JC Auto goes public
The company expects profits to grow by 40 percent to zł.13.8 million, and anticipates raising zł.50 million from an initial public offering (IPO) in June.
"Our plans are ambitious and far-reaching," says the firm's CEO Jerzy Grabowiecki. "We are basing our future growth on this IPO. If it does not work out, we will still be able to expand using other sources of investment, but we have determined that the best way of fuelling growth is by going public."
The company hopes that massive growth in sales figures will be possible thanks to the construction of JC Auto's own distribution center in Nadarzyn, near Warsaw. The project will entail the creation of 12,000 square meters of storage space and 2,000 square meters of office space.
Added to this, a greater product range in the company's core business of spare parts will be offered, so that the company's line of products becomes significantly wider than its original Japanese product specialization.
A degree of vertical consolidation is anticipated, creating subsidiaries in new markets abroad, namely the Czech Republic and Hungary, including branches in regions located out of the range of current distributors.
"Our next targets are Austria and Ukraine," Grabowiecki told the Business Journal. "Austria in particular will be our first testing ground in a very developed but small market. If we succeed there, we will be looking further into Western Europe."
Earlier last year, JC Auto launched the 'Perfect Service' brand on a franchise basis. Currently, the network includes 90 car service stations, but the firm plans to expand this to 500 units.
JC Auto was founded in the early nineties under the original brand name of Japan Car Auto. The original business plan was to occupy a market niche by operating as the only firm in Poland supplying parts for Japanese cars. However, the move away from specialization and towards a universal offering of parts for any brand of car came once the company had effective logistics in place.
Import taxes on Japanese cars across Central Europe will lower considerably following EU membership, bringing prices down, particularly for luxury models. For a company whose core business is still in the sale and distribution of Japanese parts, this is good news for JC Auto. However, some analysts believe the removal of tariffs on the import of used cars, which had previously buoyed new car demand, poses a threat to the new car business. Such a notion, though, is refuted by the company, which believes the freer market should actually play into its hands, as lower used car prices increases demand, and therefore the need for their services.
"Our plans are ambitious and far-reaching," says the firm's CEO Jerzy Grabowiecki. "We are basing our future growth on this IPO. If it does not work out, we will still be able to expand using other sources of investment, but we have determined that the best way of fuelling growth is by going public."
The company hopes that massive growth in sales figures will be possible thanks to the construction of JC Auto's own distribution center in Nadarzyn, near Warsaw. The project will entail the creation of 12,000 square meters of storage space and 2,000 square meters of office space.
Added to this, a greater product range in the company's core business of spare parts will be offered, so that the company's line of products becomes significantly wider than its original Japanese product specialization.
A degree of vertical consolidation is anticipated, creating subsidiaries in new markets abroad, namely the Czech Republic and Hungary, including branches in regions located out of the range of current distributors.
"Our next targets are Austria and Ukraine," Grabowiecki told the Business Journal. "Austria in particular will be our first testing ground in a very developed but small market. If we succeed there, we will be looking further into Western Europe."
Earlier last year, JC Auto launched the 'Perfect Service' brand on a franchise basis. Currently, the network includes 90 car service stations, but the firm plans to expand this to 500 units.
JC Auto was founded in the early nineties under the original brand name of Japan Car Auto. The original business plan was to occupy a market niche by operating as the only firm in Poland supplying parts for Japanese cars. However, the move away from specialization and towards a universal offering of parts for any brand of car came once the company had effective logistics in place.
Import taxes on Japanese cars across Central Europe will lower considerably following EU membership, bringing prices down, particularly for luxury models. For a company whose core business is still in the sale and distribution of Japanese parts, this is good news for JC Auto. However, some analysts believe the removal of tariffs on the import of used cars, which had previously buoyed new car demand, poses a threat to the new car business. Such a notion, though, is refuted by the company, which believes the freer market should actually play into its hands, as lower used car prices increases demand, and therefore the need for their services.
