Kirill Komarov, First Deputy CEO for Corporate Development and International Business, Rosatom State Corporation, talking about new business areas
NEW BUSINESS AREAS OF ROSATOM
Successful development of our state, as well as any major corporation, requires the idea of competitiveness to be put into practice throughout the global economic area, which, on the macro-level, correlates with ability to provide goods, work and services that are in demand at international markets and will ensure high standard of living and make it possible to maintain such standards in long term.
In addition to developing traditional businesses, Rosatom State Corporation is taking active part in development of new business areas entering new markets.
By 2030, we project for the new businesses to account for up to 30% of the consolidated proceeds. Provided we plan to increase our consolidated proceeds, it is quite an ambitious task, as it means we have to increase our proceeds from new business areas more than fivefold. Furthermore, we are talking about qualitative changes. By 2030, 65% of our sales are to be foreign-based (at the moment, foreign sales make up less than 50%). To differentiate political risks in the countries where the Corporation is present, at least 30% of new business proceeds are to come from B2B / B2C projects by 2030, while 90% of all proceeds are currently received from B2G projects. Developing new businesses will also help us improve the involvement of facilities and highly-skilled professionals that are no longer engaged in the basic production due to asset optimization measures.
It takes a lot of time and painstaking work to establish a new business. You need to have in mind many questions that are not easy to answer, such as: How will the market (and its requirements) change short term and by 2030? What will be our source of proceeds? What will our product offer? What are our current competences and what are those we aim for? What is the scope and structure of resources we need? What are our competitors doing? The list will go on and on.
At first, it’s reasonable to base the business on the competences available thanks to the enormous potential the nuclear industry has developed over the years that we can use when engineering new products for key industries, such as oil and gas, electricity, metallurgy, ship and aircraft construction, rocket and space systems, defense, etc.
For these industries, Rosatom is ready to offer solutions that can easily meet even the strictest requirements to safety, reliability and efficiency, which has been acknowledged both in Russia and abroad. The solutions include instruments, additive technologies, metal-working, IT, electric, power-generating, radiation, security systems, geophysical and many other technologies.
We never get complacent, even if we already hold quite a strong position at the market. Business models change, so we intentionally improve and increase our range of products, including maintenance, training and other services. As a result, a lot of our “traditional” areas, in fact, develop into “new” ones. That is how we established the NPP Service abroad, power supply business, energy effectiveness services, etc.
As far as cooperating with foreign partners is concerned, we really appreciate their experience and competences, especially in the areas that we are only starting to work in. If an area allows sharing of experience, as well as production and management methods, with our foreign partners, we will cooperate with them, when it seems reasonable.