13:50, 1 February 2023
YEREVAN, FEBRUARY 1, ARMENPRESS. PROFAL GROUP, the leading Armenian manufacturer of doors and windows with aluminum profiles, as well as glass structures, is doing everything possible to promote the best Armenian experience and high-quality products around the world. The company is expanding its geography of activities and implementing major projects not only in Armenia but also in various corners around the world every year.
We spoke to PROFAL GROUP CEO Edgar Avetisyan about the challenges of the past year, the ways of overcoming them and the company’s achievements and priorities for 2023.
Mr. Avetisyan, how was the year of the 20th anniversary for PROFAL GROUP, what achievements did you record?
After two years of crisis, as a socially responsible company we have a stronger understanding about the importance of consistent and persistent work. This is about the stabilization and development of our country, which every Armenian business understands quite well. That’s why our work in the post-war years was mostly aimed at carrying out new investments, creating jobs and projects, and perfecting the capabilities of our team. I can state that it was a successful year for the company. In 2022, we launched our new megaproject – Օ₂ Gardens, which brought a new culture of landscaping to Armenia. A total of $9,000,000 of investments was made within the framework of the project. Now Օ₂ Gardens is engaged in importing, cultivating and caring of 2000 species of plants, trees and bushes, we offer new approaches of landscaping for interior and exterior, a full package of landscaping design services. As a result, we were able to replenish our team with new employees, increasing the number of our employees to 400 and ensuring 20% growth.
Last year we marked the 20th anniversary of establishment of our company and we announced that from now on we will present ourselves in a status of group of companies. Now, PROFAL GROUP has united PROFAL, PROFAL HOME, Օ₂ Gardens, Օ₂ Café & Bar, ElectriX and the ARGO subsidiary operating in Georgia under one single brand.
The entry into the European market, particularly in France, where we have a long-term project, was an important achievement for us. Together with our French colleagues we will participate in the construction of schools and other buildings of state importance. As you know, we started to export PROFAL production in 2013, the first destination was Saudi Arabia, and since then the geography of exports expanded, encompassing the United States of America, Russia, United Arab Emirates, Georgia, Puerto Rico, the Bermudas, and now also France. Along with the latter we plan several major projects in the United States as well, particularly in New York City. This all further contributes to realizing our mission of promoting Armenian products in the world, through which “Made in Armenia” is being perceived as a new quality standard.
Among our achievements I must definitely mention the nearly 25% growth in output, which is an excellent number for us because in such sectors 5-7% growth is already considered a very good result. We plan to ensure over 25% growth this year as well. This will be possible due to the changes which we began implementing in 2022: modernization of the factory, expansion of the production space and storage facilities and increasing production capacity. We’ve had replenishment with new equipment, a part of which is already acquired while the other part will reach Armenia by the end of January this year. As a result, we will increase aluminum output approximately twice.
It took us three years to integrate the equipment into our system. The new equipment is much safer. Our big goal for the future is to establish a fully automated production, which can become our “know how” not only in Armenia, but in any part of the world.
We spoke about major projects abroad and entry into new market, what challenges do you face on this path?
We are a company that is never afraid and never avoids difficulties, and any new challenge that we overcome makes us and our country more competitive and stronger. While rendering services in the American and European markets you must comply with very high standards of quality, and that process is resource-consuming. Currently we are in the stage of receiving various licenses in the US and France, which takes 6 to 7 months. But even in case of having the license continuous work is needed to carry out the different processes of manufacturing, sale and supply on high level, because there are one or two annual inspections planned by representatives of that countries in our factories. Meaning, the product must be high quality, and the company must meet the defined requirements. This includes the acquisition of raw materials up to bringing the finished goods into the market, obtaining and responding to feedback and so on. Big importance is given to the selection of suppliers and the quality of materials: raw materials must be acquired only from licensed companies, the logistic work with them must be organized correctly and so on.
2022 was also full of difficulties. How did the company withstand the emerging crises, the Russian-Ukrainian war, the dollar and euro depreciation (taking into account exports), and the Azerbaijani invasion into territory of Armenia in September.
Indeed, like I said, the last few years were full of challenges – pandemic, war, the eruption of the Russian-Ukrainian conflict in the beginning of last year, the subsequent related relocation and currency fluctuations, which were a new trial for any business.
Like many others, we too lost a potential major project in that period which was in the stage of negotiations. Of course, such situations are factors suppressing growth, but not once have we withstood and overcome difficulties and challenges, thus we are working to develop a new strategy of development and be guided by it.
Nevertheless, presently we have several major projects on the table. By one of them we will also render a new service, it’s about cladding of buildings, which will become one of PROFAL’s major business directions in a short period of time. I attach great importance to the trend that construction companies are consulting with us over landscaping issues as early as during discussions of the blueprints, where we utilize our experience of Օ₂ Gardens.
Within the framework of the Օ₂ Gardens project you implemented a number of interesting formats last year aimed at the wide circles of the society. What can we expect this year?
Yes, 2022 was important also in terms of organizing various events for our countrymen, the main goal of which is to attach importance and promote green culture. Last spring, on the occasion of women’s holidays we initiated and successfully implemented the Tulip Market, a tulip fair. Over 14,000 tulips of the most various colors were presented in the heart of the capital, in Northern Avenue. It was the first flower fair held in Yerevan, which gave the chance to tulip lovers to tour the area, take photos, pick the flowers with their own hands and take it with them in special packaging.
We got the inspiration to organize the Tulip Market from the annual National Tulip Day events held in the Netherlands.
There was so much interest and admiration from visitors that we decided to make it an annual event and this year we will again give a flower fest to our citizens and present over 50,000 tulips at the fair.
Regarding our new winter format, the Christmas Tree Fest, we implemented it together with our partners and gave a real New Year magic to the children. Hundreds of decorated and illuminated fir trees were presented at Օ₂ Gardens, as well as other unique and creative Christmas Trees created by over 15 Armenian companies. The Christmas Tree Fest is also aspiring to transform into a bigger event, joining more and more partners with every year. I attach importance that instilling love and care for plants among both junior and senior generations is the basis of all our events. I am confident that in 2023 we will continue our dedicated and responsible work with greater excitement.