'Polyester Chips' Will Multiply Merinos' Success, with 'Artificial Intelligence' Support, It Will Reach 1 Billion Dollars
• One out of every four carpets in the USA and one out of every three carpets in Europe are our products…
In December 2024, we first visited Sasa, a subsidiary of Erdemoğlu Holding, and its new investments, and then went to the Merinos facilities in Gaziantep.
Mehmet Erdemoğlu, who was our guide during the December 2024 tour and was then a member of the Board of Directors of Merinos, described the point Merinos Carpet had reached with the following figures:
• In this Organized Industrial Zone, together with our adjacent facility, we have over 700,000 square meters of covered area, totaling 900,000 square meters.
• We produce 40 million square meters of machine-made carpets annually. This translates to 10 million carpets averaging 4 square meters each.
• We export to 90 countries. We produce for famous retail chains in the USA and Europe, both under the Merinos brand and our own brands.
At that time, İbrahim Erdemoğlu, the Chairman of the Board of Directors of Merinos Halı, stated the following:
• We are number one in the world in terms of the size of our production facilities. Our share in the world market for machine-made carpets alone reaches 7%.
• The Chinese cannot compete with us in machine-made carpets. Because we produce more efficiently.
• We expect Merinos to close 2024 with a turnover of 530 million dollars. 480 million dollars of this will come from exports.
While traveling to Gaziantep, İbrahim Erdemoğlu was accompanied by Prof. İbrahim Turhan, a member of the Board of Directors of Sasa, and Prof. Şahin Albayrak, a faculty member at the Technical University of Berlin, an artificial intelligence expert, and a member of the Board of Directors of Sasa.
At the Merinos headquarters, we were greeted by Chairman of the Board of Directors of Merinos Mehmet Erdemoğlu, Vice Chairman Ali Erdemoğlu, General Manager Ali Yılmaz, Board Member Erdoğan Şeker, Erdemoğlu Holding Corporate Communications Manager Güler Eruğur, and Mehmet Ali Ergün, founder of Momentum, which provides external communications consultancy services.
İbrahim Erdemoğlu began by giving a brief history of the group, going back to 1955:
• My late father, Mehmet Erdemoğlu, known as "The Wise Man from Besni," worked as a weaver for six years until 1955. When motorized looms became available, he started peddling goods. He bought towels, quilts, and rugs from Gaziantep and sold them in different cities. This lasted for 11 years.
• In 1970, he started production in Gaziantep with two rug looms. In 1983, he switched to carpet loom production. "We started with our first factory in 1991, and in 2004 we moved to the Organized Industrial Zone where we are currently located."
He stated that Merinos' growth was not accidental, but rather the result of a strategy they had implemented for years, and outlined the following chronology:
• When my father started production with a single loom, the annual turnover was 250,000 dollars.
• In 1993, Merinos' turnover reached 3 million dollars.
• In 2003, the turnover increased tenfold, reaching 30 million dollars.
• In 2013, our group turnover reached 300 million dollars.
• In 2023, our group turnover reached 3 billion dollars.
We were curious about the current group turnover, and Mehmet Erdemoğlu, a Board Member at Erdemoğlu Holding, responded:
- We predict that our group turnover will be 5 billion dollars in 2026.
Ibrahim Erdemoğlu underlined that one of the most important elements of success is unity and solidarity within the family:
- The second element is acting in accordance with our family constitution since 1990. According to our family constitution, individuals can spend a maximum of 10% of the total profits of our companies. Salaries are included in this. 90% goes to reinvestment.
He then added:
"In my opinion, this is one of the most important issues. Because we reinvested the money we earned back into the business." He elaborated on Merinos' strong cash-generating structure:
"The most concrete example of this is the acquisition of Sasa. It was financed with the cash flow generated by Merinos. Today everyone is looking at Sasa, but the main origin is Merinos."
