Yaroslavl, Russia
www.ruskraski.ru
PRIVATE COMPANY; YEAR ESTABLISHED: 1838
REVENUE: $139 million
MARKETS SERVED: Decorative and building materials; Automotive OEM; Car refinishes; Industrial materials; Powder coatings
KEY EXECUTIVES:
Abramov Valeriy, CEO; Savelyev Phillip, director of economics; Maksimov Leonid, coatings technical director.
With headquarters in Yaroslavl, Russia, Russian Coatings is a subsidiary of Industrial & Investment Group Spektr. Russian Coatings has five key markets: industrial (26.4% of sales); powder (24%); auto refinish (23.4%); architectural coating (23.1%); and automotive OEM (2.3%).
Russian Coatings CEO Valery Abramov said that despite the geopolitical situation, 2023 was relatively successful for Russian Coatings.
“Over the past year the company's enterprises had produced 7% more of coating materials,” Abramov observed. “Sales growth in monetary terms in the national currency increased by 20%, which allowed us not only to raise employees' salaries, but also to pay a bonus at the end of the year. Sales volume in foreign currency decreased by 5.8% due to the increase in exchange rate.
Abramov noted that industrial material sales rose by 18%, car repair by 16%, finishing materials by 26%, and powders by 21%, while some serious decline was observed in the OEM segment.
“The failures can be mainly explained by difficulties in the raw materials supply for the coatings production and the fact that car factories reduced their production and were unable to operate at their full capacity,” Abramov added. “Therefore, by the end of the year it was not possible to fully restore the production volume of coating materials of the previous year, and the sales volumes decreased."
Abramov said that Russian Coatings’ decorative coatings segment increased the production of water-based as well as of solvent-born materials; in result, the total sales volume of finished products amounted to 15,900 tons.
“The drop in household incomes caused the demand decrease for construction and finishing materials and its shift to cheaper segments,” Abramov said. “However, at the same time, we gained 26% increase in product sales. This was facilitated by the search for new methods of working in the market, and new ways of developing our business. Thanks to business diversification, optimization of production processes based on ISO management systems and lean production principles, Russian Coatings creates the platform for launching various projects with minimal costs and with increased process efficiency.”
