K-Systems

2014: "K-Systems" comes under Treolan's control

[1] Georgy Gens told the story of the transition of K-Systems to the Lanit group of companies in an interview with TAdviser :

"Eduard Voronetsky and I were co-owners of the 50-50 company, but he was the CEO, and I was in the role of an external adviser. As a result, I tell him: "Listen, I came to you as a specialist in the computer business, in technology, and you are engaged in real estate." He replies: "You don't understand anything." Then I voiced my decision to leave the business to him, and he says: "OK, but I won't be able to pay you money right away." I'm on it: "OK, pay me when you can." Until the end, he did not pay off, as there was a crisis and all the risks that I warned about were realized. And then there was the moment when he decided to leave the business altogether. He came to me with the remnants of IRBIS production and asked if I wanted to pick them up. And I took it. We agreed on quite reasonable terms. As a result, I returned to IRBIS what I had invested before. Now the share of IRBIS in the Russian mobile device market is growing. IRBIS turnover in 2017 alone was almost twice as high as the previous year. It's nice that as a result everything turned out that way. "

K-Systems ceased to exist as a separate company, and Treolan became the owner of the Irbis trademark. See Irbis (Irbis) Treolan for details.

2011: Computer sales do not grow, hope for TVs

The volume of production of PCs and revenue of K-Systems in 2010-2011 was not disclosed. Eduard Voronetsky notes that the company has not reached the pre-crisis level. "PC sales volumes are now practically not growing, so only due to them it is impossible to reach the pre-crisis level, this requires diversification of the product range," says the president of K-Systems.

Voronetsky expects that in the future the share of TVs in the company's revenue structure should reach 50%. As of November 1, 2011, four TV models are presented in the K-Systems product line.

The representative of M.Video Anton Panteleev told CNews^[1], which in the 3rd quarter of 2011 sold about 20 thousand K-Systems computers on their network, but it is too early to talk about annual quantitative indicators, since usually the most active sales in this segment of equipment is the 4th quarter. The demand for these computers has been stable throughout the year, Panteleev notes.

A source in MediaMarkt told CNews that in their network the sales volumes of K-Systems computers since the beginning of 2011 have also been stable. In total, about 2.5 thousand were sold during this period. PCs and all-in-ones from this manufacturer, while the share of the latter in total sales, according to the interlocutor of CNews, is very insignificant.

In 2011, K-Systems had its own production facilities in the city of Gvardeysk, Kaliningrad Region. annual production potential of the complex is 1.5 million units of computer equipment per year. This K-Systems PC assembly plant is the largest in Russia - its total area is 24 thousand square meters. meters, of which 6 thousand square meters. meters falls on assembly conveyors. Almost all other areas are production facilities that can be used, for example, as a warehouse. The plant was built at the end of 2008, however, due to the crisis, production at it was frozen.

K-Systems cooperates with global manufacturers of element base and software - Intel, AMD, Nvidia, Microsoft, etc. Technical support for users is provided by more than 250 service centers operating throughout Russia.

2012

K-Systems has achieved the issue of introducing customs duties on the import of ready-made desktops and monoblocks into Russia to the government level. The company says that they received support from all major departments, and the discussed amount of duties is 6.6-10%. Chinese PC assemblers believe that the duties will not affect the balance of power in the market. As the head of the Russian PC collector K-Systems/Irbis Eduard Voronetsky told CNews, in April 2012 a meeting of the working group of the government subcommittee on customs-tariff and non-tariff regulation was held, at which his company's application for the introduction of duties on computers imported into Russia was considered. It is worth noting that under the terms of Russia's accession to the WTO, the duty on imported computers cannot exceed 10% and at any initial size should be reduced to zero within three years. According to Voronetsky, this is in any case better than nothing and at least for two or three years "will give Russian business a break."