Mehmet Erdemoğlu, Chairman of the Board of Merinos, showed the "polyester chips" plant, which is nearing completion, while touring the facilities:
"Merinos is more than just a carpet company. We started with carpets, but it has transformed into an integrated facility. It produces its own carpet yarn and dye. We will also produce the raw material for the yarn, "polyester chips," here starting from October 1st, 2026. We invested 270 million dollars in this facility."
Mehmet Erdemoğlu described this investment as follows:
"The 'polyester chips' plant, which will have an annual production of 330,000 tons, will be like adding another Merinos to Merinos." We expect its annual turnover to be 400 million dollars. We also predict that Merinos' turnover could reach 1 billion dollars in the near future.
Pointing to Professor Şahin Albayrak, an artificial intelligence expert and faculty member at the Technical University of Berlin, with whom we toured the facility, he said:
- We have initiated a strategic collaboration with ZEKI (Center for Tangible AI and Digitalization) at the Technical University of Berlin. Our aim is to integrate artificial intelligence into our design and production processes, initiating a new transformation in our sector.
We reminded Mehmet Erdemoğlu of their intention to take Merinos public, a conversation we had during our December 2024 facility tour, and he responded:
- As part of the intention to go public, we merged Dinarsu with Merinos. Dinarsu continues as a brand.
Professor İbrahim Turhan, a former Chairman of the Istanbul Stock Exchange, interjected:
- Actually, Merinos is ready for an initial public offering with its financials as of June 30, 2026. An application has not yet been submitted to the Capital Markets Board (SPK). The application will be submitted to the SPK at the most opportune time.
We wanted to learn about Merinos' current turnover, and Mehmet Erdemoğlu replied:
- We closed 2025 with a turnover of 472 million dollars. In the first 7 months of this year, our turnover reached 270 million dollars. Of this, 245 million dollars came from exports. This year, our turnover could exceed 500 million dollars. The production journey that began in 1970 with two carpet looms by "Wise man from Besni" transformed Merinos Carpet into a global giant in 56 years…
The Erdemoğlu Family is preparing for an initial public offering for Merinos Halı, befitting its global presence…
At least 50% of the shares will be sold to foreign investors in the initial public offering, ensuring capital injection.
Mehmet Erdemoğlu, Chairman of the Board of Directors of MERİNOS Carpet, discussed the preparations for the initial public offering with Prof. Professor İbrahim Turhan stated that he and his team went on a "road show" (promotional tour) in London and New York:
- During the road show, we gave the following message to foreign investors: "Merinos is more than just a carpet company. While EBITDA (earnings before interest, taxes, depreciation, and amortization) normally ranges between 10-12 percent in our sector, it is around 20 percent at Merinos."
Professor İbrahim Turhan announced that Merinos Halı will be the first international initial public offering in recent years:
- As far as I remember, the last international initial public offering was done by Mavi in 2017. In an international initial public offering, at least half of the shares offered to the public must be allocated to foreign investors. Professor Turhan emphasized that the fact that at least half of the shares offered to the public will be sold to foreigners will be recorded during the application to the Capital Markets Board (SPK):
- Although not yet certain, 20-30 percent of Merinos will be offered to the public. Two-thirds of these shares will be sold to foreign investors. So, with this initial public offering, we will have secured a significant influx of foreign capital into our country.
We asked about Merinos' market value, and Professor Turhan responded:
- We cannot give a value before the application to the Capital Markets Board (SPK) is made. However, we can say that it will be one of the largest initial public offerings in recent years.
We were curious about the structure of the initial public offering, and Professor Turhan explained:
- At least half of the initial public offering will be planned as a capital increase. Of course, a certain amount of shareholder sale will also take place.
He also explained how the funds from the initial public offering will be used:
- A portion of the funds from the initial public offering will be used to support Sasa's capital base. Sasa will be relieved in terms of debt.
Mehmet Erdemoğlu, Chairman of the Board of Directors of Merinos Carpet, gave the following message regarding the evaluation of the initial public offering proceeds:
- Technically, there are two main uses for the initial public offering proceeds. Firstly, financing investments and balancing related obligations, and secondly, strengthening the capital structure of the group companies.
