The Šibenik company, Capax, currently employs twenty people and, as they themselves have pointed out, are constantly looking for new, quality members of staff.

As Darko Bicak/Poslovni Dnevnik writes on the 24th of November, 2018, after a successful September when they presented themselves as the only Croatian exhibitor at the prestigious Monaco Yacht Show, as well as managing to win the Golden Kuna (Zlatna Kuna) award for the best small company in Šibenik-Knin County, Capax opened its new headquarters in the historic Dalmatian city of Šibenik at the end of October this year.

Covering an area of 900 square metres and in addition to the brand new office, located at the new facility is a spacious service workshop and the only laboratory designed for engine oil analysis in the wider area. Capax already offers videocopy services, ultrasonic measurements, vibration analysis and thermography, but only now with the engine oil analysis specialist lab services has the Šibenik company managed to raise itself to yet another higher level. All these services will also open up new markets such as those which involve dealing with work boats, construction machinery, locomotives, windmills, and more.

While this is a Šibenik company, renovation works are carried out in nearby Trogir, within the Trogir Service Centre (SCT), with which Adria Docks has recently been established. Adria Docks manages renovations, optimises work processes, and ultimately controls the quality of the outsourced works. Within the framework of a long-term joint venture with the Trogir shipyard, in an area of about 250 square metres in the SCT area, lies the second part of Capax's investment, a test station for ship and industrial engines of up to 3.4 megawatts.

The total value of the investment is more than 15 million kuna, of which 5.5 million kuna are non-refundable funds from the European Structural Funds indended for the building of production capacities and the investment in equipment.

"Access to the client, respect for their demands and a true effort to achieve goals through project and refit management have inspired us as the leaders of the domestic yachting industry. We have well equipped and educated service teams for the most common types of marine engines, clutches and generators we find on larger yachts and on mega yachts. Our service engineers are ready to solve every problem, whether it's mechanical, or electrical, or something else,'' they state from Capax.

They add that for subcontractors, whenever possible, they use the services of other Croatian companies and hope that their success will stimulate other companies from the Croatian nautical sector to invest and develop themselves more. Capax was initially founded by three like-minded people, Mario Baljkas, Teo Petričević and Željko Tesi. As previously mentioned, they currently employ twenty people and are constantly on the look out for new, high quality staff. The company continues to record steady and stable revenue growth, and last year, those figures amounted to about 30 million kuna.

The clients of this Šibenik company are typically the owners of yachts, or the management bodies of yachts, as well as insurance companies and shipyards and marinas. They specialise in technical engineering, consulting and supervision in shipbuilding, diagnostics, servicing, and the repair of marine engines, their maintenance and inspection in terms of value assurance for insurance purposes, as well as for sellers and/or new owners.

They are the authorised servicing body of some of the most prominent marine engines in this segment of the market, including Caterpillar, MTU, John Deere, and ZF, in addition to Šibenik, they also have offices in neighbouring Montenegro and in Albania.

Otherwise, this year, Capax was the first Croatian company to appear at the Monaco Yacht Show after four years in early autumn. they were one of the 580 exhibitors from 38 countries around the world.

"We're very pleased with the effect of participating in the fair and we believe that it will bring us more ships to service and overhaul to Croatia, and we wish to encourage other domestic companies to join us in the coming years,'' Petričević said.

Make sure to stay up to date with our dedicated business and Made in Croatia pages for more.

Click here for the original article by Darko Bicak for Poslovni Dnevnik

The Croatian Employers' Association score which measures the implementation of reforms in twelve key areas puts the Republic of Croatia at the very bottom of the European Union.

As Darko Bicak/Poslovni Dnevnik writes on the 22nd of November, 2018, after the World Bank and the Croatian Chamber of Commerce (HGK) showed data this past month that proved the country is lagging behind in terms of business and investment climate, the Croatian Employers' Association (HUP) has confirmed this unfavourable position once again with its HUP score. Moreover, according to HUP, which, as stated, measures the implementation of reforms across twelve key areas, it appears that Croatia has the worst score in the EU, even worse than countries such as Bulgaria and Romania, which are still considered weaker and less developed than Croatia.

