Re: News and Comments from MakTime: Aleksandr Makarov`s Exclusive Interview for WUS Russia
Silversen (S): Thank you very much, Aleksandr, for your willingness to answer our questions. I didn't expect you would respond to our inquiry so fast and was pleasantly surprised at that.
Aleksandr Makarov (AM): Thank you for your attention to the Russian watch industry.
S: So, let's begin. What enterprises beside Zaria form the MakTime Watch Group?
AM: The MWG is MakTime Watch Plant itself and Zaria.
S: How many employees are involved in the production of watches?
AM: At the moment we have some 600 employees.
S: How are sales of watches and movements distributed among countries? How many watches and movements do you sell in this country (here in Russia) and how many - abroad? What countries do you export your production to? Do you feel any improvement in the economic situation now?
AM: Our sales are distributed in the following way:
• caliber 31 goes fifty-fifty between Russia and other countries;
• our MakTime brand watches - 90% Russia;
• Zaria watches - 95% home market.
We sell our watches and movements to Germany, Italy, the USA, and Portugal. We don't feel any improvements at present. It's a situation of unstable equilibrium.
S: I've read an interview with Valentin Volodko about how his company has been going through the crisis time. How have your enterprises been going through this hard time? How serious have you had decline in output?
AM: Sales volume has gone 50% down. We have had to dismiss many employees.
S: Has Zaria reached the break-even level?
AM: No, It hasn't.
S: I've read some Internet source with your interview where you said that you needed investment of about 12 million dollars. Have you managed to get any of that and if yes how much and how have you used it?
AM: We haven't received any. Unfortunately, the issue of investment isn't on the agenda. There is the issue of maintenance of production and retention of our current position.
S: Is there an understanding of importance to maintain the home industry of precision mechanics in the economy block of the Russian Federation Government? If yes, what measures are to be taken?
AM: I think they evidently don't understand. The government is trying to solve global issues.
S: Some time ago you raised the issue of necessity of the machinery leasing if there was no possibility to purchase it. Have you managed to discuss this issue with Premier Minister Putin?
AM: Why do you think that Putin could receive me?
S: How serious is the problem of the Chinese import into our country?
AM: There is no problem about the Chinese import. There is a problem about smuggling from China. According to our estimate the total volume of contraband deliveries are close to 70%.
S: Some time ago, when you just became the owner of Zaria you expressed your dissatisfaction with the attitude of the Zaria employees to their work. Do you feel any changes in their attitude?
AM: I see some changes to the better but they are not enough. Closing of the watch production can be a possible consequence.
S: Now sites selling so-called copies of famous Swiss watch brands are springing up all over the Internet in our country. Are to sell those watches legal?
AM: No, not legal.
S: Now about the situation around Vostok. We've had an interview with Vitaly Podyachev, Director of VOSTOK INTERNATIONAL LTD. It was rather positive. What information have you got about the situation in Tchistopol?
AM: I know according to mass media the process of bankruptcy is going on. I don't know any other details.
S: How is the widely announced project of watches for the Russian Army getting on?
AM: The works is making progress. Now we're in the phase of state tests.
S: Have you got any information about the state of affairs at the Petrodvorets Watch Factory?
AM: I haven't got any reliable information about Petrodvorets.
S: Recently European mass media revealed some unmasking information how Russian oligarchs are buying the Swiss watch industry. According to Le Temps, the total volume of investment is hundreds million dollars. Please, tell me, in your opinion, if that information trustworthy, how can you explain their unwillingness to invest our home watch industry?
AM: We should ask the oligarchs themselves. But I believe money goes where it feels comfortable.
S: Now let's talk about the movements produced by your enterprises. How about automatic chronograph 30644, my colleagues have been waiting impatiently for? How long will we be waiting for it?
AM: The lot of prototypes was produced in 2008 and we would be manufacturing it in the fourth quarter of 2009, but for the crisis we can't do that. Now for want of financing we have to bring preparation for its production to a stop.
Here you are, guys! I'm sorry for a little delay in posting this interview. I had to wait for getting answers to my two additional questions. I received them only today on Monday.My dear friends!
