"Ridge Tool": Sewer maintenance - one of the most profitable businesses

Sewer cleaning and maintenance services are one of the most profitable niche businesses, says Camil Aliman, the manager of "Ridge Tool" for the Romania and Hungary: "Cleaning and maintaining sewers is a business segment with a high potential in Romania, where the water companies only handle the maintenance of the main segments".

Approximately two years ago, the company began a project in association with "Ecoabac Serv", of Craiova, aimed at providing sewer maintenance services. Customers include both private homeowners, as well as the owners of malls, commercial centers, office buildings, schools, etc., the company representative said. Last year, "Mibo Impex" of Cluj began a second business of the kind, using equipment bearing the "Ridgid" brand, made by "Ridge Tool".

Today, in Cluj Napoca, the company will hold the seminar "1st RIDGID Drain Cleaning Event", which is first and foremost targeting plumbing companies, as well as other companies in the sector. According to Camil Aliman, "Ridge Tool" intends to provide consulting to installation companies, in order to help them obtain European grants, allowing them to develop businesses in the sewer maintenance segment, using "Ridgid" equipment: "We need to create a market from scratch. Right now, this segment only accounts for 10% of our turnover in Eastern Europe".

The initial investment in a company specializing in the cleanup and maintenance of sewers starts at 10,000 Euros and can exceed 100,000 Euros, "if the company buys several machines fitted with video cameras for diagnosing the pipelines, locators, section machines and equipped with sectional machines with water jet", Mr. Aliman said. He added: "It is a good business idea which sounds good and generates profit and for which the European Union provides support. There are ways of securing funding using European Community grants of up to 25,000 Euros per employee". The fee charged for cleaning up a sewer can range from 35 to 60 Euros per square meters. The additional fee charged for video inspection can be higher - between six and ten Euros per meter, Camil Aliman added.

According to him, over 40 small and medium sized enterprises announced their presence at the "Drain Cleaning" business, organized by "Ridge Tool" in Cluj.

On a global level, the company manufactures a complete range of equipment and machinery for sewer cleaning, and has over 60 years of expertise in the sector. The company is supporting the development of this market and provides support to entrepreneurs which intend to launch such a business, by offering technical consulting, training, reliable products and advanced technology.

Sales of "Ridge Tool" on the Romanian market have increased about 90% over the past six months, compared to the similar period of 2010 (the fiscal year of "Ridge Tool" begins on October 1st and ends between September 30), after stagnating for two years, in Romania as well as in the other countries of Eastern Europe, in which the company is present.