Elcab Kablo Refik BALKAN / Control-chairman of the board of directors WE MUST PARTICIPATE IN FAIRS, ORGANIZE PERMANENT VISITS TO THE CUSTOMERS AND CARRY OUT RESEARCH AND DEVELOPMENT ACTIVITIES IN ORDER TO DISTRIBUTE THE RISK, INCREASE THE NUMBER OF MARKETS AND BROADEN OUR SALES NETWORK BY TAKING LESSONS FROM THE NEGATIVE CONDITIONS IN WHICH WE FIND OURSELVES

The export of low voltage energy cables which form
the biggest export item of Turkey has decreased at
the rate of 22% according to the export data of
IMMIB. How do you evaluate this situation? What
are its global and local reasons? What kind of an
outlook do you envisage for the year 2016?
When we make a general evaluation we may say
that the recent past period has not been a good
period not only for our sector but all sectors and
companies as a result of the political problems and
negative conditions that have arisen at the global
level. For that reason the decrease of the export of
low voltage cable, which is biggest export item of
Turkey in the cable sector, at the rate of 22 % is a
very normal outcome because the adverse conditions
prevailing in Iraq and Syria which are the two
big markets constituting a serious and significant
potential for Turkey have led those markets to
enter into an intensive period of stagnation and a
decrease in our export figures occurred as a
result thereof.
When we make a general evaluation we may say
that the recent past period has not been a good
period not only for our sector but all sectors and
companies as a result of the political problems and
negative conditions that have arisen at the global
level. For that reason the decrease of the export of
low voltage cable, which is biggest export item of
Turkey in the cable sector, at the rate of 22 % is a
very normal outcome because the adverse conditions
prevailing in Iraq and Syria which are the two
big markets constituting a serious and significant
potential for Turkey have led those markets to
enter into an intensive period of stagnation and a
decrease in our export figures occurred as a
result thereof.
The amount of exports to England, Iraq, the second
export market and Israel, the third export market
has decreased at the rate of 19, 35 and 7 % respectively.
The sector of low voltage cables seems
like to be restricted to three markets. For example
what would happen if the English and Iraqi markets
were filled by an other actor? Why is the sector
unable to solve the problem of market?
As I have stated in the answer to the previous questions
the uncertainties and fluctuations experienced
at the global level as well as the political
games played in our country brings about adverse
affects not only for industrialist but all people the
sector. The restriction of the sector to a small market
segment during the periods in which exports to
specific markets decrese is the result of an error
that the industrialists have always committed
since the past, namely concentrating the exports
only to few countries. For that reason we must participate
in the trade fairs, organize permanent
visits to the customers and engage in research and
development activities in order to distribute the
risk and increase the number of markets and
expand the sales network by taking lessons from
the consequences brought about by the negative
conditions which we currently experience. As in
the example that we have always given, If you put
all the eggs in the same basket you may loose all
of them through a blow taken at the place where
the basket is placed. But if you distribute the risk
by dividing the eggs into two separate baskets you
may save at least half of them when a potential
problem arises. Consequently decreasing the risk
not only for our sector but all industrialists and producers
by spreading it into different and variegated
markets without being dependent on specific markets
and avoiding a potential decrease in the
exports in case of the emergence of negative condition
in this way it would be the most effective and
efficient solution.
While the exports to Iraq which is the largest market
in the sector of middle and high energy cables
decreased at the rate of 43 %, exports to
Turkmenistan have reached 40 million USD with an
increase of 90 %. This is an important figure…
Probably we have to find new and alternative markets
in the sector of middle and high voltage cables
as in the case of Turkmenistan.
As in the case of the example given above, the
dependence of the sector to only one country in
terms of exports brings about seriously negative
consequence that may be caused by the potential
problems in or related to the country to which
exports are made. For example textile sector of
which export is indexed to Russia has received a
serious blow as a result of the crisis. Consequently
the fact that while the exports to Iraq which is our
largest export market in the sector of middle and
high voltage energy cables has decreased while
the exports to Turkmenistan has reached 40 million
USD with an increase at the rate of 90% is a
good example for the fact that risks may be distributed
by finding new and alternative markets.
There are potentially uncountless markets which
may be entered in the world. What is first of all
to be done in order to enter into these markets is
to carry out a very detailed and meticulous marketresearch
and participate in the related sectoral
fairs in order to have access to the target mass of
customers. However the possibility of the success
of all these activities is based on the ability to offer
to the customers different products other then the
standart products which are already available in
the markets within the cycle of supply and
demand.
In the recent years we always see that visits are
organized and attempts are made by the governments
and businessmen directed at the African
and American markets. Do these activities result in
concrete results in terms of trade?
The visits organized and attempts made in Turkey
by the government and business world directed at
the African and American markets in the recent
years is a positive development at the micro level
in the name of recognizing the cultures of the target
countries, which is the first step for the industrialists
to enter into different markets and the tax
exemption and reductions which can be obtained
by means of improvements of the related legislation
and signing free-trade agreements would also
bring in benefits at the macro level.
There are ongoing important and big projects in
Turkey. How do you evaluate the domestic market?
As you have stated in your question, there are big
and important projects ongoing in Turkey. The
construction of the third airport which is one of
those projects has brought about a stamina not
only in the construction sector but also cable and
tourism sectors. form that reason we may say that
a financial shrinkage has arisen as a result of the
problems brought about by the political uncertainties
in and outside of the country but this situation
has not been reflected in the business volume. We
as a leading company in terms of quality, innovation
and competition which is capable to compete
at the global level by applying the results of research
and development studies, quality policies and
the state of the art technology into the production
process, produces economic solutions that meet
the needs of the sector, realizes production in
accordance with the international and national
standarts, attributes importance to the demands
and wishes of the customers and is in a process of
permanent innovation and development, aim at
increasing the speed of growth even further from
the date of our foundation up to today, maintaining
the existing customer satisfaction and opening up
to different markets for the purpose of reaching
new customers and recording an increase of turnover
in comparison to the previous year and contributing
to the economy of the country in this way.
What kind of an outlook do the data about the first
quarter of this year present to you? Can you make
a comparison with the previous year?
As far as the cable sector is concerned, no positive
and noteworthy development has taken place in
the cable sector as a result of the political problems,
instability in the markets and fluctuation in
the exchange rate both at home and, it is observed
that not only the companies in the sector in which
we are active but also companies from all sectors
are trying to sustain their existence at a stable level
or to finish this year with a minimum level without
achieving any growth and making any progress.
ELCAB KABLO A.Ş: QUALITY, SECURITY & HIGH
PERFORMANCE