New synergy at Verbo

Türkiye has built up a solid reputation of excellence in leather finishing and dyeing. The majority of chemical firms, local or global, were working for the doubleface sector, for wool-on or off sheep/lambskins. Now that chemical companies outnumber tanneries in Türkiye by about five-to-one, major changes are required. One veteran company well positioned to take up new challenges are Verbo. Soft-spoken, Musa Bayindir, is ceo and chairman of the board of the company he founded in 1978, Verbo Boya Kimya San ve Tic AS. Core business is supplying binders, colourants, lacquers and other auxiliaries such as wax emulsions, oils and modifiers to tanneries. Exports have represented about 10% of business. Bayindir anticipated market shifts and the new emphasis on bovine hides. He is revving Verbo up to offer finishes for the higher profile automotive upholstery sector. This means new technology and enhanced laboratory testing facilities. Verbo have added a new unit, Verpol Boya Polimer Kimya Sanayi ve Ticaret AS, to research, produce and market polymers for high performance leathers. Products must be consumer friendly and 100% water-based. These cost less to produce than solvent-based treatments or coatings, are cheaper to transport, and attract a lower insurance rate than solvent-based items. By operating on the principle that competition will increase, Verbo will have the highest standards in place before European and REACh regulations arrive in Türkiye. Firms who believe that the larger square footage of bovine leathers required for upholstery gives them a volume advantage are wrong. Verbo's senior polymer scientist, Hafiz Pehlivan, aims to keep leather's natural qualities by using fewer chemicals to optimum effect. Verbo have exclusive distribution rights to Taiwanese Everlight dyes (finished products) in Türkiye. 'Everlight products are for drum dyeing where quality takes precedence over quantity. Fewer chemicals produce a superior finish', Musa Bayindir told Leather International. The future of polymers in leather is in its infancy but Verbo see this as the technology for the future. They employ 20 leather technicians and four chemical engineers. The most difficult problem to solve, according to polymer engineer, Bora Nalbantoglu, is to make pu (polyurethane) softer and impart a more authentic hand to leather. Pu has the ideal toughness and performance qualities but must shed its synthetic 'vinyl' look and feel. Another division of Verbo comprises varnishes, enamel and emulsion paints and the similarities with binders in leather means technologies can be swapped and shared. Verbo buzzes with the synergy of restless youth. Chemical engineer Abdullah Bayindir, and German-educated polymer engineer, Bora Nalbantoglu are keen to learn, probe new theories and share new knowledge. Export director and board member, Hayati Kural, has pushed the company into new markets such as Egypt, Iran, Syria, Thailand, China, Columbia and Caucasian countries with large animal populations, such as Azerbaijan. The potential in both India and Pakistan is also on the horizon. Selling techniques are often underrated. 'So many companies have similar products but what differentiates them is the mechanics of selling', Kural explained. Global conglomerates have financial advantages but are slower compared with the faster service smaller, versatile firms can offer. This has helped Verbo double exports to about $2 million in one year and they expect to sell 1,000 tons of finished chemicals this year. Turnover for the firm will be just over $10 million. Buying chemical raw materials used to be a major problem. Sellers were usually competitors and global giants squeezed smaller companies by over-pricing on small orders. Verbo now uses traders. Reducing costs will be vitally important in the future but high oil prices are a hindrance. Financial discipline is rigorous at Verbo and cash flow is under continual scrutiny. 'We can't raise our prices to clients because business is so price-sensitive these days', Bayindir explained. When markets do a U-turn, smaller firms are often the ones who thrive. Verbo look set to become even more innovative and versatile and turn future challenges into just routine business.