Ukrainian label and packaging producer boosts exports and turnover through EU funding and EBRD assistance

label and packaging producer

Domen Druk, a printing and packaging company from Ukraine, has managed to boost its export sales, enter four new markets and increase turnover by an impressive 30%, following EBRD efforts backed by funding from the European Union (EU) under the EU4Business Initiative.

By penetrating new international export markets and producing positive business results, this EBRD project has helped Domen Druk become a major competitor in the Deep and Comprehensive Free Trade Area (DCFTA) involving the EU.

Established in Lviv more than 10 years ago, Domen Druk is a well-known producer of paper labels, self-adhesive labels and cardboard packaging for leading food, beer, soft drinks, confectionary and pharmaceutical producers.

Despite its strong position in the market, the company’s management encountered many challenges due to stiff competition in the declining Ukrainian market, the local currency devaluation, and economic and political instability.

The EBRD put the company in touch with a British team coordinator and an international management consultant from Turkey, specialised in turnaround management and internationalisation.

Working closely with the company’s management team, the advisory team:

  • assisted the company with reviewing and re-positioning its product portfolio to target selected market segments;
  • re-organised the company’s management structure;
  • supported the introduction of new technologies and production processes, enabling higher value-added designs and final products;
  • helped build a growth strategy and five-year business plan consistent with the company’s vision and mission;
  • introduced a balanced scorecard and relevant KPIs with tangible action plans to enable the company to execute and monitor the strategy and action plan;
  • created a sales promotion plan with a focus on strengthening sales management in a bid to capture selected export markets.

As a result, Domen Druk penetrated new direct export markets in four different countries, signing 12 contracts totalling over EUR 2.7 million and representing 30% of its annual turnover. The company also merged its separate brands under one single powerful corporate brand. New equipment resulted in the introduction of seven new higher value-added products, enabling the company to start servicing the pharmaceutical industry.