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02/22/2024
PAOLO MERLONI INTERVIEWED BY THE INDONESIAN PRESS
Executive Chairman Paolo Merloni was interviewed by three of the main Indonesian newspapers – daily newspapers Bisnis Indonesia and Java Pos and information web portal Detik.com - illustrating the results and Group’s global strategies and the importance of opportunities to be leveraged in Indonesia.
Bisnis Indonesia (Newspaper) Published on 15.06 page 25 and Bisnis.com
http://industri.bisnis.com/read/20160615/257/558126/pemanas-air-ariston-thermo-perkuat-pasar-komersial-di-indonesia
Water Heater: Ariston Thermo to strengthen commercial market in Indonesia
Fabriano, Italia – Ariston Thermo, water heating manufacturer, is optimistic to achieve sustainable growth along with the company’s entrance into commercial segment through a series of new heat pump solutions.
Richard Chua Chee Hian, President Director PT Ariston Thermo Indonesia said that even though there are some challenges and economic slowdown in Indonesia, the management believed that the growth will continue.
According to him, the entrance of Ariston Thermo into commercial segment is marked by the launching of heat pump product, which is a water heater device using air conditioning system in it as a solution for business segment, such as hospitality sector.
“We will keep expanding our business as we see a huge opportunity to grow and to stay focused on the electric storage water heater solution with box mover concept. Last year, we became the producer who introduced the first product with power consumption of 350 watt in the market,” he said during Ariston media trip on Tuesday (14/6).
Aside from commercial products, Ariston has been working on household segment with a number of small storage water heater products with the tank capacity of 10, 15, and 30 liter.
Paolo Merloni, the owner and Chairman Ariston Thermo Group, said that in order to create market as well as to achieve business growth, the company’s interest is to engage more with the customers in Indonesia.
Characteristics of market
According to him, it is important for the management to understand the characteristic of specific market more deeply based on their respective needs aside from providing technical and commercial support, as well as assisting partners through advertising, human resources, and market education.
“It is because we see our market in Indonesia can be expanded more since it has a very promising future,” he said.
He asserted that for 30 years establishing business in Indonesia, Ariston’s market becomes stronger and more relevant in comfort water heating sector.
Merloni admitted that despite the business is slowing down in several countries even in Indonesia, the management is able to balance it internally.
“We grow higher in several countries, and slowdown in several other countries, due to macro strategy, we can get up and control the market in several countries,” he said.
Last year, Ariston Thermo advanced with a growth of 4% in a number of countries. He believed that in developing countries, Ariston can grow higher. “In developing market, our growth can achieve as many as 6% or even more. In developed country, our target is at least single digit, last year we grew for about 7% globally. I expect the market to keep growing in Indonesia too,” Merloni asserted.
Ariston has 20 factories and shipped its products to Indonesia from Vietnam manufacturer that has implemented similar technological standardization with the company’s first manufacturer based in Italia.
Apart from relying on electric water heater product, Ariston also sells gas-powered device as well as solar-powered panels.
Detik.com (news portal) published on 17/06
http://finance.detik.com/read/2016/06/17/082226/3235512/1036/kolaborasi-robot-dan-pekerja-pabrik-pemanas-air-kelas-dunia-di-italia
The collaboration of robot and workers of the World Class water heaters’ manufacturer in Italy
Not all tasks can be conducted by robot or machine. Therefore, the presence of manpower is very significant. That is what happened in Ariston Thermo plant in industrial area of Genga, Marche, Italy. Robot and employees are complementary to each other in order to ensure that the products meet the designated standards.
The gate of Genga Plant, Ariston Thermo’s factory, opened automatically when the car was about to enter the complex on Tuesday (14/6/2016). We, three journalists from Indonesia, arrived accompanied by President Director Ariston Thermo Group Indonesia, Richard Chua and Marketing Director Ariston Thermo Group Indonesia Feranti Susilowati.
