by 17.3% to €0.23 billion. Metal products also achieved good results, increasing by 8.9% and climbing to €0.28 billion. However, these positive results were cancelled out by the export of ships which decreased by €0.28 billion. Chemicals and chemical products also suffered a hard blow, plummeting by 24.6%, to €0.31 billion. Poorer results were also registered by the export of tobacco products, decreasing by 3.3% to €29.2 million. The crisis in certain Eurozone countries remains to affect the results for Croatian exports. Italy,

the main trade partner, bought 17% less Croatian products and raw materials during this period. Exports totalled €0.82 billion. On the other hand, exports to Austria grew by €87.84 million. A total of €0.39 billion in goods was exported to Austria or 28.8% more. Exports to Germany also increased by 4.2%, reaching €0.59 billion. Whilst exports to the EU dropped by 14.7%, exports to CEFTA countries increased again by 10.5%, and Croatia continues to register foreign trade surplus. A total of €1.12 billion in goods was exported and €0.58 billion imported.


Privredni vjesnik Year V No 212

Goran Blagus, Business Coach

No strength to proceed Focus on oneself to promote change; enjoy the fruits of your success and learn from your mistakes and follow your way My current business environment appears intricate and unattainable. I feel tired, sleepy and although I am aware that I need to, or even want to move on, I simply lack the impetus and willingness to proceed and I need some drive. If I face continuous hurdles, it somehow appears obvious that someone does not wish me to succeed and has deliberately and directly caused the obstacle that I currently need to overcome. To be honest, it’s not fair! Does this sound familiar to you? My interior monologues often encompass similar utterances and are currently widespread amongst entrepreneurs. Nevertheless, similar interior monologues are often accompanied by a set of accusations: such as someone else is to blame for my lack of work, for my outstanding receivables, for my unsettled liabilities, for the situation in the country, to name a few, whereas “someone else” usually has no impact upon similar situations. You alone are responsible for your current situation The sooner you are able to accept this fact, the easier you will find the exit from your blind alley. Focus on yourself and your activities, stop blaming others and your whining and regret. In addition, if you are eager to think of yourself as an entrepreneur, you need to take the initiative to achieve desired goals since this is what entrepreneurship is all about. It may be true to say that most people will feel uncomfortable reading this, yet try to remember any personal or business success you have achieved without havIMPRESSUM: Privredni vjesnik Kačićeva 9 10000 Zagreb +385 1 5600020 subscription

( 77.7 tonnes

sea fish caught and farmed in 2011


Positive ba and mild g

Freshwater and marine fishery showing positive tre demand for certain products, in 2011 fishing and fi Krešimir Sočković

ing invested ample energy, time and effort. I believe there will not be much left to talk about. How does one currently achieve good results? Absolute balance can be achieved primarily by focusing on a feeling of satisfaction and acting in harmony with oneself. Pay more attention to your body, your emotional state and your mental abilities. You, as an entrepreneur, are also a promoter of many diverse projects, which in itself should make you feel satisfied and stable and can be compared to sound foundations of a building. Only the sound foundations of a building are safe and allow the building of fundamental management skills in various areas such as negotiation, trading, delegating and productivity to name a few. Start from yourself as the promoter of change; enjoy the fruits of your success, learn from your mistakes and follow your own way.

FOR PUBLISHER Nikola Baučić +385 1 4846661

IMC MANAGER Dea Olup +385 1 5600028

EDITOR IN CHIEF Darko Buković +385 1 5600003

TRANSLATION Lučana Banek Mirjana Cibulka

EXECUTIVE EDITORS Andrea Marić Vesna Antonić


roatian fishermen have around 130 large-sized vessels, over 18 metres long, that catch fish with seine nets, as well as around 300 trawlers over 12 metres long. During the past years, they caught between 45,000 and 60,000 tonnes of blue fish, mainly sardines and anchovies, as well as around 5,000 tonnes of white fish. However, there have been rumours in fishing circles that there is double the amount of white wish, but that the catch is not reported. Statistics for 2011 show that sea fishing and fish farming grew by 23% in relation to the year before. According to data provided by the Central Bureau for Statistics, 77,729 tonnes of fish was caught and farmed. In relation to the year before, the highest growth was seen in blue fish (38%). Last year, fishermen caught 46,051 tonnes of sardines, 72% more in relation to the year before, while the share of anchovies increased by 5% (14,382 tonnes).