"The first significant shift from the beginning of the measure of the HUP score (op.a. 2013) has been confirmed, but Croatia is still at the back end of the ''New Europe''. It's obvious that the country doesn't possess the capacity for quick economic growth and convergence. The problems with the entrepreneurial climate aren't caused by culture and mentality, but primarily by weak institutions,'' they state from HUP, adding that, first and foremost, the system of public and state enterprises needs to be reduced, restructured, professionalised, depoliticised, and then privatised, and that's how more investments will occur.

These preliminary results indicate that the HUP score for 2018 stands at 37, which is one point less than it was last year.

"This result shows that Croatia also lags considerably in regard to EU member states from Central and Eastern Europe (EU10) this year. Economic growth, which was re-established in 2015 after a long six-year crisis, was an indicator of economic strength and good looks. The lessening of that score for this year should be interpreted as an indication that the current growth impulse has a cyclical or rather passing character. Deep economic and institutional structures remain weak due to the lack of reforms,'' they note from HUP.

Not one figure in the aforementioned twelve areas exceeds 2/3 of the maximum value, which means that Croatia doesn't have a strong competitive edge in some areas. The biggest visible improvement can be seen in regard to fiscal consolidation (from 54 in 2017 to 56 in 2018), productivity and competitiveness (from 34 to 45), and capital supply (from 36 to 42). The HUP score of the education and pension system is still "in the red ", but was held at 26, while the justice system stands at at 33.

The biggest negative change can be seen in terms of the fall of the investment score and needless limitations and business barriers (from 35 in 2017 to 23 in 2018), following the rise in the cost of establishing a company and increasing the number of procedures for obtaining building permits and dealing with public administration due to the rapid growth in the number of days needed to launch a business. The areas of economic burden (19) and the labour market (22) continue to be critical, year on year. Gordana Deranja, the president of HUP, believes that Croatia is experiencing weak progress and is stagnating because other countries are more successful and faster when it comes to adapting properly to new circumstances and conditions.

"The burden on the economy is still high, which is why we can't be completely satisfied with the last wave of tax changes. Although we do consider them to be a step in the right direction, they're insufficient to give the economy a more serious positive incentive, and it's necessary to maintain the current growth rates, this relates particular to the burden on [taxes on] salaries.

The [situation with the] labour market situation is really difficult. There is not enough of a qualified workforce, and the pressure on wage growth is high. The problem is that with the current burdens, tax and everything else, employers have no room for further and more substantial salary increases without jeopardising the viability of their business. Instead of looking for room for greater decompression on companies and people, our budget continues to grow. Obviously, we haven't learned anything from the crisis. As a country, we continue to spend more than we make. We're just part of the expensive credits, which have now been replaced by funds from European Union funds, and these funds are the only development moment for the budget for 2019. There's no indication of any serious reforms in it [the budget], and that's what we all need to worry about,'' stated Deranja.

Davor Majetić, the Croatian Employers' Association's chief executive, pointed out that without stronger economic growth, nothing will stop more people from leaving the country, especially young people and those who make up Croatia's labour force.

"A serious labour shortage can endanger this kind of growth we now have, which is not the only problem for employers, it's a problem that needs to be solved systematically and comprehensively, the question of whether or not there will be enough maids, waiters, traders, etc depends on the salaries of doctors, teachers, policemen and soldiers,'' said Majetić, adding that everything that the Croatian Employers' Association points to as neuralgic points continue on being repeated from year to year - the burden on the economy, the labour market, the health system, the education and pension system, and the judiciary.

"The government is taking steps, but they're not enough because the huge problems we've inherited are enormous, and the changes we're making aren't going deep enough, nor are they big enough to be called reforms, which is why their reach is so limited, and when compared to other countries, we continue to remain behind them, trapped at the bottom of the European Union,'' concluded Majetić.

Make sure to follow our dedicated business and politics pages for more information on the Croatian Employers' Association, the domestic economic situation, and potential reforms.

Click here for the original article by Darko Bicak for Poslovni Dnevnik

Virovitica is by far one of Croatia's most overlooked cities. Located what feels like a world away from the hustle and bustle of desirable Dalmatia and the funk of the capital city, not far from the Hungarian border, this quiet continental Croatian city is like a step back in time, with all but its highly advanced budget for next year, it seems.

