Could you give our readers a brief historical background of your company?
Our company Konsit was originally part of Konstruktiva which was the oldest civil engineering company in the Czech Republic founded in 1929. Now for approximately 10 years we are the private company owned by a group of managers of this company. Before 1989 we were used to execute industrial and civics buildings and- flats but after 1989 this type of investments were very low in the Czech Republic so it was necessary to change these policies and we started to execute other types of buildings especially reconstruction of buildings of historical value. Also industrial buildings especially for foreign investors because Czech investors were not able to finance big projects. During this period we worked for foreign clients at first in 1992, for example Procter & Gamble, later Coca-Cola and other industrial European clients. This is the industrial part of our work. And as for Czech clients and state owned companies we did a very important reconstruction of the historical building of Charles University Karolinum and the Archbishop Palace at Prague Castle. It is a very beautiful baroque palace. One of our other works were - the reconstruction of the terminal of Prague airport- and the new large office building in front of it.
What was the turnover of 1999?
Around 1bil CZK. Six years ago it was only 400 mil. CZK.
In the beginning you were specialized in industrial projects and then you changed and now you are specialized more in historical buildings. How did you manage to do that? It seems like two different construction activities.
We are performing both and it is not so different and difficult. In 1980 only a couple of companies specialized in reconstruction of historical buildings because this type of work was not done here, it was not the type of investments which the previous regime would have liked to do. I think that it is only a question of efficiency of management, not top management but special management such as technical preparator and site manager. Liberalization in building industry in the Czech Republic was successful, unlike heavy industry. The values in our company are not in the property but in the people. We have people who have worked in our company for 20 years. We have always tried not to lose people our valuable people. Two weeks ago owners of the company had a meeting here and realized that all of them started working for this company immediately after leaving university. This is very important and so is our system of work. The organization of the company, the departments, the system of team work and the co-operation between the departments. We are a young company, we are now accepting young engineers after school until the age of 30. We want to work with young people and to influence them we need a new mentality.
Could you give us the main guidelines of your strategy and where do you see the future growth of your company?
Our main strategy is to do all work in the sector of construction with the exception of roads, tunnels and damps. We build factories and all types of buildings. We give instructions to our personnel to fulfill all requirements of our clients. We work with many clients and our people have to fulfill all requirements and adapt to changing conditions and have to have big flexibility. This is a field where we are better than other companies and the other one is that we are avoiding too much bureaucracy. We are optimistic about the future and the last few years have been very successful for us. And for the year 2000 we are hoping for a 10 per cent growth in our turnover and a 5 per cent growth in net profit.
And considering that the recession in the Czech Republic is going to end and the construction sector is like a barometer of the economy. Are you expecting better results in the future years?
We are optimistic about the future as the worst period is over and we are expecting not a fast but a rather gradual growth of the Czech economy. One of the advantages of this recession was that some of our competitors are no longer existing.
How did you manage to survive all the economic difficulties?
Three years ago nearly 40 per cent of our work was for state clients. In 1998 it fell down to 15 per cent. We concentrate our activities on private and especially foreign clients and now we work mostly for them. We moved from 200mil to 500mil CZK of turnover from foreign orders. We were lucky with our foreign clients. After the first contract we got a second or more contract with nearly all of them. Procter & Gamble, Coca-Cola. This was very important for us. We are now working on a second project financed by the European Union.
Are you activities located mainly in Prague or also elsewhere in the Czech Republic?
Mostly in Prague but in the last period we are working on a project which are located near the border - for instance the reconstruction of a really beautiful Metternichs castle Kynzvart which was totally devastated when we started.
| When you are working on a project, are you working on your own or do you co-operate with other companies?
Every company which obtains such contract needs many subcontracts and it is the point that we are good at finding the right companies. Special companies for special work.
The secret of your success is that you are providing the best solutions to any kind of projects because you know the market, you know all the subcontractors and with this you are giving to your partner what he needs.
We are known as a correct company. If you want to invest 100 mil CZK and you have to choose the right contractors.
Nowadays the respect for the environment is more and more important to the customers. Which are the main measures you have taken in order to respect the environment?
We have not had any problems with that, there are strict standards now, how must be the waste liquidated. We are obliged to have documents for all of this without that, it is impossible to finalize the work and deliver it to the client. In the Czech Republic, it has been a big progress in the problems of our environment after 1989. Also in civil engineering you can see a big change after 1989, it really was another world a decade ago and it is incomparable.
You said that you are a middle company. How come that you have contracts with such big companies, Procter &Gamble, Coca-Cola and you had these contracts just after the revolution. How did you manage to build such a good reputation?
At that time we were part of 'big' Konstruktiva holding. This company no longer exists and we are Konstruktiva Konsit. It was the start and three years ago the general manager of Coca-Cola asked our foreign clients. We had excellent references from our previous customers. It is a question of fulfilling special needs of our customers.
Our readers are always interested in new business opportunities. In which areas of your activities are you interested to attract some investments or to attract new partners at the moment?
In Europe and the United States we say that contacts often mean contracts. What is your company going to do in order to encourage the contacts?
It is the main problem of Mr.Vrany, that is what he is thinking about when he can not sleep.
So please tell us about your dreams.
Question of contacts. The big problem is to get the first contract with the companies. The first work is an opening door to the next one. We have had good experience with big clients and it is a question of their trust in us and a question of price, that is all. And we offer a guarantee of bank and they do not have to be afraid of taking any risks.
Having in mind that Prague is one of the beautiful cities in Europe and having seen the work you have done. Your company is very important for the development of Prague. What is the project you are the most proud of?
It is the historical building of Charles University Karolinum and the Archbishop Palace in Prague Castle. Specialists in architecture say it is the top palace of baroque in Prague and in Central Europe.
And in your opinion, what still has to be done in Prague?
A lot of work, and a lot of money is needed for that. And also new buildings. We spent 8 years working on the Prague airport. And because the number of passengers arriving in Prague is increasing, further reconstruction of the terminal will be needed.
What has been your biggest satisfaction since you became the Chairman of the Board of the company?
It is not only one thing, it is the people that make this company, the managers, our team work co-operation is most satisfactory. This company truly is something a man can be proud of.
What would be your final message to our readers?
Come to the Czech Republic to invest and also as tourists. We were waiting for the changes of 1989 for 40 years and we were hoping it will be very nice; many things here are still wrong and we hope that the development will be in the direction that Masaryk wanted and Havel wants. It is a question of time; after 40 years of communism we can not expect miracles in just 10 years. |
KONSTRUKTIVA KONSIT a.s.
