Alexei Ermurache: How to develop a successful business for the production of metal goods in 3 years | Microinvest

The Ermurache family is engaged in the production of metal goods in the south of Moldova, in the Causeni district. It founded the Fier-Art-Prim SRL in 2018 and began by producing metal reindeer figures for the winter holidays. This year’s sales amounted to almost MDL 2.0 million. The head of the company, Alexei Ermurache, told us how he managed to develop a successful business for the production of metal goods in three years.

According to Alexei Ermurache, the idea for the business belongs to his son Nicholai.

“My son Nicholai has been working abroad for many years in different cities. In 2018, he came back home and said that he really likes the figures that decorate cities for winter holidays and he wants to start producing something similar in Moldova so that people here also have such an opportunity. He wanted the whole family to be involved in the business. Of course, we agreed and started looking for cheap and high-quality materials. Finally, we choose metal and invested about EUR 1,000 in the purchase of raw materials. New Year’s Eve was approaching and we decided to make Santa Claus reindeer decorated with garland. When the first reindeer were ready, we started looking for clients. We found one who bought a reindeer. He recommended us to someone else, and in the first two months we earned more than MDL 400,000. It was a good start for us.”

The Ermurachi family invested the earned money in business development.

“In two months of work, we hired several employees so when the holidays were over, we had to think about what to do with them next. We decided not to stop there, purchased all the necessary equipment for working with metal and began to make different goods ranging from small grills to iron gates and fences.

This year, a loan from Microinvest brought their business to a new stage of development.

“Earlier this year, suppliers informed us that materials had gone up 150 percent due to the pandemic. Then I turned to Microinvest and took a loan for the purchase of raw materials to make finished products for sale. Since many people stayed home with children, we decided to make playgrounds and offer them for sale to government agencies in different communities.

Alexei Ermurachi noted that Microinvest is a very reliable and responsible partner, and their cooperation did not end there.

“Due to the fact that the price of raw materials increased, the final cost of our products also went up, and many of our customers could not afford to pay immediately, for example, for the gates. Then I contacted Microinvest again to see if there was an opportunity for a partnership. It was very difficult for me to draw up a contract with customers myself so that they could buy our goods on credit. Microinvest told me that it has such a service and we started working this way.  A customer orders from us the manufacture of large metal items, and Microinvest pays for it. Then, based on a tripartite loan agreement, the customer gradually pays the cost of the product, which he bought from us. Most importantly, customers do not pay interest, it is paid by our company.”

Microinvest is the only NBLI in Moldova that holds SMART International Quality Certificate.  It implies a responsible and transparent lending process, based on international principles of customer service, respectful, fair, and equitable approach. 

Source: pavelzingan.md

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