Major Belarusian light industry enterprises told to merge into holding companies

MINSK (BelTA) – It is necessary to create holding companies out of major light industry enterprises. Deputy Prime Minister of Belarus Vladimir Semashko gave the relevant instructions to top officials of the Belarusian light industry concern Bellegprom, the concern's press service told BelTA.

Vladimir Semashko took part in a session of the Bellegprom management board. In his speech he drew attention to the need to retool light industry enterprises. “At present it is vital to make competitive products and those can be made only by retooled enterprises. Those, who don't wait for better times but work to renew their basic assets, follow the path of development,” said the Deputy Prime Minister. In his words, reconstruction and modernization pave the way to conquering the domestic market and foreign ones. “It is also necessary to systematically reduce costs, optimize the manufacturing structure, get rid of mediators, increase the output and expand the product range,” believes Vladimir Semashko.

The Deputy Prime Minister of Belarus noted that today it is necessary to set up holding companies on the basis of major industrial enterprises.

In January-June 2016 Bellegprom enterprises turned out Br8,624 billion (pre-redenomination) worth of merchandise or 102.5% as against the same period of last year in comparable prices. In H1 2016 proceeds from sales totaled Br10,096 billion or 133.6% while profit from sales reached Br1,387 billion or 207.1%.

In January-June 2016 Bellegprom enterprises exported $239.9 million worth of merchandise or 109% as against the same period of last year. CIS countries accounted for 84.2% of the total export, with Russia's share as large as 74.2%. The share of non-CIS states amounted to 15.8%. Export to Ukraine rose considerably to reach $11.6 million (115.4%) in January-June 2016.

In H1 2016 Bellegprom enterprises opened 18 proprietary stores. The proprietary retail chain grows larger by setting up proprietary departments in retail outlets, including by small businesses. A number of Bellegprom enterprises have entered into franchising partnerships (29 retail outlets and eight departments) for the sake of developing the proprietary retail chain.