It Will Extract Ore from Carpets!
Merinos, a leading player in the machine-made carpet sector, where Turkey holds a 65 percent market share and is the global leader, is preparing for a strategic growth move through investments in petrochemicals and plastics, which complement the production chain in this industry. By selling more than 50 percent of its shares to foreign investors in its planned initial public offering, the company aims to set a precedent in this area for the period after 2017. The last time a company sold 73.9 percent of its shares to foreign investors in an initial public offering was 9 years ago, when Mavi Jeans did so.
500 million Dollars in revenue
As the company heads toward 500 million Dollars in revenue this year and prepares to list on Borsa Istanbul, its initial public offering is expected to be one of the largest transactions in recent times. İbrahim Erdemoğlu, Chairman of the Board of Directors at Erdemoğlu, remarked, "This will be an international-scale initial public offering. More importantly, it will be a success for Turkey’s capital markets. In our view, when you consider the size of this initial public offering, its organizational nature, and the foreign capital it will bring to Turkey, this is not merely about Merinos’s initial public offering."
It's Making Rapid Progress in Exports
Merinos Carpet, a subsidiary of Erdemoğlu Holding, is the leader in the global machine-made carpet market with a 7% market share. It exports to more than 100 countries. It is the primary supplier to major retail chains such as Walmart and IKEA. Ninety percent of the carpets produced at the integrated facility in Gaziantep are exported. Ninety-two percent of revenue comes from exports.
İbrahim Erdemoğlu says, "One out of every 4 carpets in the U.S. and one out of every 3 in European market is our product. Forty percent of total exports go to the U.S., 40 percent to Europe, and 10 percent to the Middle East and Asia." The company, which supplies all the raw materials used in production, employs 4,200 people and manufactures everything from polymer to carpet under one roof. With over 100,000 color variations, the company offers 1.6 million different carpet styles. It produces 80 million square meters of carpet per year, which is enough to circle the globe twice.
50 Percent Increase in Orders
Noting that they have not felt the effects of the war or market stagnation, Erdemoğlu said, "When we compare the volume of our international orders from last August at Merinos with the international orders we currently have on hand, based on square meters, our numbers are approximately 50 percent up. We are currently hiring new workers. We are increasing our capacity. We’re also bringing our idle capacity online."
STRATEGIC INVESTMENT: PETROCHEMICALS
Emphasizing that Merinos is not merely a carpet-producing company, Chairman of the Board of Merinos Halı, Mehmet Erdemoğlu said, "It produces the yarn needed to make carpets itself. It produces the dye needed to dye the yarn itself. It carries out the dyeing process itself. In fact, starting October 1st, it will also begin producing the polyester chips needed to make that yarn. We’ve made an investment of approximately 270 million Dollars in polyester chips here."
ARTIFICIAL INTELLIGENCE-POWERED CARPETS ON THE WAY
Merinos is also working intensively on artificial intelligence investments and the smart carpets of the future. Referring to Prof. Dr. Şahin Albayrak, a faculty member at the Technical University of Berlin with whom they are collaborating, Mehmet Erdemoğlu said, "We have launched a strategic partnership with the ZEKI platform at the Technical University of Berlin. Our goal is to initiate a new transformation in our industry by integrating artificial intelligence into our design and production processes."
İBRAHİM ERDEMOĞLU: OUR ROOTS ARE IN MERINOS
Touching on Merinos’ cash generation capacity, İbrahim Erdemoğlu, Chairman of the Board of Directors of Erdemoğlu Holding, said, "The most concrete example of this is that the acquisition of Sasa was financed by the cash flow generated by Merinos. This is one of the key indicators of the sustainable financial capacity the group has built over many years. Today, everyone is looking at Sasa, but our roots lie in Merinos. We started with carpets, today, we have transformed into an integrated industrial group spanning from production to raw materials, from chemicals to the global market."
Source: Milliyet Newspaper
500 million Dollars in revenue
As the company heads toward 500 million Dollars in revenue this year and prepares to list on Borsa Istanbul, its initial public offering is expected to be one of the largest transactions in recent times. İbrahim Erdemoğlu, Chairman of the Board of Directors at Erdemoğlu, remarked, "This will be an international-scale initial public offering. More importantly, it will be a success for Turkey’s capital markets. In our view, when you consider the size of this initial public offering, its organizational nature, and the foreign capital it will bring to Turkey, this is not merely about Merinos’s initial public offering."
It's Making Rapid Progress in Exports
Merinos Carpet, a subsidiary of Erdemoğlu Holding, is the leader in the global machine-made carpet market with a 7% market share. It exports to more than 100 countries. It is the primary supplier to major retail chains such as Walmart and IKEA. Ninety percent of the carpets produced at the integrated facility in Gaziantep are exported. Ninety-two percent of revenue comes from exports.
İbrahim Erdemoğlu says, "One out of every 4 carpets in the U.S. and one out of every 3 in European market is our product. Forty percent of total exports go to the U.S., 40 percent to Europe, and 10 percent to the Middle East and Asia." The company, which supplies all the raw materials used in production, employs 4,200 people and manufactures everything from polymer to carpet under one roof. With over 100,000 color variations, the company offers 1.6 million different carpet styles. It produces 80 million square meters of carpet per year, which is enough to circle the globe twice.
50 Percent Increase in Orders
Noting that they have not felt the effects of the war or market stagnation, Erdemoğlu said, "When we compare the volume of our international orders from last August at Merinos with the international orders we currently have on hand, based on square meters, our numbers are approximately 50 percent up. We are currently hiring new workers. We are increasing our capacity. We’re also bringing our idle capacity online."
STRATEGIC INVESTMENT: PETROCHEMICALS
Emphasizing that Merinos is not merely a carpet-producing company, Chairman of the Board of Merinos Halı, Mehmet Erdemoğlu said, "It produces the yarn needed to make carpets itself. It produces the dye needed to dye the yarn itself. It carries out the dyeing process itself. In fact, starting October 1st, it will also begin producing the polyester chips needed to make that yarn. We’ve made an investment of approximately 270 million Dollars in polyester chips here."
ARTIFICIAL INTELLIGENCE-POWERED CARPETS ON THE WAY
Merinos is also working intensively on artificial intelligence investments and the smart carpets of the future. Referring to Prof. Dr. Şahin Albayrak, a faculty member at the Technical University of Berlin with whom they are collaborating, Mehmet Erdemoğlu said, "We have launched a strategic partnership with the ZEKI platform at the Technical University of Berlin. Our goal is to initiate a new transformation in our industry by integrating artificial intelligence into our design and production processes."
İBRAHİM ERDEMOĞLU: OUR ROOTS ARE IN MERINOS
Touching on Merinos’ cash generation capacity, İbrahim Erdemoğlu, Chairman of the Board of Directors of Erdemoğlu Holding, said, "The most concrete example of this is that the acquisition of Sasa was financed by the cash flow generated by Merinos. This is one of the key indicators of the sustainable financial capacity the group has built over many years. Today, everyone is looking at Sasa, but our roots lie in Merinos. We started with carpets, today, we have transformed into an integrated industrial group spanning from production to raw materials, from chemicals to the global market."
Source: Milliyet Newspaper