Martin Naughton, founder of electrical appliance manufacturer Glen Dimplex, has said he would not rule out the possibility of floating the home appliance company. Naughton said: “˜”˜As you get older, I think you never say never.”
“˜”˜There has been no requirement to go public. We have been able to create the profits to allow us to re-invest and grow the business, but you don’t rule anything in and you don’t rule anything out.”
Naughton had said regularly that he liked that Glen Dimplex had remained private and avoided a public listing, saying it allowed the company to enjoy its successes and failures in private.
The company announced plans last week for research and development centre at its plant in Dunleer, Co Louth.
The new centre will develop energy efficient products for the group’s domestic and international customers.
The project will cost €2.5 million and will employ 20 researchers and engineers.
Turnover at the company’s renewable business has increased from €10 million to €150 million in three years. Glen Dimplex, which makes heaters, heat pumps and vacuum cleaners, has annual revenues of €2 billion and employs 10,000 people worldwide.
Naughton founded the business in 1973 and owns 100 per cent of the company.
The business has survived due to its ability to change with the times. Branching into the Asian market has been important for the company.
“˜”˜In China, we have three buying offices. We could not survive here manufacturing in Europe, if we hadn’t got the access to cheap components from China. This allows us to compete globally.”
In 2002, the company established a joint venture in China, Shenyang Dimplex Electronics.
Naughton said quality was an important factor and that the company was not willing to compromise it in a bid to save costs. “˜”˜We have our own engineers who inspect everything before we ship from China.”
In Naughton’s opinion, Asia represents massive market potential.
“˜”˜This is going to be Asia’s century. At one stage Europe owned the world, and probably the last century was America’s, but this is going to be Asia’s century, and we have just got to be there.”
He refused to be drawn on whether or not Glen Dimplex intended to expand in Asia. The company already has a presence in some of the larger Asian markets.
“˜”˜You begin with the biggest and you work your way down.” Glen Dimplex Japan was established in 2006.
“˜”˜Japan’s a very important market for us. I think we are the largest Irish company in Japan. We have 100 people working for us there.”
He said the company’s Japanese staff were employed in sales and marketing roles and there were no production staff in Japan, “˜”˜nor will there be”.
“˜”˜Asia is becoming the focus for everyone’s attention. What we’ve been doing there recently has been on a very steep learning curve. We are selling products in South Korea. It’s a fascinating market, with 48 million people with high spending power.”
Operating in far-flung markets can prove challenging. Naughton said the company’s joint venture in India had proved “˜”˜difficult”.
“˜”˜It is slower than the others, but a market of a billion people is worth sticking with.”
Naughton favours local management because it gives a greater insight into the business culture in foreign markets.
From Post.ie