Construction on the rise leads Auxter to plan 40% growth in sales
Valor Econômico
Driven by the investments in infrastructure and the good time of construction, Auxter is projecting 40% growth for this year, after nearly doubling its income in 2010. With operation only in the State of São Paulo, the distributor of machines sold R$ 216 million (US$ 122.7 million) last year and it projects earnings of R$ 300 million (US$ 176.5 million) for this year. And the business plan of the company projects R$ 600 million (US$ 353 million) by 2015. The sale of machinery used in worksites has grown in recent years and it ignored the 2008 financial crisis.
With the accelerated growth, the company went through an internal restructuring to accommodate the current businesses and open room for new ones. A company, Maxter, was created this year and it will be responsible for the sale of used machines. The sale of new machinery will be concentrated in Auxter. And it was also created Auxter Rental, a company for the rental of equipment. The creation of Maxter recovers a little of the history of the group, created in 2002 to buy and resell used machines. Partners Célio Neto Ribeiro and Agnaldo Schunck gained volume buying whole batches of used machines, sometimes still inside the worksites.
The sale of new machinery began in 2007 when it took over the representation of the English JCB in São Paulo. In 2009 they started representing the American Yale and, this year, another three manufacturers (the Brazilian Ixon, the Danish Nilfisk and the German Sennebogen). "With Maxter we return to the purchase of the batches", says Ribeiro, the Managing Officer. "But now we will have a better structure, with stores specialized in used equipment and better customer support".
Support is a key word in the businesses of Auxter. Ribeiro assesses the aftermarket was the great differential of the company in its growth. He said the experience with used machines helped at the time of creating the customer service structure for new machines. Today there are three branches in Araçatuba, Campinas and Ribeirão Preto. Another four units will be opened this year: Bauru, São José dos Campos, São José do Rio Preto and Praia Grande. "The first sale does depend on the salesman. But the second is a consequence of having the customer being satisfied with the equipment and after-sale service. Today we have R$ 4.5 million (US$ 2.7 million) in parts in stock".
Ribeiro stresses out the performance of the sector of machines is directly related to the offer of credit. Currently, 70% of the sales are made for small clients with limited cash. Auxter works with seven private banks, but the PSI (BNDES - National Development Bank) was the main credit instrument for the sector. To get an idea of the importance of the financing, JCB has recently managed to achieved, for a specific machine, the minimum level of national content required by the BNDES. Last year, 77 units of such machine were sold. With the possibility of using the PSI, the sales potential increases to 200 units a year.