As Poslovni Dnevnik writes on the 21st of November, 2018, Virovitica will have the largest budget in its entire history in 2019, it adds up to about 286,175,000 kuna, an amount the city councillors adopted at their fifteenth regular session.

At the session of the city council, it was stated that in relation to last year, Virovitica's budget plan had increased by a considerable 13 percent, mainly due to large and significant urban projects that will be co-financed by European Union funds and the state budget itself. In addition to providing funds for the material expenses and the investment maintenance costs, the City of Virovitica expects continued work on projects which have already begun being worked on, as well as some brand new investments.

Thus, the city's 2019 budget includes funds to continue the construction of the Centre for Education and Rehabilitation and three-part school sports hall in the amount of 27,150,000 kuna and the reconstruction of the City Park and Castle Pejačević in the amount of 28,200,000 kuna. There are two projects which mainly involve the energetic restoration of buildings, including the "Cvrčak" kindergarten and the Ivana Brlić-Mažuranić primary school, both in the amount of 1.620.000 kuna, according to a report from Glas Slavonije.

In addition, the City of Virovitica has plans for a few totally new investments, including the construction of a sports and recreation centre in Virovitica - a complex which will be built on the site of some former barracks, worth 26,300,000 kuna, an increase in the overall energy efficiency of public lighting worth 14,350,000 kuna, and the energetic renovation of various buildings, a cultural centre, and the reneal of the of the sport community building, worth a massive 16,330,000 kuna.

In addition to all of the aforementioned, there are also plans for several more projects, including the construction of communal infrastructure, rearranging the traffic zone around the Ivana Brlić-Mažuranić primary school, road construction in certain areas, car park construction, and other infrastructure projects described in more detail in Virovitica's construction program for 2019.

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Croatia appears on many a list, and while it's typically placed at number one or close to it on ''must visit'' locations around the world, when it comes to much more serious matters to do with the economic and political climate, Croatia doesn't tend to fare too well, and with good reason. For a change, Croatia has managed to do quite well according to a recently published list by the United Nations (UN), which regards its Sustainable Development Agenda.

As Ljubica Gataric/VL/Poslovni Dnevnik writes on the 19th of November, 2018, according to a new report on the impact of social transfers on poverty within the European Union (EU), social transfers made in 2017 raised one third of the population's income above the currently accepted poverty risk limit.

Despite Croatia's unfavourable ''press'' when it comes to lists outside of travel bloggers and their often very surface level glance at the country, Croatia has taken 21st place the UN's 2030 Sustainable Development Agenda, through which national governments committed themselves to eradicating poverty and hunger, developing education, making proper healthcare accessible for all, gender equality, and eradicating other forms of inequality.

Croatia has taken 21st place out of 155 on the UN's Sustainable Development List for 2018, and in relation to its first release back in 2016, the country has progressed by as many as fifteen places.

Sweden, Denmark, Finland, Germany, and France are doing the best of all, with neighbouring Slovenia taking 8th place, Czech Republic taking 13th place, and behind Croatia lie many EU member states considered to be very developed, which is both encouraging in Croatia's respect, and concering with regard to those countries.

As mentioned, according to the new report on the impact of social transfers on poverty within the EU, social transfers made back in 2017 raised one third of the population's income above that of the considered poverty risk limit.

According to the members, social assistance withdrew 57 percent of Finns and 51 percent of Danes from their respective poverty zones, while social transfers made in Greece and Romania removed 16 percent of the risk groups out of the accepted poverty zone.

When it comes to social transfers made in Croatia, the number of those below the poverty line has been lessened by an entire quarter. Croatia is among the countries for which social transfers account for less than 6.2 percent of GDP, which is 2.7 percent below the European Union average.

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Click here for the original article by Ljubica Gataric/VL on Poslovni Dnevnik

Croatia's shipyards are struggling, and for a long time the state has had its hands firmly tied when it comes to offering them potential ways out of their issues. Uljanik's workers have previously gone as far as to take to the streets in protest against the way in which they're being treated, often going dangerously long periods without being paid. 

