Erdemoğlu's growth formula 31-Oct-2017

We talked with İbrahim Erdemoğlu about the polyester investment and the problems in the industry, especially in textile industry...

Merinos, founded by İbrahim Erdemoğlu with a single carpet machine 35 years ago, has become the world's largest carpet manufacturer today. Erdemoğlu Holding, who produces 5 percent of the world machine-made carpets alone, is among the largest producers in Turkey with Merinos brand in carpet, and SASA brand in polyester industry. Stating that they aim at regional leadership in polyester industry by carrying Sasa, which they bought from Sabancı Holding 2 years ago, to the world scale, Erdemoğlu plans to realize 3% of world polyester production in 8 years. Erdemoğlu says, “After purchasing Sasa, our biggest business area became polyester. From now on, we will make the fastest growth in polyester industry”. He also says that they rescue Turkey from being highly polyester importer country by investing a total of $ 3.6 billion in 8 years. We talked with İbrahim Erdemoğlu, the biggest carpet manufacturer in the world, about the polyester investment and the problems in the industry, especially in textile industry... 

  • You acquired Dinarsu and then Sasa. Where have these acquisitions brought you? 

 Our 2002 turnover was 35-40 million dollars. By the end of this year, we will exceed $ 1.5 million. 

  •  How did you achieve this rapid growth? 

 Continuous monitoring of our business and the world has enabled us to grow. Besides this, one of the most important factors is that we keep all of our profits in the holding, we do not use it either personally or in our family. The rapid growth is due to this. I realize every business I do by thinking globally. 

  •  Your biggest business was carpet. Which one is the biggest business of yours today? 

 When we acquired Sasa 2 years ago, polyester business became our biggest line of business. When you consider the turnover today, Sasa's turnover is more than carpet. We expect Sasa's turnover to be 1.6 billion TL at the end of this year. 

  •  Are you glad for acquiring Sasa? 

 Polyester business has been a very correct investment decision for us. 

  •  What is the turnover of the carpet business? 

 Our is about 400-500 million dollars in carpet business. This year, our turnover target in carpet business will be 1.1 billion TL. 

  •  What is the size you have reached in carpet production in 35 years? 

 In 1983 we started machine-made carpet production with a single machine. Today, we as Merinos, produce 5 percent of world’s machine-made carpets in our production facilities in Russia and Turkey alone. For the last 2 years, we have been the world's largest manufacturer of machine-made carpet. 

  •  In how many years did you become a world leader in carpet business? 

 We became a world leader in carpet business in 33 years. 

  • Who is your biggest competitor in carpet business? Can the difference be closed? 

 Following us, the biggest carpet company in the world is an Egyptian manufacturer. There is no big difference between us in terms of market share. However, as our investments continue, the difference between us will be wider in the upcoming period. 

  •  What is your goal in carpet business? 

 In the next 3 years, we plan to increase our share in the world machine-made carpet production from 5 percent to 6 percent.



Capital Magazine

October 31, .2017

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