Dan Trifu, development manager with Vel Pitar, one of the top three players in the bakery industry, says the decision to break up the company into three distinct entities targets the transformation of Vel Pitar branches into independent profit units.
Vel Pitar is going to modify an older break-up project this year in a bid to separate the store network and milling units from bakeries. The company will set up two separate companies that will manage the milling activities and the store unit, while Vel Pitar will only handle the bakery business.
"The two companies that are being formed now are practically the more advanced units that have attained the necessary degree of autonomy to operate independently," states Dan Trifu.
According to Vel Pitar development manager, this process will allow the new companies to make better use of the opportunities the market provides in the domains in which they operate.
"A unit within the group, whose main customer is the group itself, is not using up its strength. When becoming a distinct company the unit is more interested in finding the best customers that can generate growth," says Trifu.
Vel Pitar operates on the milling and bakery market, specialises in the production of biscuits, wafers and pasta and at the same time operates a store and a distribution network.
"In a company with thousands of employees, several tens of million dollars in turnover and plenty of distinct activities, the need to specialise is obvious," says Trifu. He specifies bakery activities weighed more than 65% in turnover last year, while milling and retail accounted for equal shares in the rest.
Following the break-up, the companies that split from Vel Pitar will try and be the most profitable in the domain they operate in, according to Trifu.
"The two companies will retain the name of the group, but will make
