VLG’s Secrets to Success in the Cable Industry

BBJ: Can you elaborate on how VLG’s integration into the Meinhart Group has impacted your operations and market reach?

László Vető: VLG has enhanced its supply chain efficiency and procurement capabilities by aligning with Meinhart’s extensive network and resources. This integration has provided us better access to top-quality suppliers, ensuring competitive pricing and superior product quality. As a result, we have strengthened our position in the market, increasing our share to about 25%.

In Hungary, particularly at our strategically located facility on the M0 orbital motorway around Budapest, we have optimized our logistical operations, enabling us to deliver products swiftly and efficiently. This strategic positioning allows us to meet client demands within 24 hours, supporting large-scale development projects such as the Ferenc Puskás national soccer stadium and the Metro Line 3 renovations, as well as servicing industrial clients in sectors like battery and tire manufacturing, automotive production, oil sectors, railways, and general infrastructure development.

The integration has facilitated our expansion into international markets, focusing on industrial projects that require specialized cable solutions. This expansion has been pivotal in broadening our customer base and enhancing our service offerings. Leveraging Meinhart’s best practices, global insights, and technological advancements, VLG has achieved higher levels of productivity and service excellence, reaffirming our commitment to quality and innovation tailored to our clients’ specific requirements.

BBJ: VLG emphasizes a strong sense of unity and partnership among employees and clients. How do you cultivate this culture, and how has it contributed to your success?

LV: We prioritize building solid relationships based on unity, partnership, and community spirit. This approach extends to our interactions with clients, suppliers, and employees, whom we regard as integral members of the VLG family. We foster a collaborative environment where teamwork, open communication, and mutual respect are paramount. Regular team-building activities, transparent communication channels, and a supportive work culture ensure all employees feel valued and motivated to contribute their best efforts.

Our commitment to unity and partnership is evident in our internal operations and customer relationships. By treating clients as long-term partners, we strive to understand their unique challenges and objectives and offer tailored solutions that exceed expectations.

In addition, we actively engage in community initiatives that support employee well-being and local outreach. We organize family days and support the education of our employees’ children, fostering a sense of belonging and loyalty among our workforce.

BBJ: The Meinhart Group positions itself as a “hero” brand, focusing on competence, competitiveness, and change. How does VLG embody these values in its operations and long-term strategies?

LV: VLG embraces the Meinhart Group’s core values (competence, competitiveness, and change) as foundational principles that drive our business forward. VLG ingrains competence in our commitment to continuous improvement and employee development. We invest heavily in training programs and skills enhancement initiatives to ensure our team remains at the forefront of industry knowledge and expertise.

Competitiveness is another critical pillar of our strategy, driving us to innovate and adapt to market dynamics. We continuously seek opportunities to improve efficiency, optimize processes, and enhance customer satisfaction. At VLG, we embrace change as a catalyst for growth and innovation. We proactively adopt new technologies, sustainable practices, and market innovations to anticipate and meet our clients’ evolving needs. This forward-thinking approach allows us to lead industry trends and pioneer new solutions. As a “hero” brand with a familiar spirit, VLG embodies these values in our day-to-day operations and long-term strategic initiatives. By aligning with Meinhart’s global vision and leveraging our local expertise, we deliver transformative solutions that drive positive change and create lasting value for our clients and stakeholders.

BBJ: How do you ensure efficient delivery to meet client needs, especially for large-scale projects?

LV: Our extensive warehouse facilities have advanced inventory management systems, allowing us to maintain optimal stock levels and respond swiftly to client demands. We implement dedicated buffer stocks for large-scale projects and ensure 24-hour availability with fixed pricing and flexible call-off options. Additionally, VLG leverages the extensive inventories of Meinhart partner companies in Austria, the Czech Republic, Croatia, and Romania. This strategic collaboration enhances our logistical capabilities and reinforces our ability to meet client deadlines promptly, even for complex and geographically dispersed projects.

BBJ: How is VLG attracting fresh talent, and what makes the company an attractive workplace?

LV: VLG fosters a dynamic, supportive work environment that attracts top talent. Our commitment to employee development and learning opportunities bolsters our reputation as a reliable and flexible employer. Our inclusive culture emphasizes teamwork, collaboration, and mutual respect, creating a workplace where employees feel valued and motivated to contribute their best efforts.

VLG’s commitment to growth extends beyond individual development to encompass sustainable business practices and corporate social responsibility. We actively engage in initiatives that promote environmental stewardship, social equity, and community outreach, aligning our corporate values with the aspirations of today’s workforce. VLG has become an employer of choice for new graduates and experienced professionals seeking a stimulating and rewarding career.

BBJ: VLG’s revenue was EUR 70 mln in 2023. What strategies have been most effective in driving such financial success?

VL: The main elements of VLG’s financial success are strategic initiatives prioritizing innovation, operational excellence, and client-centric solutions. Partnering with leading suppliers and maintaining solid relationships enables us to secure competitive pricing and superior product quality, driving profitability and customer satisfaction.

Furthermore, VLG’s robust financial position, supported by substantial capital reserves and prudent fiscal management, provides a solid foundation for sustainable growth and expansion. By leveraging the expertise and resources of the Meinhart Group, we capitalize on opportunities in both local and international markets, reinforcing our leadership in Europe’s cable distribution and logistics industry. Meinhart Group's consolidated turnover exceeded EUR 500 mln in 2023.

This article was first published in the Budapest Business Journal print issue of June 28, 2024.