Ever since producing its first modern office furniture 10 years ago, Narbutas & Ko has maintained a dominant position in the office and kitchen furniture market segment in Lithuania.
The business was founded in February 1991 by owner Petras Narbutas who says attention to the needs of individual clients, quality and design have always been at the forefront of the company’s working principles.
The company was set up in direct response to the rapid computerisation programme in Lithuania following its independence. The first product to come off the production line was a computer table and a year later, in 1992, Narbutas decided to specialise exclusively in the production of office furniture.
From the outset, expansion was rapid, with the company growing four to six times each year. That fast pace has been sustained during the subsequent years as well – it reached 60% each year in 1995–1996, and 30% in 1997.
Such quick growth determined further development of the company and in 1997 it received massive investments which allowed it to achieve a substantial increase in output capacities. This, in turn, prompted the launch of a new range of furniture for kitchens.
Russian crisis
In the same year the Russian crisis made the company revise its range of products and search for new distribution channels. The year 2000 saw sales start to increase again, largely due to the orientation towards new markets in western Europe.
At present the company has 319 employees, of which 244 work in the production sector and 75 in sales. The turnover of the Narbutas group reached £7.8m in 2001, an increase of 15% compared with 2000. This year, the company forecasts a turnover of more than £9.4m.
An increase in the sales volumes in the western European markets is planned through expanding the network of partners and establishing regional warehouses. In addition, rapid sales growth is planned in Russia and the Ukraine.
Currently Narbutas sells 46% of its product in Lithuania, 32% in eastern Europe (Latvia, Russia, Ukraine) and 22% in western Europe (Britain, Germany, Denmark). Exports to western European countries are considered by the company to be its top business priority.
Materials and equipment
Materials imported from Germany, Poland, Austria, Sweden and Italy are used for the production of office and kitchen furniture. Office furniture is produced from chipboard and MDF with synthetic or natural coverings. In addition, metal constructions of various colours are also used.
Narbutas kitchen furniture is produced from solid wood, chipboard and MDF with synthetic or natural coverings or colour polyurethane enamel covering.
All Narbutas products are manufactured in two factories in Vilnius, Lithuania. The company uses state-of-the-art German equipment, such as Homag double-sided blank calibration and edge veneering machinery, a Weeke drilling centre with programmed operation, a Homag Optimat Baz processing centre with programmed operation and an Eisennmann metal surface powder coating line.
Manufacturing facilities
This year the company’s manufacturing facilities will receive investments of up to £250,000. In the next couple of years the company plans to expand its production facilities.
At present Narbutas produces nine styles of office furniture, four styles of office chairs and school furniture and eight styles of kitchen furniture. Office furniture comprises 82% of production.
Its office furniture is recognised for its lightness, refined construction and ergonomic forms, while the kitchen furniture is contemporary with an emphasis on functionality and innovation.
Narbutas works closely with the country’s top furniture designers but, in 1997, it also began to collaborate with Danish designer Jesper Moller Hansen and Italian designers Roberto Lucci and Paolo Orlandini.
Its more recent office furniture systems – Milanas, Ultima and chair systems Ovum and Siena have received Grand Prizes in international furniture exhibitions in Lithuania.