The target sectors

Groups like Safi, Genpa, Doğanlar and Kipaş are looking for investment opportunities in energy, while groups such as Global Yatırım, Zorlu and Güriş are looking at mining. IC Holding is interested in infrastructure and superstructure projects with a technology component. Doğan Holding will follow privatisations in infrastructure management and games of chance. Opportunities are also being sought in sectors such as logistics, foodstuffs, retailing and real estate.THE leading groups and companies in Turkey are looking to increase their investments and growth in 2013. The CEOs of Koç, Sabancı, Doğuş, Borusan and Doğan Holding say that in the near future they will focus on increasing production and employment and are preparing to enter new sectors. For example, Sabancı Holding is planning to invest nearly $2 billion in 2013 and stay close to the services and logistics sector. The Holding’s CEO Zafer Kurtul has announced that in the near future they may invest in the services and logistics sectors. Koç Holding CEO Turgay Durak says that in 2013 they are targeting investments with a combined total value of approximately $4 billion. A lot of companies, both large and small, are looking to enter new sectors in the near future. When we look at the new sectors that the groups are focusing on, it is energy, mining, infrastructure, logistics, services, foodstuffs, retailing and real estate which come to the fore.

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ENERGY IS EXCITING
In recent years, energy has been the sector which has attracted the most investment. It is also the main target of many groups who are looking to enter a new sector. These groups include Ülker, Kipaş, Safi Holding, Genpa and Doğanlar... Safi Holding Board Chair Hakan Safi explains that they are particularly focused on a thermal power plant which uses imported coal. “At the moment we are planning an investment in a 3500 MW thermal power plant,” says Safi. Genpa Deputy Board Chair M. Fatih Erdem says: “Our areas of interest in energy are energy production, particularly using renewable sources of energy, energy storage, distribution and savings.” Davut Doğan, the head of the Doğanlar Group, which has grown into a furniture giant, is also among those who are looking at energy as a new sector... “I think that energy will be one of the sectors of the future,” says Doğan. The company is continuing construction work on a 19  MW dam in Erzurum.~

MINING'S SECRET ALLURE
In recent years, mining has headed the list of sectors which have come up on the radar of all the groups which are looking to enter a new area. The main reason for the interest in the sector is the rapid rise in metal prices over the last 10 years, particularly gold, lead, copper and zinc. Major groups such as Kiler, Demirören and Doğan Holding have recently entered the sector. Now Global Yatırım Holding, Zorlu Holding and Güriş Holding want to enter the sector for the first time and grow in mining. Global Yatırım Holding General Manager Serdar Kırmaz says that mining will continue to grow rapidly in the future. Güriş Holding Board Chair İdris Yamantürk says: “In Turkey mining is relatively empty. Not many have entered this field. We shall operate gold, iron and copper mines. We have begun to acquire our licenses. We are entering the market strong.”

APPETITES RISING IN FOODSTUFFS
Over the last five years, billions of dollars have been invested in the foodstuffs sector. As the number of entries into the sector increases, each year the number of new brands also rises. When they see this attractive picture, many groups which have grown in different areas prepare to find a place for foodstuffs in their portfolios. Davut Doğan, the head of Doğanlar Group, says: “We have two projects in foodstuffs, We want to be a brand name in milk and dairy products,” For Nihat Özdemir, the owner of Limak Holding, foodstuffs is also a sector whose attractiveness is increasing, Özdemir says that they are aiming to invest an average of $1 billion a year every year over the next five years and adds that growth in foodstuffs is very important to him. “I regard growth in foodstuffs as being strategic, from the perspective both of Turkey and of the world.”

REAL ESTATE'S MAGNETISM
It is not just today, for several years real estate has been the sector that has attracted the most investors. Most recently, the Boyner Group made the most of the land occupied by its Altınyıldız factory and entered the sector. The group's owner Cem Boyner says that they will continue to invest in real estate in the future, Şahinler Holding Board Chair Kemal Şahin thinks that falling interest rates and the inflow of foreign capital will create major opportunities in the sector. “For that reason, in the first half of 2013 we shall realise a project worth billions in the centre of Beylikdüzü,” he says.~

ALI MIDILLILI / MSEARCH INAC FOUNDING PRESIDENT
"THE SERVICE SECTOR WILL COME TO THE FORE"
THOSE ON THE RISE
Today the rising sectors are entertainment, tourism and sports. These sectors have been on the rise for 15 years and have really come to the fore in the last three years. In addition, the retailing sector is becoming more attractive. The chains which sell technology and household goods in particular have recorded a very successful financial performance. This sector has remained in the forefront over the last five years and will continue to grow.

THE KEY TO SUCCESS
In the future, investors will focus on services, technology, retailing and rapid consumer goods rather than industrial production. The key to success will be being able to create a brand, being able to make investments in R&D and being able to communicate through the correct channels.
LOGISTICS CONCESSIONS
In addition, the logistic concessions sector, such as airports, ports, highways, maritime routes, railways and airlines, will continue to get stronger. In fact, the best way to earn money without competing is to earn money by acquiring a concession. TAV and iddia are good examples of this...

THOSE WHICH HAVE FALLEN OUT OF FAVOUR
Sectors such as real estate, construction, shopping malls and technology support look as if they have fallen out of favour. In a country without long-term savings, sectors which do not provide long-term revenue will fall out of favour and investments focused on the short and medium term will come to the fore. It is worth following Doğuş and Sabancı over the years ahead.