Kucukoglu Holding - Sales Distinction 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: Sales Awards Distinction Categories
Nomination Sub Category: Sales Distinction of the Year - Industrial & Manufacturing
Nomination Title: Kucukoglu's: 'Reversing Global Disruption'
A huge door closed on KH’s automotive parts manufacturing companies in early 2019. Borders closed in Europe where most of KH’s sales took place. Most European customers had begun to scale back production, if not suspend altogether.
KH was fully prepared to do the same: reduce manufacturing of essential auto parts, cut its sales budget, and cease shipments for surplus auto parts.
Taking charge of the situation, KH discovered a novel solution to spur sales:
-Striving to be a global company since its inception, KH partnered with a German auto client to acquire a plant in Slovenia
-The new factory enabled KH to develop key lightweight parts for the emerging electric car market…notably taken up by Tesla, not served at that time by any other automotive parts manufacturer in Turkey in KH’s sector
-KH invested in machinery capable of producing heavy duty strength steel and aluminum sheet steel - the first in size and energy efficiency in Slovenia
-The Slovenian acquisition brought KH even closer realizing our strategic goal to enter other markets such as Russia or the Far East
-KH is now forming a partnership with a Japanese customer, furthering our sales growth in 2021
Reference any attachments of supporting materials throughout this nomination and how they provide evidence of the claims you have made in this nomination (up to 250 words):
WEBSITE: illustrates full capacıty and distinctions and has an English language video
PRESENTATION: company introduction including sales history and achievements
PRESENTATION: auto parts (OEM) by member companies andproduction capacity
Briefly describe the nominated organization: its history and past performance (up to 200 words):
In 2019-2020, there was a 15.3% decline in U.S. transportation equipment manufacturing (other than motor vehicles). On top of that, as of February 2020, there was an overall 5.1% decline in industrial production. Turkey suffered an even greater decline that the U.S. Factories closed, supply chains to Europe were blocked – especially OEMs.
But one Turkish original equipment manufacturer (OEM) managed to reverse the trend in part, due to a sales innovation.
Since its humble beginnings in 1985 by founder İbrahim Küçükoğlu as an automotive parts manufacturer, Küçükoğlu (KH) has become a diverse conglomerate of 6 companies. Based in Turkey, in the past 4 years, the holding company has grown to 1,500 employees serving more than 17 major auto brands.
In a fiercely competitive arena with more than a dozen established manufacturers of automotive parts, in barely one year, KH:
-Acquired a Slovenian company serving the automotive manufacturing sector increasing sales by more than 3%
-Added 25,000+ square meters production space in its factories
-Maintained its production levels, while its competitors were losing business
-Developed 4 new products, proprietary strategic parts
-Increased exports by 2.5%
Explain why the achievements you have highlighted are unique or significant. If possible compare the achievements to the performance of other players in your industry and/or to the organization's past performance (up to 250 words):
When Tesla became a key part of KH’s client roster, enabling the automaker to capitalize on project planning…months turned into weeks.
The Tesla sale has spurred more orders for custom-designed complex part solutions and key technologies from other auto manufacturers, notably Daimler. These have been produced in record time, unheard of in the automotive parts industry, enabling our auto brand clients to enter the market fast.
KH is developing more sales opportunities while working with Tesla, one of the most innovative OEM manufacturers in the automotive industry. Of note:
-Slovenian sales increased 500%
-The acquisition opened the doors to partnerships with Japanese manufacturers
Now a major player in automotive sector OEM, KH boasts most of the major auto brands in its customer base, including:
Volkswagen
Audi
Skoda
Bentley
Seat (VW’s Spanish brand)
Toyota
Renault
Dacia
Nissan
Aston Martin
Lamborghini
Porsche
Mercedes
BMW
Tesla
Fiat Chrysler
Ford
Sales of automotive parts surged by 14% (2018-2020) from 86 - 109 million EUR. In 2019 sales exceeded 99 million EUR despite the 36% contraction of the automotive market for vehicles that use KH parts. Despite the pandemic, KH has exported to more than 10 countries in 2020.