Arçelik unveils ambitious Africa expansion plans for with the introduction of Beko to South African Market

The global leading consumer durables and electronics manufacturer Arçelik is expanding its portfolio in southern Africa by adding Beko, leading freestanding home appliances brand in Europe in the white goods sector and no.1 large home appliances brand in the UK, to its local portfolio. Brands under the Arçelik umbrella in South Africa now include Defy, Grundig and Beko. Beko will be launched in South Africa at stand-alone stores in Johannesburg and Durban.

Arçelik currently employs more than 2 700 staff in South Africa, with two manufacturing facilities, and is the largest manufacturer of major domestic appliances in sub-Saharan Africa. “Arçelik’s growth strategy is to expand into regions where the middle class is growing exponentially. We see huge economic growth potential in Africa, and it is at the forefront of our expansion plans. This is why we have already made significant investment in the continent, for example, our purchase of Defy in 2011, and we are continuing to invest and grow our business in this region,” says Rajan Gungiah, Beko Regional Marketing Director for sub-Saharan Africa.

Africa’s current population of around 1.2 billion is projected to reach 1.7 billion by 2030, with 80% of this population growth occurring in cities – making it the fastest-urbanising region in the world. Consumer spending on the continent is projected to increase to US$2.2 trillion by 2030.

Arçelik’s purchase of Defy was the largest industrial investment yet made from Turkey into Africa. Following this acquisition, the group has invested significantly in manufacturing facilities, product range, quality and design, and is increasing vertical integration in key markets. Based on this strategy, Arçelik now has assembly lines in Sudan and Ethiopia to support distribution in those countries. Beko is already available in 20 African countries, including Nigeria, Kenya, Rwanda, Mauritius, and many others.

Beko’s focus has been on making healthy living convenient for consumers via a wide range of appliances supporting families to make healthy choices. It has broadened its brand mission to recognise that healthy living is only possible on a healthy planet and is committed to protecting the earth by designing and manufacturing energy-efficient products and investing in resource efficiency in production. It encourages competitors to follow suit.

“We work hard to contribute towards a healthier planet by developing products that reduce waste. As a responsible manufacturer, we are acutely aware of the challenges the region faces, including energy and water scarcity. We firmly believe in the potential of this continent and are responding to these issues by investing in appliances that are designed with Africa in mind,” says Gungiah.

Arçelik has invested strongly in renewable materials and has committed to ambitious targets for greenhouse gas reduction. For instance, it has developed all-biological polylactic plastics with high temperature and degradation resistance, as well as bio-based hard polyurethane foam insulation material, which are already being used in some products, and in a solar fridge for markets with an uncertain power supply. In another innovation, fishnet material is used for oven doors and display covers.

Arçelik’s vision is “Respecting the World, Respected Worldwide.” Arçelik’s global production operations were carbon neutral in 2019 and 2020, and its targets to reduce greenhouse gas emissions are approved by the Science-Based Targets Initiative. The company has committed to reducing Scope 1 and 2 emissions by 30% by 2030, compared to a base year of 2018. Additionally, it has set scope 3 commitments based on the International Energy Agency’s greenhouse gas emission factor projections. This target aligns with the scenario to keep climate change to under 1.5 degrees worldwide, and challenges competitors to follow suit. As a result, Arçelik is the most sustainable company in its sector and was included in the Corporate Knights Global 100 Most Sustainable Companies and was named the world’s most sustainable appliance manufacturer by the Dow Jones Sustainability Index.

Beko’s innovations include a microfibre filtration system for washing machines that collects fibres released during the washing cycle – a world first. This filter collects up to 90% of fabric microfibres which otherwise would leak into water resources. The HarvestFresh technology for Beko fridges mimics the 24-hour sun cycle and natural sunlight to recreate a natural living environment for fruits and vegetables, preserving vitamin A and C levels for longer and keeping food fresh for 30 days. Consumers can experience this technology at Beko’s first two stores, located at the Design Quarter in Fourways, Johannesburg and The Crescent Umhlanga Ridge, Durban.

Rajan’s primary focus was to continually increase global thought leadership eminence and brand awareness to help drive business results. He had daily oversight of the Brand Office, functional responsibility for Research & Insights, Digital Marketing, Marketing Training & Development, Trade Marketing, Global Fairs, Retail Design and Product Marketing. An adept marketer, he also keeps abreast of industry trends and challenges and provides business intelligence to the company. He develops and positions all global Marketing staff in the organizational culture, shaping the business to a more consumer centric culture. His career spans across 5 major global marketing driven organizations, Tiger Brands, Mars Inc, Nestle, Coca Cola and Samsung making a difference and leaving a positive legacy.

His previous job was at Samsung South Africa as the Business Leader for Digital Appliances and during this time successfully led a cross functional team Appliance Business Unit to record achievements in the industry.

Prior to Samsung, Rajan was employed by Coca Cola South Africa in the role of Business Performance Manager. During this time he was responsible for launching and executing Coke Zero, Glaceau Vitamin Water and activating Coke’s Sponsorship involvement in the 2010 FIFA Soccer World Cup; Prior to this Rajan was employed by Nestle as a Business Executive Manager heading up the Coffee & Beverages Business Unit. He also held senior positions at Master Foods South Africa (Mars Inc) and at Tiger  Brands.

Rajan specialises in Business Strategy, Marketing, Customer Development, and Retail Execution. He has been accredited with a Bachelor’s Degree in Marketing, a Sales & Marketing Diploma, and various Leadership Training interventions in London, Atlanta, India, Seoul, Switzerland and recently a certificate from Harvard University in Disruption Marketing.

About Beko

Beko is the international home appliance brand of Arçelik. It offers product lines that include major appliances, air conditioners and small appliances. Beko is the leading freestanding home appliances brand in Europe in the white goods sector and no.1 large home appliances brand in the UK and France. The brand is Main Partner of FC Barcelona, naming partner of Fenerbahçe Men’s Basketball Team and Official Supplier of European League of Legends Championship (LEC).

Find Beko in South Africa

Beko products are available from Beko stores at The Design Quarter in Fourways, Johannesburg and at The Crescent in Umhlanga Ridge, Umhlanga.