The EBRD's financial and advisory support programme is helping a kitchen furniture producer to grow.
Mongolia’s fast growing economy is presenting new opportunities for diversification beyond the mining sector. In this vast country, residential construction is rapidly expanding providing in turn a boost for the furniture market - expected to grow by up to 25 per cent in the next five years.
To sustain this trend, the EBRD and its donors are backing the growth of local furniture kitchen producer and retailer Doloon Boldog and its Kitchenhall brand with both financial and advisory support.
Distributing international kitchen brands
Established in 2004 by Ganbat Samdan and his brother Ganbataar to pioneer the market and soon become the official distributor of international kitchen brands, the company, having reached its production capacity limit, was seeking further expansion to face the growing demand.
Planning for the future
With the help of the EGP, supported by EBRD Shareholder Special Fund, a senior industrial advisor has been working with Doloon Boldog since 2010 and prepared a meticulous business and investment plan including the design of a new production building.
The Mongolian Business Advisory Services team was also involved in the success of the Samdan brothers’ business venture. With support from Luxembourg, the Early Transition Countries (ETCs) Fund and the EBRD Shareholder Special Fund, BAS has helped Doloon Boldog to establish a quality management system, to develop marketing strategies and, in 2012, to improve their financial reporting and cash flow management through the EBRD Accounting Improvement Programme (AIP), which helps SMEs in 10 ETCs produce good quality financial information to facilitate obtaining loans.
Thanks to these donor-funded projects, in 2013 Doloon Boldog has obtained an EBRD loan of up to US$ 4.4 million to support the purchase of modern equipment and the construction of a new production facility.
The management team of Doloon Boldog is proud to lead the market and their kitchen cabinets promise to appear in more and more Mongolian houses in the future.