Yogesh Mehta: Forging Ahead
The recipe for success isn't a mystery any more. A number of factors contribute to a successful business, including feasible ideas, hard work, perseverance, resourcefulness and perhaps luck. However, what many would discount is a concomitant factor called failure. Some years ago, Dashun Wang and his colleagues at Northwestern University, Illinois, US, created a model that could reliably predict the success or failure of an undertaking. The researchers, among various data, analysed 46 years of venture capital startup investment data.
Wang's research found that what ultimately separates the winners from the losers certainly is not persistence. His findings published in Nature postulated that those who eventually succeeded and those who eventually failed tried basically the same number of times to achieve their goals. He pointed out through his study that trying repeatedly only works if you learn from your failures. He observed in his paper: "The idea is to work smart, not hard. You have to figure out what worked and what didn’t, and then focus on what needs to be improved, instead of thrashing around and changing everything."
The above findings bear witness to Yogesh Mehta's business venture in India, whose failure drove him to Dubai in 1990 to try something different. He found himself in debt, since he had borrowed substantial amounts of money from lenders, and he was not in a position to borrow more because of the failure. However, today, after close to three decades, Yogesh Mehta is a successful businessman. The turnaround to his situation came about when he found by chance an old petrochem drum in Dubai that changed his fortune. He established his new business from scratch. Over the years he has built a multi-billion dollar business, and today he owns many massive containers with Petrochem Middle East emblazoned on them. Having built his company in 1995 at the age of 35, he has a lot to smile about today.
Petrochem Middle East
Established in 1995 in the UAE, Petrochem Middle East has transformed the petrochemical business landscape of the region, with its wide spectrum of products and quality service propositions. The company complies strictly with health and safety regulations, ensuring safe and efficient operation at its facilities. It has quality certifications, including ISO 9001, ISO 14001 and ISO 45001, OHSAS 18001.
The company's terminal located in Dubai's Jabel Ali Free Zone is a state-of-the-art facility, which handles over 180 variants of chemicals. This facility, established in 1999, has three dedicated jetty pipe lines and 23 bulk storage tanks for import and storage of products in bulk, with a total storage capacity of 25,650m3. Also, it has a drumming facility, a tanker/ISO tanks loading gantry, with top loading arms, five canopies for storage of NFPA class 1 B & C chemicals, with around 35,000 drums storage capacity, a unique firefighting system that covers all areas with foam and sprinkler, and all other infrastructural facilities. The terminal exports more than 1,000,000 metric tonnes of products globally. It has a dedicated, ultra-modern fleet of road tankers and large trailer trucks. Moreover, it has an in-house logistics and operations department to ensure quick and timely deliveries.
The key products of the company are alcohol, automotive and performance fluids, chlorinated solvents, glycols, ether, monomers, glycol ether, ketones, plasticisers, ethanolamines and other chemicals. The company provides customers with all essential chemical products under one umbrella. From solvents to specialties, it supplies a wide range of products that find various industrial applications. Its services include drumming, packing, blending and tolling, and storage capabilities.
The company has distribution rights for a wide range of chemical products from industry giants, such as Shell, Eastman and LyondellBasell. It primarily supplies to painting, coating, printing and packaging industries, and firms in the oil & gas sector.
Genesis of Business
Belonging to a family that had long been involved in the chemical business in Mumbai, Yogesh Mehta set up a business of his own at a young age. He had some differences with his father, who was engaged in the chemicals manufacturing business. The disagreement with his father led the young Yogesh at 18 to establish his own chemicals trading business by self-funding the business operations. However, he could not sustain the business well mainly because of his lack of discipline and experience. While he was engaged in his trading, he earned a BSc. degree in chemistry. Although he managed to maintain his business for almost 10 years, eventually it had to be shut down
Thereafter, Yogesh went to the UAE in 1990 looking for a business opportunity. He had a friend living in Dubai, who offered him accommodation while he explored an opportunity to set up business. Yogesh was cut out for business and he didn't wish to be employed. He went about looking for a financial partner to start a business. Initially, he made a study of the local chemicals market, making a list of importers and exporters. He then noted the volume of chemicals sold in the UAE. As Dubai’s economy was still developing, he noticed an opportunity in the Emirati market for chemicals. Within months, he prepared a business feasibility plan based on the research material.
While Yogesh explored business opportunities in the Emirates, his wife supported the family as a teacher. Meanwhile, he started working part-time for his wife’s brother, who was a foodstuff indentor in Dubai. As Yogesh was not employed anywhere, he would accompany his brother-in-law on sales visits. An important customer was a food distribution company, M. H. Enterprises, which was owned by one H.C. Gandhi. He evinced interest in Yogesh's business plan. He convinced Gandhi to be his partner and invest in his new chemical distribution company. After some negotiations, Gandhi offered him a 30% stake plus an AED 2,000 per month salary in return for his investment. Yogesh was excited by the offer and accepted his terms. In June 1990, the duo established a small chemical distribution company. But unfortunately two months later, the Gulf War broke out, which impacted the markets in the region. Unfazed by the development, Gandhi advised Yogesh to procure chemicals in even greater quantities. Due to the conflict, competitors had stopped importing, but Gandhi believed that the war would not last long and demand would rebound. His speculation proved right and the duo made substantial profits, as the war soon ended and business bounced back.
Soon thereafter Yogesh met with David Lubbock, the owner of UK-based firm, Petrochem Carless. While he was on a trip to Dubai, Lubbock came across an advertisement placed by Yogesh. Lubbock visited the latter's Dubai office and offered to supply chemicals, which he accepted. This deal forged a friendship between the two. Subsequently, Lubbock offered to partner with him, but Yogesh initially declined his offer, because he was indebted to Gandhi. However, he discerned an opportunity to expand regionally if he accepted the offer of partnership. He wanted to build a storage terminal, which required further investment. On the other hand, Gandhi being a senior businessman didn't wish to be part of the new deal and chose to stay out of it. Thus, in 1995, Yogesh formed a joint venture with Lubbock that led to the establishment of Petrochem Middle East. Today, Petrochem Middle East has offices across the UAE, India, China and Singapore. Besides, it has associate offices in the UK, Antwerp and Egypt.
Petrochem is the biggest chemical distributor in the Middle East and the 12th largest in the world, with an estimated revenue of around $2 billion. The firm is also planning to enter the manufacturing industry.
Yogesh Mehta is one of the most respected and successful Indians to scale the heights of success in the Emirates. In recent years, the company has been engaging in myriad activities. Being a trustee of the Hindu Swami Narayan Temple in Abu Dhabi, UAE, he played a significant role in its construction. He has contributed substantially towards promoting dance, drama, music and theatre.
As he turns 65, he is ready to pass the baton to his son Rohan Mehta and his senior directors. Rohan, who has worked at the firm for 10 years, is an honours graduate in Economics from Northeastern University, Boston, US. He spent two years in Dallas, Texas, gaining international experience and exposure at OQ Chemicals (erstwhile Oxea Chemicals) before starting his journey at Petrochem.
Meanwhile, Yogesh Mehta's attention is on his next venture, the opening of his first restaurant, Yogi’s, to be set up in Dubai. The restaurant will serve lavish Indian food, with live music. Food and music being his passion, he says the restaurant will take about three years to be operational.
Speaking about success Yogesh Mehta says: "The secret to his success is to dream big, albeit realistically. When I had no money, I knew I was going to be a tycoon. My dreams have come true."
(Photo: Courtesy Company Site)
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