Adrem is a company specialized in products, solutions and services dedicated to the energy industry and incorporates three entities: Adrem Engineering, Adrem Invest and Adrem Link. With a long experience in the energy field, in the management of complex activities and coordination of over 1,000 employees, Corneliu Bodea reveals what were the challenges in the Romanian entrepreneurial environment faced by the company he leads.

You started the Adrem business in 1992 since the beginning of Romanian capitalism. How would you describe the evolution of Romanian entrepreneurship during these three decades?

When we launched into this industry, the Romanian economy was poorly developed, compared to what was happening in Western Europe, and Romanian businesses initiated by individuals in particular were almost non-existent. The ’90s – characterized by two moments of crisis: the collapse of the industry in ’93-’95 and the devaluation of the leu in ’96-’97 – were like the first years of a child’s life in which we learned to “crawl”, to walk, to talk, to have opinions and business ideas, to fight and overcome the huge obstacles that stood in our way, to fall, to get hurt and then to get up. At that time we didn’t know what “entrepreneurship” meant, there was no entrepreneurial culture, no access to resources or education in this area. We wanted to do business but we didn’t have a clear business strategy, we relied more on instinct.

Thus, in 1992, Adrian, my brother, launched the company Adrem Invest, and I decided to accompany him soon with the vision of contributing to the modernization of the Romanian industry, one of the ambitious goals and desires we still have today. It didn’t work out from the first attempt. The first contract consisted of repairing an electronic microscope from the Oncology Institute, at the proposal of a professor and the money collected was invested further, a predisposition that came more from reflex than from education, as it happened with the rest of the bills. Being a turbulent period, it was difficult to get contracts for projects such as technological innovations and we had to reorient ourselves towards an industry that was growing at the time: commerce. This is how we started the Kaiser beer business, transported in the back seat of a car. However, the gain we had only ensured our survival and we could not feed our ambitions. Then, towards the end of 1994, we turned again to technology, in a difficult period, when the entire Romanian industry was collapsing. However, we had started to design more and more and we found a niche to address – the vacuum technique in industrial applications. Adrian managed to invent a new liquid steel vacuum system, a technology that Adrem brought to the field and patented in 2000, which is used today all over the globe. Vacuum technology is an indispensable system today that is used mainly in the metallurgical industry, to reduce hydrogen content and energy consumption.

The second decade was characterized by an economic boom in which technology went to the next level and created more business opportunities: new start-ups, the expansion of existing companies, an increased number of entrepreneurial development programs and a growing openness to the West. However, in all the abundance of information and opportunities, many entrepreneurs focused on obtaining high profits, in the short term, without a vision of the future. This explains the fact that many worked 16 hours a day, giving up their personal lives, looking for any resources that would provide them with an income, that would help them grow, invest and earn as much as possible. This is what happened in our case: we became a designer and executor of turnkey vacuum installations and we turned more and more towards the foreign market, keeping in mind the strategy of building a business on a solid foundation. During this period, we have expanded our team to a few hundred employees, attracted many specialists in the field and established new divisions.

All businesses went through this process at a rapid pace until 2008, when everything stopped: many large and small companies went into recession and closed their doors, many people were left without a job and with an uncertain future ahead.

The third decade meant a restart of the economy and a review of businesses to cope with the crisis. It was the hardest lesson for entrepreneurs who were put in the situation of rethinking the business for survival. At the beginning of that period we learned about what strategy means in crisis and how to approach it according to objectives: you adopt the safe strategy and wait for the difficult period to pass, maybe you will survive, or you seek to identify business opportunities and alternative solutions for consolidation and growth. We adopted the strategy of diversity of services and products we offered. With the outsourcing of the electricity meter reading service by CEZ Distributie, between 2008 and 2009, when we took over 600 employees, we began to develop the portfolio of services in the energy industry, such as the maintenance of low and medium voltage networks, then continuing with the development of energy efficiency solutions dedicated to both large energy consumers and residential customers.

Over the past 30 years, Romanian entrepreneurship has gone through all possible stages from which entrepreneurs have had to learn lessons in survival, adaptation and reinvention. The next decade, I think, should find us much more prepared than we were, moving on to strengthening the business environment, sustainability and embracing new technologies that contribute to creating that prosperous future to which we all aspire.

What is Adrem’s current structure? How is the company organized and what are its main entities? What does Adrem mean at the moment in terms of turnover, team and logistics resources?

I will start with the name Adrem, which in Latin means “precision” and which is part of the DNA of our business. Precision is a constant in all the projects we carry out and in the relationships we build with the company’s customers and partners. Basically, Adrem sums up our passion for science, the desire to contribute to the modernization of the industry, to the development and growth of the country’s economy.

Involvement, responsibility, respect, ambition and rigor are the values that underpin the business model. Adrem is part of the ABBC Holding group, which was also founded by us, represented by 10 companies on 4 continents, in countries such as the USA, China or Switzerland.

In Romania, Adrem today means three companies that have been offering products, solutions and services dedicated to the energy field to customers for 27 years. Adrem Engineering develops and implements solutions and products for the modernization and construction of energy infrastructures in Romania. These include SCADA and Automation, engineering and design, smart energy systems and networks – Smart Grid, general energy entrepreneurship and energy equipment.

Adrem Invest offers services such as metering group management, maintenance of electrical infrastructure, smart metering and operation of energy distribution networks.

