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 Mr.
Vehbi Koç’s observations during his visit to Japan initiated
the foundation of an export company, namely Ram. The
general trade companies or “sogo shosha”s as they are
named in Japan, attracted Mr. Koç’s attention since
they had a great share in Japan’s economic growth with
their large budget figures. On his return to Turkey,
Mr. Koç decided that a company with export and import
related operations would be a great asset for the Koç
Group. The presence of such a company would be more
profitable alternative and had more chance of success
than each of the Group’s companies directing their individual
export efforts.
Taking those facts into consideration, in October
16, 1970 Ram Dış Ticaret A.Ş has been founded.
 1970-1980
The 1970’s, when Ram was founded, were the period in
which the import substitution has been supported by
the government rather than the exports. In parallel
with Turkey’s economic advancement, Ram achieved great
progress and healthy growth by applying the Japanese
model for the export organization of the Koç Group products.
In that period, the company was conducting the foreign
marketing activities of the products belonging to the
Koç Group companies, as well as the various other products
which were going to be exported from Turkey. Ram also
provided marketing studies about the most proper export
opportunities and informed the firms accordingly. The
company was marketing several products both from and
outside of the Group, building up connections with markets
all over the world and creating new opportunities especially
in the peripheral markets. For the purpose of tryout,
in 1975, the contact offices have been established in
the Netherlands and Germany.
In the midst of 1973, in order to coordinate the shipments
more practically, the Maritime Department has been developed
and ships were rented on time-charter basis. However,
due to the lack of their profitability, in 1977 sea
transportation activities have been terminated.
In 1979, the focus of the marketing researches turned
to the Middle-East countries and as a result, the market
shares were increased and the penetration to the new
markets has been achieved. Moreover, Ram involved for
the first time in the fruit, vegetable, grain and pulse
business and the activities have been rapidly expanded
as a consequence.
1980-1990
The turn of the Eighties proved that Mr. Koç’s foresight
was right as other Turkish foreign trade firms as well
adopted the Japanese model. The importance of exportation
for the economic growth was realized and series of measures
were taken to support and increase the exports. During
1980’s, Ram, with its diverse product range, positioned
itself as the leader among others. The amount of Turkish
export which was 2.5 billion USD in 1970’s, reached
to 10-12 billion USD in 1980’s.
In 1981, the company achieved a significant stage
of development; it increased the exportation of the
automotive and industrial products, textile and ready-wear,
fresh fruit, vegetable and dried foods as well as it
began exporting meat.
In 1982, the meat exportation gained a significant place
and Ram, exporting both the Koc Group’s and non-Koc
Group’s products, positioned itself as a leading company
among the other export companies in Turkey.
In 1983, the market shares and the range of products
have been raised by exporting textile products to USA
and iron and steel products to Iran. Moreover, there
were attempts to overcome credit limitations by providing
financial opportunities developed for the producers.
Iran, Algeria and Hungary offices
have been established in 1983,1984 and 1987 respectively.
In addition to those efforts in 1984, with the government’s
decision claiming that the importation from the Comecon
countries could only be conducted by the Foreign Trade
Capital Firms whose revenues exceeded 50 million USD,
Ram being included in that category of firms, established
a Comecon import-export department and began its import
activities from those countries.
In 1985, the exports from the non-Koc group firms have
been reduced and the company realised only the export
of the products whose marketing were also conducted
by the company itself. Besides, the revenue of the company’s
from production/trade and the range of its products
have been increased and for the first time the Company
has been involved in the transit trade.
1986 was the year of the regression in the exports all
over the Turkey. Turkey’s export fell back from an amount
of 7.9 billion USD to 7.4 billion USD in 1985. In the
first half of the year, Ram also has been influenced
by this regression. At the beginning of 1986, 60% of
the Ram’s total revenue was composed of the exports
to the countries where bilateral agreements were existing
between the governments and 40% of only exports to Iraq
and Iran.
Due to the fact that the exports to Iraq was stopped
because of the failure in renewing the agreement with
that country and that Iran’s business focus turned to
the war equipments, arms and ammunitions, the revenue
of Ram was affected negatively. Therefore, the decision
to shift the focus of exports to the free-market countries
has been taken, especially to concentrate on the USA,
Europe and Comecon countries. Within Europe, the exports
to England, Germany and Italy were increased and in
the same year, besides meat and dried food exportation,
the timber export also reached to significant amounts.
In 1987, the exports have increased in Turkey. The amount
of the exportation which was 7.4 billion USD in 1986
has reached to 10.4 billion USD in 1987. The turnover
of the Ram’s export increased by 48% and reached to
268 million USD and its import to 109 million USD. In
1987, 70% of the company’s turnover, concentrated mostly
on the Western countries, has been achieved with free
currency. Meat and timber exports continued increasingly
as compared with the previous year. 1987 has been a
very successful year for the company in terms of profitability
and turnover.
