Djordje Popovic, General Manager for LHC at Henkel Serbia – We want Serbia to have the largest market share within the group

For nearly two decades of its operations in Serbia, Henkel has been recording successful business results. Since the privatization of the former Krusevac-based company Merima, which was founded 180 years ago, Henkel has secured the supply of the European market of over 70 million citizens thanks to its investments in the factories in Krusevac. Their products are exported from Krusevac to 34 countries.

– What I'd like to happen and what we're striving for is to become the first country within the Henkel system when it comes to the market share, though great innovations, excellent local implementation and a successful cooperation with sales partners – Djordje Popovic, General Manager of the Laundry & Home Care sector at Henkel Serbia, says in his interview with eKapija.

Popovic points out for our portal that the management of Henkel is satisfied with the results of operations in the past 17 years in Serbia and that big development goals lie ahead of them, as well as investments in innovations, the carrying out of the strategy of sustainable development and continuous socially responsible activities.

eKapija: This year, Henkel is marking its 17th anniversary in Serbia. When you look back, how would you sum up the past period?

– Since the privatization of Merima Krusevac in 2002, we have been continuously investing in the modernization and upgrade of production processes and technologies and in the expansion of production and storage capacities. When it comes to the Laundry & Home Care sector, we have brought new brands to that market, such as Persil, Bref, Perwoll, Silan, K2r and Clin, while at the same time keeping the domestic ones, such as Merix, Mer and Deciji Sapun.

This year, in which we mark the 180th anniversary of Merima's founding, we have expanded our production capacities for laundry and home care products in Krusevac with an investment exceeding EUR 30 million. We have therefore strengthened this production location, from which we supply markets with over 70 million citizens and where today there are factories of powdered and liquid detergents, toilet fresheners and tablets for dishwashers, as well as a regional logistics center.

eKapija: The investment of Henkel Serbia which marked the previous year was the opening of the Somat factory in Krusevac. How satisfied are you with the factory's operations after a little more than a year?

– Regarding the opening of the Somat factory, it should be said that this is one of the investments we've realized in the past five years, in which we've invested over EUR 90 million and opened three factories and a logistics center. We are satisfied with the result so far, especially as the Somat factory is important not just for the value of the investment, but also for the latest technology, which has brought a whole new product to the market, Somat Gold tablets for dishwashers, with a degradable foil. This kind of Somat tablets is distributed worldwide only from our location, which shows what kind of trust we enjoy within the Henkel system globally.

eKapija: Henkel stands out in the market as a socially responsible company. Which projects and activities are you the most proud of?

– It's important for us to be friend of the surroundings we operate in and that is why we carry out these socially responsible project together with out buyers, consumers, as well as employees and pensioners.

Recently, in cooperation with Delhaize Serbia, we supported the campaign of Red Cross Serbia for the recovery of children with developmental problems and socially vulnerable children, thanks to which they will be able to go on winter vacations and nature trips. Consumers can join this campaign too, as the purchase of any Merix product directly supports the campaign.

As one of the especially important CSR projects, I'd highlight last year's donations of eight syringe pumps to the Institute for Mother and Child Healthcare of Serbia, in cooperation with Lilly Drogerie.

Several years ago, together with the company DIS, we realized a campaign thanks to which we helped maternity wards in several cities of Serbia. To us, the MIT (Make an Impact on Tomorrow) initiative is especially important. It arose from the company's desire to actively take part in the development of the community by supporting projects of social importance. The MIT initiative enables employees to apply projects importance for the local community and to volunteer in their realization.

Since the founding of the MIT initiative in Serbia in 2007, nearly 150 projects, in which EUR 400,000 was invested, have been carried out, all thanks to the efforts of 65 MIT volunteers. The results from the realization of MIT projects made so far put the employees of Henkel Serbia in the 8th spot within the whole Henkel system, which we are very proud of.

eKapija: Henkel Serbia also cares about energy efficiency. To what extent is this an important aspect of the company's operations?

– One of the key values our operations are based on is sustainability. Henkel's Sustainable Development Strategy sets the goal of reducing the ecological print threefold by 2030, while at the same time increasing the efficiency of our operations, products and services three times. Thanks to the modern factories in Serbia, we have made considerable water and energy savings, as well as savings related to the production of waste.

We were the first in Serbia to get the energy efficiency certificate ISO 50.001 and the Gold LEED certificate for leadership in energy design for environmental protection.

From the aspect of the products, we are constantly implementing innovations in both the packaging and the formulation. Our products perform in low temperatures, the packaging is recyclable, and we put special effort into making the products compact. We have launched Persil discs, whose four chambers filled with gel momentarily dissolve in water, releasing their full power during the washing process. The packaging itself does not take a lot of space and can be recycled.

eKapija: We are slowly moving toward the end of 2019. How satisfied are you with the business results in this year?

– For the first time, Henkel Serbia is one of the 10 biggest exporters from Serbia, thanks to the fact that as much as 70% of what is produced in Krusevac factories is meant for export, from where we supply more than 34 countries worldwide. In addition to the investments we've already mentioned, we have also worked on upgrading our brands. I can highlight Persil discs, Bref de Luxe products and the new Merix Aroma Therapy products. The cooperation we are very proud of is the support of Perwoll to the most famous fashion event in the region, Belgrade Fashion Week. We expect to continue with the same practice in late 2019 as well.

eKapija: As the manager of the LHC sector at the company, what is it that you would like to achieve and in what way do you plan to upgrade the company's operations?

– What I would like and what we are striving for every day is to become the first country within the Henkel system when it comes to the market share. We will continue investing in socially responsible operations and carrying out CSR projects with our partners, just as we have done with Delhaize Serbia, Lilly Drogerie, DIS, Red Star Belgrade and others. I would like to emphasize our efforts toward being a magnet for local talents and great young people in Serbia and to continuously invest in the development of our employees through various training courses.

eKapija: Which goals within the business strategy will be the priority in the upcoming period? Can new investments in production be expected?

– We will certainly continue investing in sustainable development. In early 2019, Henkel became one of the founders of the global Alliance to End Plastic Waste and we expect this cooperation to have further influence on our operations in the country as well. We will continue investing in the community we operate in, through various CSR projects. When it comes to the future investment in the production, we try to assert ourselves as a great choice within the Henkel system for investments in innovative products. Our country has a strong human potential, characterized by being innovative, dedicated, quick and resourceful. The geo-strategic position also has a positive influence on decision-making and is an important factor which works in our favor when locations for new production facilities are considered.

eKapija: How do you see Henkel in the next ten years?

– I believe that, in the next ten years, we will meet our strategic goals, and I'd especially like us to be able to say that we've successfully gone through a digital transformation and become even more agile, implementing new trends. I expect that, in addition to the known brands and products, we will offer services as well, such as, for example, the Persil Laundry Service, where, in addition to the products, we would also offer a range of additional services for care and maintenance of clothes. Of course, year after year, we will try to substantially increase the organic growth with the targeted acquisitions.

Sandra Petrovic

Henkel Srbija d.o.o. Beograd

Đorđe Popović

Merima Kruševac

Henkel Kruševac

persil

bref

perwoll

silan

K2r

clin

Somat factory Kruševac

Gold LEED certificate

Persil

Somat tablets

Merix

Bref

CSR projects Henkel

Henkel investments

Henkel operations

export of home care products

export of detergents

production of liquid detergents

production of powdered detergents

production of toilet fresheners

detergents

powdered detergents

liquid detergents

toilet fresheners