“INGRID D.”: From Traditional Wood Processing to Higher Value-Added Products

“INGRID D.”: From Traditional Wood Processing to Higher Value-Added Products

Ministry of Economics

Latvia’s woodworking industry has long been one of the country’s most important export sectors. However, competition in international markets has become increasingly intense in recent years. In this environment, the companies best positioned for long-term success are those that can identify a clear niche, use resources efficiently, and develop products with higher added value. One such example is AS “INGRID D.” – a family-owned company from Talsi Municipality that has evolved over more than three decades from a traditional woodworking business into one of the largest manufacturers of wooden handles in the Baltic States. The company generates annual revenue of approximately EUR 4 million, employs around 60 people, and exports about 80% of its production to markets across Europe.

Founded in 1994 as a joint venture between Latvian and German entrepreneurs, the company is now a wholly Latvian-owned family business led by Jānis Grahoļskis. Its production facility is located in Laidze Parish near Talsi and operates on a site covering more than 5.8 hectares.

“In the early days, we operated much like many other woodworking companies, producing sawn timber. But we realised that in the long term it would be difficult to compete with the largest players in the market, so we began looking for our own niche and focusing on products with higher added value,” says Grahoļskis, the company’s owner and CEO.

Today, the company’s core business is the production of wooden handles and cylindrical wooden components used in garden tools, brooms, brushes, rakes, hoes, and many other everyday products. Every year, the factory manufactures more than two million metres of wooden handles.

“Latvia once had more than two million inhabitants, so you could say there would be at least one handle for everyone. If you have a broom, brush, rake, hoe, or another tool with a wooden handle at home or in your garden, there is a good chance it was produced here in Laidze Parish,” Grahoļskis says with a smile.

In addition to wooden handles, the company manufactures wooden curtain pole blanks and laminated timber battens—commonly known as “theatre battens”—used in stage construction and a variety of structural applications. These products are regularly supplied to theatres throughout Latvia.

Alongside its manufacturing business, INGRID D. also operates the “Meža dārzs” retail and e-commerce business specialising in gardening equipment and machinery. In recent years, robotic lawn mowers have become one of its most popular product categories, with more than 200 units sold to date. The company has also developed a modern e-commerce platform serving customers across Latvia.

Every month, the company processes around 1,000 cubic metres of roundwood, with efficient resource utilisation forming one of its core operating principles.

“We aim to use every part of each log. Nothing goes to waste—everything is transformed into products or by-products. Efficient use of raw materials is one of the key factors that helps us remain competitive,” Grahoļskis explains.

The company’s principal export markets include Germany, Poland, France, the Netherlands, Lithuania, and Estonia, while selected products are also supplied to customers in other parts of the world. According to Grahoļskis, customer relationships are built largely on long-term cooperation and personal trust.

“We do not work with ten-page contracts. Much of our business is based on trust, personal relationships, and the reputation we have built over many years. We manufacture exclusively to order rather than producing for stock, which allows us to remain flexible and respond quickly to changing customer demand,” he says.

In recent years, the company has also been actively developing its “Joy of Nature” brand, producing educational wooden toys and children's furniture. The product range includes climbing structures, balance boards, climbing arches, kitchen helper towers, and other products designed to encourage children's development. These products are sold both directly to consumers through online channels and to wholesalers in international markets, including the United States, Canada, and Australia.

“Products with higher added value represent one of the company’s most promising directions for the future. They require a completely different approach—one that focuses on design, branding, trade fairs, and export development,” says Grahoļskis.

To strengthen the brand’s international visibility, the company actively participates in trade fairs around the world.

“In the wooden handle segment, we no longer need to introduce ourselves. After more than 30 years in business, we have established a strong reputation, and most orders come through long-standing partners and existing contacts. But in the educational toy and higher value-added product segment, the situation is completely different. Visibility is essential. You need to meet customers in person because if you do not actively present your products, they simply disappear among millions of other manufacturers online,” he explains.

To support export growth and strengthen its international brand presence, the company has repeatedly made use of the Investment and Development Agency of Latvia (LIAA) support programmes for participation in international trade fairs. Public support has also enabled the company to implement several development and digitalisation projects within its production facilities.

One of the most significant projects involved the digitalisation of timber drying process management. The company operates three timber drying kilns that were previously managed independently. Through the project, an integrated control system was introduced, allowing drying processes to be monitored and controlled remotely while improving production efficiency and optimising drying operations.

“The total investment in the project amounted to almost EUR 50,000, of which EUR 15,000 was provided through an LIAA grant. Drying is one of the most critical stages in woodworking. If we can monitor and optimise this process more effectively, we improve efficiency, quality, and save valuable time,” explains Grahoļskis.

The company emphasises that long-term competitiveness today depends on continuous development, ongoing investment, and the ability to adapt to changing market conditions. Looking ahead, INGRID D. plans to continue expanding its portfolio of higher value-added products, modernising its production facilities, participating in international trade fairs, and making full use of available business development support programmes.

This publication has been produced with financial support from the Recovery and Resilience Facility project “Digital Services Platform for Business Development.” The sole responsibility for the content of this publication lies with the author. The views expressed herein do not necessarily reflect the official position of the European Union or the European Commission.