“Sabancı Will Double In Size In 8 Years”

Sabancı has recently been one of the most active groups… On the one hand, they have been reviewing their sectors, and on the other they have been implementing new investments. The group has sold Pilsa, Gıdasa and Bossa and concentrated on finance, energy and retailing. CEO Ahmet Dördüncü says that they will make new investments and grow by 12-13 percent in US dollar terms.

Ahmet Dördüncü has been CEO of Sabancı Holding since May 2005. The holding’s turnover, which stood at YTL$11.555 billion in 2004, has increased rapidly since he was appointed to reach YTL 19.3 billion at the end of 2007. One of the main factors underlying this performance is the fact that Dördüncü knows the structure well.

We spoke with Sabancı CEO Ahmet Dördüncü on the 11th floor of the Sabancı Towers. Dördüncü, who is busy with the investments in nuclear energy, explained Sabancı’s targets for the next eight years.

* You were appointed CEO of the Sabancı Group at a very critical time. How do you see the sectoral emphasis of the group over the next five years?
In terms of the emphasis of the sectoral spread, I don’t think that there will be much change over the next five years. The finance sector will continue to be very important. But we want to have a balance between the financial and non-financial sectors. In order to achieve this, we need to grow more quickly in non-financial sectors. If we look at the situation at the moment, the energy and retail sectors will grow significantly in the years ahead. For example, at the moment energy has a share of around 2 percent and this will rise to 15 percent in five years.

* How much will be invested in energy over the next five years?
We are thinking of investing around US$6.5 billion just in production plants. This does not include the money we shall spend on privatization. In addition, we have a number of plans for nuclear energy. We do not include these in the figures.

* The share of finance will not change, but that of energy will increase to 15 percent. So there will be a decline in the shares of the other sectors…
When we were choosing growth areas, we studied developed countries. We looked at the sectors where the top 10 companies had a presence in these countries. We saw that in developed countries the large, profitable companies were concentrated in finance, insurance, retailing, energy and health. As a result, over the next ten years, we identified the sectors in which Sabancı Holding will say “I shall grow” as retailing, energy and finance. Our growth in other sectors will not be as much.

* Are there sectors which you are thinking of leaving?
In recent years we have left several sectors. We largely withdrew from the chemicals sector. Then we sold Pilsa, our plastics piping factory. Last year we sold Gıdasa. In August we handed over Bossa. As a result, we are approaching sectors outside those which we have identified as strategic sectors in a more careful, critical manner.

* In retailing, will Carrefoursa and Teknosa grow organically through the opening of more stores?
In retailing, I cannot say: “We are thinking of buying these companies.” At the moment, we are not busy with any concrete projects. We are open to opportunities in a suitable environment. At the moment, I am looking at organic growth plans for our companies. For example, the growth plans I foresee for Carrefoursa will mean that there will be like another Carrefoursa within three years. We have achieved a very good spread for Teknosa in geographical terms. It is already established in many locations in Turkey. We are focusing more on our own businesses, such as customer satisfaction, preferences and growth.

* You have announced that you are looking for a partner in nuclear energy. What kind of partner are you looking for? What investment plans do you have?
We have said: “If nuclear energy is good for Turkey then we shall do it. Only a major group like Sabancı Holding should take on this responsibility.” But, in doing this, we always put the environment, our responsibility towards people before business results.

As a result, if this country grows by 7.5-8 percent every year, nuclear energy is inevitable. Our concept is to be a sound, reliable, local investor. We want to form a partnership with a company which has the same values as we do and which is the best in the world in this business.

Our budget for our nuclear energy investments is still not clear. We got the tender documents last month. The budget will appear soon.

* What are your longest term targets as a holding?
We have made plans up until 2015. We are talking about growing by around 12-13 percent per year in US dollar terms from 2008 onwards. We think that, by that date, we shall have become an important energy firm. I estimate that in 2015 we shall have a turnover of US$35-40 billion.

 “Being A Ceo Was A Very Steep Learning Curve For Me”
What Kind Of Ceo Were They Looking For?

I am someone with field experience. I think that one of the main reasons I was chosen as CEO of Sabancı was the fact that I had a global perspective as the result of my experience abroad. They wanted a candidate who knew Sabancı’s relationships very well from the inside and who had their feet on the ground. I think these were the criteria they used when they chose me.

I Learned A Lot When I Became Ceo
 Being appointed CEO was a very steep learning curve for me. Before becoming CEO you only know one part in any depth of a group which has a lot of different businesses. But you can only have an idea about the other parts. After I become CEO I didn’t receive any reactions such as: “How can someone whose has only worked at Kordsa managed such a huge holding?” I didn’t feel like this.

Ayçe Tarcan Aksakal
aaksakal@capital.com.tr