In 1988, Ram had the first place among other Foreign
Trade Capital Companies with its turnover of 492 million
USD. In 1988, a year when the subsidies given for the
export was decreased, the export to the Iraq was stopped,
the costs and financial expenses were much increased
because of the inflation, the profitability of the company
was not so much compared to this 1.000 billion turnover.
In 1989, Ram gained again the first place among the
Foreign Trade Capital Companies with her exports of
503 million USD. 1989 has been a successful year for
the Company.
1990-2000
By the 90’s, the Japanese model was abandoned and the
manufacturer supporting model was developed as a result
of changing government policies. As a result of such
changes, most of the foreign trade companies went out
of business while Ram continued its progress towards
her targets. In that period, Ram gave importance also
to the other companies’ products beside the ones of
the Koc Group companies’.
In 1990, with an export value of 540 million USD, Ram
still was on its first place among the Foreign Trade
Capital Firms.
The amount of the exports in 1991 was 458 million USD.
In spite of the fact that in 1992 during which export
incentives were cancelled, the foreign trade activities
with the potential countries such as Iran, Iraq, Syria
have been minimized, Ram intended to prevent the negative
effects and face the minimum losses with the administrative
and fiscal precautions applied through restructuring.
The turnover of the company in 1992 was 389 million
USD.
Although the negative effects of the previous year still
continued, Ram achieved a turnover of 446 million USD
in 1993.
In 1995 the turnover increased with a ratio of 26% of
the previous year and reached to 648 million USD. The
amount of 609.2 million USD of it achieved through export
and the rest of 39 million USD achieved through import.
With these achievements, Ram became a competitor in
the foreign markets with foreign countries’ companies
and gained its front place among the Foreign Trade Capital
Companies according to the “many products” and “ many
countries” principles.
The ratio of the automotive exports in the turnover
figure increased significantly. In order to increase
the export target of the other companies connected to
the Foreign Trade Group, the widening of the distribution
channels and dealerships and the restructuring activities
continued rapidly. For this purpose, Ramtorg,
Tashkocauto and Ram&Kofisa Pacific Ltd. have
been established in Moscow, Tashkent and Hong Kong respectively.
In 1996, the turnover of the company declined by 10.2%
as 582 million USD, with 530.2 million USD export and
52 million USD import. Parallel to the market proposals
and feasibility studies realized by Ram; Migros, the
retailing Company of the Koc Group, started to operate
its first international shop in Baku namely Ramstore
and continues this operation in Central Asian Republics.
In 1997, the turnover reached to 601,4 million USD,
with 560.7 million USD exports and 40.7 million USD
imports. 50% of the exports were directed to the countries
of European Union.
In the meantime, the importance of Poland, Romania,
Russia, Ukraine and Central Asian Republics increased
significantly. On the grounds that the demand structure
of those markets fit in with the product scale of Koc
Group, the organizational activities in those countries
with high economic developments continued broadening
and moreover, the exports to the traditional markets
in Northern Africa as well as the attempts regarding
the investment opportunities were accelerated.
Ramenka Ltd. partnership
in the supermarket sector in Russia, Moscow; Ram
Auto Ltd. company in the automotive marketing
in Azerbaijan, Baku and Set
Auto Ltd. partnerships both in Azerbaijan and
Kazakhstan Republics in order to serve in auto-renting
were established.
The establishment processes of the Ram-Henkel
companies in Azerbaijan and Kazakhstan Republics
for the purpose of importation, the whole distribution
and marketing of consumer and food products and SamKocAuto
investment as 50-50% joint-partnership between Koç Group
and Uzbekhistan government in Uzbekhistan, Samarkand
were realized. Furthermore, with the intermediary of
Ram, Eximbank financed 85% of the Uzbek expenditures.
The construction, machinery and equipment procurement
corresponding to the investment were organized and supplied
by Ram.
In 1998, the turnover of the company was 740.9 million
USD with an increase of 23% over the previous year.
680.5 million USD of it was realized through export
and 60.4 million USD through domestic market sales.
In addition to the automotive, durable goods, food,
consumer goods and iron and steel business units, general
trade, plastics and paper business units have began
to operate concerning the imports and domestic sales.
Automotive business unit signed the importation and
distribution agreement with Ford Motor Co. USA thanks
to the company establishment processes in Central Asia
and Caucasus. Ram Auto Almaty
was established as the automotive marketing company
in Kazakhstan. In addition to the shopping malls in
Baku and Moscow Rambutya company
was established with the Migros partnership also in
Kazakhstan. The second Ramstore
was opened in Moscow.
Ram-Henkel Ltd. came
into the service in Azerbaijan and Kazakhstan for the
purpose of importation, the whole distribution and marketing
of consumption and food products.