Issues at the very top of the management board have resulted in long wage delays for dedicated employees who have been made so desperate they have gone on strike, but it seems as of tomorrow, things will return to normal, at least for now...

As Morski writes on the 18th of November, 2018, in spite of the payment of minimum wages, negotiations between the Croatian Government and Uljanik's unions apparently did manage to bring fruit, as was announced on Monday, and the strike in which Uljanik's employees have continuously held since October the 22nd should come to an end.

''We've been paid the minimum for now, and we were promised that we'd not have to wait so long in October. We simply decided that it was time to stop the strike, because that's what the shipowners expect from us. We will be the ones ending ourselves if we don't continue to work. We'll take a fifteen day break from strike activities, but we won't disband the strike board,'' said Đino Šverko, a member of Uljanik's strike board, for N1.

He also said that Uljanik's employers had nothing against Uljanik and May 3 being separated.

''We have to start thinking about work. The strike is going on and on, if it lasts until the end of the month, we'll end up closing everything ourselves, we can't see a way out. We're starting work, we'll carry out our tasks and then everything remains in the hands of the the Croatian Government,'' Deni Širol told N1.

For more information on the state of the domestic economy, Croatian companies, business and the possible fate of Uljanik, make sure to follow our dedicated business page.

Croatian emigrants dotted all around the world sent a huge amount of money via private transfers to their families in Croatia last year.

As Jadranka Dozan/Poslovni Dnevnik writes on the 16th of November, 2018, one of the consequences of Croatia's ever-concerning demographic crisis caused by the mass emigration from the country is the growth of cash inflows through private transfers, which mostly relate to the cash flows that Croatian emigrants send back to their country of origin.

With some of this vast amount of money arriving from other European Union countries, as well as from outside the bloc, more than one billion euros have found their way from the rest of the world to various households across the Republic of Croatia in 2017, which, according to Eurostat's figures, stands at 627 million euros more than was recorded the year before.

As cash flow from other countries (by more than half from countries outside the European Union, mostly from neighbouring Bosnia and Herzegovina) has also increased, a handsome increase of more than half a billion euros; from +245 to +823 million euros, has been recorded.

The largest surplus in personal transfers to the European Union has been recorded by just four member states, but most of them are larger countries, like Portugal (+3 billion euros), and Poland (+2.8 billion euros), followed then by Romania (+2.6 billion) and Bulgaria (+1.1 billion euros). When compared to 2016, Croatia overtook both Hungary and Lithuania last year in terms of cash inflow from abroad.

Otherwise, EU residents sent an enormous 32.7 billion euros back to their respective countries of origin last year, which is, as previously stated, nearly one billion euros more than was recorded as having been sent back in 2016, along with that figure, 4.3 billion euros (13 percent of total outflow) was sent outside the European Union. At the same time, inflows into the European Union from the rest of the world reached the huge amount of 10.7 billion euros.

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Click here for the original article by Jadranka Dozan for Poslovni Dnevnik

Just how is Croatia doing when it comes to the proper use of EU funds? With many irregularities reported, in 2023, the line will be drawn and all of Croatia's unused capital will be returned to the budget of the European Union.

As Marija Brnic/Poslovni Dnevnik writes on the 14th of November, 2018, this year, we slowly began to see the effects of Croatia's earlier contracts from the current financial period 2014-2020, and the anxiety is clear after the state budget rebalance due to the dynamics of the use of available funds from European Union funds.

The question of whether or not it will be possible to actually spend the total allocation, which comes with a deadline of 2023, when the line will be drawn and the unused capital will be returned to the EU budget. In 2023, it will also be clear how many Croatian users of EU funds have managed to really fit into the rules that the EU actually set for the use of that money, as public procurement procedures and related irregularities are still rather sore points.

Of the available data, during this financial period for the Competitiveness and Cohesion Operational Program, a total of more than 700 suspected irregularities were reported, and of over 650 of those reported irregularities, over 500 reports were actually found to be true, while apparent issues with 150 applications were never properly established. The most frequent irregularities were detected during project implementation for the misapplication of the rules of public procurement.