Adrem Link deals with services for utility networks such as meter readings and promotes energy efficiency solutions such as smart city energy management, photovoltaic panels and energy storage, dedicated to both physical customers and the residential segment.

In terms of turnover, last year we recorded approximately 40 million euros and this year we estimate an increase of 10%. In the near future, we are focusing on B2C projects where we expect, starting with 2020, to have solid growth.

Regarding teams, our major objective in the next period is the development of human resources, without specialists, people passionate about what they do, it would be difficult for us to grow the business and get involved in the development of the economy.

What development prospects does Adrem have in Romania in the next period? Do you intend to develop new business lines? If so, what are they?

In the current context in which we have to focus a lot on energy efficiency, we will develop the customer portfolio in the B2C area that we have initiated with a series of pilot projects. Soon we will start the installation of photovoltaic systems through the “Green House” program, launched by the Environmental Fund Administration and we hope it will be an important step in the development of smart cities. In the coming years, we aim to invest in our youngest company, Adrem Link, and in products and solutions dedicated to end consumers, whether we are talking about industrial customers, municipalities or individuals.

In addition, I have another desire and passion that I have been following for several years: to use my experience of almost 30 years of entrepreneurship to guide entrepreneurs at the beginning of their careers and young people at the beginning of their careers. That’s why I always make room in my calendar for meetings with them, for discussions with students, and I try to get involved every time someone asks me for help.

The rethinking of the Adrem concept has developed an extensive recruitment process. In less than two months, 500 people were hired. How difficult was it to find the profile of the candidates you needed in such a short time?

Indeed, at the end of 2018 and the beginning of this year we developed an intensive recruitment program that emerged after winning new contracts. The program involved hiring, in less than two months, 500 people (in the regions of Moldova, Transylvania and Banat). The performance of the recruitment campaign is very high for us because the profile of the candidates sought is atypical and we are glad that we managed to find new colleagues in such a short time. In finding the ideal profile, the employer brand also helped us a lot.

Shortly after the success of the recruitment campaign, we had to rethink the strategy of Adrem companies, as a result of the famous GEO 114/2018. Thus, the meter reading activity that was carried out in Adrem Invest was moved to Adrem Link, while several hundred colleagues accompanied the activity they were doing in the group’s company. The beginning of this year was an extremely active one, which motivated me. I have the habit that every year, at least once, I go to all Adrem offices and meet all my colleagues, about 1,500 people located in almost all counties of the country. I think it is important for me and for them to be in touch, only in this way, a team can develop a lasting relationship together both horizontally and vertically, and this is reflected in performance.

Next, we aim to strengthen our national geographical coverage, to be a reliable partner of the communities in which we operate and to find solutions to the challenges of the labor market through extensive development projects, with results and impact.

How much have you invested in the development of the business you run in the last five years?

In general, the policy of reinvesting all the profit in the growth of the company, with which we started since its establishment, has remained valid. In the last 10 years we have invested over 15 million euros in projects such as: the acquisition of a competitor in Switzerland, the construction of a biomass cogeneration plant in Suceava, the acquisition of equipment for maintenance activity, staff training and software infrastructure for workforce management and others.

Without investing, you can’t sustain a business in the long term, and that’s a lesson I’ve learned, not always easily…

How do you maintain the passion and energy to coordinate a company the size of Adrem?

Working with people motivates me the most and fuels me with energy and passion. That’s why I organize meetings with colleagues in the territory, where we discuss the situations they encounter in their daily job, the challenges in managing operations, suggestions they have for improving the work environment. I like to think that we are a family in which everyone is an entrepreneur who thinks of their daily work as their business.

I want to get more involved in the development of people, entrepreneurs and in the education of young specialists. I believe that by capitalizing on ideas and valuing people, we can innovate and bring a significant improvement to the community in which we live.

What do you consider to be the main obstacles to business development in Romania? In your case, what were the biggest challenges you faced and how did you overcome them?

I believe that the main obstacles in the development of entrepreneurship are related to the lack of predictability and long-term strategies from the state, difficulties in lending and lack of infrastructure. Thus, many people with potential give up on becoming entrepreneurs and this makes the difference between successful businesses and those that do not reach the point of success.

In my 27 years of entrepreneurship, the biggest challenges have been in the periods when the leu devalued and we made a loss, in the first years after the revolution and the economic crisis of 2008, and in addition to these there are also the energy regulations that change from one year to the next. We are forced to find solutions and adapt the business model, especially in an unpredictable environment. All this has developed my resilience, the quality that makes me feel stronger and more determined to achieve my goals and the quality that every entrepreneur wants to have.

In your field of activity, what do you consider to be the directions with the greatest potential for development in the coming years?

Considering that the energy market in Romania is currently going through a period of modernization, I believe that in the coming years energy efficiency solutions and products will be the ones that will dictate the market. At the moment we are already witnessing the beginning of this stage, in which household consumers and small residential customers are also involved, having the opportunity to be prosumers.

At Adrem, we already develop products and services dedicated to end consumers, following the mentioned trend, services structured on directions such as energy management for smart cities, installation of photovoltaic panels or smart lighting solutions.

If a young entrepreneur at the beginning of the road asked you for advice, what would it be?

I would suggest that he show confidence and fight for his idea with a lot of work and involvement. To be determined enough, not to give up and to be prepared for success, but also for failure. In addition to these, he must be positive, believe in people, respect them and be fair to them.

The article can also be read on revistabiz.ro