Elcab Kablo, which competes globally with its products, aims at maintaining the same success also in 2017. We talked with Elcab Kablo Inc. Chairman of the Executive Board Nejdet Tıskaoğlu and Export Manager Hatice Aslandağ about the company and cable sector.
Recently, the current issue is the rise of the dollar… How does the rise of dollar affect your business?
We can evaluate from two points of view how our exports and domestic market sales are influenced by the fluctuations experienced in the dollar as a company supplying products to both domestic and foreign markets; the supply of raw materials and commodities required for the realization of the production is made with foreign currency and domestic market sales are made with TL. Therefore, when domestic market sales are considered, the depreciation of Turkish Lira against foreign currencies creates a negative influence, because the said change is reflected to the balance sheets and prices and this also gives rise to a negative impact on our domestic market sales. When we answer the same question by taking into consideration the export activity, we can say that this situation is in our favor because the difficulty of implementation of instantaneous changes in the domestic market is not present in international markets and the sales are made with foreign currencies. However, it is arguable whether high currency rates is actually a serious advantage for the export, because when our country’s macro economy is considered, high currency rate has not a great advantage for the export because the inputs are foreign indexed and based on foreign currency.
The CPR certificate that certifies the conformity of cables used in the buildings with the Construction Materials Regulation, is an important subject. Could you inform us about your studies in this regard?
We closely follow the developments in the criteria to be requested for the cable export to EU countries and to be imposed on the cables that will be used in buildings and other infrastructures with EN 50575 standard regulating the applications in the cable sector of the Construction Materials Regulation (CPR) and we keep on with our research activities in order to take necessary steps.
Industry 4.0… The fourth industrial revolution… It is defined as a process that will unite the information and technology. Smart machines, zero faulty production are mentioned. Do you follow this process? What does Industry 4.0 mean for the cable sector and how is it important?
The producers don’t attach importance to R&D and innovation studies that will provide them with comprehensive positive feedbacks such as smart machines and zero faulty production due to the perception created by the price-oriented approach in the markets and lack of inspection in our country and this situation unfortunately causes no steps are taken for the production of different product groups. The best solution that can be applied for these problems will be the investments to be made in R&D and innovation studies after joining in a process that will combine information and technology such as Industry 4.0.
The competition is intense, profitability is low… What kind of a production and sales policy do you follow in this process? What should be done, what should not be done?
Our basic policy will be to meet our customers’ demands and needs at the highest level for all products produced as always also in this process where competition is intense, profitability is low, to follow and implement technological developments, to produce sensitive to the environment and society and to offer the best quality services with the most appropriate prices. This customer-oriented understanding that we have created under an institutional infrastructure, gives us the advantage of going a step further from our rivals and being preferred mostly. Unfortunately, we see that many companies, not on the basis of the sector but also in general sense ,compromise on product quality to minimize their costs in such hard processes and to keep up with supply times or work with idle capacity even though enhancing their capacity, so unfair price increase is resulted from the reflection of this situation on the costs. Unfortunately product quality is compromised in an effort to raise profit rates and this situation also causes unfair competition with the emergence of low-quality products in the markets and deviation of the target of creating a brand value by ignoring R&D studies.
In addition, the main problem of the producers and industrialists which continue their activities not only in the cable sector but in all other sectors is the negligence of other potential markets by focusing the export on certain markets with respect to foreign sales and consequently it can’t progress in respect of development and profitability so this circumstance gives rise to serious results in such processes where the competition is intense, and profitability is low. There are numerous potential markets that can be entered in the world. A very detailed and meticulous market research must be carried out first in order to enter these markets, and it is required to participate in relevant sectoral fairs to reach the target customer audience. In this line, we have participated in China Import &Export Fair held in Guangzhou, China between 15-19 October 2016, and Hostech by Tusid 22nd International Hotel Restaurant, Café, Patisserie Equipments and Technology Fair held in Istanbul between 2-5 November 2016.
What are your projects, targets for 2017?
Our company, which operates focusing on customer satisfaction without compromising on quality, will be in constant improvement and development in the production process by enhancing the education level of its employees by offering high quality and service to its customers with cheaper prices, faultless and in a timely fashion, optimum resources and advantages by continuing its way along this line also in 2017. We aim to raise the growth and development acceleration that we have increased each passing year until today from our establishment date also in 2017 as a leading company with respect to quality, innovation and competition, as a company capable of competing globally by applying technological developments of this era, quality policies, R&D studies into the production process, producing economical solutions for the needs of the sector, making production in accordance with international and domestic standards, paying attention to the customers’ demands and requests and being in constant innovation and development. As Elcab Kablo, we can say that we will be more prudent with our institutional administration understanding, more selective in the businesses performed and more sensitive about profitability in 2017, and we will adopt a strategy in this direction.