Capital: What was the aim of focusing on these two areas?
- In fact, our basic aim was operational productivity, excellence and sustainable profitability. We produced a roadmap for what we could do for each of the two business areas on which we had focused. Then we merged these at the top and, working downwards, we formulated strategies according to the competitive environment in which each business group is active. Most importantly, we transformed these goals into projects. We are striving to regularly calculate the net benefits these projects will bring by relating them to measurable targets. Most importantly, we are focused on results.
Capital: How many companies did you downsize to during the consolidation phase?
- Previously, before we started the mergers, we had 25 companies. At the moment, the number has been reduced to 18. We consolidated our construction group and merged some companies. In the end, they are all providing services in the same area. In particular, we merged all of our companies in the ceramics sector and gathered them all under a single roof. We chose construction chemicals as a growth area.
Capital: What statistical targets do have for the results of this project?
- In 2011, the Kale Group had a net turnover of TL 1.2 billion. We are targeting doubling this by 2015. We measure our profitability according to the EBITDA ratio. With an annual average improvement of 5 percent in our main business areas, we shall increase our EBITDA profitability ratio by 25 percent after five years. We currently have a market share of 26 percent in tiles. We shall enhance the value of our brands and increase our market share to 30 percent. We are targeting annual growth of 10-30 percent in ceramic applications for heating and water insulation in 2016.
Capital: What other targets do you have for 2012?
- In 2012, in parallel to our long-term sustainable growth strategy, we shall focus on continuing our investments and managing risk in the best possible way. In 2012, domestic demand will remain the locomotive of growth but we do not think that growth will be as fast as in 2011. In addition, we have decided that our group's focus should be on foreign sales this year. Each of our companies needs to pursue every kind of opportunity on foreign markets.