The year 2008 was the time for PAVA to set ambitious goals and make concerted efforts towards their achievement. Through a decisive R&D and marketing move the company started a new phase of development.
One of major players on the national flour market, PAVA is an upswing company with wide outlook and its export activity has been thriving ever since it started to look to overseas markets giving higher margins. Last year the company received the status of Best Exporter from Ministry of Economic Development and went the extra mile increasing export shipments in 2008 to 67,114 tonnes (by 78% on the previous year).
It is obvious that the company, employing more than 2,500 people, is set to benefit from growing world demand for food. PAVA’s launch of protein-enriched flour with unique complex of indispensable components was a significant contribution to the world’s food security.
In 2008 PAVA made a crucial strategic choice to restructure its business model from mere flour milling to a vertically integrated holding with expanded agricultural production base. Daughter company Russian Agricultural Division was established with land holdings increasing to over 150,000 ha. Integration of a grain fractionation SPC into structure gave the innovative drive to the project, which has taken a clearer shape as talks with the engineering company entered the closing stage.
What appears truly remarkable is that despite this upsurge of growth, which coincided with global financial downturn, PAVA kept afloat and almost doubled its net earnings in Q3. The company is confident in the chosen strategy and the decision to go for international listing was not affected by drastic changes in the environment.
‘“We are pleased with last year’s results, and I think right now we have all the resources to create a smoothly running holding structure. PAVA is investing in vertical integration, and as far as sales go it is focused on international growth. For every issue we plan to address, opportunities are spectacular “, said Andrey Igoshin, the company President.