If you were to establish Merinos from scratch today, the investment would reach 3 billion dollars.
İbrahim Erdemoğlu, Chairman of the Board of Directors of ERDEMOĞLU Holding and Vice Chairman of the Board of Directors of Merinos, listed the areas where Merinos produces:
• We have over 700,000 square meters of indoor space in Gaziantep.
• We have 150,000 square meters of indoor space in Çerkezköy (Tekirdağ).
• We also produce in a 100,000 square meter indoor space in Besni (Adıyaman).
Mehmet Erdemoğlu, Chairman of the Board of Directors of Merinos, shared the total size of Erdemoğlu Holding's production areas:
- Including Sasa, our total indoor production areas reach 2.4 million square meters. Mehmet Erdemoğlu emphasized Merinos' integrated structure:
- Merinos produces its own critical components. This structure provides cost advantages, supply security, speed, and high flexibility, especially during times of crisis.
He highlighted Merinos' advantages over its competitors:
- We have the highest production capacity in the sector. We have three times the capacity of our closest competitor. A fully integrated production structure, long-standing relationships with the world's strongest customers.
He emphasized that they have an annual production capacity of 80 million square meters:
- We export to over 100 countries. 92% of our turnover comes from exports.
He drew attention to their export strategy:
- Today, our top 10 customers account for 46% of total exports. Our largest customer alone accounts for around 10-12%. We take care not to be overly dependent on any single customer.
At this point, we inquired about Merinos' total investment size, and İbrahim Erdemoğlu stated that it could be over 1 billion dollars based on past figures.
During the conversation, I looked at İbrahim Erdemoğlu's answer to a similar question in December 2024:
- Merinos' asset value is around 2 billion dollars. However, we haven't yet had an official valuation done for the company.
Professor İbrahim Turhan interjected:
- The investment value of establishing Merinos from scratch in its current state would reach 3 billion dollars.
Source: NB Ekomi Newspaper
In December 2024, we first visited Sasa, a subsidiary of Erdemoğlu Holding, and its new investments, and then went to the Merinos facilities in Gaziantep.
Mehmet Erdemoğlu, who was our guide during the December 2024 tour and was then a member of the Board of Directors of Merinos, described the point Merinos Carpet had reached with the following figures:
• In this Organized Industrial Zone, together with our adjacent facility, we have over 700,000 square meters of covered area, totaling 900,000 square meters.
• We produce 40 million square meters of machine-made carpets annually. This translates to 10 million carpets averaging 4 square meters each.
• We export to 90 countries. We produce for famous retail chains in the USA and Europe, both under the Merinos brand and our own brands.
At that time, İbrahim Erdemoğlu, the Chairman of the Board of Directors of Merinos Halı, stated the following:
• We are number one in the world in terms of the size of our production facilities. Our share in the world market for machine-made carpets alone reaches 7%.
• The Chinese cannot compete with us in machine-made carpets. Because we produce more efficiently.
• We expect Merinos to close 2024 with a turnover of 530 million dollars. 480 million dollars of this will come from exports.
While traveling to Gaziantep, İbrahim Erdemoğlu was accompanied by Prof. İbrahim Turhan, a member of the Board of Directors of Sasa, and Prof. Şahin Albayrak, a faculty member at the Technical University of Berlin, an artificial intelligence expert, and a member of the Board of Directors of Sasa.
At the Merinos headquarters, we were greeted by Chairman of the Board of Directors of Merinos Mehmet Erdemoğlu, Vice Chairman Ali Erdemoğlu, General Manager Ali Yılmaz, Board Member Erdoğan Şeker, Erdemoğlu Holding Corporate Communications Manager Güler Eruğur, and Mehmet Ali Ergün, founder of Momentum, which provides external communications consultancy services.
