Managing Director, Hakan Mandali, describes how BSH continues to lead manufacturing at the crossroads of Europe and Asia
Now a global manufacturer in the home appliance industry, BSH Hausgeräte GmbH, a Bosch Group company, boasts a total turnover of some 15.9 billion euros and 63,000 employees (figures from 2022). The company’s brand portfolio includes 12 well-known appliance brands like Bosch, Siemens, Gaggenau and Neff, as well as its ecosystem brand Home Connect and service brands like Kitchen Stories. The company is proud to manufacture across 39 factories and is represented in 50 countries.
“Our product portfolio ranges from large home appliances, such as cooktops, ovens, cooker hoods, dishwashers, washers, dryers, fridges, and freezers, to small home appliances, such as vacuum cleaners, coffee machines as well as small kitchen appliances,” says Hakan Mandali, Managing Director and Chief Operating Officer of BSH Türkiye. “We are home to both globally and locally established brands. We offer digital services and sustainable solutions to improve the quality of consumers’ daily lives.”
As Europe’s leading home appliance manufacturer, BSH has been actively contributing to Türkiye’s economy and sustainable development since its foundation in 1995. “Our Çerkezköy campus, which spans 550,000 square meters and houses five factories, including laundry, cooling, dish care, and cooking units, is home to the country’s first certified R&D (Research & Development) center with an annual capacity of seven million units. This state-of-the-art facility enables us to focus on R&D investments and innovative solutions aimed at improving cost efficiency and ensuring customer satisfaction for Türkiye’s future. At BSH, we are committed to leaving a positive legacy for future generations by integrating sustainable principles into our operations and contributing to Türkiye’s economic prosperity.”
Sustainable operations
In Türkiye, the company develops and manufactures its world-renowned products in energy efficiency and innovation under the brands Bosch, Siemens, Gaggenau, Profilo and more. These high-quality products are exported to over 150 countries, primarily in Europe, and showcase Türkiye’s capability as a global manufacturing hub. “At BSH, we contribute significantly to the country’s production, exports, and employment, thanks to our billion-euro investments since day one. These investments support the development of cutting-edge technologies, expansion of production facilities, and creation of job opportunities, further solidifying our commitment to the country’s economic growth and prosperity.”
Moreover, Region Emerging Markets, one of BSH’s four main global management clusters, has been managed from Türkiye since 2020. “With its unique structure,
Türkiye stands out as the backbone of this region, serving a population of 4.6 billion people in 130 countries. Owing to more than 3,000 brand stores, our production campus, and our export capacity, we, as BSH Türkiye, are one of the largest players in the market,” outlines Hakan.
Sustainability is also a critical component to the company’s operations, and Hakan notes that BSH is committed to sustainability across its ESG (Environmental, Social, Governance) structure. He shares that, with respect to environmental sustainability, the company works to protect the climate and its natural resources by integrating sustainability in all processes. “We make this possible by developing production processes that protect the climate and natural resources as well as energy and water-saving products and services.
Tangible improvements
“Since 2020, we have made our operations carbon-neutral in Scope 1 and Scope 2 emissions worldwide. To achieve carbon-neutrality, we first increased energy efficiency and with the ambitious projects implemented by BSH Çerkezköy factories, we have exceeded our energy targets. The projects we have implemented for three years in the four paint shops of BSH Çerkezköy contributed to this achievement, with an annual energy saving of 5400 MWh as well as emissions reduction of 1660 tons CO2. These projects in the paint shops also led to an increase in water savings by 40,000 cubic meters per year, which contributed to the water efficiency targets we set out, as we are in the water scarce Ergene basin. We will keep our focus on water saving by investing in water harvesting and wastewater reuse projects in the upcoming years. BSH is pursuing ambitious goals at sites in regions where water is scarce. By 2025, BSH will save 25 percent of water consumption at our R&D, production and logistics sites in Spain, Türkiye, USA, and India compared to 2017.”
Taking this one step further, he expresses that increasing green electricity generation is also part of achieving carbon-neutrality. Therefore, BSH will continue to prioritize solar energy production with photovoltaic installation projects at its site. “In the meanwhile, we purchase green electricity and aim to increase the annual purchase to 100 percent by 2030.
“Finally, we offset the unavoidable CO2 emissions by using carbon credits. However, we aim to reduce the amount of compensation to a maximum of 15 percent in absolute terms by 2030 compared to 2018.”
To support reducing its carbon footprint, the company is making impressive strides in digitizing its operations and is proud to announce the successful implementation of its Digital Transformation program in Türkiye, based at the Çerkezköy site. “Over the past three years, we have made significant progress in leveraging digital capabilities to enhance efficiency, flexibility, and customer service levels. Through innovative technologies and strategic initiatives, we have optimized our operations and processes, enabling us to meet the evolving needs of our customers and partners. From streamlining production workflows to enhancing supply chain management, our program has driven tangible improvements across all aspects of our business. As we stand on the edge of utilizing digital capabilities to their fullest potential, we remain committed to driving continuous innovation and excellence in Türkiye’s digital landscape.”
In 2021 BSH initiated a project with INC Innovation Center to form an accurate roadmap for the digital transformation of its operations. “This focused on Industry 4.0 within production processes and will evolve later on to the end-to-end value chain,” says Hakan. “INC helped us identify the main approach, essential operation points and expected deliverables for a succesful transformation, and also enhanced our interest to find out credible points of conversion.
“Our co-operation with INC has had a clear positive impact on our organization and has enabled a shift in mindset to work with digital data, as well as establish system architectures to capture and orchestrate the data for analytic purposes.”
Competitive edge
Moving from the technical side of the business to the people, Hakan describes the work culture at BSH, and how the company maintains a motivating and supportive environment. “We maintain open channels of communication through regular meetings, clear reporting structures, and ongoing dialogue. This approach enables us to effectively leverage our expertise and resources at a global level while also addressing the specific needs and challenges of our local context.
“We prioritize ethical business practices across our value chain, evident through our participation in initiatives like the UN Global Compact since 2004. Upholding the Ten Principles, which include safeguarding human rights, eradicating forced and child labor, eliminating discrimination, and promoting environmental stewardship, is integral to our operations. Since 2006, we have mandated our suppliers to adhere to these principles across our global supply network spanning 80 countries and 40,000 suppliers. Our commitment extends company-wide through the BSH Business Conduct Guidelines, which mandate responsible business behavior for all employees worldwide, both internally and in all external interactions.”
As Hakan looks towards the future, he is convinced that business will remain prosperous. Although the industry is experiencing significant changes, he acknowledges that the need for resilience and predictability has become increasingly essential in today’s dynamic marketplace. “Alongside these new parameters, there has been a significant rise in consumer demand for customized products and services year by year. Organizations that embrace this trend and prioritize customer-centricity will not only safeguard further growth but also maintain a competitive edge in the markets. However, navigating the complexities of geopolitical and economic uncertainties will continue to present challenges for companies.”
In closing, he shares that by remaining agile and adaptable, companies can effectively navigate and capitalize on emerging opportunities. “Ultimately, those prepared to embrace change and prioritize customer satisfaction will be best positioned to thrive in the ever-evolving business world,” he concludes.