Genga is a small town in Italy, bordered with Fabriano, the location of Ariston Thermo’s birth. Genga and Fabriano are equally remote. Their distance from Roma is about 200 kilometers, equal with the distance from Jakarta to Cirebon. We need 3-4 hours by road to reach there.
Geographically, Genga and Fabriano are located under the hills. The location of Ariston Thermo factory itself is like at the end of the crowd. The complex is surrounded by 40 thousand square meters of hills in its behind and right side. The main road is also located in the middle of the hills. Nevertheless, the infrastructure is very good. Highway and road is connected neatly.
That afternoon, when we came to Genga Plant, the weather is quite sunny. In June, Italy is entering summer. The temperatures are in the range of 14-22 Celcius.
At the office entrance, we were greeted by the Ariston Thermo Press and External Relation Manager, Alessio Bianchini. There, we were explained briefly about the production process and factory condition.
After that, we were asked to change shoe, wear a vest, and earphone. Then we walked into the ‘kitchen’ where the water heater is produced, which is located very near from the office. According to the guide, the voice inside the factory is very noisy. That is what the earphone for. Therefore, the guide does not need to shout in vain.
Once the door is opened, the sound of clashing metal iron was quite loud. In a room the size of as soccer field, we could see a sheet of iron being cut automatically. There is also a welding to connect the iron sheets. On the roof, iron tubes with a diameter of 40 cm and height of 50 meters, which is still in process of making, were moving through the moving rail inside the room.
There were not a lot of workers as we came. “Part of the production process is done by robots,” said the guide as he continued walking and stopping occasionally to add more explanations.
Ariston Thermo factory in Genga was established since 1964 and began production two years later. Currently, the total of employees is as many as 250 people and is divided into 3 shifts, very efficient for a large factory size.
There are 3 ways of collaboration between robot and employee. The two ones produce electric water heater, while another one produces gas water heater. The manufacturing process is really long, start from cutting the materials, shaping the tubes, installing the upper lid down and coils, spraying the inside of the tube to make it not rust even if it’s used for decades, painting, until checking the possibility of tube defects. There is also a quality test by heating the product with temperature around hundreds of degrees Celsius.
“If there’s defect, then remove it (from production line) and destroy” said the guide as he pointing the tubes checked by employees.
Because most of the productions are done by robot, the employees just monitor the production process (start from cutting the materials until painting), transporting goods, and packing. It looks simple, but actually there’s an art element in it. Because it takes precision to ensure the products can be used in the global market.
Ariston Thermo was established by Aristide Merloni in Fabriano in the 1930. Started from producing scales, the business successfully developed water heater 36 years later. In the 1970, Ariston Thermo has made its mark in Western Europe.
Now, Ariston Thermo is handled by its third generation, Paolo Merloni. The family business has 20 factories in 12 countries. In Indonesia, they settled a company after 30 years marketing their products.
Ariston Thermo products increasingly varied. They don’t only produce electric and gas water heaters, but also solar water heaters and boilers. "The process and the principle of (production) are same, but the products can be slightly different. In Indonesia, there are slim fashion water heater and low watt. In other countries they’re not necessarily," said President Director of Ariston Thermo Indonesia, Richard Chua.
Tour to the kitchen of Ariston Thermo is finished in less than an hour. It was rainy outside. The weather turned cold, although it was technically summer. Maybe that was the consideration, Aristide Merloni changed from producing scales to water heater since decades ago because in Europe, sometimes the temperature in summer is still cold. And, water heaters will be surely sold.
Detik.com (news portal) published on 18/06
http://finance.detik.com/read/2016/06/18/153500/3236566/1036/ekonomi-indonesia-dan-bisnis-keluarga-di-mata-bos-pemanas-air-asal-italia
Indonesia’s economy and family business in the eyes of water heater boss from Italy
Some people are pessimistic towards the economic condition of Indonesia. However Paolo Merloni (48), the owner of Ariston Thermo Group Italy, said otherwise. The boss of world-class water-heater company is confident to the condition of this country which is well improved. Therefore, he was confident to build an office branch in Indonesia.