Several major cases went public and attracted some very negative media attention to this issue over the past year; the construction of the Dugo Selo - Križevci railway line, which due to the established irregularities had to return five percent of the money, about 60 million kuna, and the renovation project of student homes in Zagreb worth 220 million kuna, are just a couple of them.

Because of the breach of public procurement rules, the rule-breaking of the Student centre project in particular threatens Croatia with significant sanctions. The final decision from Brussels on the matter is still pending.

However, such examples are, if not on such a huge scale, still rather common, and the competent state institutions have said that the most irregularities have been found in construction projects, as well as in numerous water supply projects.

"Our users are still accustomed to the old rules of public procurement, so many projects are presenting with such anomalies," they state.

Ariana Vela, the owner of the College of EU Projects, has analysed data from the Ministry of Regional Development and EU Funds, implemented by the Central Finance and Contracting Agency for EU Programs and Projects (SAFU), according to which 183 decisions on irregularities have been made so far for as many as 75 users. In 130 cases, irregularities were identified.

"They are all projects from different sectors, but it's important to point out that, over time, the costs are growing," Vela said. Given that for the time being, most of the irregularities have been identified in the phase of implementation, particularly in the segment of public procurement, Vela says to expect a real wave of financial corrections to follow over the coming period, which could have a very serious impact on the public budget.

The projects aren't being stalled or delayed by the aforementioned irregularities, at least not in a procedural sense, but the fact is that financial corrections do have an impact on the final EU contribution, on the beneficiaries of the project, as well as the cash flow if the project is still in the pipeline. In terms of when the projects are completed and the irregularities are subsequently determined, the question that remains is how the individual will return that money.

For more information on Croatia's use of EU funds, doing business in Croatia and the domestic economic climate, make sure to follow our business page.

Click here for the original article by Marija Brnic for Poslovni Dnevnik

At the end of October this year, the Agrokor story drew quiet. Namely, the largest insolvency proceeding in the history of trade law in the Republic of Croatia, as well as the largest restructuring process in Croatia, finally came to an end.

As Marina Sunjerga/VL/Poslovni Dnevnik writes on the 12th of November, 2018, by endorsing the credibility of Agrokor's creditor settlement in late October, the huge process to rescue Agrokor from the pits drew to a close. The rescue of this huge company was an incredibly intense process which has dominated both the economy and the media over the past two years, naturally finding itself among the ''nominees'' for the economic event of 2018.

Over the space of more than eighteen months, agreements between Agrokor's many creditors have been marked by many overtakings, new institutions, political pressure on members of the Government headed by Andrej Plenković, numerous affairs and messy public overthrows. Under the enormous pressure, the company had to manage to somehow continue to do business, which was, in many moments, extremely difficult.

However, thanks to Fabris Peruško, Agrokor's government appointed extraordinary commissioner, and the trust of suppliers in the positive outcome of the whole story, the formerly ailing company has experienced increased profitability and stabilised business.

Most creditors will have to debts of about six billion kuna paid by shares in the ''new'' Agrokor, more specifically the new corporation structure to which Agrokor's assets will be transferred, which will be set up during the next few months of implementing all creditors' arrangements.

Part of the supplier's debt has been billed in cash, and some financial institutions secured part of those claims via refinancing through a roll-up arrangement of up to 1 billion euro. Agrokor, more specifically its sixteen largest companies, posted revenues of 16 billion kuna after the tourist season, with virtually 1.5 billion kuna of operating profit.

Fabris Peruško emphasised that the company was operating better than it was before, and recalled that the deal was agreed with the support of creditors who hold 80 percent of Agrokor's total debts in their hands.

Widespread support for the creditors' deal proposed by the extraordinary administration was the goal that began at a hearing held at the beginning of July this year. To recall, the shares were divided so that the Russian banks Sberbank and VITB held a share of 46.7 percent of Agrokor. The issue of the shareholders' position has still not been resolved, with a settlement reserving 25 percent of the stake in Agrokor, but issues around those assets can only come to trial if they manage to actually prove that their claims that are still being challenged.

Domestic banks received about 12 percent of the company, and the suppliers paid part of the debts with a five percent stake in the new corporate structure. However, thanks to their representatives, Marica Vidaković from Kraš and Marin Pucar from Podravka, they won high-quality positions to continue with their business.

