7 Nov 2014
Roto, d.o.o.

Roto d.o.o.

By EY Slovenia

Multidisciplinary professional services organization

7 Nov 2014

 

With over 4,000 products, more than three million kilograms of polymers processed annually, production facilities in four countries and exports to 52 markets worldwide, ROTO is among the leaders in “roto-moulding” technology (polymers heated inside rotated moulds). This international company, a European pioneer in polyethylene products, has recorded continuous revenue growth. This is the result of sustained product development, investments in modern production capacities and successful sales penetration on all continents.

The Pavlinjek business dates back to 1949, when it started producing agricultural machinery and locks in Murska Sobota. In 1974, Štefan Pavlinjek opened his workshop ‘Kovinoplastika Pavlinjek’ and made products from plastic using roto and thermal moulding technologies. In the 80s the company began producing agricultural containers and machinery. In 1989 it moved to new premises in the Černelavce district of Murska Sobota and assumed the new name of ROTO.

Just over 20 years later, following a number of acquisitions, ROTO had grown into a holding company. A turning point was signified in 2008, when they entered foreign markets and started the expansion of their sales network to cover the whole world. Only two years later, the company built a new plant in Macedonia, which by 2011 had enabled a major production expansion. Currently, its largest customers include multinationals involved in the production of motorcycles, agricultural machinery and boats (KTM, KRONE, LASER).

Our tradition dates back to 1949 and we are one of the oldest family businesses in our sector in the area.
Štefan Pavlinjek
CEO and owner

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Values and development

After 40 years of success in manufacturing plastic products, the ROTO Group is represented by 10 entities with production facilities in four European countries. Among several important values, in which they invest heavily, are continued improvements in knowledge and competencies. Their own development department employs 20 staff and is instrumental in yearly expansion, inventing up to two new products a week.

Nuša, Štefan’s daughter, who is responsible for sales and marketing, quickly identifies a more comprehensive list of the company’s key priorities: “R&D, innovation, attention to detail, enthusiasm, positive energy, vision while respecting tradition, technical excellence, efficiency, safety, production flexibility and environmentally-friendly products.” The emphasis on the education of employees is reflected in extensive investments in training, which led in 2002 to the establishment of ‘The ROTO Academy’. Its most important activities include organization of marketing and development conferences, as well as numerous seminars and workshops for the ROTO Group, with participation of renowned local and foreign experts as lecturers.

Twice listed in the Top 10 Slovenian companies providing continuous staff education, additionally the company has been awarded several prestigious honours such as the Exceptional Industrial Achievements Award by the Slovenian Chamber of Commerce, the award of the Slovenian construction institute ZRMK and the Environmental Partnership award by the GV.

Local and foreign markets

The ROTO Group employed over 250 staff in 2013 and generated 36.3 million euros of revenue. It particularly promotes an internal entrepreneurial spirit, since some members of staff are also partners or co-owners. They are confident that family businesses instil confidence in their business partners: “It does not concern only our close family members who are employed in the Group, but also the extended family of all our employees. Our responsibility is equal to everyone.” Nuša stresses that both she and her brother Matjaž felt that carrying on the tradition of family involvement in the company was a natural progression.

Štefan proudly continues: “Our tradition dates back to 1949 and we are one of the oldest family businesses in our sector in the area. My father embarked on an entrepreneurial venture in a small workshop and I grew up surrounded by a business environment. I became used to meeting customers at an early age and learning the trade. We are keen to pass tradition on to the next generation and one of my objectives has been to always support enthusiasm for work and creativity. Since both my children showed interest in the business, I have gradually shown them the ins and outs.” A large business, however, brings with it daunting responsibility. “We are not talking only about our responsibility to employees, but also to customers, the local community and to suppliers. In addition, we strive to maintain the company’s reputation and the market position of our brand.”

A fine line between private and business life

As every entrepreneur knows, you can never ‘switch-off’ completely and all those involved in any family businesses find it difficult to draw a dividing line between private and business life.

“Enterprise is a way of life and thus it is extremely important that our family members understand this and continue to provide their support,” says Nuša, explaining how their family successfully treads this tricky dividing line. “The danger is that at times emotional aspects may prevail over economic and rational ones. One of the advantages of a family business is that family members grow up with it, gain an in-depth insight and thus are able to make informed decisions, based on authentic data and with a large degree of responsibility.” The Pavlinjek family are planning their long-term strategy by raising the fourth generation in this entrepreneurial spirit: “One of the most important things is to instil the right values into the younger generation, in addition to their responsibilities toward the business and the family.”

Quality and future

“The competitive advantages of the Roto Group are derived from flexibility, innovative marketing, and a high-level of technical support to customers. We cover the market gaps which occur during an individual product’s life cycle when its mass production is suspended. We increase products’ added value by enhancing their functionality of design, intelligently using materials and modern production technology, ensuring quality craftsmanship and providing after-sales service. Our products provide comprehensive solutions for customers’ individual problems,” explain the Pavlinjeks, adding that their outlook for the future is positive: “Ours has been a gradual, progressive development and we know how much effort, dedication and expertise each step has required. Thus we know that in order to continue on our successful path, we need to make one step forward at a time and never look back.” Following continuous investment, while constantly searching for new markets, the company was ready to face the challenges of the global economic crisis. They export products to a large number of countries all over the world from Japan to the USA. “Future generations will no longer differentiate between domestic, local and global markets, and nor do we now. Our long-term objective is our focus on foreign markets. We continually improve our expertise, our reliance on high-tech solutions and internal organization, whilst at the same time relentlessly pursuing new markets,” agree father and daughter.

Štefan Pavlinjek, CEO and owner
Company name: Roto d.o.o.
Number of employees (2013): 250
Net sales revenue (2013): €36,3 million

 

Interviewee:

Štefan Pavlinjek, CEO and owner

Summary

Roto in a nutshell: “International, reliable, innovative, environmentally-friendly, family business.”

About this article

By EY Slovenia

Multidisciplinary professional services organization