Feature on newmoney.gr – Roller Kappatos: From a Small Room in Gyzi to Entering Most Greek Households
With a journey spanning over half a century, it introduced home appliance bases to the market and later expanded into other products – Investments in a state-of-the-art factory and new product development.
It is well known that many successful business ventures started with a great idea. Roller Kappatos falls into this category, with its products found in most Greek households, even if not everyone realizes they are made by the company.
In recent years, an increasing number of consumers have been using appliance bases to make it easier to move their electrical devices. This idea originated with Theofilos N. Kappatos and became the foundation for a successful company that has been in business for over half a century, has withstood successive crises, and continues to grow with a strong international presence.
The Beginning and the Journey
The company’s story began 53 years ago, in 1971, in a small room in Gyzi, where Th. Kappatos, using a sheet of metal and a saw, created his first base. This base is still included in the company’s product list today under the code “White Pair Base” and served as the starting point for an entire range of household products.
Within a year, sales and interest in this new, innovative product increased, leading to the creation of a larger workspace in the same area with just one employee dedicated to manufacturing this specific product. At the same time, Theofilos Kappatos was designing the square base and constructing the oven that would be used to paint it—initially in white and, after several years, in inox and black finishes.
In Constant Motion
“Just like the cylinder of a machine, we at Roller Kappatos are always in motion,” is the company’s motto today, a statement reflected in its journey. Not only because “our customers are the axis that drives us and the reason we strive to become better,” as the company states, but also because, since its founding, Roller Kappatos has been defined by continuous movement and growth.
This growing demand led to the establishment of a new facility in Galatsi in 1973, on Ernestou Street. During that phase, new molds were designed, and many fresh ideas evolved into new products.
The next milestone came quickly in 1976, as the addition of more product codes and expansion into new categories required a larger facility. As a result, production was relocated to Menidi, where, in addition to the now well-known Roller bases, the company began manufacturing its first ovens, baking trays, and electric grills. That same year, the company moved once again to even larger facilities in Avlona, Attica. Alongside the launch of new Roller products, emphasis was placed on renewing and optimizing existing ones, while the first imports from third-party manufacturers were made to expand the product range. During this period, the company also took its first step toward international expansion by participating in global trade fairs, such as those in Germany.
The baton to the new generation
Already during the 2003-2004 period, the next generation, Theofilos and Niki, children of Th. Kappatos, began to get involved in the family business, with him remaining fully active.
In the following decade (2006-2016), the company significantly increased its exports to countries such as Germany, France, and Italy, while also making a noticeable presence in many more. At the same time, it increased imports, creating a large range of products with European specifications, and participated in even more trade fairs abroad. Additionally, within Greece, it built partnerships with major retail chains, which helped make its products more widely known.
Certainly, along this journey, there were difficult turns… However, through investments and unlocking foreign markets, the company managed to stand strong against the prolonged economic crisis that devastated the market.
Thus, in 2021, the company moved once again to its current facilities in Oinofyta, Boeotia.
Roller Kappatos is currently a healthy and growing business with an increasing export rate, and it remains in constant motion by launching new innovative household products, such as the washing machine-dryer stacking base, which has already made a strong entry into both the Greek and international markets.
Its upward trajectory is also confirmed by its financial performance. It is noteworthy that, while a decade ago its turnover was in the range of €750,000 to €960,000, in 2023 it reached €3.77 million, with the final result remaining consistently profitable.
Theofilos Kappatos: “Our turnover increases by 20% every year”
We spoke with the head (Owner & CEO) of Roller Kappatos, Theofilos Th. Kappatos, who discusses the company’s history, its strengths, its expansion beyond borders, the high export sales percentage approaching 80%, investments, and future plans.
-What inspired you to create the first base for a home appliance?
