Turkey will become one of the world’s top ten economies within the next ten years. Its GDP will rise to $2 trillion and per capita income to $25,000. These calculations mean that companies will also grow many times in size. Over the next ten years, Yıldırım Holding and the Arbel Group are planning to grow tenfold in size, Limak Holding fivefold and Akbank fourfold. The way that each company plans to grow many times in size is different. Some will progress towards this goal through acquisitions, others through investments and others through entering new markets. Some will be more introspective and work more efficiently. Some will progress through innovations. Here are the companies’ calculations about how to grow many times in size...
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1- THE FAST SECTOR EFFECT
Some sectors have a very high growth potential. As a result, companies in these sectors are looking to take a large share of this growth and multiply their turnover this way. Alexander Ankel is CEO of Allianz Türkiye, which is one of these companies, and he notes that private pensions will grow very rapidly. Ankel talks about funds growing at least tenfold in size in ten years and nonlife and life insurance tripling in size in ten years. Another sector which has noticeable potential for growth is fish products. Dardanel Önentaş Foodstuffs Board Chair Niyazi Önen says that, as the market leader, they will conduct marketing communications activities in order to grow the market. Önen says: “Our targets for our growth rate and turnover will increase nineteen-fold.”
2- ACQUISITION OPPORTUNITIES
Many companies see mergers and acquisitions as the key to growing many times in size. Turgut Aydın CFO Can Ersöz says that they have increased their turnover fourteen-fold from $100 million ten years ago to $1.4 billion. “The partnerships we have formed with foreign investors have significantly developed our vision in this regard,” says Ersöz. “There are important acquisition opportunities in the retail sector. In the health sector, semi-finished investments are continuing, including by the existing major groups.” Yıldırım Holding will grow several times in size through new partnerships. In the last ten years the group has grown by a factor of twenty-one. In 2012, its turnover reached $1.07 billion. The company realized some very important acquisitions and partnerships in achieving this size. Yıldırım Holding CEO Robert Yüksel Yıldırım has announced that they plan to grown tenfold over the next ten years.
3- NEW MARKET SUPPORT
New markets are always attractive... Many comapnies will realise their growth targets over the next ten years by opening up to new markets. For example, Oti Holding is already a global player, active in 26 countries on five continents. It plans to increase its turnover, which stood at $2 billion in 2012, by 259 percent over the next ten years. Silk&Cashmere CEO Ayşen Zamanpur says that they are targeting an eightfold increase in growth over the next ten years and will develop new markets. Zamanpur says: “The share of foreign sales in our turnover, which currently stands at 24 percent, will rise to 50 percent over the next ten years.” Orion Holding CEO Yalçın Karaman says that the group will grow fivefold over the next ten years by opening up to new markets.