Taurus Group enters the photovoltaic energy market. The company will soon launch the Taurus Renovables brand, with which it will market the installation of self-consumption solar panels, focused on individuals and companies. The goal set by the firm is to reach 5,000 homes in 2023 and invoice around 35 million euros in that period. “We believe that this is one more step to improve people’s lives. There is a lot of growth in the sector and we are confident that it is an ideal time to enter, ”says Enric Tria, CEO of Taurus Europe.
The company, which has closed the year of the pandemic with positive data, maintains its expansion strategy. This line includes the launch of Taurus Renovables, with which between 100 and 150 direct and indirect jobs will be created, according to the firm’s forecast. “We have a network of specialists throughout the territory, of external personnel, who will take care of the installation,” explains Tria.
Among the benefits of the installation in homes of this type of energy generators for self-consumption, the company highlights the economic return. According to his calculations, with the energy generation he uses and the sale of the surplus to the operator, the consumer can save up to 70% of his bill during the year. By combining these two issues with the tax benefits derived from the installation, Taurus Group believes that a return on investment is achieved within three to five years.
The plates, which will have a part of their own production and another that will be imported, will have a 25-year factory efficiency guarantee. And in terms of the way of sale, the company will be based on local commerce, where it is already present. In addition, the product will also be offered for sale online: a price simulator, payback time and financing options, among others, will be available on the web. A channel that had been growing in recent years and that with the pandemic has exploded.
The Taurus group is aware that it is entering a market to which other companies have already entered, although they believe that this rivalry is beneficial: “As there is more competition, there will be more publicity. And the Government increasingly issues more messages along these lines. For this reason, we believe that interest in acquiring this type of facility will increase ”, defends Enric Tria. Sources from the Ministry for Ecological Transition share this idea and expect that demand will grow exponentially in the coming years, also due to public aid.
Another possible business route and option to grow faster will be through collaborations with other companies. In this sense, market sources point out that there are negotiations well under way, an assumption that Tria himself confirms: “We are open to collaborations with companies in our environment. There are already advanced conversations, although we cannot reveal anything concrete yet ”.
This Taurus project is firm, although its size comes at the expense of the financing that they intend to obtain from European funds for the recovery. “If we do not receive help from community funds, the plan will continue, but with lower investment and job creation. And with greater dependence on countries like China, with cheaper labor costs ”, acknowledges Tria.
The company has weathered the year of the pandemic with a revenue growth of around 5%, from 205 million to about 220 million, according to the CEO of the firm. In the absence of the accounts being audited and published, the CEO of the firm for the Old Continent advances that the ebitda (gross operating result), 18.2 million in 2019, and the profit, 9.9 million in 2019 , grew in the same proportion in 2020: “At the beginning of the crisis, with the closure of stores, there was a significant drop in turnover, but then it recovered very quickly.” In this way, Taurus has even managed to improve its financial solvency with an increase in the debt-to-ebitda ratio in the year of the coronavirus, according to sources from the firm.
By channels, electronic commerce stood out from the rest. In a context of confinement and severe restrictions, with stores closed for months, online sales became the only alternative for sellers and buyers. “We have doubled the turnover online in the small appliance. The income generated by the internet was 20% of the total market in 2019, while in 2020 it exceeded 30% ”, says Tria, who believes that there is a change in trend, although it maintains its commitment to physical stores.
By markets, total billing grew most strongly in Italy, Germany, the United Kingdom and the countries of Eastern Europe. This increase is fundamental for the company and explains a large part of the increase in income, since sales outside of Spain account for 70% of the turnover of the group.
During the year, the Taurus workforce has remained stable (it has about 300 workers in Spain and around 800 worldwide), although it did use tools such as ERTE in Spain or similar formulas from other countries in the months where the restrictions were tougher. Looking ahead, Taurus argues, these jobs are not in jeopardy, although it does anticipate that there will be an important change in roles with digitization to get closer to the customer.
In addition, the company, once the hardest part of the pandemic has been overcome, does not rule out launching for new brand additions and expansion to other countries. “We value options and there may be acquisitions soon, both in the household appliance sector and in biomass for the production of chimneys. And in terms of markets, there will be openings of more subsidiaries this year in Europe, where several options are being evaluated, in addition to North Africa and North America ”, assures the general director for Europe of the company.
The exercise has been a continuous examination. In fact, during the harshest confinement phase, some products were even out of stock as demand skyrocketed. “The lack of supply occurred in hair clippers, stick mixers, kneaders … The products that have increased their sales have been especially kitchen robots, household cleaning appliances and personal care.”
Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.