İbrahim Erdemoğlu began by giving a brief history of the group, going back to 1955:
• My late father, Mehmet Erdemoğlu, known as "The Wise Man from Besni," worked as a weaver for six years until 1955. When motorized looms became available, he started peddling goods. He bought towels, quilts, and rugs from Gaziantep and sold them in different cities. This lasted for 11 years.
• In 1970, he started production in Gaziantep with two rug looms. In 1983, he switched to carpet loom production. "We started with our first factory in 1991, and in 2004 we moved to the Organized Industrial Zone where we are currently located."
He stated that Merinos' growth was not accidental, but rather the result of a strategy they had implemented for years, and outlined the following chronology:
• When my father started production with a single loom, the annual turnover was 250,000 dollars.
• In 1993, Merinos' turnover reached 3 million dollars.
• In 2003, the turnover increased tenfold, reaching 30 million dollars.
• In 2013, our group turnover reached 300 million dollars.
• In 2023, our group turnover reached 3 billion dollars.
We were curious about the current group turnover, and Mehmet Erdemoğlu, a Board Member at Erdemoğlu Holding, responded:
- We predict that our group turnover will be 5 billion dollars in 2026.
Ibrahim Erdemoğlu underlined that one of the most important elements of success is unity and solidarity within the family:
- The second element is acting in accordance with our family constitution since 1990. According to our family constitution, individuals can spend a maximum of 10% of the total profits of our companies. Salaries are included in this. 90% goes to reinvestment.
He then added:
"In my opinion, this is one of the most important issues. Because we reinvested the money we earned back into the business." He elaborated on Merinos' strong cash-generating structure:
"The most concrete example of this is the acquisition of Sasa. It was financed with the cash flow generated by Merinos. Today everyone is looking at Sasa, but the main origin is Merinos."
Mehmet Erdemoğlu, Chairman of the Board of Merinos, showed the "polyester chips" plant, which is nearing completion, while touring the facilities:
"Merinos is more than just a carpet company. We started with carpets, but it has transformed into an integrated facility. It produces its own carpet yarn and dye. We will also produce the raw material for the yarn, "polyester chips," here starting from October 1st, 2026. We invested 270 million dollars in this facility."
Mehmet Erdemoğlu described this investment as follows:
"The 'polyester chips' plant, which will have an annual production of 330,000 tons, will be like adding another Merinos to Merinos." We expect its annual turnover to be 400 million dollars. We also predict that Merinos' turnover could reach 1 billion dollars in the near future.
Pointing to Professor Şahin Albayrak, an artificial intelligence expert and faculty member at the Technical University of Berlin, with whom we toured the facility, he said:
- We have initiated a strategic collaboration with ZEKI (Center for Tangible AI and Digitalization) at the Technical University of Berlin. Our aim is to integrate artificial intelligence into our design and production processes, initiating a new transformation in our sector.
We reminded Mehmet Erdemoğlu of their intention to take Merinos public, a conversation we had during our December 2024 facility tour, and he responded:
- As part of the intention to go public, we merged Dinarsu with Merinos. Dinarsu continues as a brand.
Professor İbrahim Turhan, a former Chairman of the Istanbul Stock Exchange, interjected:
- Actually, Merinos is ready for an initial public offering with its financials as of June 30, 2026. An application has not yet been submitted to the Capital Markets Board (SPK). The application will be submitted to the SPK at the most opportune time.
We wanted to learn about Merinos' current turnover, and Mehmet Erdemoğlu replied:
- We closed 2025 with a turnover of 472 million dollars. In the first 7 months of this year, our turnover reached 270 million dollars. Of this, 245 million dollars came from exports. This year, our turnover could exceed 500 million dollars. The production journey that began in 1970 with two carpet looms by "Wise man from Besni" transformed Merinos Carpet into a global giant in 56 years…
The Erdemoğlu Family is preparing for an initial public offering for Merinos Halı, befitting its global presence…
At least 50% of the shares will be sold to foreign investors in the initial public offering, ensuring capital injection.
