Ready, set, grow!
Twice as big in five years.
The world wants safer traffic and cleaner air. Opus Group companies offer services and technology solutions to achieve this, and we aim to be twice as big within five years.
In 2010, the World Health Organization (WHO) set the goal of halving road traffic deaths by 2020. The developed world is right on track to achieve the goal, while the trend is in the opposite direction in developing countries and fast-growing economies. What’s more, in many of these countries air pollution in urban areas is increasingly troublesome and is often several times over the applicable limits.
Focus on old vehicles
Economic growth and a burgeoning middle class have led to more vehicles and increased traffic. Because new vehicles usually enjoy high safety and low emissions, the focus is more and more on older vehicles. Regular inspections take the most dangerous and environmentally harmful vehicles off the road, which is precisely what has happened in developed countries since the 60s and 70s.
Twice the sales
The fact that more and more countries are introducing inspection programmes is ideal for Opus. We have the experience, the technical expertise and the financial muscle to grow and become a world leading operator in vehicle inspections. The goal is to double sales within five years from USD 200 million to USD 400 million and increase earnings from USD 40 million to USD 100 million.
Our growth strategy is based upon our being one of the world’s strongest vehicle inspection companies, strengthening our leadership, developing new technologies and services and setting up in new markets. A complete presentation of the strategy is available here >>
Ready
We have a stable platform upon which to grow and become one of the truly significant operators worldwide. Opus is number one in the United States, number two in Sweden and has established operations in Asia and Latin America. Management has long and extensive experience in vehicle inspections globally; we are leaders in the field of technology and have major in-house development resources. Last but not least, we have strong finances which provide us with the conditions to grow profitably.
Set
We will strengthen group management by expanding from four to eight people. Lothar Geilen will be CEO and Group President after Magnus Greko, who will be working with strategic business development for the group. The new management team will include the heads of the three segments Europe, Latin America and USA & the rest of the world. Recruitment of a global Head of Communication to develop our internal and external communications is in progress. In Pakistan, Sohaib Ahmad recently took up his post as country manager, as did Martin Susbielles in Argentina.
Grow
USA
As regards of vehicle inspections, it is largely about defending our market-leading position, increasing productivity and developing new technological aids and tools. Most of the growth from USD 127 million to USD 185 million comes from our business model EaaS (Equipment as a Service). Read more about it here >>
Europe
In Sweden, we grow by building new stations to cover every part of the country and we expect to increase sales from USD 73 million to 90 million. We also plan to set up in other parts of Europe and go from zero to USD 30 million.
Latin America
We see major growth opportunities here. In 2016, our operations in Mexico and Peru were joined by Chile where we opened two stations and have plans for an additional six or seven this year. We’ve also had a presence in Argentina since March 1, when we took over another operator’s business activities with three stations in Cordoba. The newly appointed Head of Opus in Latin America is Alfredo Granai. The goal is to grow from today’s USD 1 million to USD 50 million by the year 2021.
Rest of the world
In July 2016 we inaugurated a station in Lahore, our first in Pakistan. We have since added a station and are entering phase 2, which will involve around 20 stations in Punjab province. Several other countries in Asia – among others India – and Africa have advanced plans for vehicle inspections. We see good opportunities for Opus here and we aim for a sales increase from zero to USD 45 million.
The world needs Opus
What makes us think we can achieve our ambitious goals?
“Our business has perfect timing since demand is growing steadily as more and more new countries introduce vehicle inspection programmes,” says Magnus Greko. To put it simply, we improve the environment and road safety every day in people’s day-to-day lives. Our high level technology is a strong competitive advantage, and will only grow in importance as vehicles become more sophisticated with systems that assist the driver and even take over control. Faults in advanced systems in vehicles of this kind could have entirely different consequences than those we see in today’s vehicles.
But an equally important success factor is our corporate culture.
“We’re not only good at growing organically, but also through acquisition,” concludes Magnus Greko. “We are good at acquiring companies and creating a common Opus culture where the entrepreneurial spirit thrives.”
Opus core business lies at the intersection of vehicle repair shop technology, government service and certified inspection activities.