In December 2007, Aurora Russia announced they had invested £16.1m for a 24.3% stake in Grindelia Holdings Limited , owners of the retail chain SuperStroy and StroyArsenal, the largest DIY retailers in central Russia.

A market leader in central Russia

SuperStroy opened its first store in 1994. By February 2008, the Company operated 35 SuperStroy stores with plans to open a further 19 stores by the end of the year. The company sells a wide range of popular brands and is market leader in the Urals, Russia’s central region with the  major cities of Yekaterinburg, Ufa, Tyumen and Perm.

Growth in DIY consumption

In 2007, RosBusinessConsulting (RBC)  estimated the Russian DIY market to be worth approximately US$14 billion. The top 10 chains had US$2.9 billion of combined turnover, or approximately 20% of the total market. This suggests a fragmented market with opportunities for future consolidation. RBC named SuperStroy as the most dynamically growing DIY chain in the supermarket retail format in Russia in 2007. It ranks #7 among all chain DIY retailers operating in Russia by turnover, not far behind Leroy Merlin (#4 with US$210 million estimated 2007 turnover).

 

Expenditure on DIY products per capita in Russia, is substantially lower than in other Eastern European countries, indicating room for further growth in the market. Euromonitor estimated, that DIY goods consumption in Russia will rise from €42.9 per capita in 2006 to €68.3 in 2011, an increase of approximately 60%. The Company intends to grow to 74 stores, encompassing a total selling space of approximately 290,000 m2, by the end of 2011.

Increase in revenue

For the year ended 31 December 2006, the company generated revenue of approximately RUR 2.7 billion (approx £56.4m). Revenue the year ended 31 December 2007 was approximately 4.5 billion roubles (approx £94.0m), an increase of 63%. Valuation details can be viewed in Aurora Russia Limited’s Results which are posted in the Press Room.

Visit the website of superstroy: http://www.superstroy.ru/

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