Mr Tanik, Iz Baski was founded in 1987. How did the enterprise develop?
The company was set up by my father’s earlier business partner. At the beginning, they printed small containers for medicine. The range of products was expanded in 1992 and they started to print cartridges. Only one year later, they started also making the cartridges. Our family acquired first shares of Iz Baski in 2001 and took over the complete business in 2006. We initiated an investment programme, which meant, for example, that we bought the first mould from Otto Hofstetter AG in 2008. And in the last ten years we’ve grown steadily.
My father, however, had already ventured into the plastics industry in 1978 and dealt in raw materials. Through our sister company on the European side of Istanbul we are still active traders and import raw materials from Europe, which we sell in Turkey.
What do the figures of Iz Baski look like?
When our family started its involvement in the enterprise in 2001, the total production reached one million cartridges per month. At present we make 13 million each month and have a total production capacity of about 200 million per year. With currently approximately 140 million sold cartridges per annum we lead the market in Turkey and, as far as I know, have the biggest capacity available in the Middle East, Turkey and Eastern Europe.
With what sort of production infrastructure do you achieve these numbers?
Right now we run twelve lines with 8 to 16 cavities each. We work on six days per week around the clock in three shifts. On Sundays we rest, with a few exceptions. To maintain the operation at this intensity, we employ around 90 persons in production and about 25 in development, sales and administration.
Iz Baski has grown impressively over the last ten years. Which were your father’s decisive steps?
Let me state in advance: My father says of himself that he’s not exactly an expert in matters of production. His heart beats for trading. And I’m not a technician, either. After we had taken over the company ten years ago, we became aware of the immense potential in both the home market and exports. But it was clear to us: to be able to take advantage of it, we had to improve the quality. An Italian competitor with which we have been on good terms for years, recommended that I change the mould maker. On receiving this advice we got in touch with Otto Hofstetter AG. We knew that the moulds would be more expensive than our current ones. But our objective was to become a leading supplier, and we started to cooperate with the Swiss company. This changed our understanding of quality completely.
What made the change evident?
When we initiated it, we served practically exclusively Turkish customers. Now, 80 per cent of our clientele is made up of big European enterprises. This change brought more volume and enabled us to grow from 1 million to 13 million cartridges a month. In addition, we are more professional and able to meet the increasing needs of our customers.
When did you take over you company’s management from your father?
In 2003, while still at the university, I entered into the company. After the complete takeover by our family, they made me General Manager. Seeing that my father’s strengths are on the financial side, I started to devote myself to the technical aspects. I’m still not a technician, of course, but my understanding of the production is now clearly better.
What does it feel like to take over your father’s company?
It isn’t always easy. Especially in a country like Turkey, where family is very important and the rules very clear. Over the years, however, the father–son relationship has become more like a friendship. My responsibility grew year after year. Today I have a free hand and he only keeps an eye on the financial side of things now. When I hear of the generation changes in some other enterprises, I think that our baton change went quite smoothly.
In 2014 you founded Iz Baski Europe in Slovenia. Why?
The delivery times from Turkey to Europe are six to seven days. Our competitors supply within 24 hours. The works in Slovenia allow us to transport faster and cheaper. Our production plant is located in Tolmin, in the north-west of Slovenia, directly on the border to Italy.
You say that Iz Baski is market leader in Turkey. How big is your domestic market, then?
We estimate the monthly demand to 20 to 22 million cart-ridges. We share the market with three competitors. One produces only the cartridges, the other two fill them as well. A portion of the monthly need is imported from Europe.
Why do companies pick Iz Baski as their partner?
The most important reason, in my opinion, is that we maintain good customer relations in the long term. Apart from this we are reliable and support our clients, and are always at their side whenever they need something. We see ourselves as one family with our customers. In this way we develop the market and achieve mutual growth.
What about your exports?
The export volume fluctuates between 20 and 25 per cent, but increases gradually. We are also optimising our quality in this area and cooperate with globally active customers and their works in the Middle East and on the African continent. Smaller quantities go to South America. We’re progressing very well in Morocco, Algeria, Egypt and Tunisia. We’ve also been selling in India for some months.
Where do you see the biggest growth potential?
In Turkey we grow in step with the market and our customers. Our sales figures increase from year to year because hardly any new suppliers come up in the home market. Our focus, however, is clearly on the international brands and new markets – India, the Gulf States, Uzbekistan and Kazakhstan, for example. We see opportunities for us wherever the transport costs and import duties allow it.
Does this mean that your sales division will grow?
This is happening already. In the last few years, sales were one of my responsibilities. Our sales division will already be bigger next year. It expands in parallel with our range of products.
In what direction will your range of products develop?
Our philosophy is to be able to offer our existing customers a wider spectrum of products. Since last year we’ve been participating in a government programme aimed at reducing imports. Thanks to the financial incentives of the project we have a reduced risk for new developments. This has encouraged us to expand our development department and intensify our partnerships with universities.
How do you cope with this growth and development?
Growth is good, of course, but the quality must follow under all circumstances. When it comes to injection moulding, we cooperate with the best. We now have to invest on the printing side. Our visual inspection system on the printing machines will be commissioned in the near future. Each individual cartridge will be checked during the process. Apart from this, we will start with a new printing technology next year, something completely new in Turkey. The innovation will enable us to serve our customers just in time in top quality and with smaller quantities.
Iz Baski stands for high-quality, first-class machines and moulds. How do you ensure a sufficiently trained workforce at all times?
It is indeed difficult in Turkey to find qualified professionals and technicians. When I visited Switzerland and saw the apprentices department of Otto Hofstetter AG, the route was clear to me. We now have agreements with technical universities in Turkey which inform us of qualified school leavers whenever possible. We also try to get in touch with the students at an earlier stage and offer them practical work placements. Ten young people are currently with us to familiarise themselves with practical everyday tasks. In my view, it should be every entrepreneur’s duty to offer such training programmes.
Iz Baski commissioned the first mould from Otto Hofstetter AG in 2008. What other advantages has it brought you, apart from the mentioned quality?
A major gain for us was the know-how which the Swiss passed on to us. After the start of our cooperation, we discovered how little we knew of the production of cartridges. Both sales team and technicians of Otto Hofstetter AG gave us very valuable tips that allowed us to improve. You could definitely say that we have become a family.
To what extent is it beneficial that Otto Hofstetter AG is also a family business?
They know how difficult it is for a family business to cope with the competition. Accordingly, they support us not only on the technical side of things, but also on the financial side. Otto Hofstetter AG plays an important role in our growth. If, for example, we visit our European customers and explain that we produce with moulds from Uznach, they feel safe right away.
Many thanks for the interview, Mr Tanik, and we wish you continued success with Iz Baski.
