Birth
1990

Concern SBA started its activities as a small production and trade company at the time when Lithuania was making its first steps as a free market economy. Several young entrepreneurs had only modest resources and weak technological possibilities, but cherished a beautiful and noble vision – to create a competitive Lithuanian product.

Consolidation
1993 – 1996

For many years, Lithuania has been famous for its textile and furniture companies with old traditions, which are known in Europe as well. The specialist training program and infrastructure were developed already, and some of the products were exported abroad. All this work had to be continued, revived with new ideas, and integrated into the European market. That is why furniture and textile production became the concern’s priority. Together with these businesses the concern also undertook wholesaling in oil products, construction business, and retailing activities.

Within a few years the concern purchased some large production companies such as AB Klaipėdos Baldai, AB Šilutės Baldai, AB Kauno Baldai, AB Karigė, AB Utenos Trikotažas, and others. SBA has revived the purchased companies by making large investments both in production facilities and human resources. Already at that time one half of the products manufactured at SBA companies were exported to Western Europe, and the other half was sold via its own trade chains.

Soon, the first furniture and apparel outlets of the concern, Klaipėdos Baldų Prekyba and Utenos Trikotažo Prekyba, were opened. During the years of its activities, the number of Klaipėdos Baldų Prekyba showrooms went up to 8 in Lithuania (in Vilnius, Kaunas, Klaipėda, Šiauliai, Panevėžys, and Alytus) and 2 in Latvia (in Riga). Utenos Trikotažo Prekyba chain also expanded rapidly, and soon had 18 stores in Vilnius, Kaunas, Klaipėda, Panevėžys, Alytus, Marijampolė, and Druskininkai. The company has also opened 4 stores in the Ukrainian capital Kiev.

In 1996, SBA furniture group started cooperation with one of the world’s largest furniture trade chains, Ikea, which gave a powerful growth impulse not only to the concern companies, but also to the entire Lithuanian furniture industry.

Quality and environmental protection
1997 – 2000

Since the very beginning of operations, the concern management has directed investments in the modernisation of the controlled companies, and implementation of the standards complying with international requirements. In 2007, AB Klaipėdos Baldai became the first furniture industry company in Lithuania to implement the quality management system in accordance with the international standard ISO 9001. Within a few years, all SBA production companies implemented and started successful application of quality and environmental management systems ISO 9001 and ISO 14001 in compliance with international standards.

Recognition
2000

In 2000, for its successful attempts and contribution in developing economic and social activities in the Baltic region concern SBA was awarded the major award of the Baltic Business Convention. The founders of the Baltic Business Convention are the Kalmar University, the Foreign Ministry of Sweden, and the US Embassy in Sweden.

Changes, development, and values
2003 – 2005

2003 saw a strategic change in the concern’s management – the implementation of a modern business model targeted at the introduction of a new business strategy was started. Furniture, apparel, retailing and real estate business units were established, which became responsible for management of the controlled companies. The business units comprised highly qualified experts specialising in marketing and sales, product development, production and trade development, and investments. Management via business units was chosen in order to efficiently use production capacities, save costs, apply volume economy when purchasing raw materials and equipment, strengthen our position on the currently occupied markets, and successfully expand into new markets.

In order to implement the chosen business model, SBA Baldų Kompanija was established, which manages the concern’s furniture production companies and applies the business management system SAP.

The changes and the new strategy helped formulate SBA’s business philosophy. In autumn of 2004, concern SBA changed its logo, which reflects the mission and values of SBA group. The spiral in the new logo is a symbol of advancement, dynamism, energy, eternity and at the same time reflects the SBA philosophy, and its attitude towards business and the environment. The logo change was also linked to the planned SBA group expansion to international markets.

Implementing its strategy of expansion to new markets, in 2005 SBA purchased the Russian furniture factory Novo Mebel. The products manufactured there are intended for the local market. Novo Mebel furniture is sold by the representative office of SBA Baldų Kompanija operating in Moscow. During the largest Russian furniture fair Mebel-2006, the Russian Association of Furniture and Wood Processing Companies and the Russian Design Union awarded Novo Mebel first prize in the Best Design nomination to the module cabinet furniture collection Dona.