Fewer bivalves Tuna fishing and farming dropped by one third. In 2011, 2,312 tonnes of tuna were farmed and 372 tonnes caught. During the past five years, tuna fishing and farming continued the negative trend. In 2006, 6,700 tonnes of tuna were farmed, and 1,022 tonnes were caught. The catch of cephalopods increased by 14% to 1023 tonnes,

while the catch of crustaceans as well as the catch and farming of molluscs continued to see negative trends. Crustaceans decreased by 7% to a total of 505 tonnes, and caught and farmed of molluscs dropped to 557 tonnes, almost 75% less than in 2010. The fall in production and farming of molluscs was mainly contributed to by the weaker demand after 2007 when the European Union banned the import of live molluscs from Croatia due to an increased quantity of phytotoxins and the mucilage phenomenon. Since molluscs require specific farming conditions and highlevel of sea cleanliness, farming does not benefit from increased tourism or new ferry lines. The development strategy dating from the beginning of the century hrr Business & Finance inan aan nccee W Weekly eekl ee kly kly


( 23%

more compared with the year before

alance sheet growth

nds in business, catch and exports. Despite the low consumption rate, unemployment and weaker sh farming showed the best results for the past couple of years Do we like fish? Judging by the average fish consumption of 9 kilograms per capita, Croatians are not fish lovers. According to statistics, in 2010 7.5 kilograms of freshwater and sea fish was eaten per person. These numbers have been ranging between 7.8 and 6.8 kilograms over the past couple of years. Seafood (molluscs and shellfish) have seen a negative trend since 2007 and consumption has dropped from 1.1 kilograms to 0.7 kilograms. Around 100 grams of dried, smoked and salted fish as well as around 800 grams of canned and processed fish should be added to total consumption. The world average is twice as higher as Croatia (around 17 kilograms), and south Asian countries and Japan consume fish eight times more than Croatia.

had anticipated farming would grow to a level of 10,000 tonnes a year. However, the farming of molluscs has shrunk to almost a tenth since 2006, or from 4,000 to only 420 tonnes a year. More carp and trout Freshwater fish farming actually grew by 1% in 2011 compared with seafish. A total of 6,283 tonnes of freshwater fish was farmed, 24% more in relation to 2010. After years of stagnation, during which production fell to less than 4,500 tonnes a year, last year’s results failed to show promise. The highest increase was registered in carp farming (by 59%), exceeding trout farming in terms of quantity. A total of 2,891 tonnes of carp and 2,489 tonnes of trout were farmed last year. In 2011, the

farming of cyprinids grew by 62% from 617 tonnes, other species by 6% from 104 tonnes. Farming of catfish reduced by 17% (24 tonnes in total), grass carp by 32% (158 tonnes in total) and juvenile fish by 6% (2,555 in total). Last year, the number of carp ponds fell by 5%, to 9,721 hectares, and the number of trout ponds increased by 22%, to six hectares. Employment fall and low salaries At the end of 2010, fisheries and fish processing employed 3,112 workers, which is 6.5% of those employed in agriculture, fisheries and forestry. However, this number is 10% down compared with the year before. Revenue increased by 2% in 2010 in relation to the year be-

