High-profile private companies find niche
HAVING SURVIVED AGAINST ALL THE ODDS, TWO OF SERBIA'S MOST PROMINENT PRIVATE COMPANIES-DELTA HOLDING AND VERANO MOTORS-ARE NOW LOOKING FOR FURTHER BUSINESS OPPORTUNITIES

VERANO MOTORS is the exclusive importer and distributor of all Peugeot products in Serbia. It represents Goodyear, and has established a car hire firm known as VIP.

In spite of the hostile business climate that has prevailed in Serbia for much of the last decade, a number of dynamic private sector companies have still managed to thrive. Carefully planned diversification, flexible and efficient working methods and, above all, the establishment of links with successful partners overseas have helped such companies flourish.
Founded by Miroslav Miskovic in 1991, Delta Holding has expanded to become a highly successful trading group covering a multitude of sectors both in Serbia and abroad.
One of its primary activities is the representation of foreign companies such as American sportswear giants Nike, Italian automobile manufacturers Fiat and Alfa Romeo and a number of other high-profile international brands. Delta is also
involved in import and export of products ranging from fruit and vegetables to household appliances. It has its own banking and insurance divisions. It manufactures chemicals and industrial raw materials and even has its own pulp and paper mill.

Ivana Veselinovic Vice President of Delta Holding

The amazing diversity of activities is a result of the company’s early business experiences explains vice president Ivana Veselinovic.
She says that the company made its name by taking on work that other companies could not manage. “Although it was hard in the early days, we managed to survive and slowly began to increase our business as we built our reputation. We said ‘yes’ and delivered, while others said ‘no’.”
Rapid decision-making, the flexibility of the young staff, and the experienced business hand of Mr. Miskovic, are all highlighted by Ms. Veselinovic as the underlying reasons for the company’s survival and present success. Delta now employs 2,800 people within Serbia and another 5,500 in its operations in other countries such as Russia, Ukraine, Poland and China.

The company is constantly on the look-out for new products and services and prides itself on the quality and dedication of its staff and the support it gives for its own and foreign brands.
Ms. Veselinovic says that the company’s proven track record of success has meant that it has seen its portfolio of clients increase rapidly in recent years. It is now looking to establish further strategic alliances with foreign firms in order to take advantage of likely future opportunities in the Balkan region.
“Generally speaking, the whole world is going through a process of globalization and Delta Holding wants to be a part of it,” says Ms. Veselinovic. “We want to continue being a leading company in the future, but we cannot do this on our own, so we will have to join with a strong partner who is interested in this market.”

Dragoljub Lekic General Manager of Verano Motors

Another dynamic young Serbian-based company that is keen to expand its operations in the Balkan
region is Verano Motors. Founded in Belgrade in 1996, the company is the exclusive importer and distributor of all Peugeot products and has established a dealership network all over Serbia and Montenegro, which brings an overall market share of 12%.
Verano Motors also represents the tire company Goodyear and has established a car hire firm known as VIP, which it owns jointly with the leading soccer club Partizan Belgrade. General Manager Dragoljub Lekic says that he is hoping to expand the relationship with Peugeot in the near future. Plans are underway for the development of a scooter assembly plant. There is even talk of Verano brokering a deal whereby Peugeot would launch a joint venture with Serbian car company Zastava to exploit the largely untapped potential of the automobile market.
Despite its name, the company is not exclusively involved in the automobile sector. Clothing manufacturers Levi’s, Italian fashion company Replay, the Bata shoe brand and electronic giant Sony are also handled by Verano.

Mr. Lekic attributes the company’s success to its flexibility and ability to adapt to changing circumstances. “We have survived because we have managed to switch from one activity to another. We initially moved from textiles to cars and now we are also turning to clothes manufacturing. The opportunities are there because labor costs are low and we can afford to buy new machinery that will help keep us ahead of the competition.”
Although he recognizes that the Serbian government has got a tough job on its hands, Mr. Lekic is optimistic about the future prospects for the republic. “We are now living in a free and open country and everyone is welcome here. This country will pass through the transitional period much faster than other countries in Eastern Europe and I think that we will find our niche in the market very soon.”