With a view to increasing Utenos Trikotažas’ production capacities and improving cost management, knitwear factory Mrija was purchased in Ukraine in 2005. Upon implementation of the long-term investment plan, the same entire product production cycle as at Utenos Trikotažas was implemented at the said factory: knitwear production, dyeing, and production of knitwear articles.

In the same year, the workwear producing company Justima was joined to AB Šatrija. This helped strengthen the companies’ competitiveness and reduce costs.

In March of 2005, the retail furniture trade chain Klaipėdos Baldų Prekyba changed its trademark to SBA Idėjos Namams and introduced a new store concept, which is a unique retail furniture and interior accessories trade concept in Lithuania: the clients are offered integrated home furnishing solutions. The company is the leader of furniture retail trade in Lithuania. SBA Idėjos Namams showrooms can be found not only in Lithuania, Latvia and other Eastern European countries, but also in Ireland. Starting from December of 2006, a store operating as SBA Idėjos Namams franchise company was opened in Ireland.

In the second half of 2005, the concern purchased an interest in Vakarų Medienos Grupė. The group controls three wood chip board and furniture production companies: AB Klaipėdos Mediena, UAB Girių Bizonas, and UAB Sakuona. The decision was taken with a view to ensuring further vertical integration in the furniture production process.

Leadership
2006 – 2007

Today SBA furniture and apparel group of companies is one of the largest, most advanced and efficiently operating not only in Lithuania, but also in all Baltic States. SBA group‘s annual turnover amounts to nearly 1 bullion litas – in 2006, SBA was among the ten largest Lithuanian companies by its turnover. The products manufactured by the group‘s companies are exported to nearly 40 countries of the world. The companies controlled by SBA have approximately 7,600 employees.

In order to increase SBA furniture group‘s production capacities even more, create new technological opportunities, and expand the selection of manufactured products, in the end of 2005 the concern started to build new furniture production facilities near Visaginas. The total investments in the factory named Visagino Linija amounted to 73.5 million litas, some of which (26.7 million litas) were granted from the EU structural funds. The company started its operations in November of 2006.

Visagino Linija is one of the most advanced furniture production facilities in Eastern Europe. It is planned that using its entire capacity the factory will create approximately 650 job places and will become the second largest private capital employer in Visaginas region.

Activity efficiency and added value creation are the strategic directions of SBA businesses in 2007.

By investing in production equipment at furniture and apparel company groups, a higher efficiency and productivity will be aimed at. Through automation and upgrading of equipment, manual work will be gradually replaced by machine operations; therefore, production capacity will be increased without increasing the number of personnel. SBA will better manage costs and satisfy the increasing client needs.

Another important element of SBA activity continuity and new business strategy is the creation of added value. Maintaining its production volumes, SBA furniture group in 2006 strengthened its position in the sphere of product design creation. SBA furniture specialists cooperate with Lithuanian and foreign designers.

SBA plans to sell furniture of own design to major furniture trade chains and independent furniture sellers of the EU countries, Russia, USA, and Ukraine. As one of the steps in the implementation of these plans SBA Baldų Kompanija established its representative office in Germany, which takes care of the sales of SBA products in the local market.

Regarding furniture and apparel related retail activities, SBA plans to further develop and enhance its concepts.

Added value creation, streamlining of the group
2007 - 2008

Active promotion of SBA Furniture Group products. Increased support of SBA Furniture Group employees‘ initiatives while creating new products. The introduction of Effigy brand name in the market of apparel retail. Disinvestment of the architecture design company Miestprojektas and closure of the furniture manufacturing company Karige as a result of a restructuring plan.

The efficiency enhancements within the group due to the changing business environment
2008 - 2009

Management‘s focus on the efficiency enhancement. Non-core business disinvestment by concentrating on the fundamental businesses. Cost reduction and the increased efficiency of the employeed capital management in relation to the changing business environment. Restructuring of the loan portfolio has helped to maintain leader‘s position and has given more opportunities for implementation of future plans.