With an experience of 66 years in the agricultural sector in Turkey, HEKTAŞ is preparing to establish a production facility for the plant nutrition and plant protection sectors in Uzbekistan as part of its overseas investment plans.
HEKTAŞ, which makes a great contribution to the agricultural industry in Turkey and has investments abroad, has initiated efforts to establish a production facility in Uzbekistan that will serve in the field of plant nutrition and plant protection. Evaluating opportunities in line with the future vision and sustainable growth strategy drawn by OYAK General Manager Süleyman Savaş Erdem, HEKTAŞ increases its export and production volume by expanding to foreign markets. Considering the needs, possible pricing and cost structure in Uzbekistan and surrounding countries, HEKTAŞ's new facility investment is aimed to create high profitability.
‘We grow by investing in new areas and producing'
OYAK General Manager Süleyman Savaş Erdem noted that in the basic strategy plan they created in 2017, they adopted growth by acquiring, investing, evaluating and producing R&D and innovation opportunities, not by selling. Erdem explained the strategic importance of the Uzbekistan investment as follows: “Today, we are either the leader in the sectors we are operating in or one of the biggest players in the sector. In the last six years, we have expanded our portfolio in the agriculture, food and livestock ecosystem by taking advantage of inorganic and organic growth opportunities. With the investments we made in strategic fields such as plant nutrition, animal health and seeds, we have enabled our Group Company HEKTAŞ, which previously operated only in the field of plant protection, to become a global company by expanding its scale. With our investment in Uzbekistan, we will create value for both the sector and the country. With this investment, we are targeting the entire Turkic States market, especially Uzbekistan. As OYAK, Turkey's most successful complementary professional pension fund, we will continue to rapidly increase our competitiveness on an international scale and expand our global sphere of influence, in line with our profitability and sustainable growth targets, while working for the welfare of our country and our members with these and similar investments.”
‘We are increasing our production volume significantly'
OYAK Food, Agriculture and Animal Husbandry Sector Group President Levent Ortakçıer stated that HEKTAŞ is a company that touches both its consumers and its producer and creates value for the economy, and said, “HEKTAŞ has entered new fields such as organomineral-based plant nutrition, seeds, animal health and pet food in the last six years. Thus, it improved its existing product and customer portfolios day by day. In the coming period, we will increase our export and production volumes significantly, especially by opening up to foreign markets. We believe that HEKTAŞ, whose market value has increased from USD 70 million to approximately USD 2 billion as of today, will further strengthen its muscle in exports with this investment, while continuing its steady growth. Accordingly, we are starting our investment in Uzbekistan with a capacity of 30 thousand tons of plant protection and 150 thousand tons of plant nutrition (organomineral fertilizer). With this investment, we will increase our current plant protection capacity by 47 percent, our plant nutrition (organomineral fertilizer) capacity by 152 percent, and our total capacity by 111 percent.”
Performance of HEKTAŞ in the first half of 2022
Continuing its high performance in the last 5 years also in the first half of 2022, HEKTAŞ increased its turnover by 182 percent compared to the same period of the previous year and reached TRY 2.5 billion. The company's net profit increased by 326 percent to TRY 419 million year-on-year. HEKTAŞ surpassed its 2021 year-end net profit by 29 percent with its net profit in the first half of 2022. (2021 year-end net profit: TRY 326 million, net profit for the first half of 2022: TRY 419 million)
