By Eleonora Tarandova, Editor at Forbes
Six fuselages of small drones Teres-02 are placed on stands in the “Telesys” warehouse in Plovdiv. The mechanics are checking the electronics with a detector that glows green. Meanwhile, the two executives of "Kontrax" – brothers Nikolay and Ivaylo Jordanovi – are discussing the details of the Ministry of Defense project with the owner of "Telesys," Stoyan Avramov.
The two companies, united in a consortium, are executing an order to supply reconnaissance drones, with price being the main criterion in the tender. "Kontrax" provides high-tech American radars and observation cameras, while "Telesys," specializing in the production of unmanned aerial targets for the military, provides the flying platform. "They already had Teres-02, but this is the first time it found practical application," explains Nikolay Jordanov.
"Kontrax" has developed an interest in the modernization projects of the Bulgarian army since it became the official representative of General Dynamics in 2017 – one of the world leaders in defense equipment. At the international defense equipment exhibition HEMUS 2024 in Plovdiv last year, Nikolay Jordanov presented, for the first time, a helicopter-type drone with an integrated weapons system and precision shooting system. The partnership began eight years ago during a meeting between General Dynamics and business representatives at the Hilton hotel, where "Kontrax" presented its extensive activities.
The "Kontrax" group includes 12 affiliated companies offering B2B services, generating nearly 120 million BGN in consolidated revenues for 2024. The activities revolve around information and communication technologies – including systems integration, office equipment distribution, outsourcing, engineering, office furniture manufacturing, consumables and office supplies, internet provision, congress tourism, and the installation of photovoltaic systems. Still, there are some clients from the past who ask, “Were you not a copier machine trading company?” “Yes, that’s correct,” answer the Jordanov brothers. In the service center in the "East" district, there are plenty of Canon and Kyocera copiers and printers waiting for repair.
IN 1992, THEIR FATHER
Jordan Jordanov was the first sales representative in the Sofia office of "Kontrax" – a Hungarian company distributing copiers and printers. An engineer and developer of software for machines, he quickly rose to the position of deputy executive director. Every month, he traveled to Budapest and sometimes took his two sons with him. In 1994, the company was strengthened by investments from American entrepreneur Jim Sowell, whose interests were more focused on real estate.
However, the investment did not yield the expected return, and in 1997, he sold his stake in the Sofia office to Jordanov. Burdened with a substantial loan, the new owner displayed exceptional foresight in the business development. He was not satisfied with just being an office equipment supplier and created a department for software development and implementation. In short, he became a pioneer in modern information technologies in the early nineties.
Armed with know-how from world manufacturers and a strong core for software development and systems integration, he boldly led the company into large tenders for building information and communication infrastructure in the country.
In 2000, "Kontrax" delivered equipment for general practitioners to the National Health Insurance Fund (NHIF) – computers, routers, and readers, which "no one ever used." The computers were supposed to have an information system installed to track doctors' activities, but the selected NHIF contractor failed. “We had to quickly develop a basic version of medical software to install it and deliver it with the computers,” says Nikolay Jordanov. At the time, he was an international relations student at UNWE and one of the dealers for the “Hippocrates” software. “I had 30 doctors on my client list, and all of them turned to me,” he says. His commitments grew when he joined the sales department at the peak of building the infrastructure network for the “most important client in the sector” – Tokuda Hospital (now Acibadem City Clinic Tokuda) in 2006.
The successful development of the project opened the way for "Kontrax" to a major order for the supply of technical equipment and software for 254 hospitals in Bulgaria in 2005. The company won the tender in a consortium with Gama Consult, a startup that developed software products for health management. “We helped them expand their business, but at one point, they became our competitor just because we didn’t have our hospital information system,” says Nikolay Jordanov. His father quickly solved the problem by acquiring the small company Gama Sofia, which developed a hospital information system, but despite investments, it was unable to establish itself in the market, mainly due to the fact that “Gamma Consult was much better positioned with their software.”
"Kontrax" continued in the new NHIF projects, which required equipment and connectivity between the various regional networks. With the accumulation of new large orders, Jordan Jordanov decided to transfer all office equipment and communication equipment distribution activities to a separate company, "Lancom," leaving "Kontrax" with only the software and service activities.
This period coincided with the boom in cable companies when copper wires were being laid in neighborhoods across Bulgaria. He saw opportunities to import cable from China under the SeaMAX brand. He also created a trading company in China that negotiated favorable conditions with manufacturers for importing routers.
