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Sunday, December 30, 2012

Russian Technologies is Now Rostec

Apparently the state owned corporation Russian Technologies out of Moscow, Russia decided they needed a makeover for their branding, which is a understatement to say the least. They have changed their name to Rostec in order to garner an international brand and have a completely new 21st Century website to go with it. Typically looking at Russian business websites can be a painful process, such is still the case for Izhmash or Molot, which are both popular Russian firearms manufacturers that fall under the umbrella of the newly named Rostec. 

Rostec New Logo
Russian Technologies has come to the realize that they need to modernize their marketing and brand in order to garner interest from outside investors. They have accepted that the centralized government structure that ran their wide ranging business is ineffective and by being more transparent in a country long known for its secrecy is imperative to its future success in exporting weapons and other defense technology.

Molot Firearms
Rostec is discussing the option have a few of the 600+ business go public, while still remaining part of the parent corporation. It should be an interesting look into a move away from a centralized system if they are able to pull of a maneuver of such magnitude. It is a lot easier for an investor or partner company to know what they are getting themselves into if they can look at the overall picture of just one business enterprise rather than a wide spectrum of unrelated products.

The Russians still have a centralized corporation of Rostec in promoting the various lines despite the re-branding, so perhaps more wide ranging change is afoot to make a difference for their export industry and keep Izhmash and Molot afloat, which has proven to be a tough row to hoe. They have reported that Molot has added 1,600 jobs in conjunction with a new partnership including  European firearms manufacturers Schmeisser, Minelli, among others. This among other international ventures could possibly lead to some success, but you are only as strong as your weakest link and you may have a few when trying to support several hundred different businesses.