“So far, economy of Indonesia is stable. It has good future prospects” said Merloni to the 3 journalists, including detikFinance, in his office in Fabriano, Marche, Italia, Tuesday (14/6/2016).
The interview with Merloni was facilitated by Ariston Thermo Indonesia, Richard Chua (President Director) and Feranti Susilowati (Marketing Director). Also by Press and External Relations Manager Ariston Thermo Group, Alessio Bianchini.
Ariston Thermo was established in Indonesia 30 years ago. The products were sold by distributor. Last year, they built branch office in order to develop the market and consumers.
“Market potential in Indonesia is really big. There are a lot of people, and variant areas” said Merloni.
Merloni is the third generation in Ariston Thermo. This company was built by his grandfather, Aristide Merloni, in Fabriano. It was begun by producing scales in the 1930s, then moved to produce water heater in the 1966. Less than 10 years, the products have mastered the Western Europe.
The reins of leadership change to Merloni's father, Francesco Merloni, for decades. The company increasingly advanced. While Merloni inherited the family business after his father retired. Previously, he was a business analyst, and then he started to get in to Ariston.
“I feel I’m lucky because our family is different. Not all the family members are involved (in business). My Father handled Ariston Thermo, while his sister was not interested, and my uncle had other business. Now, my other family members are not involved at all. So that’s no problem.” said the business man.
How if the condition was different? What if there were a lot of family members involved in the business. What should he do? Merloni explained the important values in family business. First, business is business and family is family.
“Don’t mix those two things because they’re different,” said Merloni.
Second, if there should be a new member in the company, so he/she should be in the right place instead of placing him/her in certain position. Third, must be assured to every family member that the business is built for the long term. So, all the family members should keep the company although he/she wasn’t always involved.
“The other things, if there’s no competent family member, then sell the company. Or let someone else manage it.” said this graduate of Bocconi University.
Merloni is not obsessed with something. He said his mind and attitude is really simple. He just want to develop his family business, he doesn’t like politic and doesn’t have any weird business. If he’s not busy, this man with 3 children just hangs out with family.
Detik.com (news portal) published on 18/06
http://finance.detik.com/read/2016/06/18/144037/3236538/1036/sederhana-ala-merloni-pewaris-tahta-pemanas-air-kelas-dunia-asal-italia
Modest Merloni, the heir of World Class water heaters’ manufacturer from Italy
It can be said that Paolo Merloni, the heir of world top-level Italian Water Heater Company had it all; money, companies, assets, blood of a top figure, and so on. However, he chose to live by modesty which can be considered uncommon for a famous businessman.
Not more than 15 minutes for us, three journalists from Indonesia, waited in the meeting hall of Ariston Thermo Group Headquarter office in Fabriano, Marche, Italy, Tuesday (14/6/2016). A tall and thin figure with shaved head slowly appeared from the back of the door. Soccer fans probably would instantly recognize this man as one of England soccer players, Rio Ferdinand.
“Welcome to Italy. Thank you for visiting us far away from Indonesia,” Merloni said in English. He shook our hands with a lovely smile and his eyes sparkled continuously showing friendly stare to everyone in the room. We visited Ariston Thermo Headquarter office in Fabriano with the President Director of Ariston Thermo Indonesia, Richard Chua and Marketing Director of Ariston Thermo Indonesia, Feranti Susilowati. After an interview session with Merloni, he offered us to see the production process of the water heater machines in Genga Plant, a small town located in the border with another city, Fabriano.
His appearance was simple, without too much dapper. He wore a gray suit with no tie.
From the company, there was only Alessio Bianchini, Press and External Relations Manager that was assigned to accompany Merloni. Before the interview session began, Alessio asked Merloni to pose with Richard Chua and take a self-portrait. “They would like to a picture of you together,” said Alessio to Merloni.
“Is that so?” Said Merloni. The Executive Chairman Ariston Thermo was looking at us. He then took off his coat showing he wanted to take the formal impression away from him, he then sat on a chair near glass window with Fabriano hills as backgruond landscape. We didn’t need to take pictures since there was an official company photographer.
