Vedran Nojić, Adriateh: It is almost impossible to develop a high-tech product without international cooperation

In the world of vehicle cleaning and maintenance, more and more solutions are being digitized, and washing machines are being automated as there is always a demand for something faster, better, and preferably innovative. This does not seem to be an insurmountable challenge for Adriateh from Sveta Nedelja. With its six existing models of self-service and automatic car washes, the company has just launched a new automatic portal car wash for passenger and commercial vehicles, Alta Pro, developed in collaboration with a German partner.

Adriateh has estimated that in five years, more than sixty percent of vehicle washing will be done in automatic portal washes, which look like entrances or passages, and has immediately offered its solution. The company from Sveta Nedelja successfully supplies the European market with car washes and related products and services, exporting as much as eighty percent of its products, in addition to the Croatian market and those of neighboring countries. Customer interest and new distributors are constant, and Adriateh’s director, Vedran Nojić, emphasizes that, in addition to gradually strengthening existing markets, they are also entering new ones, such as the United Kingdom, Ireland, and the Netherlands.

In addition to self-service and automatic car washes made of stainless steel, resistant to all weather conditions, which are quickly and easily installed, Adriateh produces a range of small machines for washes and offers well-known foreign brands, such as Mafra.

Complete control over machines

Nojić notes that they have had their own brand AT for years, which includes a wide range of products for washing and maintaining vehicles. An important part of the offer, he states, is the service and technical support that covers all types of services, as well as various complex upgrades. He adds that they also offer the Stekker electric vehicle charger, which has been successfully certified after five years of development and can now be found in more and more locations in Croatia.

– Our long-term partners are an important part of our products. Some parts are purchased from renowned global brands, but all software, design, and construction solutions are our property. In the next period, we are focused on launching and positioning new products in the market so that they can unlock their potential and impact the company’s revenues. Based on this, we plan to grow significantly in 2024 and 2025. The Stekker electric vehicle charger has exceptional potential in the accelerated development of e-mobility, as the EV charger market was worth three billion euros in 2021, with an estimated annual growth of 30 percent until 2030.

The automatic portal for washing passenger and commercial vehicles, Alta Pro, is also a promising product that will meet the quality expectations and needs of the global market. It is a washing system where the user does not wash the vehicle, but the machine does it with brushes and high pressure. Six years ago, we were the first in the world to develop and offer an application for end customers that enabled digital payment for washing and cleaning services. Thanks to it, car wash owners have complete control over the machines and can make correct decisions and communicate with their customers at any time based on business analyses, Nojić describes.

The potential of e-mobility

That it is almost impossible today to develop a high-tech product like a fast vehicle charger without international cooperation is evidenced by the example of Adriateh, which has invested a huge amount of money in development. For five years, Nojić testifies, Adriateh’s engineers collaborated with a number of companies to design a unique design, unique software, and billing system, ultimately obtaining the necessary certificates. The company’s best employees, he emphasized, developed automatic car washes for cars and trucks with equal energy.

– When developing the business strategy a few years ago, we realized the opportunities and potential of the e-mobility market. For years, we have been producing high-tech developed products, so collaborating with long-term partners to develop electric vehicle chargers was a logical step. Today we offer AC (up to 22 kW) and DC chargers (from 30 kW to 120 kW) with all accompanying design and installation services. Now we are developing ultra-fast chargers for electric vehicles, up to 320 kW, which will allow us to meet all market demands. We started investing in service support on time to resolve any potential difficulties as quickly as possible.

We also have a comprehensive electric mobility system that allows us to offer a complete service, from design, high-tech products of top design, installation services to post-sales service and technical support, as well as short delivery times. We do not believe in the concept of a one-size-fits-all solution, but we create tailor-made solutions. Indeed, it is difficult to compete with large European manufacturers, and unique solutions have helped us enter several markets. Customer satisfaction is also one of the company’s main guidelines regardless of the challenges. We approach each customer individually, and the details differ, Nojić is convinced.

