Erman Ilicak (Turkey); A Brief Biography

                                                Erman Ilicak (Turkey); A Brief Biography

¹ Afroz Gul ² Dr. Muhammad Naeem

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Born in 1967 in the land of Turkey, Erman Ilicak is currently the chairman and president of Ronesans Holding. Hailing from the district of Darende, the son of the lawyer Bekir Ilıca grew up to be one of the wealthiest Turkish businessmen. At the age of two, his family moved to the city of Ankara. Later, Erman Ilicak went to study at TED Ankara College, completing his secondary and high school education in 1985. During his high school, he served as the president of a sports club. He also played basketball. Afterwards, he finished his undergraduate studies in Civil Engineering from Middle East Technical University in 1990. Not stopping here, he did his MBA in 2002 from Vienna University of Economics and Business and University of Minnesota. In 2011, he got a doctorate from the International School of Management. As of 2021, he is 54 years old and has three kids. 

Currently, Ronesans has spent $3.4 billion on health care facilities in a partnership with the Turkish government. Ceyhan Mega Petrochemical Industrial Zone is also to be developed by the company in Turkey. According to him, he made many unsuccessful attempts at entrepreneurship while working, as he was always inclined towards being an entrepreneur. This blog will highlight a brief biography of Ilicak from birth to present, business ideas and information, reasons for success, limitations, and suggestions for long-term growth.

 Business Strategies and Struggle of Ilicak from Past to Present

Holding the reins of his contracting company, operating in 28 countries with more than 75 thousand workers, Erman Ilicak has been listed by Forbes (2021) on 665 number among the list of billionaires in the world. In 2019, Forbes also listed him among the list of ''100 Wealthiest Turks.'' In 2018, he ranked on 5th number among the list of 100 taxpayers with the largest income tax returns. Starting at the age of 26 with only 30,000 dollars and five-six employees, Erman Ilicak has a $3.5 billion net worth as of 2021. It all started with his internship in ENKA in Ankara. Later, he worked in ENKA as a professional and was sent to Libya and Russia, respectively, each for 1.5 years. 

It is imperative to note that his work at construction sites in Libya and Russia was a stepping stone towards his career in entrepreneurship. He made his way among the billionaires of the world after he founded Ronesans Holding in St. Petersburg in 1993.

 

Focused on health, energy production, real estate, and industrial development, Ronesans Holding is operational in Turkey, Russia, the Netherlands, Central Asia, the Commonwealth of Independent States, Europe, the Middle East, and North Africa. It has its headquarters in Ankara. It constructs buildings and sometimes also looks after their management. These include petrochemical fields, shopping malls, offices, hotels, residences, factories, government buildings, as well as plants related to the industry, automation, infrastructure, and energy. 

Additionally, Renaissance Construction- the world's 53rd-largest construction company-is owned by Rönesans Holding. Also, Ilicak was honoured with Order of the Rising Sun-3rd Class-Gold Rays with Neck Ribbon. It is a Japanese order. Currently, Rönesans is going to construct a shipping canal known as Kanal Istanbul, which will go around the Bosporus Strait.

 Reasons of Success of Ilicak

Exploring his success leads us to the fact that Ilicak applied the exposure he gained while working as a professional in his own business. He took advantage of the gap in Russia, timely, realizing that small businesses also need someone for contracting and construction. He felt that he could fill the gap by founding a small contracting and construction company. It would initially take small works, such as the construction of the offices and houses. 

His strategy made him $1 million in his first year. Later on, he started receiving large projects, which helped him to grow his business. Besides, in 1998, another company known as Alarko had to withdraw from Russia. Consequently, many of its workers became a part of Ronesans Holding. It changed the fate of Ilicak's company, as he received a lot of projects, which turned Ronesans Construction into a giant. It grew to the extent that it was ranked as the 61st company globally and listed as 2nd in Turkey.

Challenges Faced by Ronesans Holding

 Nonetheless, in a recent interview with Oxford Business Group, Ilicak highlighted some problems that construction and contracting companies might be facing at present. According to him, there is a need to make the streets wider and permit constructors to build taller buildings on large lands. He emphasized that in present times it is hard to purchase large lands for comprehensive constructions. If this is allowed, it would help to achieve a larger, greener footprint between the plots. Currently, the developers have to plan their strategies comprehensively to get large projects. 

Therefore, Ronesans Holding is working for the awareness of green buildings. Furthermore, Ronesans relies on special purpose vehicles due to which it had to drop some plans owing to lack of interest in the international arena. Another challenge that it faces is the lack of democracy and sustainability in regions in which it specializes, such as Libya or Syria. As of 2021, the company has revived its operations in Libya and has agreed to construct three power plants, an airport terminal, and a shopping mall. Reconstruction in war-stricken areas will help it to establish and operate its operations smoothly.

Suggestions for Long-Term Growth

Although Ronesans Holding prioritizes clients and the environment, it should continue to adhere to its principles to maintain its high standards of trust and sustainability. It should keep on partnering with communities and society through charity and sponsorships. Ronesans Holding should continue to establish organizations, such as Ronesans Education Foundation. Moreover, in the era of technological advancements, it should focus on becoming more tech-savvy. 

The company is interested in sponsoring sports, arts, and culture. So, such activities should continue to show the soft side of the business community, focused on the welfare of the people. The maintenance of such activities and sponsorships will lead to a sustainable future and help in the long-term growth and survival of the company.