We nodded, thanked him because Merloni was not rigid when it comes to posing for the camera.
“This is enough, right?” Merloni asked as he took his coat. We nodded, thanked him and laughed together.
After introductory session, we sat down and the real conversation began. He conveyed various global developments of Ariston Thermo including the motive to build a representative office in Indonesia one year ago. According to Merloni, Ariston Thermo has been selling the products to Indonesia for 30 years through distributors. “We are determined to build closer relationship with customers. Also, Indonesia is a country with stable economy and good prospects. There is no reason not to strengthen our position in Indonesia,” said Merloni.
Ariston Thermo was established by Aristide Merloni, Paolo’s grandfather. After graduated from The University of Bocconi in Milan in 1992 and previously worked as business analyst at Mckinsey and Company in Madrid, Paolo joined Ariston Thermo in 1995 until finally he was able to fully take over the company in 2010.
Currently, Ariston Thermo has 6,700 workers globally and factories in 12 countries. In 2015, Ariston Thermo sold 7 million products in 150 countries.
He did everything start from the bottom until he was able to expand his family business to the global level. What is Merloni’s next obsession? He quietly thinking and then said, “I guess nothing special, I am now just focusing to expand my business.”
As we know many businessmen tried to enter politics, some even set up politics parties, yet it is different with Merloni “My father probably likes politics, but I’m not” he said.
Besides handling Ariston Thermo, Merloni is very involved in various business communities. When we asked about what he was doing outside his business activities, he claimed he did not have any special or exclusive activities. He would rather spend more time with his family during his spare time.
His routines seemed too ordinary for a wealthy man and a key figure for family business. His life is just as similar as life in Fabriano, the birthplace of the company which 200 kilometers from Rome. Quiet, far from the hustle and bustle of the city.
After an hour conversation, we ended the meeting with photo session. We’ve been awkwardly behave, but Merloni helped to break the ice with his relaxed nature.
Java Pos published on 27/06 page 7
Products with Local Characteristics and Global Standards
Because of Big Market Potential, Multinational Corporations Targets Indonesia
Stable economy and a large market condition attract many global corporations to invest in Indonesia. One of them is Ariston Thermo Group from Italy. The following is notes from Andreswari Widianingsih, Jawa Pos reporter, who has just returned from the land of pizza.
Ariston brand has been in Indonesia for three decades. However, Ariston has just created a company in the country in 2015. This was stated directly by Paolo Merloni, Ariston Thermo Group’s number one person. The 48-year-old man, who is also the third generation of Merloni the founder, is optimist that Indonesia has a great future. That is why the water heater manufacturer decided to enter directly creating a company in Jakarta.
“Indonesia’s economy is stable and has a big market potential. The water heater market growth in Indonesia makes us want to directly invest in the country and get closer to our customers. We also support the sales, marketing, and after sales activities,” stated Merloni in Ariston Thermo Group headquarters in Fabriano, Italy.
Ariston actually has been around in Indonesia for 30 years. The water heater product was sold by distributors. Through Ariston Thermo Indonesia, there will be technical and commercial support, as well as assistance for partners through advertising, human resource, and market education.
“We no longer only sell the product to the consumers, but we also develop the market by providing solutions for partners and consumers,” the graduate of Bocconi University of Milan business department said.
The interview with Chairman Merloni was attended by President Director Ariston Thermo Indonesia, Richard Chua, Marketing Director Ariston Thermo Indonesia, Feranti Susilowati, and Press and External Relations Manager Ariston Thermo Group, Alessio Bianchini. During the session, three Indonesian journalists had the chance to talk about the company’s development that was able to sell 7 million products in 150 countries in 2015.