2011: Appeals to the government for help

• July 2011. The Russian assembler of the K-Systems/Irbis PC officially appealed to the Ministry of Economic Development on the issue of increasing customs duties on computers and monoblocks, the rate for which is now 0%. The main purpose of the appeal is "to stimulate the development of Russian manufacturers of computer equipment and stimulate the placement of production facilities of foreign manufacturers in the Russian Federation," the ministry said in a statement. It should be borne in mind that the share of Russian PC assemblers has been steadily declining in recent years. Foreign manufacturers, on the contrary, increase it. So, according to Gartner for the IV quarter of 2010, the growth of the main foreign players year-on-year averaged 60-70%. At the same time, deliveries of the largest Russian supplier Depo Computers in the IV quarter of 2010 decreased compared to the same period a year earlier, as a result of which the company's market share also fell from 4% to 2.5%. Also, Kraftway somewhat reduced its share, while Aquarius and K-Systems grew slightly. The Ministry of Economic Development told CNews that the K-Systems proposal is under consideration and may be included in the agenda of one of the meetings of the commission on tariff and non-tariff regulation. At the same time, the representative of the department noted that they had not been officially approached with such proposals earlier.

• On November 1, 2011, it became apparent that K-Systems/Irbis are look for tenants in the vacant areas of its plant in the Kaliningrad region (told CNews^[1] its president Eduard Voronetsky). For its needs, K-Systems uses only a fourth of all areas and about 5% of assembly lines.

Voronetsky associates the low load of production with the lack of a real plan and incentive for federal officials "to save, and even more so, the development of domestic industry, despite official statements."

"For example, we have repeatedly appealed to the Ministry of Economic Development about the introduction of duties on foreign-made computers - such a measure of support for assembly industries within the country exists in a number of other countries - but so far the Ministry of Economic Development and Trade has, in fact, only dismissed us," he says.

The company does not plan to lease assembly lines, says Voronetsky, but is ready to use them to provide assembly services for other suppliers.

The K-Systems production premises are ready not only to hand over, but also to sell part of them if they receive a decent offer. Eduard Voronetsky notes that the company is not specifically looking for a buyer.

Now at this plant, according to the president of K-Systems, it is mainly assembling monoblocks and TVs that are just being put on the market.

"We have agreed on the supply of TVs to almost all major regional retail chains, including, for example, DNS. Admission to the shelves is expected in November 2011, "says Voronetsky. Negotiations are also underway on the supply of televisions and with federal networks.

PC assembly is now carried out on rented space in Moscow. As CNews previously wrote, the company sold production in Mytishchi near Moscow in order to pay off debts accumulated during the crisis. The current PC build volumes are not disclosed.

In addition to TVs, the company is thinking about the possibility of releasing other products. "We fall asleep and wake up thinking about it," says Voronetsky, noting that the company has not yet decided on the choice of a new product. Earlier, K-Systems tried to agree with Rusnano on the use of its plant for the production of electronic "readers," but the state corporation decided to build a plant in Zelenograd for this project.

2010

• September 2010 - As the CEO of K-Systems Eduard Voronetsky told CNews, his company intends to diversify the range of products. E-book readers were considered as one of the options. To do this, K-Systems hoped to participate as a co-investor in a project to produce readers together with the state corporation Rusnano. According to Voronetsky, last year his K-Systems Europe plant in the city of Gvardeysk, Kaliningrad Region, was visited by the Rusnano working group - then it was about a project for the production of readers and the choice of a site for this project. K-Systems, as a co-investor, was ready to provide its material assets for the project - production facilities and equipment. However, according to Voronetsky, in the end, Rusnano decided in favor of St. Petersburg, believing that it had more potential than the Kaliningrad region. As a partner for this project, according to the same source, Rusnano chose a foreign company. It is worth noting that K-Systems had its own production facilities in St. Petersburg at one time - however, the company sold them in 2008.

• In September 2010, the Kaliningrad Small Business Support Fund refused to issue a subsidy to repay interest on the K-Systems Europe loan (to the K-Systems PC collector in the Kaliningrad Region). Disagreeing with this state of affairs, K-Systems Europe filed a lawsuit against the fund itself and the Ministry of Industry of the Kaliningrad Region coordinating its activities, demanding that the decision be declared illegal. The case will be considered on the merits in October 2010. Under the terms of the relevant joint federal-regional program, a loan under which compensation can be obtained should be attracted only for the purchase of funds for the development and expansion of its own production of goods, works or services in the field corresponding to priority areas of development of small and medium-sized businesses in the Kaliningrad region.

