Azerbaijani Furniture Maker Foriella Grows and Innovates with EBRD Support

Azerbaijani Furniture Maker Foriella Grows and Innovates with EBRD Support

(IN BRIEF) In Azerbaijan, furniture manufacturer Foriella, led by Owner and Director Farman Islamli, is harnessing innovation and quality craftsmanship to expand its presence in domestic and international markets. Seeking assistance from the European Bank for Reconstruction and Development (EBRD), with support from the European Union, Foriella automated its internal accounting systems, freeing up employees to strategize for global expansion. The company, known for its exquisite furniture made primarily from imported beech wood, specializes in sofas, dining tables, and coffee tables. Operating under the sub-brand Perla Furniture, Foriella boasts 40 physical stores and an online platform, with plans to further penetrate existing markets and enter the Middle East and North Africa. Despite supply chain challenges related to Ukraine-sourced beech wood, the company perseveres and recently upgraded its enterprise resource planning system, launched an online sales platform, and constructed a new 20,000 m² factory, all while emphasizing green energy initiatives for a sustainable future.

(PRESS RELEASE) LONDON, 13-Dec-2023 — /EuropaWire/ — Foriella, based in Baku, Azerbaijan, is a manufacturer of competitively priced furniture where quality craftsmanship meets innovation. The company sells its products across the country and exports to Kazakhstan and the USA with ambitions to further increase its presence internationally.

Owner and Director, Farman Islamli recently reached out to the EBRD, with support from the European Union, for help in automating internal accounting systems – a project which has freed up his employees’ time and allowed them to concentrate on building a roadmap for expansion into new markets.

Crafting comfort

Foriella is a confluence of ‘For’ in English and ‘ella’, meaning ‘beauty’ in Latin. The business manufactures exquisite, carefully considered furniture products made predominantly from imported beech wood, with a focus on sofas, dining tables and coffee tables, and a legacy rooted in a combination of tradition and modern design.

The company primarily sells its products through its Perla Furniture sub-brand in Azerbaijan, which has 40 physical furniture stores as well as an online store that facilitates customised orders. It also exports to Kazakhstan and the US and has plans to increase sales in existing markets as well as expand to the Middle East and North Africa.

EBRD support to accelerate growth

As the company grew, Farman understood the need for digital solutions to accelerate its advancement by improving management effectiveness and ensuring its operations remained lean and efficient.

The EBRD project supported the introduction of an automated financial, tax accounting and reporting system that significantly reduced the time spent on processing orders, allowing Foriella to utilise its labour force – and the raw materials for its products – much more effectively.

As a result of the project, turnover increased significantly, the number of employees doubled, and Foriella began to partner with larger companies both domestically and internationally.

“With this, the quality and functionality of our product designs have become better and can be mass-marketed at a more cost-effective price,” says Farman.

Preserving the Ukraine supply chain

The beech wood that is essential for furniture produced by Foriella is sourced from Ukraine.

Despite Russia’s ongoing War on Ukraine, and regardless of the daunting supply chain challenges, the company continues to import from the country. As a key supplier, Farman realised it was important to find ways to continue trading with his contacts in the country.

He says, “As soon as the war started, we went to work on finding alternative transport routes, and we now organise transportation by lorries from Europe to Türkiye and then through Georgia to us. The cost of transportation has effectively tripled, which is prohibitive, but necessary in the bigger picture.”

Sofa, so good!

The company has recently upgraded its enterprise resource planning (ERP) system, which now covers all functions of the business, created a new online sales platform, and built a 20,000 m2 factory to accommodate expansion into new furniture stores.

Investing in green energy is also a priority. Farman says, “The woodworking vacuuming system will switch to an energy-saving model and the heating system for the factory will be built entirely using waste and by-products.”

And so, it is clear: the trajectory is upwards, as Foriella continues to elevate home interiors in Azerbaijan and beyond.

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SOURCE: EBRD