fore, reaching €0.21 billion, and a total of 245 companies specialised in this business, 3% more compared with the year before. Those companies specialising in fish processing achieved the best results in 2011, producing 5,251 tonnes of frozen fish, two thirds more compared with 2010. Fish curing and salting dropped by 2% (to 2,893). The production of canned fish reduced by 4% (7,726 tonnes), continuing last year’s negative trend when almost 10,000 tonnes were produced. The average salary was €606 at the beginning of 2012, 17.8% less than the Croatian average and 10.3% below the average in the sector of agriculture, forestry and fisheries. Positive balance sheet A total of 35,041 tonnes of fish and fish products was exported in 2011 (US$168.1 million). In relation to the year before, this is 3% more in terms of quantity and 24% in terms of financial value. The largest export share was held

by fresh or cooled fish (15,066 tonnes or $103.2 million), and in 2011 its exports increased by 2% in quantity, and 42% in financial value compared with the year before. The export of fish products totalled $23.7 million or 4,571 tonnes. In terms of quantity, this result is the same as in 2010. However, it is 7% more in terms of value. During the same period, 33,219 tonnes of fish was imported, which is 19% less compared with the year before. The value of imports totalled $105.6 million or 3% more compared with 2010. The largest share of import consisted of frozen fish, fresh or frozen molluscs and fish fillets. The import of fish products and cans dropped by 17% to 5252 tonnes or by 8% in terms of value (to €2.96 million). Whilst the entire food industry is $835 million in ‘overdraft’ and its import/export ratio is only 63%, fisheries register $62.4 million in positive goods and 160% of import/export ratio.


Privredni vjesnik Year V No 212

( $72 million

Avon operating profit in the first quarter

( with over 80 patents Avon is a leading global company


Saving and additional profit available to everyone During the recession from 2008 to 2010, direct sales grew by almost 5%, which confirms people have recognised the advantages and possibilities of improved profits our model can offer What distinguishes Avon from its competition? What makes Avon unique is the fact we are not exclusively limited to our products and making women look more beautiful. With a lot of pride and sense of responsibility, Avon is committed to empowering women, offering them a chance for a career and to make money. At the same time, the Avon Foundation for Women, the world’s largest corporate foundation dedicated to women, has been fighting breast cancer and domestic violence for over 50 years. I would say our products greatest advantages is quality at a reasonable price with innovation. Avon is actually included amongst top world companies with over 80 patents.

Boris Odorčić von is a beauty company, founded in the USA in 1886. Today, it has become the world’s largest direct seller. It is present in over 100 countries, prints over 600 million catalogues a year and employs over 40,000 people. In Croatia, Avon Kozmetika has been operating since 1997 and has 37 employees. Its products consist of several segments – skincare, personal hygiene, beauty products, perfumes and fashion accessories. Vladimir Nešović, Sales Manager for Avon Kozmetika in Croatia, says that after a positive 2011 and 4% growth, 2012 is the year of transition for Avon’s finances. As one of the goals set for the forthcoming period, he highlights business development, cost management and the ability to generate revenue. Despite a 2% fall in revenue during the first quarter, Avon’s operating profit was $72 million during that period.


What is Avon’s position on the Croatian market? As the largest direct seller in Croatia, we do not have direct competition. Avon is the leader in the make-up products and perfumes, with more room to expand, especially with perfumes. Furthermore, we are anticipating our hair care segment to develop even further. Since our goal is to complete our portfolio, so customers can find everything they are looking for in one place, we are currently launching a new

baby product line Avon Baby. The demand for baby products is actually constantly growing, regardless of the crisis. Could you say elaborate on the direct sales model? Direct selling is an excellent way of saving and earning additional profit, but it also offers an opportunity for independent work. This is a dynamic type of work, offering the possibility of creating contacts and making progress with the minimum investment for starting the business. Direct sell-

ing is considered to be one of the most flexible business methods, with the possibility of working from home and flexible working hours. In Croatia, direct sales had a 20.1% share in total retail in 2010. During the recession, from 2008 to 2010, direct sales grew by almost 5%, which confirms people have recognised the advantages and the possibility of additional profit this model has to offer. Of course, the internet has provided a foundation for further development of this business model.