All this gave Kontrax an advantage in the tender for building a unified 112 emergency call system, which the company won. The experience of organizing communication connectivity for several call centers across the country gave Jordanov the impulse to take advantage of the call center boom. He created a new company to serve other businesses as a call center, but things didn’t take off.
Thus, he turned to another market niche – office printing outsourcing, something completely new.
The Japanese copiers by Kyocera, distributed by "Lancom," are "extremely durable." They are more expensive than the established brands in the market, but operational costs are significantly lower, so his calculation works out. One of the first customers of the service, DSK Bank, was eager to free itself from the commitment of purchasing printers, toners, drums, rolls, followed by other financial institutions.
However, operational leasing requires a service network that can respond within hours. “Kontrax” maintains service centers across the country, but Jordan Jordanov decided to offer shares to local managers to engage them more. “When the service centers win, we all win,” he says to his sons. Following this same motive, Jordanov offers shares to directors managing individual companies, keeping the majority stake for himself and never regretting that decision.
A visionary and strategist, he displays exceptional acumen in managing the business and entering new territories. His good contacts with the business in Hungary lead him to a new activity related to printing. In 2005, he creates a joint venture with the former State Printing House – ANY Security Printing Company, one of the largest in Central and Eastern Europe for secure printing. The joint company Direct Services relied on ANY's experience in printing high-value documents, securities, and personal documents, and Jordanov hoped to develop this business in Bulgaria.
"Unfortunately, we didn’t succeed," says his son Nikolay. However, in Direct Services, they developed the printing of mass transactions – bank statements, electricity bills, heating, and water bills. Utility companies like Toplofikatsiya and Sofiyska Voda provide large transaction databases every month, and Direct Services customizes and delivers them to subscribers.
Five years ago, the Jordanovs bought out the shares of ANY, and Direct Services became "the leader in transactional printing."
DIRECT SERVICES IS THE PLACE,
where his younger son Ivaylo Jordanov joined the family business in 2011. This is the time when Direct Services started producing short-run books, and he was doing his master’s degree in international management and marketing in the UK, preparing his thesis on the topic “Is print-on-demand possible for the Bulgarian publishing market?”
“It’s amazing how digital printing has completely transformed a traditional business like publishing and the entire chain from author to reader,” he comments. After a year in printing, he joined the sales team of "Kontrax" at a time when the whole family was working in the company: “Even our mother.” "Kontrax" is in a strong upward trajectory, supported by partnerships with global leaders like Fujitsu, Microsoft, Dell, Siemens, and Lenovo, whose products transfer invaluable experience to local engineers. These giants have global agreements with clients like Accenture, and when they open offices in Bulgaria, "Kontrax" becomes a preferred supplier of equipment and technologies.
“If ‘Kontrax’ faces any difficulties, we have 5-6 other stable companies in the group that will continue their path!” A good partnership with Czech company CROSS Zlin brought "Kontrax" into the field of building intelligent transport systems. “The Road Infrastructure Agency wanted counting points for automated traffic reporting on the road network at 300 points along the ‘Struma’ highway and other major roads for planning maintenance and repairs, and we did it,” says Ivaylo Jordanov.
The most exciting project for him began seven years ago with the supply of smart meters and software platform for CEZ Distribution Bulgaria. The Chinese communications equipment and smart electrical grid manufacturer ZTE offered "Kontrax" to join the tender.
“They gave aggressively low prices, and we had to finance the entire project with around 10 million BGN, as CEZ paid 60 days after the meters were installed and working in the network,” he shares. The meter replacement process was accompanied by complex administrative work, which often complicated the process. To ease the work, "Kontrax" developed a mobile app and equipped the installers with tablets and phones. Data was sent to Direct Services, where all documentation was prepared.
“We created an innovation that completely changed and simplified the process of replacing meters,” emphasizes Ivaylo Jordanov. His ambitions for expanding the family business are tied to the construction and maintenance of photovoltaic systems on roof spaces. He is specifically targeting the external market in Germany, where “if you don’t have solar on your roof, you’re not keeping up with the times.” Ivaylo Jordanov created two new companies – Sonis Energy in Bulgaria and Germany, with partners who are experts in photovoltaic system construction: “Our expertise is in building intelligent systems that distribute consumption based on electricity prices throughout the day and use the opportunities of the free market to profit.”
Following his father’s example, who is in the office every day and holds regular board meetings every third Saturday of the month, the two brothers aim to expand the family business and achieve even stronger diversification. According to him, if "Kontrax" faces any difficulties, there are 5-6 other stable companies in the group that will continue their path.