Since 1995, the sugar trade has been conducted together
with ED&F Man firm of England under a joint account
and in 1998 the decision regarding the establishment
of a joint venture company concerning that joint trade
has been taken.
In 1998, 50% share of the Ramtorg company was endorsed
to the durable consumption goods companies of the Koç
Group and the durable consumption business unit within
Ram began to be restructured.
It was decided to sell 28.75% shares of the Ramstore
in Baku, 10% of the Ramenka in Moscow and 5.7% of Rambutya
in Alma-Ata to Migros Türk A.Ş. company.
The turnover in 1999 was 652.3 million USD with 588.7
million USD export and 63.6 million USD domestic market
sales. The official opening of SamKocAuto factory, which
would produce midi buses and trucks was fulfilled in
Samarkand, Uzbekhistan by Koç Group and Uzavtosanoat.
In order to trade food and agricultural goods, especially
white and unrefined sugar, Ram
Man Gıda Ticaret A.Ş. was established with the
joint partnership of ED&F Man.
Ram participated with 25% share in Beko
Polska S.A company established in Poland to market
the durable consumer goods.
Tunusdan S.A. has began
to operate in Tunisia with 5% partnership of Ram to
produce refrigerators. Afterwards, it was decided to
sell the shares of Beko(UK) in England, RamFrance S.A.
in France and Tunusdan S.A. in Tunisia to Arçelik A.Ş
and the 24% shares of Beko Polska S.A. in Poland to
Basic Int. Inv. Ltd.
Ramstore was opened in Kazakhstan where Butya company
was the Kazak partner.
Ram Auto Netherlands
and Ram Henkel Netherlands companies
were established to gather the distribution companies
in Central Asia.
Ram Mersin free zone branch
has been closed down and Ram
Ege free zone branch has began operating.
The cental purchasing from Erdemir has started to operate
for the needs of Koç Group also in 1999.
2000-….
The turnover of the company in 2000 was 730 million
USD with 588.3 million USD export and 141.7 million
USD domestic market sales.
Ram Dış Ticaret A.Ş. became 5% partner in TNT
Lojistik ve Dağıtım Hizmetleri A.Ş., which has
been established with the organization and venture of
the Foreign Trade Group.
In 2001, the turnover of the company reached to 783
million USD with an increase of 7.3% over the previous
year. 661 million USD of it were exports and 122 million
USD were domestic market sales. Within this domestic
sales the amount of the imported material was 74 million
USD.
Because of the economic depression in February, 2001
and the devaluation due to the abolishment of the currency
peg, the company faced doubtful credit burden and currency
exchange difference costs. Strategic and radical decisions
have been taken and put into effect regarding the liquidation
of the domestic market businesses, the diminishing of
the credit burden, restriction of the importation and
lowering of the stocks.
All of the shares of Ramenka/Russia, Rambutya/Kazakhstan
and Ramstore/Azerbaijan were sold to Migros Türk T.A.Ş.
Also those in Ram Sigorta Aracılık Hizmetleri A.Ş. were
sold. The operations of the Ram Auto companies in Azerbaijan,
Kazakhstan and Turkmenistan and Ram Henkel companies
in Azerbaijan and Kazakhstan were stopped.
In 2001, the automotive products are exported to 9 different
countries. For the first time, 130 units of Ford Cargo
were sold to Uzbekhistan, the contracts concerning the
sales of 552 units special vehicle to Algeria and 200
units of fuel tankers to Iraq, have been signed.
The sales of televisions and compressors to Iraq have
been fulfilled. LPG cylinders agreement for 250.000
units was signed. Within the context of flash heater
investment agreement signed in Egypt, 35.000 unit of
flash heaters were exported.
The central purchasing business of iron and steel from
Erdemir regarding the needs of the Koç Group companies
has been broadened and proved a significant contribution
to the Koç Group companies.
In 2002 the company achieved 866 million USD turnover
and became the third among
the Foreign Trade Capital Companies in General, second
in both Machinery and Electric-Electronic Industrial
Products sectors.
The award ceremony of “Turkey's biggest export companies
in 2002” has taken placein the Sheraton Hotel, Ankara,
on October,13 2003.
Today
Over the last 30 years, Ram has achieved regional know-how,
expertise and strong presence especially in the emerging
markets, pioneered Koç Group’s investments in the Central
Asian Republics, built-up expertise in foreign trade
models, export-import transactions and trade finance.
Ram’s present main operations are special exports,
representation business of Boeing Corporation, the execution
of central purchasing of iron and steel products, rendering
service through the offices in Algeria, Azerbaijan,
Iraq, Kazakhstan and Uzbekhistan for the purpose of
new business development of the Koç Group companies.
Ram’s turnover in 2003 is 456 million USD, that of 2004, 861 million USD and 2005, 784 million USD.
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