Are you satisfied with workers in Croatia? Of course; we have a great team and excellent working conditions. Avon is a company that recognises and values talented people, offering them a great opportunity to make progress in the company. It is a true privilege and reward, for women and us, to be part of such a company and to be able to improve the lives of millions of women. Concerning Avon on a global level, I must point out it has the most diversified workforce amongst the largest global companies. Furthermore, over 50% of managerial positions are held by women, which is more than in any other global joint stock company! Business & Finance Weekly


New production lines

Salami from Vrbovec penetrating Europe Three new production lines have created 95 new jobs, increasing the number of employees to 1,750 Drago Živković n 1928 Đuro Predović founded a company in Vrbovec which was subsequently to become PIK Vrbovec. At the beginning of the 1990’s the company was taken over by small shareholders following a redistribution of ownership. Nevertheless, some ten years ago the company suffered substantial losses and was taken over by the state yet again. Seven years ago, the company was sold to the Agrokor conglomerate, which then invested over €0.14 billion in the meat processing industry. Consequently, revenue and production saw a remarkable tenfold increase, from 8,000 tonnes to 75,000 tonnes annually. Several new production lines have been constructed over an area of 350,000 m2 near Vrbovec, with a new factory for long-life salami, one of the most modern factories in Europe. In addition, there is a new slicing and processed meat packaging (the fastest growing segment of the meat processing industry) facility, as well as a new final products warehouse


covering an area of 17,500 m2, an investment of €33.78 million. Production lines are virtually fully automated, the meat being mixed on automated assembly lines and meeting the highest standards of hygiene and finished sausage products are transported robotically. Three new production lines have been added, employing a total of 95 new staff, increasing the number of PIK Vrbovec employees to 1,750. Full production circle PIK Vrbovec is currently the fourth largest meat processing company in Croatia, after Vindija, Dukat and Podravka. Nevertheless, it is the major player in red meat, accounting for 42%

of the red meat market, highlighted the Director, Mate Štetić. Currently, around 90% of production is sold on the domestic market, and the remaining 10% exported mainly to Bosnia and Herzegovina, Italy and Serbia. Štetić believes that the new production lines and the doubled production output of durable salami from 2,500 tonnes to 5,000 tonnes have created the basics for foreign market penetration, which will contribute to increasing revenue towards the goal of achieving a turnover of €0.27 billion in 2012. Expansion of PIK Vrbovec capacity has been directly affected by the recently opened Gradec biogas plant, worth €7.43 million, which has

completed the production cycle, according to Mislav Galić, Executive Vice President of Agrokor. 80% of raw materials come from domestic sources, mostly from Agrokor farms and the remainder from subcontractors. Agrokor will proceed with investment, irrespective of the recession, as announced by Galić. New farms in Belje, worth €20.27 million, as well as Tiska, a new distribution centre worth €16.89 million, have been opened in addition to new facilities in Vrbovec and the biogas plant. Moreover, the construction of a new re-loading grain terminal, worth over €13.5 million at the port in Vukovar, is anticipated in the near term.


5.1% drop In relation to July 2011, the international reserves went up by HRK3.6 billion. In relation to the end of the last year, they increased by almost HRK3 billion or five months now, retail has been registering an annualised decrease. According to preliminary data provided by the Central Bureau for Statistics, during July retail decreased by 5.1% compared with July 2011. In nominal value, it dropped by 2% in relation June, and this is the fourth month that retail has been decreasing nominally. In relation to June, retail increased by


16.9% in real value (+15.2% in nominal value), which is in line with seasonal movements. Retail has been negatively influenced by continuing economic fall during the year, annual unemployment growth as well as stagnation in public lending. Stagnant salaries should also be added, in addition to the high level of consumer pessimism and uncertainty of future income. Furthermore, real available income decreased

as a consequence of higher living costs, partly as a result of the VAT increase, electricity and gas price rises in May as well as a relatively high credit burden. The anticipated positive results of the mid tourist season could balance the decrease in local spending. However, considering global negative trends and moderate spending by foreign tourists, any positive effects will be

limited. Higher unemploym e n t a n d lower employment rate, that started at the end of the second quarter, intensifying even more during the last quarter, does not offer any hope of retail recovery by the end of the year, according to RBA analysts.