As part of the settlement, there is a guaranteed placement of goods to all of Agrokor's retail chain stores for the next five years, including Konzum, Konzum BIH, Mercator, and Idea. Additionally, if Konzum is operating with operating profits of ess than 40 million over the next four years, it will pay another 75 million euros in cash for the marginal debt.

The implementation of Agrokor's creditor settlement has taken over 100,000 steps, with a workforce of 500 people. It is now necessary to prepare the company for the entry of its new owners, which means that the new corporate structure and new companies will have to transfer over all of their assets, certificates, concessions, labour contracts, brands, and the list goes on,

However, the most demanding business currently in the hands of Agrokor's extraordinary management team is the refinancing of the much-talked-about roll-up loans.

Namely, by the end of December, this one-billion-euro arrangement will come with an eight percent interest rate, but in January, that will jump up to ten percent, and Agrokor will the be required to pay a one-time fee of 75 million kuna to its numerous creditors. By September 2019, that interest would have jumped up to 14 percent. The extraordinary management team hope to refinance the loan by the end of the year.

The various challenges ahead of Agrokor have remain high, since only when the new owners take over the company, set their own people and determine the business strategy, will it be realistically possible to estimate in which way Agrokor's business will affect the domestic economy.

However, regardless of the future of Agrokor, the rescue of the huge company can finally be hailed to have been a successful process which has saved the Croatian economy. With this long and arduous process, a devastating domino effect was avoided, panic was stopped, and the food industry was stabilised.

The fact that most of Agrokor's suppliers recorded a successful business year shows that large companies operating under the Agrokor Group's umbrella have taken the opportunity to consolidate and adapt to new market circumstances. After its long and painful restructuring process, Agrokor remains one of the strongest and most important companies in the domestic economy.

Want to keep up with more news on Agrokor, business and the Croatian economy? Make sure to follow our business page.

Click here for the original article by Marina Sunjerga/VL on Poslovni Dnevnik

After finding its place in the country's capital, Hilton is looking for further potential locations and opportunities along the Croatian coast for its Canopy hotels as Cappelli cites an investment in tourism for 2019.

As we reported yesterday, in a huge investment in tourism, Canopy by Hilton has found its way to the Croatian capital of Zagreb, but the search for possible hotel locations isn't over for the highly respected hotel company yet. 

As Marija Crnjak/Poslovni Dnevnik writes on the 12th of November, 2018, the brand nurtures local culture, and this is Canopy by Hilton's very first hotel in continental Europe. After the opening in Zagreb, such hotels in desirable European capitals are set to open, including London, Madrid, and Paris.

Hotel Canopy by Hilton, a massive eight million euros worth of investment by Hrvoje Pezić's Zagreb City Hotels company, was opened on Monday in Zagreb's Branimir Centre.

The lifestyle brand is, as stated, set to take numerous other European cities. It nurtures local culture, and domestic designers, including Studio Franić and Šekoranja, as well as Croatian furniture manufacturers, who are engaged in decorating the Zagreb hotel, as pointed out from Hilton.

In the hotel itself, you can find various pieces of Zagreb's long history, from folklore to its rich scientific and industrial heritage, as well as some of the capital city's typical traditional dishes presented in a new, modern way at the ReUnion restaurant.

The hotel boasts 151 rooms, a restaurant and bar, a fitness room, a retreat room, a transfer room and two meeting rooms.

''After DoubleTree, we're opening Canopy, and we're expecting the opening of Garden Inn next year. We're exceptionally proud of this hotel and we're happy to have had such good cooperation. Croatia is an extremely important market for Hilton. It has a wonderful coastline and we're already looking to expand there and develop our hotels there, but the City of Zagreb is also of utmost importance because it's growing, and we also want to participate in that,'' stated Alan Mantin, Managing Director of Hilton for the development in southern Europe.

Tourism Minister Gari Cappelli emphasised that this investment with the world-renowned brand will contribute to the even better positioning of Zagreb as well as Croatia as a destination which boasts a high quality offer.

