The Lessons Derived from Doing Business with Americans
In 1960s, Alarko dealt with the foreigners for the first time, in the project of the construction and air conditioning of soldiers’ barracks at Incirlik Air Base, then called the “Air Strike Bombardment School” in Adana. This project gave Alarko invaluable experience in technical proceedings, bid preparation, and project management.
“Accelerating Growth”
In the decade of the 60s, Alarko came to occupy a very important position in the market even though it was a very young firm at the time, and entered a period of rapid growth in the changing conditions in Turkey. As he talked about that era, Üzeyir Garih said they turned their route towards manufacturing in their industry, and that they were ready to do so.
Coca Cola arrives in Turkey...
Coca Cola’s saga in Turkey began as Kadir Has, the businessman who passed away in 2007, tasted Coca Cola in early 1950s at the shopping center in the American military base in Adana-İncirlik, and loved it. His first trip to the US took place in that year, and gave him an opportunity to see first hand the importance of Coca Cola for Americans. After that trip the only question Has had in mind was “how can I become Coca Cola’s representative in Turkey?”
Alarko and Turkey’s First Modern Store, VAKKO
Year 1962 saw a very special opening ceremony on Beyoglu’s Istiklal Avenue. Vakko, with its elegant architecture, six-floor store concept, windows, staff, art gallery and “cafe”, marking the beginning of a new era in the history of stores in Turkey, now had its doors open. The heating and ventilation system of that very special building was completed by Alarko, making use of the best technologies available then. However, there were also some lessons to be learned from that successful project.
Alarko’s Contribution to the Modern Vakko Plant
The new plant Vakko began to construct by the end of 1960s was truly distinctive with its architecture and plastic characteristics. The building not only had a modern style of architecture, but was also filled with the works of important artists of the era.
Development and Growth Pains of a Small Firm
Even though Mr. Garih deemed such issues only natural in small firms operating in the circumstances dictated by the 60s, he also pointed out the need to set up dedicated departments, and to restructure the management once the firm reached the medium scale. In a very short time frame Alarko would be facing that need, and duly undergoing restructuring. Following the construction of the factory, which began in 1964 and was completed in 1966, Alarko would be going through a new era.
Being a Reliable and Technical Firm
Talking about those days, Mr. Garih said “there were only a couple, or at most three firms which had the experience and quality in the field of air conditioning and ventilation systems in Turkey, and Alarko was one of them.” In those unfavorable circumstances Alarko managed to create advantages for itself. It began to draw attention and grow as a reliable firm in the industry.
Drawing Benefits out of an Unfavorable State of Affairs
As a new firm established by the end of 1950s, where the economic circumstances of Turkey were taking a turn for the worse and the growth potential was taking a hit, Alarko had difficult days to come. The problems suffered in imports made domestic production even more important. On the other hand, the number of firms to perform contract work and manufacturing processes in compliance with engineering requirements was very limited. In those unfavorable circumstances Alarko managed to create advantages for itself. It began to draw attention and grow as a reliable firm in the industry.
Air Conditioning of Malatya Fabric Plant
Sümerbank had annexes built at its Malatya Plant, and had imported the machinery and installed them at the factory. However, it was impossible to import the devices and equipment required for air conditioning of the plant. In response, the decision was taken to procure them from domestic sources, and a tender was issued. Only Alarko submitted a bid.
Alarko’s Contribution to the First Banknote Printed by the Central Bank
The work on setting up a banknote printing press in Turkey began by the end of 1930s. However, the work did not proceed as required, due to the Second World War. The work resumed in 1951, and the printing press was completed by 1958. The Republic of Turkey was then preparing to print its first banknote in its own printing press.
An Interesting Thank You Note by Üzeyir Garih
The construction of Middle East Technical University began in 1960s, and became the beginning of many modern practices in architecture, construction, and mechanical installations in Turkey. In those years Alarko had set up its first manufacturing plant, Alsac. Alarko took part in the mechanical installations of METU with the first fan coil produced in Turkey, as a product developed at Alarko’s plant.
True Comfort at Movie Theaters in 1950s and 1960s
Would it be an enjoyable experience to watch a movie, shedding sweat in the summer, or shivering from cold in the winter? In the 1950s and 1960s –the heyday of cinema– Alarko offered the opportunity to truly enjoy a movie for the moviegoers, without suffering from hot or cold, thanks to modern movie theater ventilation systems Alarko introduced as a first in Turkey.
Alarko at IMC, Istanbul’s First Shopping Mall
A string of shopping malls were opened in Istanbul in 2000s, with social life getting richer with a shopping mall culture. Going back to 40 years ago, shopping centers called “çarşı” appeared as the primitive forms of what we today call shopping malls. The first çarşı of Istanbul, in turn, is Istanbul Dry-Goods Dealers Çarşı (IMC), which, today, is mostly associated with music firms.
Alarko and Carrier at Ataturk Culture Center
Ataturk Culture Center (AKM), which became a topic of debate as its demolishing and replacement with a more modern structure appeared on the agenda, was a noteworthy building in its day, with its modern architecture and high technology. Alarko and Carrier are proud with their contributions to providing comfortable conditions in this important building, which occupied a central place in the arts and culture scene of Istanbul for 30 years.
First Steps in Industry: From Workshop to Factory
1960s saw Alarko grow as an industrial firm in addition to its strong presence in engineering and contracting, and develop into a leading industrial organization of the sector as well as the country.
Alarko Heating Products at Çayırova Arçelik Plant
The washing machine plant Arçelik built in Çayırova in mid-60s was one of the greatest industrial buildings of the era. It was a pioneering modern industrial building, with its architecture and construction technique.
“Expert” from the US, for Reorganization
Üzeyir Garih described the state of affairs at the firm by the end of 1960s as follows: “The business was pulling us, and we were chasing after the business. The responsibilities of specific individuals were blurred. We realized that it was impossible to proceed as such. We had to find a solution.”
Alarko Conglomerate Since 1973 - 1
As the group organized as a conglomerate under the umbrella of a holding company, Alarko Industry and Trade Inc. (AST) was structured as a separate company. Thus, various firms within the group came to proceed on their individual paths based on the shared history they had between Alarko’s incorporation and the reorganization in 1973.
Alarko Conglomerate Since 1973 - 2
Alarko Tourism Group aims to develop a wide range of concepts in social and entertainment facilities in a field roughly called “leisure management”, to effectively market the concepts thus produced, to improve service quality, and to generate exceptional added value through such products and operations. In this context, the group operates in hotel, sports / recreational facilities, spa and cinema businesses.
Alarko Industry and Trade Becoming Even More Effective in Turkey and Abroad
The reorganization of Alarko in 1973, with the group’s operations in various businesses becoming structured as new “enterprises” under the umbrella of a holding company led to Alarko Industry and Trade Inc.’s (AST) organization as a joint stock corporation serving as the group’s epicenter for the operations in industrial production and sales. The reorganization brought about a fresh breath and acceleration for AST, just like any other enterprise of Alarko Holding.
From Alarko Industry and Trade Inc. to Alarko Holding
1973 was a year of most crucial decisions being taken and implemented for Alarko. The restructuring of the company was now unavoidable. Extended analyses culminated in Alarko’s reorganization as one of the first holding companies of Turkey.
Alarko Holding’s Reorganization
In the beginning Alarko Holding organized in six primary area of operation. This system still remains mostly in place today. Alarko preferred to take roots in areas of self-development, with the firm playing a part as a founder in some, instead of a focus dispersed in a wide range of activities in a large number of areas.