In 2011 the Turkish economy grew by 8 per cent. The giants who serve as a locomotive for the Turkish economy recorded record rates of growth. Koç Holding grew by 41 per cent, Oyak by 31.5 per cent and Sabancı by 14.9 per cent, their best performances since the crisis. It was not just these three giants, 21 of the 37 groups which participated in the "Performances of the Holdings" in Turkey survey recorded growth of between 20 per cent and 67 per cent. So what was it which, at the time when the world had not yet shaken off the effects of the crisis, enabled the giants in Turkey to grow? When we look at the big picture from the financial data from the 37 groups which serve as the locomotive for the private sector in Turkey, we see that seven important developments come to the fore. Here are the seven important developments and their effects on performances in 2012...
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1-FOCUSING ON PRODUCTIVITY
Many groups declared that 2011 was the year of productivity. Memduh Boydak, the CEO of Boydak Holding, stressed this. “In 2011 it was our strategy of focusing on productivity which enabled us to continue growth and exceed our targets. 2011 was a year in which we increased our productivity,” he says. Yıldız Holding CFO Cem Karakaş explains that they managed their existing operations in a more effective and productive manner and focused on continually improving their profitability. For Doğan Holding, 2011 was a year of progress in sustainable growth in the full sense of the word and ensuring an increase in productivity. The Holding’s CEO Yahya Üzdiyen says that they disposed of some of their assets. “As a result we were able to strengthen our capital structure,” he says.
2-İNVESTMENTS PICKED UP
2011 was really a very lively year in terms of investments. Both of the two giants of the private sector invested heavily: Koç Holding realized investments of TL 2.9 billion, while Sabancı Holding increased its investments by 29 per cent compared with the previous year to TL 1.4 5 billion. Nor do the giants have any intention of hitting the brakes in investments this year, Koç Holding CEO Turgay Durak expects 2012 to be a record year in terms of investments. “This year we are aiming to double our combined investments to TL 6.5 billion,” he says. Sabancı Holding CEO Zafer Kurtul says that they will make investments of TL 2 billion.
3-A FLURRY OF ACQUISITIONS
Last year many groups grew through acquisitions. Koç Holding bought the 100-year-old South African white goods giant Defy, while Zorlu Holding bought four white goods brands from the Italian Antonio Merloni company. Doğuş Holding bought Star television to strengthen its position in the, while Yıldız Holding did likewise in retailing by acquiring the Şok Supermarkets. Now all of the groups are making growth plans based on future mergers and acquisitions. Koç Holding CEO Turgay Durak says that they will closely follow different opportunities both in Turkey and elsewhere in the world. Zorlu Holding Ahmet Zorlu says that they are looking to increase their exports through transactions such as the acquisitions they realized last year.