Mutiple Growth Plans

They have already long since drawn up their maps of the future, including identifying which sections growth will come from, where there will be opportunities and where there will be risks. They include those who are aiming to grow by more than the country or the sectoral average over the next five years and there are even those who are planning fifteen-fold growth in their turnovers. It is striking that the five-year growth plans for the 40 companies that shape the Turkish economy and which participated in our survey are extremely upbeat.

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MAJOR PLANS IN ENERGY
There are many groups which are giving a special importance to the energy sector in their five-year growth plans. These groups plan to source a large proportion of their revenue from energy in five years’ time. These companies include SFTA, Kipa§, Eren and Akkok Holding. SFTA Group CEO Mehmet Ali Neyzi says that they plan to increase their turnover, which is currently TL 1.253 billion, 4.3 fold over the next five years. Today, the construction, energy and machinery sectors account for approximately equal shares of the group’s turnover. Neyzi says that in 2017 the lion’s share will come from the energy sector and continues as follows: “In the construction sector, our ENR 100 vision will continue every year. We shall achieve spectacular growth in the energy sector. In our energy group, it is only in the natural gas sector that we have any turnover. But we are planning significant investments in both electricity and renewable energy. Our turnover will grow significantly in these areas. We planning both to grow our gas business and to invest in areas such as wind and solar energy. The holding also has company acquisitions on its agenda. We are evaluating new acquisition opportunities in the natural gas distribution sector. New investments in electricity production and trading are also on our agenda.”

MULTIPLE GROWTH PLANS IN CLOTHING
When we look at the groups that have ambitious targets for five years from now, the plans of three clothing companies are striking. Each of the three players is preparing to triple its turnover. Mudo Board Chair Mustafa Taviloğlu says that they will triple in size by increasing their turnover of TL 361 million by an average of 25 percent every year. “Approximately 60 percent of our turnover comes from clothing, 37 percent from furniture and home decor and 3 percent from our other sales,” he says: “In 2017, clothing will again account for 60 percent of our turnover.”

Aydınlı Group Deputy Board Chair Ahmet Said Kavurmacı says that their 2012 turnover of TL 685 million will triple over the next five years. Kavurmacı says that clothing accounts for most of their turnover and describes their ambitious targets as follows: “We are planning to increase our turnover by an average of 20 percent a year to TL 1.35 billion in clothing and in construction to TL 700 million. If we eliminate our country risks, then I don’t see any obstacle to Turkish entrepreneurs acquiring hundreds of global brands which will be rank amongst the leading ones worldwide in every sector.”

HIGH POTENTIAL IN FINANCE
Four of the 40 companies that participated in our sector are major players in the finance sector. Meral Eredenk, CEO of the insurance and private pensions company Avivasa Hayat ve Emeklilik, says that they will increase their turnover of TL 777.2 million to TL 2.657 billion by 2017.~
Eredenk explains how they will increase their turnover 3.4 fold over the next five years as follows: “Most of our turnover comes from personal pensions. This will still be the same in five years’ time. The new Private Pension Law and an increase in the volume of credits form the basis of our growth targets. If conditions are appropriate, we are always open to inorganic growth.”

Cemal Ererdi, General Manager of the insurance company Axa Sigorta, says: “The sole risk to growth is the possibility of instability.” He explains their five-year growth plans as follows: “The largest proportion - by which I mean 60 percent - of our premium production of TL 2.3 billion comes from car insurance. Over the next five years, we are aiming to increase our turnover by an annual average of 20 percent to TL 6.2 billion in 2017. I think that 75 percent of our turnover will come from car insurance and health insurance.”

THE SECRET OF THE FAST ONES
The roadmaps of tens of companies in difference sectors which are planning to grow several fold over the next five years are clear. So what will drive this growth? For example, Daikin CEO Hasan Önder explains how they will increase their turnover 2.8 fold as follows: “This prediction is based on the expectation that the Turkish construction sector will continue to growth and that our exports will increase as a result of additional investments in constructing factories.”

Turkcell Global Bilgi General Manager Bahadır Pekkan explains how they will increase their turnover 3.1 fold over the next five years as follows: “We shall grow by 25 percent a year every year until 2017. The telecoms sector will account for a significant proportion of our business. Public and financial projects will continue to account for an important share of our turnover.” Kiler Holding and Makromarket, two of the strongest players in retailing, are also planning rapid growth. Each company is aiming to increase its turnover by 2.4 fold over the next five years.

INORGANIC PLANS
Inorganic growth plans have an important place in the projections for multi-fold growth. İnci Holding secures 86 percent of its turnover of TL 1 billion from the automotive sector. İnci Holding Board Chair Perihan İnci says that the automotive sector will account for 90 percent of their turnover in 2017. İnci explains how their turnover will increase 2.5 fold by growing by 20 percent a year as follows: “We shall expand our logistics and waste management activities through utilizing opportunities for foreign partnerships. Our plans include the allocation of 60 percent of new investments to acquisitions.”