Rusmir Hrvić inspired by Bosnia conquers world market

Popular BH actor Enis Bešlagić and director of Klas d.d. Sarajevo Rusmir Hrvić performed an interesting business performance "Inspired by Bosnia" at the first FMCG Summit held in Sarajevo in front of about 400 participants, leading figures in BiH and the region from the food and beverage production, retail chains, distributors, and marketing experts, reports the Patria News Agency.

The audience was delighted by the way Bešlagić conducted the interview with Hrvić about the business operations of AS GROUP, which today employs around 3,000 workers.

In a completely new format and relaxed atmosphere, Hrvić, in his first public appearance, spoke about interesting and previously unknown details about the development of this, today successful, private BH company, which exports its products to 25 countries worldwide.

It all began in 1988 when Sulejman Hrvić, owner of AS GROUP, opened the first store in his house. After the war ended, they opened another store and expanded their business to wholesale with "three employees, my uncle Suljo, his wife Azra, and me".

They worked like that until 2003 when they bought a small facility from a friend from Tešanj where sugar, rice, and coffee were packaged. They increased production volume in a short time and created conditions to bravely enter a new venture just three years later – biscuit production.

I also packaged biscuits

-At that time, biscuits were an imported commodity, and we wanted to offer something domestic to the market. We built a facility, installed new Italian equipment, and created new jobs. I also packaged biscuits. We were doing well, but our main competitor was the Turkish company Kent with production facilities in Visoko. In June 2007, we learned that Kent was for sale. After short negotiations with the Turks, we managed to buy this factory. It was the first case of a domestic company taking over a foreign one, Hrvić said.

Wishing to further develop and create new jobs, the Hrvić family later ventured into the textile industry.

In 2008, they took over Napredak from Tešanj, which was on the verge of bankruptcy at the time. They showed their business skills there too, so today this textile industry employs 360 workers and produces coats and capes for one of the most prestigious world brands.

Acquisition of Vispak

The food industry, however, remained a priority for AS Jelah, so at the end of 2009, the idea of acquiring Vispak from Visoko, which was operating at a loss at the time, was born.

-We bought the first share in February 2010. At that moment, Vispak had as many as 621 shareholders and nine funds. We bought Vispak share by share for nine months, and in December 2010, we took over majority ownership, said Hrvić.

He pointed out that after only a year, Vispak was reborn thanks to innovations and investment in the market. The driving force of Vispak is certainly Zlatna džezva, which is successfully marketed in 22 countries worldwide.

-Last year, more than 2,500 tons of this coffee were sold, which, after BiH, is most consumed in America, and then in Croatia. In Sweden alone, Zlatna džezva is present in more than 1,000 retail outlets, both in so-called ethnic stores and in Swedish national chains, Hrvić stated. 

In just four years, since AS GROUP has been managing Vispak, the company has doubled its revenue, so in 2014, a turnover of around 36 million KM was achieved.

They don't owe the state, salaries are regular

During its 20 years of business, AS GROUP has never owed the state a single mark. Salaries to employees have also never been late for a single day, and all taxes and contributions to employees are paid on the same day as salaries.

Bešlagić himself, in his characteristic way on such occasions, told the audience part of his conversation with the company owner Sulejman Hrvić, asking him once if the state had helped them in their development, to which Sulejman replied: "When we were a small company, the state helped the big ones, and now that we are a big company, the state helps the small ones," which caused applause and delight from the audience.

Water was also bought

In a relaxed atmosphere, Bešlagić and Hrvić recounted how the purchase of part of the textile industry Borac from Travnik came about, when Fortitudo d.d.o. was established.

After lengthy negotiations with the Government of FBiH on resolving the accumulated problems of this enterprise, production started in November 2012.

-At that time, 100 suits were sewn daily, and today it is 650. Thanks to the investment we realized a few months ago, Borac will be able to produce 850 suits per day, Hrvić explained and continued:

After Travnik, they returned to Tešanj again and invested in a water factory. It was their long-standing wish, and they managed to fulfill it in 2013, after arduous negotiations with the then owner.

-We bought shares from 621 Vispak owners in nine months, and it took us several years to agree with Salko to take over Oaza, said Hrvić, causing laughter in the audience.

Oaza immediately started operating at full capacity and winning international awards for quality.

Saving Klas

Just a year later, they entered into the biggest investment – the acquisition of Klas.

-For the first time, we acquired a group, because Klas owns the companies Sprind d.d. Sarajevo, and Mlina i pekare Ljubače. Negotiations with the Selimović family lasted nine months, and during that time AS GROUP was the only candidate for the purchase of this food giant. No one else expressed interest in buying Klas. Klas was on its knees at the time, and it was only a matter of time before it closed its facilities. The jobs of not only Klas workers but also related companies Sprind and MIP Ljubače were at stake. There were no wheat reserves, but 26 wagons of wheat immediately entered Klas with the new owner, in March 2014, Hrvić explained. 

It was precisely that wheat that was a salvation for BiH during the May floods.

Our time is yet to come

-Our time is yet to come. We are sure of that. In that regard, the realization of major regional projects is on the horizon, about which there will be more news soon. However, the story of Bosnia and Herzegovina has not yet been told. We believe that we are not alone in this story. We are convinced that, inspired by Bosnia, all of us together in this country have "material" for the first 100 years. In that sense, we would like to see more BH companies that will, in their own way, tell a successful story about Bosnia and Herzegovina. We are proof that success is possible. This is our chance, and we will not miss it, God willing!, Hrvić concluded.