To our good luck Mr. Aleksandr Makarov agreed to answer the questions I asked him. :-d
Now I'm translating them and have necessity to ask some additional explanatory questions. So, don't comment here yet. After I submit the interview you will have the chance to comment it and, perhaps, ask new questions.
Silversen (S): Thank you very much, Aleksandr, for your willingness to answer our questions. I didn't expect you would respond to our inquiry so fast and was pleasantly surprised at that.
Aleksandr Makarov (AM): Thank you for your attention to the Russian watch industry.
S: So, let's begin. What enterprises beside Zaria form the MakTime Watch Group?
AM: The MWG is MakTime Watch Plant itself and Zaria.
S: How many employees are involved in the production of watches?
AM: At the moment we have some 600 employees.
S: How are sales of watches and movements distributed among countries? How many watches and movements do you sell in this country (here in Russia) and how many - abroad? What countries do you export your production to? Do you feel any improvement in the economic situation now?
AM: Our sales are distributed in the following way:
• caliber 31 goes fifty-fifty between Russia and other countries;
• our MakTime brand watches - 90% Russia;
• Zaria watches - 95% home market.
We sell our watches and movements to Germany, Italy, the USA, and Portugal. We don't feel any improvements at present. It's a situation of unstable equilibrium.
S: I've read an interview with Valentin Volodko about how his company has been going through the crisis time. How have your enterprises been going through this hard time? How serious have you had decline in output?
AM: Sales volume has gone 50% down. We have had to dismiss many employees.
S: Has Zaria reached the break-even level?
AM: No, It hasn't.
S: I've read some Internet source with your interview where you said that you needed investment of about 12 million dollars. Have you managed to get any of that and if yes how much and how have you used it?
AM: We haven't received any. Unfortunately, the issue of investment isn't on the agenda. There is the issue of maintenance of production and retention of our current position.
S: Is there an understanding of importance to maintain the home industry of precision mechanics in the economy block of the Russian Federation Government? If yes, what measures are to be taken?
AM: I think they evidently don't understand. The government is trying to solve global issues.
S: Some time ago you raised the issue of necessity of the machinery leasing if there was no possibility to purchase it. Have you managed to discuss this issue with Premier Minister Putin?
AM: Why do you think that Putin could receive me?
S: How serious is the problem of the Chinese import into our country?
AM: There is no problem about the Chinese import. There is a problem about smuggling from China. According to our estimate the total volume of contraband deliveries are close to 70%.
S: Some time ago, when you just became the owner of Zaria you expressed your dissatisfaction with the attitude of the Zaria employees to their work. Do you feel any changes in their attitude?
AM: I see some changes to the better but they are not enough. Closing of the watch production can be a possible consequence.
S: Now sites selling so-called copies of famous Swiss watch brands are springing up all over the Internet in our country. Are to sell those watches legal?
AM: No, not legal.
S: Now about the situation around Vostok. We've had an interview with Vitaly Podyachev, Director of VOSTOK INTERNATIONAL LTD. It was rather positive. What information have you got about the situation in Tchistopol?
AM: I know according to mass media the process of bankruptcy is going on. I don't know any other details.
S: How is the widely announced project of watches for the Russian Army getting on?
AM: The works is making progress. Now we're in the phase of state tests.
S: Have you got any information about the state of affairs at the Petrodvorets Watch Factory?
AM: I haven't got any reliable information about Petrodvorets.
S: Recently European mass media revealed some unmasking information how Russian oligarchs are buying the Swiss watch industry. According to Le Temps, the total volume of investment is hundreds million dollars. Please, tell me, in your opinion, if that information trustworthy, how can you explain their unwillingness to invest our home watch industry?
AM: We should ask the oligarchs themselves. But I believe money goes where it feels comfortable.
S: Now let's talk about the movements produced by your enterprises. How about automatic chronograph 30644, my colleagues have been waiting impatiently for? How long will we be waiting for it?
AM: The lot of prototypes was produced in 2008 and we would be manufacturing it in the fourth quarter of 2009, but for the crisis we can't do that. Now for want of financing we have to bring preparation for its production to a stop.
