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Likonf

Object location: Russia, Lipetsk, Dovatora st.,3a
tel.: (0742) + 77-2652, fax (0742) + 78-3272
Internet site: http://likonf.lipetsk.ru/

Branch / sector: food products
Project start:1998
Completion of the project: 2001

OJSC Lipetskaya confectionary plant «Likonf» is one of the largest regional confectionery product manufacturers. The plant started its activities in 1966.

Starting situation

In the beginning of 1998 a large holding of the company’s shares belonged to the enterprise’s management. At the moment of involvement of “ROEL” specialists and managers the enterprise had significant debts to its suppliers and partners. Salary debt came to 4 months of wages. Capacity utilization was around 20% (200 tons of products per month). Sales volume made up 200 thousand USD per month at maximum. The plant was being forced out of its market positions not only by the confectionary giants “Krasniy Oktiabr”, “Udarnitsa”, “Russia” but also by plants of the same size in Voronezh, Kursk and Tambov. Judging by the financial performance indicators the enterprise was in crisis.

Activity of the mangers of the company and GC «ROEL»

In April 1998 “Lekonf” management and “ROEL” specialists started the project for the full restructuring of the enterprise. As a result of their actions the debts of the plant were completely restructured and working assets were re-financed. Prime cost was reduced, work directed to loan repayments and reduction in wastes had allowed a rapid increase in working assets and an improvement in turnover indicators.

The work directed to improve product quality had allowed a reduction in product defects and returned products, which in its turn led to positive results in the enterprise’s financial performance indicators.
New types of products demanded by the market (caramel) were added to the plant’s assortment which allowed a significant increase in the revenues of the enterprise. The packaging was changed to be more modern and attractive.

Achieved results

Average monthly revenues were increased more than two-fold and made up more than 400 thousand USD.

Today “Lekonf” product is purchased by more than 3,000 retail companies. Half of the product manufactured by the company is delivered to neighboring regions of Chernosemiye and other Russian regions - from Center to the Far East. The plant’s total capacity is 80 thousand tons of confection products annually. More than 250 types of products are now produced on 15 mechanized lines.

In 2001 OJSC “Likonf” was purchased by the largest Ukrainian confectionery manufacturer – the “Roshen” confectionery corporation.

 


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ROEL Group of Companies
Nizhegorodskaya St., 32 Bldg. 15,
109029 Moscow, Russia
Tel.: +7 495 600 49 99,
Fax: + 7 495 600 49 98