The first base was created in the early 1970s by the founder of the company and my father, Theofilos N. Kappatos, who, as an employee of a company that handled home appliance servicing directly in consumers’ homes, often heard about the need for a solution to easily move heavy kitchen appliances. This solution would help with daily house cleaning and appliance repairs without damaging the floor or straining the housewife’s back. He initially created some handmade constructions, which over the years evolved into an industrial product that was sold in every home at the time.
The Key Milestones
-How was the company built, and what were the most significant milestones?
The company, with 53 years of operation, started with door-to-door sales, continued with partnerships with home appliance stores, and over time, made its innovative products known to the broader public, which warmly welcomed and supported them.
Partnerships with the largest retailers in the market, as well as with home appliance manufacturers, provided the company with the momentum to develop new products, such as a wide range of oven trays and additional solutions for supporting and moving electrical appliances (washing machines, dryers, etc.).
A significant milestone in the company’s journey was the major crisis that Greece went through from 2009 to 2018. The deadlock we faced forced us to turn to new markets outside Greece, which led to new partnerships worldwide with large companies in the industry and the development of new OEM (Original Equipment Manufacturer) products tailored to the needs of each new client.
The significant growth that resulted from the company’s export activity created the need for new facilities and machinery. It is worth mentioning that in the last decade, the company’s investment plan has exceeded €3 million. Part of these investments is directed towards a state-of-the-art factory with cutting-edge machinery, which represents the most important step for the company’s future development as part of our growth plan set until 2030.
-Which products do you consider the most important, in the sense that they established your presence in the market?
Home appliance accessories, specifically the bases for ovens, refrigerators, washing machines, and dryers, are the products that established our presence in the market. They provided solutions for households as well as businesses with additional sales, and for the local repairman who could more easily move heavy appliances for repairs.
Additionally, the electric grills with a lid are a product that has been manufactured since the early years of the company and can be found in almost every home. Many generations have trusted and consistently preferred it for their daily cooking needs.
The dynamics, major clients, and performance
-What is the company’s current presence and dynamics, and who are its top clients?
Our products under the name Roller Kappatos are currently available in Greece in most home appliance stores, from large retail chains to neighborhood stores, in DIY stores, supermarkets, hardware stores, and also in online shops.
At the same time, we have a presence in over 20 countries, in some as Roller Kappatos and in others as OEM, either as standalone products or as accessories for third-party products in the range of major home appliance manufacturers, retailers, and distributors.
-Tell us about the recent financial performance and also the contribution of exports and each product category to turnover.
Over the last 3 years, our turnover has increased by 20% each year. The sales ratio between exports and domestic sales is 70%-30%, with the trend expected to shift to 80% exports and 20% domestic sales in the next 3 years.
Home appliance bases (washing machines, dryers, etc.) form the core of sales across all areas of the company.
-How do you assess the competition in your sector both in Greece and internationally?
Competition is intense and mainly comes from China and Turkey, markets that strongly support their exporting companies, making them highly competitive. In Greece, many imports are made from third countries, often involving low-quality products and, unfortunately, from the black market (sales without VAT), which still thrives in the Greek reality.
The new products
-What are your plans for the future? What new products are you preparing?
Many new products will be added to our range, such as TV stands, a product that is largely imported from China.
Major clients both in Greece and abroad are asking us to produce “made in Greece” TV stands, and it is something we have decided to achieve very soon.
Additionally, in the past year, we have been designing new OEM products for two major foreign brands, which will be sold worldwide through their network. Furthermore, new partnerships are being formed in the Balkans, with new market openings for Roller Kappatos products planned for 2024.
“Currently, the company’s sales abroad account for 70%, compared to 30% in Greece. The goal is to see these percentages evolve to 80% exports and 20% domestic sales in the next 3 years. Home appliance bases (washing machines, dryers, etc.) form the core of sales across all areas of the company.”
The bases for ovens, refrigerators, washing machines, and dryers are the products that established the company in the market, providing solutions for households. Additionally, the electric grill with a lid is a product that has been manufactured since the early years of the company and is found in almost every home.
Published at www.newmoney.gr.