Privredni vjesnik Year V No 212




Kuna exchange mid-rate


6,068448 5,981220 7,439486 6,138465 9,377330 5,873216 7,448413




















7.43 3.9.


::: news


5.86 3.9.





6.09 3.9.






€1.2 billion tourism receipts During the first six months of this year, Croatian tourism achieved receipts of €1.2 billion, which is 3.2% more compared with the same period of 2011, according to data provided by the Tax Administration. Accommodation services achieved €0.47 billion or 10% more compared with 2011, travel agencies €0.26 billion (+3.3%) and tour-operators €25.8 million or 23% more during the first six months of this year. Fewer tax debtors In the first month after the list of tax debtors had been published, on 31st August inclusive, 964 tax debtors were deleted from the list, according to data provided by the Tax Administration. They repaid a total of €7.4 million. Some 299 debtors repaid their debts in total (€2.9 million) and were deleted from the list; 665 debtors settled part of their debt (€4.48 million), and were similarly since their debts became lower than the limit that the Tax Administration includes on the list. Medika: higher revenue, lower profit During the first six months of 2012, Medika achieved an income of €0.15 billion, which is 4% more in relation to the same period of 2011. Nett profit totalled €1.2 million, or 2% less compared with 2011. During the first six months of 2012, Medika Group achieved total revenue of €0.15 billion (+5%), with nett profit dropping by 4% to €1.43 million.

5.5% drop in July In 2012 industrial production is anticipated to further decrease year-on-year for the fourth consecutive year of negative trends, according to estimates by RBA analysts egative trends in industrial production continued in July. According to the latest seasonally adjusted data provided by the Croatian Bureau of Statistics, industrial production levels in July have seen a 5.5% year-on-year de-


The number of people employed in industry fell by 4.4% crease, on a par with the previous month, whilst simultaneously the numbers employed in industry dropped by 4.4%. Cumulative data for the period between January and July 2012 showed a 6.1% fall in industrial production compared with the same period last year, due to a substantial fall-off in production

rates during the first six months. According to the Main Industrial Groupings (MIGs), intermediary products have plunged by 17.4%, whilst capital products decreased by 0.1% and non-durable consumer goods dropped by 0.4%. Energy and durable consumer goods have shown 2.8% and 0.7% growth respectively. Increase in investment an imperative According to the National Classification of Activities (NCA), the processing industry saw a year-on-year decrease of 4.6 % in July. Nevertheless, a cumulative decrease of 5.3% year-on-year was due to continuously negative rates. Production of coke and refined petroleum products in July saw a surge of 44.2% year-onyear. However, there was a cumulative decrease of 3.2% over

the first seven months. In addition, metal production continued its substantial decline of 28% in July and also saw a significant drop in employment figures of 30.2%. “Weak domestic demand, negative movements in the European Union and weaker foreign demand have adversely affected industrial production. Simultaneously, the restructuring of individual industrial branches has also had a negative impact on production levels. In 2012, industrial production is anticipated to decrease further year-on-year for the fourth consecutive year and positive movements are not anticipated in 2013. A significant recovery of industrial production is viable following an increase in investment and long-term structural changes”, forecasted RBA analysts. Business & Finance Weekly





More than just a flower Products such as essential oil, scented water, soap, tea and syrup, to name a few, made from lavender with tourists show a great interest in ecological products

