100% production growth in less than two years

Exports always have direct benefits that make it possible to take effective action in supplying foreign raw materials as well as the currency needed by companies, and manufacturing companies can enjoy high security coefficients in securing their financial and commodity resources.

The CEO of Roca Ceram Tile and Ceramic Company, Babian, emphasized that the company focuses on the production of luxury goods in the market:

To this end, we have tried to take superior steps in the field of design and use of the latest digital effects application technology.

Mohammad Khayyat, stating the above, added: “In this regard, we always use original European designs and use our glazes and inks from the best in the world.”

The use of quality raw materials and unique designs has made Roca Ceram products in a high position of competition and is welcomed by architects and designers of the construction industry; This quality issue makes exports a priority. According to Khayat, Roca Ceram is one of the companies affiliated with Khojasteh Industrial and Commercial Holding, which in 1998, which was the first year of the company’s production, recorded an approximate number of 2 million square meters of production, and this year it is projected to reach 3.5 million. Reach square meters. The company has a production capacity of about 4 million square meters, which is one percent of the country’s market share. He said that the company exports 50% of its product to the domestic market and the other 50% to 20 countries around the world, including the United Kingdom, Germany, South Korea, Russia, Bulgaria, United Arab Emirates, Kuwait, Oman. , Qatar, Georgia, the Republic of Azerbaijan and… were mentioned as target markets.

Babian said that the company is consulting with banks in order to provide the necessary facilities for these projects, adding: “For this purpose, foreign exchange investment of about 18.5 million euros is needed, which will be doubled along with the required Rial resources and infrastructure.” Reach the quantity of production and in terms of quality can produce products with different sizes, such as one in 2 meters, which is very rare in the country and is in line with the development goals of the factory.

Regarding the problems in the field of exports, he says: “Over the past two years, the constant change of laws,

especially in the field of customs and banks, has created many problems for the producer, which is beyond the power of economic actors.” This is in a context where these issues must be handled by governments; While this has not happened in the last two years, and in the field of exports, unfortunately, the exporter can not enjoy special support from the government, and even the export awards, which were one of the facilities paid by governments in the past, are almost non-existent today.

The Challenge of Financing Banking issues is another major funding challenge that Rocasram CEO points out.

According to him, due to the embargo, any kind of transfer of money has become a strange story; So that even the

companies that buy it put the money in the suitcase and deliver it to the driver or a third party to deliver to the seller in the company. “Another way is to spend part of the currency needed to buy raw materials,” he said. Therefore, problems in the field of exports have made the economic activist very lonely. This is despite the fact that a few years ago, for example, Turkish-Russian trade relations collapsed and this caused the very good Russian market to get out of the hands of Turkish ceramic tile producers, but after a while, the two countries entered the necessary negotiations and untied the knots. ; To that end, they reduced Russia’s import tariffs so that they could export their products, turning the challenge into an opportunity. However, now the most important market of some of our partners, the Iraqi market, is facing so many problems that the Iranian manufacturer exports its product to this market at the lowest price, so that now the tile with one meter reaches this market while the price is over. This product is at least $ 2.5, and this competitive tool has lost quality production in the long run.

The challenge of supplying imported raw materials He said: “Raw materials also face problems with customs laws.” The bureaucracy of supplying imported raw materials in customs has caused many problems for Iranian producers to supply raw materials; For example, a domestic company has announced that it can produce printing ink, citing this issue and under the pretext of supporting domestic production, the import of this product will be stopped or restricted. However, it is not at all clear that this domestic company can produce the required amount of these raw materials and provide them to the industry, or it is not known in terms of quality that the raw material of domestic production can compete with its imports. According to the tailor, we can not receive any credit in the form of LC, which means that we have to register the required raw material and deposit the money hard to receive the goods after two months; This has turned all activities in the field of raw material imports into pre-purchases. He said that in the domestic market, price instability has intensified in many cases: “Energy carriers or transportation or the constant growth of packaging prices, and all of them have caused the cost price to fluctuate a lot.” The huge volume of daily raw materials consumed by each company and the amount of goods produced and shipped in a situation where the cost of transportation has more than doubled since the beginning of the year, has a special effect on the cost of goods. Meanwhile, although the producer is satisfied with the small profit of production, but these problems have a negative effect on the company’s liquidity and insufficient working capital causes companies to borrow, all of which must be seen as effective in the production process. Lack of network structures, trade union and trade union cooperation and non-compliance with the law has led to impaired labor, financial and legal discipline of individuals, organizations and companies and has financial and economic consequences. “Most companies in this industry provide working capital with credit from banks, which unfortunately have high interest rates, while they pay at least 20% interest rate to the bank in return for a bank loan, and the companies’ profit range is not very high,” he said. Unilateral banks and companies require companies to pay exorbitant costs. Another point is the strict criteria for receiving credit and facilities from banks; Receiving a working capital facility is such that the principal and interest of the loan must be paid or extended in the short term, while to receive any amount of loan, you must pay double the guarantee and collateral, and this makes the factory mortgaged to the bank. This is if in most countries of the world the interest rate does not exceed 4%.

Rocasram Development Programs He added: “Companies that target a specific quality segment of the market as a

market and produce luxury products, invest in specialized manpower, focus on marketing, use new communication tools and most importantly an active and capable research and development unit.” It is inevitable that Roca Ceram has paid attention to it. Also in the market, marketing and export department of Rokasram Company, a detailed plan for developing and launching a new phase of production of various products up to 2 meters in size, focusing on diversifying and upgrading the products of the current production line, using nanotechnology to meet the needs of its customers. It has better and wider digital effects and their combination and creating a more complete and diverse portfolio of luxury products in the new year.