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Taking the Russian rouble

23rd December 1999
Page 85
Page 85, 23rd December 1999 — Taking the Russian rouble
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Which of the following most accurately describes the problem?

With more than 2,700 trucks, French operator Ciraud is a transport giant. It has acquired more than 60 companies in several countries—now it's proving that there's money to be made in Russia...

FRANCE

roupe Giraud has 5, oo o employees, 2,700 trucks and an annual turnover of /35om, making it one of the largest transport compa nies in western Europe.

Since the beginning of this decade the family-owned transport dynasty has been developing with explosive speed: the present management has now become interested in Scandinavia.

Until the end of the seventies a lot of Giraud's work involved moving wine in tankers. This work declined as more wine came to be bottled on site; Michel Giraud and his brother-in-law Alain Fauqueur took over the reins in time to lead the company's transformation. When they took over 75% of the work was domestic—now international haulage accounts for about half of Giraud's turnover.

Another part of the story is that over the years Go competing transport businesses have been acquired. Although this has surely contributed to the fact a number of banks seemed to find shares of the Groupe Giraud attractive, Giraud and Fauqueur nevertheless decided to maintain family control and retain 70% of the shares.

When Groupe Giraud seriously turned its gaze towards the large market in Russia in 19 95, it was associated with the same risks that had already struck some competitors severe financial blows. But the transport of goods to this destination increased to between 120 and 150 loads per month and the management of the group has proved haulage to Russia can be profitable.

Ferry

Goods for Russia are transported using different methods: partly in semi-trailers by ferry from Lybeck in Germany to Helsinki in Finland; partly in containers by rail; or by sea directly via Le Havre and Dieppe.

From Helsinki, Giraud Finland 0Y—the operational arm for traffic to Russia—ensures safe arrival with customers who are mainly situated around Moscow. Groupe Giraud has also established a division in that capital.

It's a long route through Finland to Russia but it was chosen over sending the traffic through Poland as the management finds this to be the safest route for the valuable and highly negotiable just-in-time goods transported chiefly for large customers from France, Germany and the US,

Besides the division in Finland, Scandinavian activities include a Swedish division, the transport and logistics company Just in Time AB. It's based at

Kalkbrunsgatan in Gothenburg and was established by Frenchman Claude Garcia in 1987. He says: When I sold to Groupe Giraud last year, one basis of negotiation was the yearly turnover of SEK 30 million (Li.zim).

"Following the new status as part of the Giraud transport group I expect turnover to double within a rather short time," says Garcia. He is acting general manager for his two previous companies—just in Time AB and Swetab AB—and now manages Groupe Giraud's transport and logistics business in Sweden.

The manager's expectations for increased turnover already seem to be coming true. The company is outgrowing its existing 5,000m2 goods terminal, which is also a storage area.

rAcTrILE

Groupe Giraud

EASED Paris, with 50 depots in France; 18 elsewhere in Europe; one in Moscow.

FOUNDED 1932.

CONTACT Directors Michel Giraud and Alain Fauqueur.

FLEET 2,450 tractive units and 200 rigids, marques include Renault, Mercedes, Iveco, Daf, Volvo and Scania. Buys new. Most recent purchase: 1,250 Renault Premium 385s and 500 Oaf 95XFs.

SPECIAUTY international general haulage; justin-time deliveries.

TURNOVER 2350m.


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