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- “Our target is to double in size in the next three years”
“Our target is to double in size in the next three years”
This year the Borusan Group celebrates its 60th anniversary. Its name has become synonymous with Asım Kocabıyık, one of the doyens of Turkish industry, who laid the foundations for the group in 194...
This year the Borusan Group celebrates its 60th anniversary. Its name has become synonymous with Asım Kocabıyık, one of the doyens of Turkish industry, who laid the foundations for the group in 1944 when he established ‹stikbal Ticaret, an iron trading company. Ahmet Kocabıyık, who owned a 5 percent stake in the company which was founded by his father, has made Borusan into a brand name in pipes and steel and made it one of the giant groups in Turkey.
The group has to date followed a steady growth trend and last year’s financial results confirm its rate of growth. Last year, for the first time ever, Borusan increased its turnover by 47 percent. On a US dollar basis it grew by 70 percent in automobiles, 50 percent in pipes, 52 percent in flat steel and 60 percent in logistics. Its exports remained at the same level as in 2002 at US$181 million. The group’s locomotive sectors are pipes, where it has become of the five largest producers in Europe, and steel. But year?
We have 22 companies which are active in four main fields. One of our main areas is steel and pipes. Another is distributorships, where we serve as distributors for Caterpillar, BMW, Land Rover and Mini. The other sectors are logistics and telecom. We believe that
logistics have significant potential. Telecom are also important for us.
Last year our consolidated turnover exceeded US$1 billion for the first time. Our profits were around US$50 million. In 2002 our overall turnover was US$650 million. But the increase was reflected in all of our activities. We recorded growth of 25-30 percent in every field in which we are active. We are aiming for turnover of US$1.3 billion this year. To put it another way, we are expecting growth of 30 percent. We think that the growth rate will be the same in each field in which we are active. But in the future we want to double our turnover and triple our profitability. In 2002 we announced our targets for 2007: turnover of US$2 billion and US$150 million in profits. We expect 10 percent of this turnover to come from the group’s technology companies.
I How were you affected by the boom in the automotive sector last year? Last year was a successful one for us in automotives. It was better than the previous year. But the year before that was very bad. 2000 was very good of course. But last year we reached the levels of 2000. This year will be better. In any case, the market for luxury cars is limited. This year the demand for uxury automobiles has not increased. All of the increase in demand this year will come from small automobiles.
But we are holding on to our market share in the luxury segment. In automotives we increased our volume by 39 percent and our turnover by 70 percent last year. l In terms of distributorships, you are also involved in construction machinery. How did this fare last year? In construction machinery, in previous years the main market was domestic, particularly state investments, such as dams, mines and roads. But we have an advantage. We also represent Caterpillar in Kazakhstan, recently it has also gone on the offensive in logistics and telecom. Ahmet Kocabıyık, who took over the management of the holding from his father in 2001, says that they saw that there was considerable potential in the logistics and telecom sectors and concentrated on these areas.
He says that the group has no intention of entering other fields. Kocabıyık says: ‘We have set ourselves targets for 2007. By that time our turnover will be US$2 billion and our pretax profit US$150 million. We are conducting our operations according to this target.” l How do you evaluate Borusan’s current situation? Have you achieved the goals that you set for yourselves? Borusan is a group which grows very steadily. In fact, the last ten years have seen rapid growth but… it was a period of healthy, planned, controlled growth. This is how we wanted it. When we look back at the last ten years we have grown threefold. But we want to double in size by 2007. I mean that we are accelerating the process.
The group has to date followed a steady growth trend and last year’s financial results confirm its rate of growth. Last year, for the first time ever, Borusan increased its turnover by 47 percent. On a US dollar basis it grew by 70 percent in automobiles, 50 percent in pipes, 52 percent in flat steel and 60 percent in logistics. Its exports remained at the same level as in 2002 at US$181 million. The group’s locomotive sectors are pipes, where it has become of the five largest producers in Europe, and steel. But year?
We have 22 companies which are active in four main fields. One of our main areas is steel and pipes. Another is distributorships, where we serve as distributors for Caterpillar, BMW, Land Rover and Mini. The other sectors are logistics and telecom. We believe that
logistics have significant potential. Telecom are also important for us.
Last year our consolidated turnover exceeded US$1 billion for the first time. Our profits were around US$50 million. In 2002 our overall turnover was US$650 million. But the increase was reflected in all of our activities. We recorded growth of 25-30 percent in every field in which we are active. We are aiming for turnover of US$1.3 billion this year. To put it another way, we are expecting growth of 30 percent. We think that the growth rate will be the same in each field in which we are active. But in the future we want to double our turnover and triple our profitability. In 2002 we announced our targets for 2007: turnover of US$2 billion and US$150 million in profits. We expect 10 percent of this turnover to come from the group’s technology companies.
I How were you affected by the boom in the automotive sector last year? Last year was a successful one for us in automotives. It was better than the previous year. But the year before that was very bad. 2000 was very good of course. But last year we reached the levels of 2000. This year will be better. In any case, the market for luxury cars is limited. This year the demand for uxury automobiles has not increased. All of the increase in demand this year will come from small automobiles.
But we are holding on to our market share in the luxury segment. In automotives we increased our volume by 39 percent and our turnover by 70 percent last year. l In terms of distributorships, you are also involved in construction machinery. How did this fare last year? In construction machinery, in previous years the main market was domestic, particularly state investments, such as dams, mines and roads. But we have an advantage. We also represent Caterpillar in Kazakhstan, recently it has also gone on the offensive in logistics and telecom. Ahmet Kocabıyık, who took over the management of the holding from his father in 2001, says that they saw that there was considerable potential in the logistics and telecom sectors and concentrated on these areas.
He says that the group has no intention of entering other fields. Kocabıyık says: ‘We have set ourselves targets for 2007. By that time our turnover will be US$2 billion and our pretax profit US$150 million. We are conducting our operations according to this target.” l How do you evaluate Borusan’s current situation? Have you achieved the goals that you set for yourselves? Borusan is a group which grows very steadily. In fact, the last ten years have seen rapid growth but… it was a period of healthy, planned, controlled growth. This is how we wanted it. When we look back at the last ten years we have grown threefold. But we want to double in size by 2007. I mean that we are accelerating the process.
