Goscomvoyenprom Collegium Discusses Implementation of Business Plans for Development of Companies

On 22 April 2016, AGAT-Control Systems, management company of the Geoinformation Control Systems Holding hosted a meeting of the collegium headed by Chairman of Goscomvoyenprom Sergei Gurulev. The meeting was attended by heads and directors of Goscomvoyenprom companies and departments, their deputies for economics (chief economists) and chief engineers.
The focus of the collegium’s attention was set on the implementation of business plans for the development of Goscomvoyenprom companies in the first quarter of 2016 and forecast for the first half of the year.
Opening the meeting, Chairman of Goscomvoyenprom Sergei Gurulev said that the tasks assigned to the country’s defence industry had been in general accomplished and there were virtually no claims concerning well-balanced work in the first quarter of 2016.
According to Sergei Gurulev, the first quarter of 2016 is not decisive for the annual results of Goscomvoyenprom companies in the whole; however, the analysis of key socio-economic indicators that have been brought to Goscomvoyenprom’s notice gives reason for evaluating the depth of companies’ business planning for the current year as well as their ability to perform their tasks and competently refine their business plans if necessary.
The chairman of Goscomvoyenprom said that a significant contribution to achieving positive results of socio-economic development had been made by the Minsk Wheel Tractor Plant, the 558th Aircraft Repair Plant, Peleng, AGAT-Control Systems, KB Radar, Belspetsvneshtechnika and BELTECHEXPORT.
Despite the positive dynamics in socio-economic development of Belarusian defence industry in the first quarter of 2016, the chairman of Goscomvoeynprom has claims to a number of heads of companies that “are lagging behind from year to year.” “Unfortunately, there are such examples,” said the chairman.
In addition, Sergei Gurulev outlined a number of problematic issues and drawbacks that should be addressed in the near future. He emphasised the issues of pricing of military products, reducing production costs and ensuring the quality of products, which is essential to compete successfully in foreign markets.
Concluding his speech, Sergei Gurulev set the task: during June 2016 to organise the consideration and defence of modified development plans for 2016-2020 under a separate schedule. The plans should take into account the requirements of provisions contained in the Belarus President’s Decree dated 23 February 2016 No. 78 “On Measures for Improving the Efficiency of the Belarusian Socio-Economic Complex” and tasks set by President Alexander Lukashenko at the annual State of the Nation Address on 21 April 2016.
Deputy Chairman of Goscomvoyenprom Dmitry Pantus briefly reported on the fulfilment of socio-economic development indicators and projected results of the first half of the year, focusing on problematic issues of the companies’ development in the first quarter of 2016.
His report states that industrial companies in January-March 2016 increased production by 108.4% compared to the same period last year. Return on sales across the industrial companies included in Goscomvoyenprom was 34.4%. Exports of goods and services grew by 31% compared to the same period last year. Net profit of Goscomvoyenprom companies was 1.6 times higher than last year’s level.
Goscomvoyenprom companies in January-June this year expect to continue an upward trend in socio-economic development. It is planned to reach industrial output at the level of 115% compared to the same period of 2015. Return on sales in the industry by the end of the first half of 2016 is expected to reach 12%, while exports of goods and services will grew by 103% compared to the same period last year.
In his report Dmitry Pantus focused on structural changes in the management system of Goscomvoyenprom companies which were completed in the first quarter of this year.
“To improve the efficiency of companies included in Goscomvoyenprom, reorganisation of Goscomvoyenprom’s holdings has been completed taking into account the transition to implementation of projects on manufacturing finished products. In the framework of the decisions taken, a procedure for interaction between management companies and subsidiaries has been defined,” said Dmitry Pantus. “There is little left to do: heads of companies included in the holdings should join efforts and take action to achieve the maximum economic benefit from the holdings’ operation in the manufacture of joint products,” he said.
The deputy chairman of Goscomvoyenprom particularly spoke about existing problematic issues and ways of solving them.
Summarising the results of integrated projects (fire weapons, vehicles for carrying weapons systems, unmanned aircraft systems, and military geoinformation systems), Dmitry Pantus said that work was being performed in accordance with approved development plans and project networks.
“In general, all the work planned in the first quarter 2016 has been done, but there are some problematic issues of a local nature which should be promptly addressed,” he stressed. “This is connected with interaction among developers, manufacturers and special exporters; attraction of financial resources, including that of special exporters for the implementation of integrated projects on the development of new weapons and military and special equipment; and radical changes in approaches to organising activities in foreign markets,” he added.
“Despite the overall positive trend, some companies have not fulfilled their commitments,” said the deputy chairman of Goscomvoyenprom. “This results from inefficient management as well as lack of proper financial planning and actual efforts in soliciting orders both in the domestic and foreign markets,” he added.
Dmitry Pantus also drew attention to the unconditional implementation of measures aimed at reducing the costs of production of goods (works, services) by Goscomvoyenprom and its 2016 action plan on import substitution as well as on the implementation of measures for optimising and improving the efficiency of property use, first of all real estate.
The deputy chairman of Goscomvoyenprom reminded that one of the main aims of the 2016-2020 Goscomvoyenprom Development Programme was to increase the quality and competitiveness of products.
Proposed solutions have been recorded in the collegium’s resolution.