Want to keep up with more news on hotel openings, investments in tourism, or just news in Zagreb? Make sure to follow our travel, lifestyle, and Total Zagreb pages for much more.

Click here for the original article by Marija Crnjak for Poslovni Dnevnik

When Marin Pucar took over Podravka back in February last year, he comically stated, "Once you go Podravka, you're always Podravka!"

As Marina Sunjerga/VL/Poslovni Dnevnik writes on the 11th of November, 2018, Pucar experienced returning to the large domestic food company, at which he worked for twelve years, very emotionally. Pucar also has many goals and plans set up for the huge company to aim for.

Pucar's big plans for Podravka were soon realised because the Koprivnica-based food company achieved net operating profits of a massive 186 million kuna during the first nine months of 2018, which is the best result and the highest operating profit in Podravka's long history. These sparkling financial results saw employee salaries increase by 1000 kuna and the company get closer to reaching its goal of being a food business consolidator in Croatia, these praiseworthy achievements brought Pucar to his very well-deserved nomination for businessman of the year for 2018.

It is also important to point out his engagement in resolving the crisis in Agrokor from his position as the president of the association of Agrokor's suppliers, which acted uniquely to protect the interests of domestic companies.

''Podravka is a very good company'', said Pucar when he came to the head of the company, but added that it can and should be better because Podravka is much more than just its numerous brands and products.

In just a year and a half of his mandate, Marin Pucar has achieved excellent results with his team. He announced Vegeta's strong development, involving a wide range of products. In his vision and strategy, Vegeta will be branded completely with the culinary field, and all kinds of dishes.

''That's the aim, if we succeed, and we believe that we will,'' Pucar said in an interview for Večernji list.

''We'll secure Vegeta for another hundred years, and add new, additional value for Podravka,'' added Pucar.

Among the priorities, Pucar also emphasised the improvement of the rights and the material conditions of employees as the company's most valuable resource. ''Without satisfied workers, there can be no successful company,'' Pucar said. Namely, The salaries of the lowest paid employees in Podravka will increase by about 1000 kuna a month, which is one of the moves other entrepreneurs must follow if they truly want to retain quality workers.

The lowest wage in Podravka now amounts to 4,000 kuna per month. Through a collective contract, Podravka's employees have been granted a jubilee reward, and the company will pay them 1000 kuna per year for voluntary pension savings, which will eventually provide them with larger pensions when they retire. One of the goals that Pucar has set in front of him is, as stated, to position Podravka as a consolidator for the food industry, as well as the generator of the development of domestic agricultural production.

Accordingly, the company is expanding its cooperation with subcontractors and domestic OPGs to ensure that by the year 2022, its global brands such as Vegeta are secure. To achieve this goal requires a two to three year investment cycle, but the capacities needed by Podravka are sufficient to trigger a serious segment of Croatian agriculture. Part of the financing of these investments was secured by the company from EU funds.

Podravka itself has an impressive investment potential of around 200 million euro, so new acquisitions could realistically be expected. The company's presence on numerous traditional markets such as that of Poland, Hungary, and Russia, is set to increase. Pucar also played an important role in the rehabilitation of the formerly ailing Agrokor Group from the position of the president of the Association of Agrokor's suppliers.

The challenge was to protect and preserve the rights and interests of Agrokor's suppliers, while at the same time not compromise the position of Agrokor, and Agrokor's giant Konzum as the largest domestic retail chain. Unlike various other companies, Podravka didn't stop its deliveries to the then suffering Konzum, thereby confirming its responsibility for the continuation of Konzum's operations and the preservation of jobs.

The successful running of this extremely complex process resulted in the stabilisation of Agrokor's operations, a large part of the Croatian economy, and the preservation of Agrokor's supplier stability.

Otherwise, Pucar has spent most of his career in the food industry. He started his professional career at Gavrilović back in 2001, and one year later, he was in Podravka's meat industry, Danica, where he was the director of sales, marketing and development. He quickly moved to Podravka's high position of director for the Croatian market, and from 2008 to 2012, he was a member of the management of the company.

After five years with Podravka, he went to Zvečevo, which he led before returning as Podravka's main man.

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Click here for the original article by Marina Sunjerga/VL on Poslovni Dnevnik