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Business Other Group Companies |
 Glassware Business
Measures adopted to cope with the crisis in 1999 enabled the Glassware Business to carry on to accomplish its objective of becoming a world-class glassware company. Aiming at the full satisfaction of all beneficiaries - namely the shareholders, customers and employees - as a basic stipulation for success, in 2000 the Glassware Business will focus on reaping the fruits of radical measures taken during the year. In 1999, domestic sales decreased by 8% compared to those of the previous year because of the deepening economic crisis, political events that affected the tourism sector negatively and the two disastrous earthquakes. The Glassware Business, which exports almost half of its total production, concentrated on competitive strategies in all export markets which in turn resulted in a 3% increase in the export volume for 1999. Also in 1999, Paşabahçe Cam, manufacturer of mechanical soda-lime and borosilicate glassware, established companies as well as branch offices outside of Turkey and started to hold inventories abroad in an effort to improve product delivery times. A 40,000 m2 warehouse for export products began operating to rapidly meet the demands of the customers abroad. With regard to marketing, strategies for segmentation were emphasized, and work on better communication to meet customer requirements has been accelerated. Separate catalogues for Paşabahçe products serving the household market and the catering sector were prepared. As in the previous years, the company attended the most important fairs of the global glassware industry and exhibition stands were designed to address the needs of different sectors. Efforts of domestic and foreign designers for new product designs and colors were intensified, while boosting the range of products utilizing the company's own designs. In 1999, 141 new products were introduced to domestic and foreign customers using the latest technology. The company will supply products using the edge-toughening process in 2000, steadily increasing the supply of toughened products to meet the growing demand. A customer relations' week within company premises has been organized and is slated for February 2000. This will be an important step toward organizing glassware fairs and exhibits in Turkey in the future comparable with the ones abroad. Regarding handmade products, Denizli Cam has shown a 16% increase in exports in terms of volume and a 14% increase in terms of value over the preceding year. Continuous development in product design, quality and new products, together with intensive marketing activities concentrated on retail sales in world markets led to an export volume of US$ 15 million on FOB basis. The ratio of exports to total sales increased to 68%. Several adverse factors dominated the Turkish economy during the year and domestic sales decreased by 25%. In 1999, Denizli Cam received the TS 6500 Certificate of Conformity for leaded crystal products under the Paşabahçe trademark. Paşabahçe Mağazaları was not able to achieve its targeted growth in 1999. The Adapazarı store was closed after the earthquake due to severe structural damage. In 1999, with the assistance of the parent company, Türkiye İş Bankası, a co-branded Visa credit card application began; the number of cardholders now totals 15,000. In spite of the crisis, Camiş Ambalaj, one of the leading manufacturers of consumer and transportation cardboard packaging materials, achieved a 2% increase in total sales. This increase is primarily due to sales to the food industry. As a result of the drop in domestic sales, production at Paşabahçe Cam
was reduced to maintain an optimum inventory level. This resulted in a
production decrease of 19% compared to the previous year. Studies on product
diversification, new color implementation, improvement of product quality
and toughening of product edges have been accelerated. Exports resulted
in a 12% increase in the production volume of Denizli Cam. In addition,
a 12% increase in the production of cardboard packaging was realized through
efficient marketing and sales activities.
Conditions in Turkey are expected to improve in the year 2000. The Glassware Business is aiming at a 6% increase in the sales of glassware as well as 15% in the sales of cardboard packaging. The company aims to achieve an increase of 8% in terms of quantity and 14% in terms of value, regarding exports. The Business is absolutely convinced that a successful future in global
markets can only be
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