Kucukoglu Holding - Business Development Achievement of the Year
Company: Kucukoglu Holding, Istanbul, Turkey
Entry Submitted By: Hooper Consulting International
Company Description:Küçükoğlu Holding, which was founded by İbrahim KÜÇÜKOĞLU in 1985, set out with the goal of producing original spare parts for the world's leading brands of the automotive industry. Today, with its qualified staff that adopts the latest technologies, sustainable growth and continuous development as a principle, today it provides service to the giant brands of the automotive sector with the employment it provides to thousands of people in its locations in Istanbul, Sakarya, Bursa, Kocaeli and Koper / Slovenia. continues its activities. Küçükoğlu Holding, which is the basic values of adding value to all its stakeholders, environmentally friendly, fair and socially aware of its working understanding, continues to contribute to the Turkish economy with firm steps.
Nomination Category: Business Development Awards Categories
Nomination Sub Category: Business Development Achievement of the Year - All Other Industries
Nomination Title: Kucukoglu's: “Deal and Ingenuity Save the Day”
In a fiercely competitive arena with a dozen+ established manufacturers of automotive parts, in one year, KH actually:
-Added 25,000+ M2 production space in its factories
-Maintained production levels, while competitors were losing business
-Developed 4 new products, proprietary strategic parts
-Increased exports by 2.5%
ACHIEVEMENTS
Aiming to develop its footprint outside Turkey, Business Development had its eye on developing certain products, but didn’t have the capacity nor budget to invest in a new factory. A team member mentioned a company in Slovenia that had the potential to manufacture such products, but was in financial distress. BD teamed up with a couple of German auto manufacturing customers and found a way to acquire the relevant business unit in the Slovenian company.
While there was a contraction in business and KH’s competitors were losing market share at that time, with the new equipment, KH was able to manufacture highly sought after lightweight aluminum parts for electric cars in the Slovenian factory. This became the platform to gain a brand new customer: Tesla. This deal served to attract an even bigger package of business from: Daimler.
Sales of KH surged by 14% in 2018-2020 from 86-109 million EUR. In 2019, sales were 99 million EUR. Given the 36% contraction of the automotive market in 2020 due to the pandemic effect, this was no small feat. In fact, exports grew by 2.5% to more than 10 countries.
Briefly describe the nominated organization: its history and past performance (up to 200 words):
The Turkish auto parts manufacturing industry is glutted with players large and small, many competing for the same auto brands as customers. Yet business has been shrinking since the pandemic.
In August 2020, global industrial production, excluding the U.S., contracted by 3.94% compared to 2019. This is compared to a contraction of 7.77% in advanced economies (excluding the U.S.) for the same time period.
Turkey’s industrial output shrank by a whopping 31% between April 2019-2020.
So how did one manufacturer succeed in getting deals that left its competitors drooling with envy?
Küçükoğlu Holding (KH) did exactly that…and the solution is surprising, especially during the pandemic of 2019.
Since its humble beginnings in 1985 by İbrahim Küçükoğlu as an automotive parts manufacturer, KH has become a diverse conglomerate of 6 companies to be reckoned with. Turkey-based, in the past 4 years alone, the holding company has grown to 1,500 employees serving 17 major auto brands.
Explain why the achievement you have highlighted is unique or significant. If possible compare the achievement to the performance of other players in your industry and/or to the organization's past performance (up to 250 words):
While its competitors were losing business, KH maintained its production levels. Having merged with another company and adding a new plant, landing the Tesla business was a major achievement, in fact the “talk of the town.”
The result: unprecedented Business Development in one short year.
The acquisition of the Slovenian factory opened up more doors than KH dreamed of: it became the path to other regions in the company’s strategic growth plan such as Russia and the Far East, etc. These attractive markets for the specialized auto parts became a reality for KH as it was faster and cheaper to install that those manufactured by its competitors.
With the reduction of production costs by assembling parts in Slovenia while keeping press operations in Turkey, not to mention the more convenient and cheaper shipping costs to European customers, KH was able to produce specialty parts at attractive prices and deliver fast, even during the pandemic.
The new platform has become the springboard for new deals in 2020.
Now a major player as an original equipment manufacturer (OEM) in the automotive sector, KH boasts most major auto brands in its customer base:
Volkswagen
Audi
Skoda
Bentley
Seat (VW’s Spanish brand)
Toyota
Renault
Dacia
Nissan
Aston Martin
Lamborghini
Porsche
Mercedes
BMW
Tesla
Fiat Chrysler
Ford
WEBSITE: illustrates full capacıty and distinctions and has an English language video
PRESENTATION: company introduction including salesachievements
PRESENTATION: auto parts (OEM) by member companies andproduction capacity