The better the quality, the higher the prices This year’s yields will be significantly below average, yet there will be no severe consequences due to our inventory from last year he Destilerija Willijams distillery, located near Požega, is a huge complex which consists of Viljamovka pear plantations covering an area of 7 hectares and plum plantations covering an area of 9 hectares. In addition, there is a production line that includes containers, a filling and a distillation machine. Its high-yielding orchards are 14 years old and are equipped with the most up-to-date irrigation systems. Pear yields from the plantation, which employs three staff, is partially sold for general consumption, and the remainder is used for Viljamovka brandy production. “Brandy quantities are determined by the yield and market conditions. We adapt to market requirements to be able to manage stock successfully. We provide Viljamovka (pear brandy), Šljivovica (plum brandy), apple brandy, cherry brandy, sour cherry brandy, honey brandy and also purchase figs and carobs from Dalmatia to produce fig and carob brandy”, pointed out Zlatko Šimić, Director and co-owner. Fruit brandy varieties produced by the Šimić brothers are well-known in Zagreb and the surrounding market where there are mainly sold.


Demand for affordable quality “We export minor quantities of fruit brandy to around a dozen countries, yet we need to increase quantities. The consumption of brandy on the local mar-

ket is increasing, irrespective of lowered living standards. This year’s yields will be considerably below average due to the adverse effect of spring frosts, yet there will be no severe consequences due to our last year’s inventory “, stated Šimić. He stressed that prices are currently a major issue for producers. There is demand for top quality products at minimum prices. “This is noticeably difficult to achieve, since we produce natural fruit brandy”, he emphasised.

Fruit brandy exports to around a dozen countries The distillery is planning expansion and the construction of a warehouse, a cold storage area, a fermentation plant and a tasting room, following the example of wine producers. In addition, it is planning to refurbish several rooms for accommodation in order to be able to sell between 20% and 30% of products on site. “We believe we can provide attractive and interesting accommodation”, stated Šimić, who has received a large number of awards for his fruit brandy at many international competitions. Viljamovka brandy produced by Destilerija Willijams has been granted the “Originally Croatian” label and its quality has certainly been recognised as it has won several high awards at domestic and international fairs and evaluations. (J.V.)

he farm grows lavandula angustifolia, which is also called lavandula vera or medicinal lavender, often also called ‘mountain lavender’, since most plantations are sited in mountainous areas, from 650m to 750m above sea-level. The idea behind this originated spontaneously, as I have always enjoyed living in the countryside and have been brought up with medicinal herbs, notes Ivanka Petrovski, owner of the Fužine-based OPG Petrovski farm, when talking about the inception of her farm and explaining how she founded her lavender farm and began production of her Mrs Lavender branded products. During her training in aromatherapy prior to starting lavender farming in 2004, she discovered that mountainous areas provide a natural habitat for lavender. As she and her husband liked the area around Rijeka immensely and had already purchased a small plot of land on the slopes of Viševica, they finally opted for Gorski kotar as the most appropriate location.


Absolute commitment fundamental “Absolute commitment and patience are fundamental in this business and for this lifestyle”, pointed out Ivanka Petrovski. Currently the lavender farm covers an area of 3.5 hectares and provides products such as essential oil, scented water, macerate (lavender flowers in olive oil), soap, tea, syrup, liqueur, brandy and biscuits, to name but a few.

Nevertheless, product quantity is noticeably affected by annual yields. The raw material is primarily ecologically grown lavender and hence the products are top quality. Essential oil, scented water and tea will be granted an eco-label in 2013, following a three year monitoring period by an authority on ecological production of similar products. OPG Petrovski farm products are mainly sold to tourists and at fairs, with considerable success. In addition, it is planning to expand its activity to attract tourists to the Gorski kotar region by presenting its natural resources and providing information on the potential of farming various medicinal herbs and fruit.

