The strategic target of the company is a steady growth of the value of the Erbud Capital Group, which will be secured by carrying out projects with high level of profitability.
Focusing on three activity areas i.e. enclosed structures in Poland, the same structures abroad and road engineering on the domestic market, the Erbud Group will be able to diversify risks, in case of the occurrence of any disadvantageous cyclical changes in whichever of the a.m. fields The Erbud Group plans its development both within the framework of the existing structure and by taking over enterprises, acting in the general construction sector or as developers.
On the list of main elements of the Company’s strategy are:
Further development of the Group on the Polish and foreign markets.
The Erbud Group intends to extend its activity on the territory of Poland, acquiring customers from new regions. At the same time, Erbud intensifies its presence in the Western European markets. The expansion, which has started from the German Market and is now aimed at other countries (France, Belgium, Scandinavia, Ireland, and Great Britain). The driving force of the development of the Group is the management staff with high qualifications and excellent knowledge of the local market.
Continuing of income growth in the enclosed structures sector and maintaining a high level of profitability.
The Erbud Group declares to continue the increase of income on the domestic and foreign markets. This aim will be accomplished by maintaining high discipline in selection of projects, which will allow to obtain high profit margins. The projected increase of income concerns mainly housing in which Erbud has many years of experience. Further development in the enclosed structures sector will be ensured by taking over by ERBUD Group of one or more enterprises from the general construction sector or acting as developers.
Risk diversification and rise of margins by advancement of activity on road engineering projects.
The Erbud Group intends to overtake one or more enterprises operating in road engineering market. Essential for making decision about development of activities is that projects executed in this sector belong to the most profitable. Further, it is worthwhile to underline, that Wolff & Müller, one of the Erbud’s shareholders, has many years of experience in the field of road engineering. The experience and references scored by Erbud during the realization of contracts in this sector in Germany (tunnels, airport) are, apart from the high profitability and possible support of Wollf & Müller, the arguments which convince that entering this business would be advisable. The prospects of continued dynamic growth of road construction in Poland are also of great importance. . Estimates relating to average annual investments for road engineering made by the Ministry of Transport show amounts of PLN 11-12 billion.
Realization of high-margin projects, including contracts executed in the general contractor system.
The analysis of projected profitability shows, that the Group achieves the highest margins when acting as a general contractor. Almost all projects (99) on the Polish market and 20 in EU-countries are accomplished in a general contractor system. The goal of Erbud is to maintain this share at home market and to gradually take over a role of general contractor abroad.