Connecting difficulties

In its 26 years of existence, Adriateh has gone from a small family business to a stable company with 130 employees, but, according to Nojić, it still retains all the advantages of a small and adaptable organization. It was founded by the Rebić family out of passion for the automotive world and machines; modestly, with just a few employees and a rented office. The company, Nojić emphasizes, has continued to grow organically over the years and reinvest profits into employees, machines, and production facilities. The beginnings were related to trade and representation of global brands, which enabled the development of its own production and products, and today the company is run by professional management under the supervision of partners and a supervisory board in which the owners are involved.

– We have had various phases in our business. Some of them were difficult, but the team has always managed to overcome them together. It is precisely these difficult years that further connect us, and during them, we gain the necessary experience. It took years of work and sacrifice to achieve results. Even today, despite detailed planning, we have many challenging situations from which we learn and based on which we correct. Our team has various profiles of experienced professionals who find solutions through direct and transparent approaches. All of this has allowed us to stand out in the market niche with quality and recognizable and protected product design. We believe that continuous investment in development projects and the company’s assets guarantees the development of the business and employees. An exceptional business venture was preparing production and creating our own production brand. With our high-tech products, we have managed to establish ourselves in the European market; they, along with quality service and technical support, are the best reference for new jobs. We have always strived to be innovative and oriented towards new technologies, Nojić describes.

Research and development in focus

Last year, Adriateh’s revenues amounted to 16,241,330.15 euros, which is a decrease compared to the previous year by 1,956,498.77 euros, or 10.75 percent. Nojić explains this with the fact that 80 percent of total revenues relate to projects whose realization depends on a number of external factors. Namely, Adriateh, as one of the partners in the project, is sometimes forced to wait for other phases of the project to be completed, such as construction work, obtaining various permits, or due to weather conditions. The past year, he said, was exceptionally challenging due to the chronic shortage of most electronic components, so when everything is summed up, the outcome is satisfactory as they directed most of their energy towards completing the development of new products. The net profit in 2022 was 898,817.17 euros, which is 10.12 percent less than the one million euros profit from the previous year.

– Last year’s net profit was also influenced by several factors. Due to supply chain issues, we had to use more expensive alternatives to complete projects and meet deadlines. The corona crisis also affected it, in the form of irregular orders and irrational stock increases, which raised input costs. The most important thing is that we decided to absorb as much of the price increases internally as possible to maintain market share and customer satisfaction. This year, our goals and results are at the level of last year’s, and we are currently fulfilling the business plan. Input costs are still negatively affected by the increase in material prices, and the rise in capital costs increasingly affects investor decisions and market slowdown. The trend of rising labor, energy, and material costs continues this year, but through internal changes, we control the cost level and will maintain competitiveness and achieve set goals, Nojić hopes.

In circumstances where the operations of manufacturing companies are strongly influenced by market instability and rising energy prices, Nojić welcomes the regulations of the Croatian government that have positively impacted the sustainability of production. He emphasized that inflation in Croatia is related to labor shortages, wage increases, and the law of supply and demand. As long as demand is dominant, he estimated that supply would follow it in price, making it difficult for him to expect a reduction in inflation. He states that Adriateh has resolved all challenges caused by the corona crisis, supply chain issues, and parts shortages in procurement channels with domestic and foreign supplier partners. Nevertheless, in recent years, the company has been particularly dedicated to research and development of new products and their market introduction. All of this has been accompanied by business digitization and the construction of new production and office space. Now, Adriateh’s campus has more than 30,000 square meters, with 30 percent of the area or 9,000 square meters allocated to production and offices.

Increase in the number of employees

Nojić considers investments in machines, tools, and production facilities to be the most important, in which they strive to follow trends, while employee training, defined processes, and daily learning are essential to remain competitive in all markets in which they operate. Nojić believes they have timely initiated a transformation towards green by increasingly using components that reduce water and electricity consumption or have a smaller carbon footprint. For some time now, they have been utilizing sources from their own solar power plant, and for 70 percent of the heating or cooling of 9,000 square meters of enclosed space, they use heat pumps.

In recent years, they have also recorded an increase in the number of employees, but they face challenges in finding and training the workforce. To retain employees and knowledge, in addition to increasing salaries, they offer various benefits, so the average net salary in the company is above the average in Adriateh’s industry. Salaries are supplemented with various perks, such as bonuses for contributions to work, paid training, or additional days off based on seniority.