OPG Petrovski produces top quality products using ecologically grown lavender Currently, tourists have the opportunity to visit the farm where all the work, except during summer lavender harvest, is performed by the family. She does not have high expectations concerning support from the state, yet she added that business activity could be greatly enhanced by reducing excessive bureaucracy. She also pointed out the importance of professional teams that would provide new ideas and assistance in project creation to farmers, craftspeople and small entrepreneurs. (J.F.)

8 ::: news

Ina interested in OMV filling stations It has recently been confirmed that Ina has submitted a binding offer for the acquisition of OMV filling stations in Croatia and in Bosnia and Herzegovina worth an estimated €150 million. OMV is withdrawing from the markets of Croatia and Bosnia and Herzegovina where it owns a total of 91 such stations. According to media allegations, Russian companies Gazpromneft and Zarubezhneft are also interested in the acquisition. JGL exports to Switzerland The pharmaceutical company JGL recorded a 12.4% increase in revenue to €42.97 million, according to their recently published business report. Sales revenue rose by 10%, with exports 13% up, mainly due to exports to Switzerland within contracted production and licensing. Exports have shown an increase of €2.43 million compared with the same period in 2011 and 50% is due to exports to Switzerland. JGL domestic sales rose by 8%, with the highest increase in revenue being recorded in prescription sales.

Cammeo transported 7.3 million passengers Since 2006, when it first appeared on the domestic market, Taxi Cammeo has transported almost 7.3 million passengers. The highest number of passengers, 4.3 million, was recorded in Zagreb, whilst in 2011 the number of passengers was almost 3 million. In addition to Zagreb, Taxi Cammeo transported nearly 900,000 passengers in Osijek and 250,000 in Rijeka, and in Pula, where it has been operating for less than one year, it transported 200,000 passengers. It is anticipating a 15% increase in passenger transport by the end of this year.

Privredni vjesnik Year V No 212


UNCHANGED CONSUMPTION, THICKER WALLET Website connecting people simultaneously travelling towards the same destinations making more effective use of car sharing

Boris Odorčić oney spent on car fuel is an important item in most household budgets. Nevertheless, due to the rising price of ‘black gold’, there is currently an ever increasing number of people who are carefully reconsidering their fuelrelated outgoings. Consequently, car sharing is becoming increasingly popular. There are a large number of cars carrying only the driver and many of them are listed on the website. Goran Kadić, owner and founder of, emphasises that the website connects people simultaneously travelling towards the same destination, which makes more effective use of car sharing. If, for example, one is travelling from Zagreb towards Dubrovnik, they just need to write down the date and time of the journey, the number of free passenger seats in their car and the desired travel companions (e.g. smokers or non-smokers). Subse-


quently other details such as cost and the remaining room for luggage can be agreed upon by email or a telephone call. “In addition to finding travel companions in one’s own car, one can also find information on other drivers with available passenger seats. The entire expense is shared equally by all fellow passengers and they can be fully agreed upon. The expense is usually lower than public transport costs. The idea behind the website originated in the early 1990’s when Kadić spent a considerable amount of time hitch-hiking in Germany. 10 years ago, Kadić created website to practice web programming and it became the most visited portal in Vukovarsko-Srijemska County, irrespective of several technical problems he encountered whilst creating the portal. In addition, in 2003 when was devised, he needed to tackle issues such as slow internet connections and slow data download.

Fewer vehicles on the roads Websites promoting the concept of reduced number of vehicles on the roads and contributing to reducing greenhouse gas emissions currently have around 5,850 registered users and 1,105 users via Facebook. “There are at least twice as many who search similar websites via their mobile phones or email. Users are mainly satisfied, since their wallets become ‘thicker’ rapidly and those who manage to find someone to share their daily journey to work (mainly between Zagreb and Varaždin, Zagreb and Karlovac and Zagreb and its outskirts) express their utmost pleasure”, he pointed out. Nevertheless, is not a unique product in Croatia. In addition, there are Putpodnoge. com and, yet their number of users is far below

PV International 0212  

PV International - The first weekly newsletter covering the Croatian economy as well as that of the wider region, in English