Three Turkish firms on ‘challengers’ list

Three Turkish firms on ‘challengers’ list

ISTANBUL - Hürriyet Daily News
Three Turkish firms on ‘challengers’ list

Koç Holding’s subsidiary Tüpraş’s, Turkey’s largest refinery company, facility is seen in this file. Koç Holding, Sabancı Holding and Turkish Airlines take place in the list of 100 companies which compete for global leadership. DHA Photo

Turkey’s Koç Holding, Sabancı Holding and Turkish Airlines have placed among the 100 companies from fast-developing countries that are bidding for “global leadership” in the “Global Challengers Report 2013” released by the Boston Consulting Group (BCG) Jan. 18.

Koç Holding – which is a stakeholder in local makers of Tofaş and Ford cars and owns Tüpraş, Turkey’s largest refinery company – and Sabancı Holding – active in banking, energy and other sectors just like its competitor Koç – have been before on the list prepared by BCG for five years. Turkish Airlines, which has achieved aggressive growth by launching new destinations, has made the list for the first time.

The general manager and managing partner of BCG Turkey, Burak Tansan, said numerous factors could support new global challengers emerging in Turkey.

“Exports have shown 15 percent growth per year in the last decade. However, it has increased to 30 percent in some sectors in the last two years.”

He said Turkey could reach 1 billion people and a gross national product (GNP) of $21 trillion in a five-hour flight range, adding that it has direct destinations in 150 cities.

Tansan said new incentive mechanisms aiming to raise domestic production and foreign investment have encouraged companies to increase their exports.

The companies could find financing thanks to a banking system that has substantial infrastructure. He added that the institutionalization of firms contributed to their globalization.

“The companies make strategic plans not only about merger and acquisitions but also other operations including sales and the purchase of raw materials; the whole value chain.”

30 Chinese firms

While Turkey has three companies on the list, China dominates with 30 companies, along with 20 Indian companies and 13 Brazilian companies. The study analyzes companies with a minimum annual turnover of $1 billion and the exports of which make up at least 10 percent of their total sales. The companies’ average turnover was $26.5 billion in 2011; they created an additional 1.4 million jobs in the last five years.

The firms on the list showed a 16 percent turnover growth per year, as their total incomes increased by 10 percent between 2009 and 2011; they grew faster than the real economy.