• December 2010 - The Russian representative office of Acer made a "control purchase" of the K-Systems Irbis computer in the M.Video retail chain to check whether the video card contained in it belongs to the 6000-series, as stated by the manufacturer. Recall that the K-Systems PC with unannounced models of AMD Radeon HD 6250, 6390 and 6510 graphics cards recently went on sale in large retail chains. In the near future, Depo Computers with similar video cards are expected to appear on the shelves. Even before they went on sale, Acer, citing an internal investigation, said that the PCs of Russian assemblers contain re-labeled AMD 5000-series video cards, which are issued for the 6000-series. For testing, Acer purchased the K-Systems Irbis i550e i5530/500 PC model with Radeon HD 6390 graphics card. The test was carried out using two popular computer diagnostic and benchmarking utilities AIDA64 Extreme Edition and SiSoft Sandra. Device Manager and Catalyst Control Panel (a pre-installed graphics management utility) defined the video card as Radeon HD 6390, but both utilities recognized it as a Radeon HD 5000-series video adapter. For example, AIDA64 showed the card as an ATI Radeon HD 5550 (Redwood) video adapter, and Sandra identified the name of the device as PowerColor Redwood PRO (Radeon HD 5500 series). After that, the video card was pulled out of the system unit to take pictures. The video card itself shows the model - R83K. This model of the PowerColor HD 5550 video card is available for purchase in stores. Both cards are not only similar in appearance to each other, but also have similar characteristics.

2009: Sharp decline in demand by 40% amid financial crisis

In the spring of 2009, due to a sharp decrease in demand for its computers, K-Systems postponed the launch of PC production in the city of Gvardeysk, Kaliningrad Region, Eduard Voronetsky, General Director of K-Systems, told CNews. In the first quarter of 2009, sales of PCs manufactured by his company fell by about 40%. Voronetsky gives a similar forecast for the whole of 2009, both for his company and for the market as a whole.

Now Kaliningrad squares are used only as a warehouse of components for the production of laptops and desktops in Mytishchi near Moscow. Now Kaliningrad squares are used only as a warehouse of components for the production of laptops and desktops in Mytishchi near Moscow.

K-Systems at this time offered:

• Enterprise computers (IRBIS Ci, IRBIS PRO A420, IRBIS PRO X210/310/410, IRBIS PRO X510 and IRBIS PRO X610)
• Home computers (IRBIS PC "First," IRBIS PC "Optimal," IRBIS PC "Universal," IRBIS PC "Respectable")
• Laptops (IRBIS Mobile Series L, IRBIS Mobile Series M, IRBIS Mobile Series S, IRBIS Mobile Series H, IRBIS Mobile Series T)
• Terminals (IRBIS M)
• Servers (100 series Patriot , Patriot 200 series, Patriot 300 series, Patriot 400 series)
• Graphics Stations (IRBIS G Series, IRBIS Ga Series)
• LED screens
• Peripheral equipment (copiers, MFPs, printers, UPSs, scanners, network equipment, global monitors)

2008: Revenue growth by 13% to RUB 3.6 billion

In 2008, K-Systems "revenue, according to CNews Analytics, grew by 13% and reached 3647 million rubles. The total revenue of the company in 2007 amounted to 3240 million rubles, which is 18.7% more than in 2006.

In 2008, K-Systems completed the construction of a production and logistics complex in the Kaliningrad Region with a capacity of more than 1.5 million units per year.

1994-2007

• K-Systems was established in 1994.

• In 1994-1998 the company was engaged in the supply of computer equipment to regional markets through subsidiaries (Orenburg, Syktyvkar, Khabarovsk, Vladivostok, Astrakhan, Novgorod). In the same period, the K-Systems trademark was registered, mass production of desktop PCs began.

• In 1999, a branch was opened in St. Petersburg. In the same year, the company's production was certified for compliance with the international standard GOST R ISO 9001:1996.

• In 2001, a new production workshop was opened in Moscow. In 2002, the company entered the retail market with the IRBIS brand name. In 2003, the company's quality management system was certified for compliance with the international standard GOST R ISO 9001:2001.

• In 2004, the company began construction of a second production complex in St. Petersburg. In 2005, K-Systems introduced conveyor production in St. Petersburg with a production capacity of more than 100,000 PCs per year, and also launched a new production project in Mytishchi.

• In 2006, the company opened a production and warehouse complex in Vidnoye, Moscow Region. The total production capacity of the complex amounted to more than 300,000 PCs per year. In the same year, the construction of a production and logistics complex in the Kaliningrad region with a capacity of more than 1.5 million units of products per year began.

• In 2007, the company completed construction and launched a production complex in Mytishchi, Moscow Region.

Links

• CNews100: Largest IT companies in Russia
• The largest PC plant turned into a warehouse