As a global company with approximately 6,700 employees and 20 factories in 12 countries, Ariston Thermo has a unique strategy by providing products and innovations based on local market’s characteristics. Its presence in various parts of the world makes Ariston Thermo able to market the water heater in four-season countries. In addition to that, following Indonesia’s tropical condition, the water heater becomes an essential product to be utilized. The energy source that is used to operate the products is varied, including electricity, gas, and solar power.
Even for Indonesian market, Ariston dedicated a research and development team to create a new innovation. “We introduced our new products that fit into the characteristics of the local market,” Merloni promised during the product showroom visit. Although there is a lot of a product line, Ariston Thermo Group doesn’t want to compromise its quality. This is explained to the group of media that had a chance to witness the production process of water heater in Genga Plant, a small city in the border town of Fabriano.
Products that are produced in Genga have their own market in Europe, Middle East, China, and Africa, with 100 percent quality control system for the factory operational standard. This means, every product that is produced has passed its 100 percent quality control procedure to boiler tightness, boiler enamel, and aesthetic finishing product. “We also conducted final check to get 100 percent quality control before packing” he explained.
Its factory in Genga is located in Marche, Italy. The factory was established in 1964 and has become one of the three pilot projects of Ariston Thermo Group to implement World Class Manufacturing (WCM). WCM is a production system whose final goal is to encourage factory and supply chain to record zero accidents, zero defect, zero losses, zero stock, and zero breakdown.
Java Pos published on 28/06 page 5
Separating Business and Family Matters
Because of Big Market Potential, Multinational Corporations Targets Indonesia (2-end)
Being the third generation that leads a multinational corporation with thousands of employees in various countries is not an easy matter. Paolo Merloni, the heir of Ariston Thermo Group from Italy, has a specific strategy. The following is notes from Andreswari Widianingsih, Jawa Pos reporter, who has just returned from Italy.
With a typical Italian enthusiasm and hospitality, Paolo talked about global water heater industry. Special interview session with three Indonesian journalists was conducted and Jawa Pos was part of it. The situation got warmer when there was a question about the challenge of being the third generations in a global company.
He paused as if he stringed his answer first. “The challenge of being the third generation is totally different with the first and the second generation. It got more complex,” stated by the man who confessed as a workaholic.
Ariston Thermo Group was founded by Aristide Merloni in Fabriano, Italy in 1930. With five employees, Aristide who started a business in producing scales switched it to water heater in 1966.
“The challenge then was how to create jobs in Fabriano, which is located in an agricultural area. The situation in the city prevented young adults to move into another city to find a job,” said Paolo.
Within 10 years after producing water heaters, Ariston brand has mastered the sales in Western Europe. At the time, Aristide was handing over the company’s leadership to two of his children. After a few decades, Francesco, Paolo’s father, developed various types of Ariston’s products with his brother Vittorio.
Paolo was trusted to hold the reins of leadership in the family business. “I feel lucky because from the beginning not all of our family involved in the business. My grandfather had four children, but only two were involved in the business. Among three brothers, I am the only one who got into the business. So there are no conflicts in the family,” said the father of three.
He confessed that it was not easy to raise a family business. Besides the exposure of being vulnerable to an internal conflict, the challenges in the business world got more dynamic. However, this graduate of Bocconi University of Milan who was majoring in business administration had his principles. Family business has its own strength. “Family business is so strong because it has culture and respect. So this business has a long-term vision, like Ariston now as a global family business,” he said.
This strength was used as a weapon to raise Ariston on the world stage. As a company with a tight family culture, the employees’ turnover in Ariston was quite low.
Ariston Thermo Group is very ambitious: in 2020 it is targetted to have 80 percent of the business contributed by high efficiency and renewable energy solutions business line. In 2015, they have reached 47 percent of the target. Before the interview session ended, he gave an “advice” for other family businesses so that they can survive and develop better. “First, cultivate the principle that business is business, family is family. Do not mix up the two different things,” he said.
“Second, family members who take parts in the business must have the knowledge of the industry. Moreover, family members must understand that the business is built for a long term purpose. So the family members have to participate in maintaining the business, allthough they are not always involved in the business”.
02/22/2024