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Trusting a co-worker to lead the company
Few family companies can say their management functions are so well separated from ownership that no leading roles are taken by the family or even extended family. Tinex from Šenčur is one such company. In three decades, it has become a successful medium-sized seller of bearings, seals, linear and drive technologies, and even opened its own manufacturing facilities. Most of the credit for this success goes to the late founder of the company, Štefan Čebašek, who started out as a small construction material retailer. Today, Tinex employs 70 people and its annual revenue is nearing the milestone of €20 million. After Štefan unexpectedly passed away, the company tradition has been successfully continued by his wife Marija Čebašek and daughter Andreja Jeraj.
Renowned foreign partners opened many doors
The story of Tinex began in 1990 with its founders and friends, Štefan Čebašek and Tine Dermastja. First, they opened a construction store in Kranj, but the early years were not very successful. In 1993, Štefan changed direction and opened a specialist store with the aim of becoming the leading seller of bearings and seals in Slovenia.
His first breakthrough came in 1994, when the young company signed a partnership agreement with the German Schäffler Group and became an official representative for its FAG bearings in Slovenia. This well-known German partner opened several doors to new partnerships. Just a year later, Tinex signed an agreement with Freudenberg, a German manufacturer of seals, followed by agreements with INA, Merkel, KGM and Ziller, all leading European manufacturers of specialized bearing products.
We are one of the few companies that have management completely separated from ownership. Uroš worked in the company even before my father’s death and we work together very well.
Štefan’s goodbye instead of 25-year anniversary celebration
All these partnerships were bearing fruit, so Štefan decided to further develop and expand company activities. In 2005, he founded TINEX industrijska diagnostika d.o.o., which provided customers with a new service: systematic monitoring and industrial equipment diagnostics. Today, the company is one of the leading specialists in Slovenia and the markets of the former Yugoslavia.
In 2009, Tinex opened an online store, but Štefan’s vision did not stop there. Two years later, he established a center for cutting linear components and belts,
which significantly improved their delivery time for both products. After another two years, Tinex started manufacturing its own turned seals and in 2011 it reached the magical milestone of €10 million in revenue. The workforce kept growing so that in 2013, the company had 41 employees at three locations.
In 2014, they started building a €7 million plant in the Šenčur business and industrial district to combine all their activities under one roof. This would have been the cherry on top of the company’s 25th anniversary cake, had an insidious illness not sabotaged Štefan’s plans and taken him from his family all too soon. After Štefan’s death, the ownership of the company passed to his wife Marija Čebašek and his daughter Andreja Jeraj.
Andreja stepped into her father’s shoes
Štefan’s death was a great shock for Marija, and it brought many concerns. They had to decide practically overnight whether to keep the company in the family and who to put in charge of it. In the hospital, Štefan decided the role of Director should be filled by Uroš Frantar, who had led several projects for the company since 2008. He was responsible for expansion of the sales catalogue, implementation of the manufacturing processes, and for building a new business unit. “I’m not affraid of challenges. I believed in our story, I trusted the people in our team, I knew how much potential there was, and I did not worry about the burden this would bring to me,” explains Uroš Frantar, company Director.
“I did not know much about managing a company. Štefan had very good business intuition as well as courage. Not every entrepreneur has that. If you are courageous, you can succeed in business, but you can also fail. I hoped Štefan would get better, but that unfortunately didn’t happen,” recalls Marija. Daughter Andreja also came to help, though she did not know at first how difficult it would be to fill her father’s shoes. “I did not want to follow in my father’s footsteps. Entrepreneurial life demands everything from you, and I wanted to focus on my family. But then fate decided differently,” says Andreja about her first steps.
The most important things in business are trust and communication
Andreja, who graduated in economics, started by managing exports. Today she is responsible for controlling, employee training and development of organizational culture. She likes working with people and is glad that Štefan took care of his successor at the head of the company. “We are one of the few companies who have management completely separated from ownership. Uroš worked in the company even before my father’s death and we work very well together. We meet every day for coffee to discuss operational matters and we make all big investment decisions together. The most important things in business are trust and communication. If you don’t trust your co-workers, you feel the constant need for control, and vice versa,” says Andreja. This arrangement allows her still to spend time with her family and her two teenage children, who are just about to finish elementary school.
Last year, Tinex created almost €18 million revenue, with €1.2 million in net profit. Their goal is to increase revenue 30% by 2025.
Next goal: €20 million in revenue
Today, Tinex has 70 employees and revenue keeps growing. Last year, the company had almost €18 million turnover with €1.2 million in net profit. Their future goals are ambitious. “Our aim is to increase our revenue 30% by 2025. Every year, we record 10% to 20% growth. Last year, our revenue decreased slightly, but this year looks very good,” says Andreja.
The company keeps growing thanks to the expansion of their sales program, which they adjust every year to meet the needs of their customers. The company also became a franchise manufacturer for Freudenberg, a leading global seals manufacturer. “This was a great success for us. In addition to manufacturing hydraulic seals for the mother company in Germany, we started manufacturing for the French market this year. While this project brings in a relatively small percentage of our revenue, it allows us more flexibility and brings greater added value,” points out Uroš. Last year, Tinex and Freudenberg celebrated 25 years of partnership.
Their competitive advantages are stored stocks and maintenance services for large customers
According to Uroš Frantar, Tinex’s success is based on several different activities, but one of the most important factors is responsiveness. He points out: “We are not interested in short stories. We always try to find complete solutions and create long-term partnerships with our customers.”
Another competitive advantage Tinex has is that all their services, including storage and manufacturing, are housed in the same location. “This allows us greater flexibility. We can offer our customers 24/7 support. Large buyers cannot afford any deadlocks, as even a day with no manufacturing can result in enormous losses. Our customers recognize us as a reliable partner. We do not just sell them products, we sell solutions,” says Andreja.
One of Tinex’s strengths is also digitization. They have several tools that help them make decisions when it comes to supply and sales. Uroš says: “The entire history is recorded; our storage management is very carefully thought out. We know exactly where everything is. For example, there are currently 42,000 different articles in our warehouse.”
Most of their revenue still comes from the Slovenian market, but foreign markets are increasingly important and offer many opportunities for expansion. Every year, Tinex adds a new supplier or a new representation agreement to their portfolio, which currently includes around 60 different brands.
Andreja Jeraj and Marija Čebašek, Co-owners
Company name: TINEX, d.o.o.
Number of employees (2020): 63
Net sales revenue (2020): €18.1 million
Interviewees:
Marija Čebašek, Co-owner
Andreja Jeraj, Co-owner, Head of Controlling
Uroš Frantar, Director
Summary
Tinex in a nutshell: quality, comprehensive approach, agility, professionalism, innovation.