Mehmet Erdemoğlu, Chairman of the Board of Directors of MERİNOS Carpet, discussed the preparations for the initial public offering with Prof. Professor İbrahim Turhan stated that he and his team went on a "road show" (promotional tour) in London and New York:
- During the road show, we gave the following message to foreign investors: "Merinos is more than just a carpet company. While EBITDA (earnings before interest, taxes, depreciation, and amortization) normally ranges between 10-12 percent in our sector, it is around 20 percent at Merinos."
Professor İbrahim Turhan announced that Merinos Halı will be the first international initial public offering in recent years:
- As far as I remember, the last international initial public offering was done by Mavi in 2017. In an international initial public offering, at least half of the shares offered to the public must be allocated to foreign investors. Professor Turhan emphasized that the fact that at least half of the shares offered to the public will be sold to foreigners will be recorded during the application to the Capital Markets Board (SPK):
- Although not yet certain, 20-30 percent of Merinos will be offered to the public. Two-thirds of these shares will be sold to foreign investors. So, with this initial public offering, we will have secured a significant influx of foreign capital into our country.
We asked about Merinos' market value, and Professor Turhan responded:
- We cannot give a value before the application to the Capital Markets Board (SPK) is made. However, we can say that it will be one of the largest initial public offerings in recent years.
We were curious about the structure of the initial public offering, and Professor Turhan explained:
- At least half of the initial public offering will be planned as a capital increase. Of course, a certain amount of shareholder sale will also take place.
He also explained how the funds from the initial public offering will be used:
- A portion of the funds from the initial public offering will be used to support Sasa's capital base. Sasa will be relieved in terms of debt.
Mehmet Erdemoğlu, Chairman of the Board of Directors of Merinos Carpet, gave the following message regarding the evaluation of the initial public offering proceeds:
- Technically, there are two main uses for the initial public offering proceeds. Firstly, financing investments and balancing related obligations, and secondly, strengthening the capital structure of the group companies.
If you were to establish Merinos from scratch today, the investment would reach 3 billion dollars.
İbrahim Erdemoğlu, Chairman of the Board of Directors of ERDEMOĞLU Holding and Vice Chairman of the Board of Directors of Merinos, listed the areas where Merinos produces:
• We have over 700,000 square meters of indoor space in Gaziantep.
• We have 150,000 square meters of indoor space in Çerkezköy (Tekirdağ).
• We also produce in a 100,000 square meter indoor space in Besni (Adıyaman).
Mehmet Erdemoğlu, Chairman of the Board of Directors of Merinos, shared the total size of Erdemoğlu Holding's production areas:
- Including Sasa, our total indoor production areas reach 2.4 million square meters. Mehmet Erdemoğlu emphasized Merinos' integrated structure:
- Merinos produces its own critical components. This structure provides cost advantages, supply security, speed, and high flexibility, especially during times of crisis.
He highlighted Merinos' advantages over its competitors:
- We have the highest production capacity in the sector. We have three times the capacity of our closest competitor. A fully integrated production structure, long-standing relationships with the world's strongest customers.
He emphasized that they have an annual production capacity of 80 million square meters:
- We export to over 100 countries. 92% of our turnover comes from exports.
He drew attention to their export strategy:
- Today, our top 10 customers account for 46% of total exports. Our largest customer alone accounts for around 10-12%. We take care not to be overly dependent on any single customer.
At this point, we inquired about Merinos' total investment size, and İbrahim Erdemoğlu stated that it could be over 1 billion dollars based on past figures.
During the conversation, I looked at İbrahim Erdemoğlu's answer to a similar question in December 2024:
- Merinos' asset value is around 2 billion dollars. However, we haven't yet had an official valuation done for the company.
Professor İbrahim Turhan interjected:
- The investment value of establishing Merinos from scratch in its current state would reach 3 billion dollars.
Source: NB Ekomi Newspaper