Expanding business into Asia
Owner of Beko, Grundig and Blomberg brands Arcelik has acquired Pakistan home appliance manufacturer Dawlance for $258million, to expand its business into Asia.
Dawlance manufactures refrigeration, microwaves, laundry small domestic appliances and air conditioners.
Founded in Karachi in 1980, the privately-owned company has three manufacturing sites and employs 3,000 staff. It reported revenue of $221million and EBITDA of $45million in 2015.
It joins Arcelik, which is headquartered in Istanbul in Turkey, and reported a consolidated turnover of USD 5.2billion in 2015.
Hakan Bulgurlu, CEO of Arcelik, (pictured) commented: “Arcelik is progressing steadily on a global path and aspires to be a truly global player in its industry. Through the last decade we have consistently expanded our global outreach. We have doubled our sales turnover over the last five years and we retain our fast growth in all the markets we operate.
“We pride ourselves on developing products which make a real difference to our customers’ lives and have more than 1,000 engineers in our R&D centres in Turkey, Taiwan and Cambridge in the UK. We also expect to open more centres soon in Germany and the USA.”
He continued: “Our track record in research and development allied to our geographical manufacturing advantages and economies of scale mean we are well-placed to service both European and Asian markets. Arcelik’ s recent investments in Thailand and Pakistan are providing a strong platform for growth in South East Asia as European markets reach saturation point for white goods and long-term economic malaise continues.
“By combining our global expertise and innovation with Dawlance’s excellent local management team, we will strengthen Dawlance’s product offering and brand position. We expect clear advantages to emerge in the development and manufacturing of products for Pakistan and potentially further afield.”