In this episode of Invest in Türkiye Talks podcast, we welcome Volex Executive Chairman Nathaniel Rothschild to explore Türkiye's dynamic investment landscape from an international perspective, highlighting the strategic decisions and sustainability initiatives that are shaping the future of businesses in the region.
We delve into Türkiye's vibrant investment ecosystem and the potential it holds for foreign direct investment (FDI). Rothschild shares his enthusiasm for Türkiye, emphasizing its attractiveness as a destination for international investors. He highlights Türkiye's rich history of family-owned businesses that have cultivated strong customer bases, which Volex seeks to leverage through strategic acquisitions.
Rothschild recounts his journey with Volex, a company he took over in 2015 when it faced significant challenges. He describes the business as "mismanaged" and "rudderless," with an urgent need for a clear strategy. Driven by a personal investment and a sense of responsibility toward the company's 7,000 employees, he embraced the challenge. His leadership transformed the company, leading to substantial changes and growth over the years.
A key focus of this episode's discussion is Volex's strategy in Türkiye. Rothschild explains that the company acquires family-owned businesses deeply rooted in the Turkish market. By integrating the existing customer bases of these businesses, Volex successfully cross-sells its products and services to a broader base of customers. This approach not only expands Volex's global reach but also strengthens its position in the Turkish market, which Rothschild describes as a "terrific place to manufacture" due to its vast labor pool and competitive costs.
As the conversation progresses, Rothschild emphasizes the importance of sustainability in modern business practices. He highlights Volex's commitment to environmental responsibility, noting that the company has achieved a global recycling rate of 82 percent. Additionally, Volex has improved its water usage intensity by 35 percent since 2022, showcasing its dedication to reducing its environmental footprint. Rothschild also mentions that 83 percent of Volex's workforce operates at sites with a certified environmental management system (ISO 14001), and the company actively supports local initiatives that contribute to environmental sustainability.
Digitalization also plays a crucial role in Volex's strategy. Rothschild discusses the company's ongoing efforts to embrace digital transformation, aligning with Türkiye's broader twin transformation initiative. This initiative focuses on enhancing both digitalization and sustainability within the business landscape, positioning Türkiye as a forward-thinking market for investors.
Rothschild outlines Volex's specialization in various industries, including consumer electronics, electric vehicles, medical technology, and complex industrial technology. He stresses the importance of maintaining a clear core strategy, noting that diverging from it can lead to decreased competitiveness and increased management challenges. This focus allows Volex to remain agile and responsive to market demands while capitalizing on growth opportunities.
Looking ahead, Rothschild shares Volex's ambitious growth targets, aiming to reach USD 1.2 billion in revenue by 2027. He emphasizes that the company is continually evaluating new investment opportunities, including potential acquisitions in Türkiye. This proactive approach reflects Volex's commitment to expanding its footprint and adapting to the evolving market landscape.
Throughout the episode, Rothschild underscores the need for vigilance in maintaining competitiveness. He acknowledges that capital and customers can easily shift to other regions, making it essential for businesses to stay agile. This perspective resonates with the broader theme of adaptability in today's fast-paced business environment.