“Do-it-yourself” market has highest growth ratio

Growth is mainly driven by the expansion of “do-it-yourself” store chains and the development of the construction segment.

“Do-it-yourself” chains have a 30 percent share in terms of overall construction materials market, and their business is expected to exceed €900 million this year, according to companies in the field. The construction market is estimated to some €3.5 billion. However, this share is still low, compared to other countries in the region. Thus, Romania is an attractive market for international players in the field.

Companies such as bauMax and Mr. Bricolage started operations in Romania in 2006, while Hornbach and Tekzen entered the local market this year.

Investment funds are becoming increasingly interested in the construction market. U.S.-based Advent International recently purchased construction materials producer Ceramica Iaºi. The Polish Enterprise Fund acquired aircrete blocks producer Macon Deva, while Sweden-based Oresa Ventures became a shareholder in the paint producer Fabio Corporation.

Praktiker’s growth ratio significantly exceeds the construction market growth, which registered a 29.8 percent increase in the first half of 2007.

This is due to an increasingly popular trend among Romanians to renovate and decorate their homes by themselves, instead of working with specialized companies, because of lower costs in the “do-it-yourself” segment.
This trend has led to a spectacular 50+ percent increase in the business of all players in the ‘do-it-yourself” field.
Ambient, another company in the field, has doubled its business, while Bricostore posted triple turnover year-on-year.

Ratio 
The growth ratio is higher than in other segments. Average annual increases among concrete producers is 25 percent, some 15-20 percent in the steel industry, 15 percent for aircrete blocks producers, the same for the hotel industry, the automobile industry and IT&C, while growth in the oil, gas and energy industry is some 10-15 percent.