Yogesh Mehta: Architect of Petrochem Middle East's Global Chemical Triumph

In chemical distribution, few names shine as brightly as that of Yogesh Mehta, the visionary founder of Petrochem Middle East. Since its inception in 1995, Petrochem has not only become the largest chemical distributor in the Middle East but has also claimed its position as one of the foremost players on the global stage. Mehta's journey is a testament to the power of determination and strategic decision-making. His early experiences, though marked by adversity, have forged a leader whose resilience and vision have driven Petrochem to its current pinnacle of success. As Petrochem sets its sights on further expansion and diversification, Mehta's foresight and business acumen continue to steer the company towards a future of boundless potential. 

You founded Petrochem Middle East in 1995, and it has since become the largest chemical distributor in the Middle East and one of the largest in the world. What were the pivotal moments and strategies that contributed to this remarkable growth?

Our journey at Petrochem Middle East has been nothing short of remarkable. The key moments that propelled us to where we stand today can be traced back to several strategic decisions. First and foremost, it was our relentless commitment to excellence. When we formed the company in 1995, we set a clear goal: to be number one in whatever we do. This determination laid the foundation for our success.

One of the key strategies was the creation of barriers to entry for other chemical companies. In 1995, we foresaw the need to secure agencies and partnerships still available in the market. By doing so, we positioned Petrochem as the go-to choice for chemical distribution in the region. Our state-of-the-art storage terminal further set us apart, providing an infrastructure that was second to none.

Additionally, we focused on building a team of highly qualified individuals who were deeply knowledgeable about the chemical industry. This expertise instilled confidence in our buyers, knowing that they were dealing with experts who understood the intricacies of the business.
We extended credit generously to our clients and invested in ensuring visibility for our brand and the brands we represented. Service was paramount, and we took pride in delivering just-in-time cargo, a commitment we've maintained over the last 28 years. These collective efforts have been instrumental in propelling Petrochem to its current position as a global leader in chemical distribution.

Petrochem operates in multiple countries across various industries. Could you share some insights into how you've successfully navigated the complexities of working internationally, especially in the chemical distribution sector?

Operating internationally, especially in the chemical distribution sector, requires a deep understanding of the global market dynamics and a strategic approach to overcome complexities. Our success in this endeavour can be attributed to a few key factors.

Firstly, our team at Petrochem comprises individuals who are not only highly knowledgeable in the chemical industry but also possess a global perspective. Many of us are chemical engineers or have extensive experience in the field. This knowledge base allows us to navigate the intricate process of dealing with specialty chemicals, from obtaining approvals to market testing.

Secondly, we've invested significantly in our data and computer systems. These systems not only streamline our operations but also provide valuable insights into our performance, allowing us to make informed decisions. This investment, in millions of dollars, has proven crucial in maintaining our competitive edge.

In addition, we've established a comprehensive logistics network with dedicated teams handling everything from order processing to shipping and distribution. This ensures that our products reach every corner of the world efficiently and on time.

Finally, our ability to adapt and innovate has been essential. We continuously stay abreast of market trends and technologies, allowing us to meet evolving customer demands and stay ahead in this ever-changing industry. All these elements combined have allowed us to successfully navigate the complexities of operating internationally, solidifying our position as a global leader in chemical distribution.

The Covid-19 pandemic had a profound impact on industries worldwide. Petrochem not only survived but thrived during this period. Can you elaborate on how your business was able to adapt and even benefit during these challenging times?

In times of adversity, we often see a divergence in business outcomes - some struggle while others find ways to thrive. The COVID-19 pandemic presented unprecedented challenges for industries globally, but for Petrochem, it turned out to be a period of substantial growth and adaptation.

During the pandemic's peak, there was an urgent need for sanitising solutions worldwide, which drove a surge in demand for isopropyl alcohol, which is one of our main products. Governments and industries alike reached out to us for the necessary supplies. The demand was staggering, with millions and trillions of small sanitiser bottles being produced and distributed globally.

The global supply chain experienced disruptions as industries grappled with the question of production in the face of reduced consumption. Many individuals chose to stay within the confines of their homes, leading to a unique shift in spending habits. With reduced expenditure on travel, entertainment, and leisure activities, individuals found themselves with increased disposable income. This newfound financial capacity, coupled with a general sense of optimism, fuelled a surge in demand for various products, including chemicals.

The financial markets also responded positively, with stock markets experiencing an upward trajectory. This overall environment of increased demand and improved financial liquidity played a significant role in driving our sales and profitability. These past two years have been the most prosperous for the chemical industry, and Petrochem has been fortunate to be part of this success story.

Expanding Petrochem's assets in Egypt and Saudi Arabia is a significant step in diversifying your international portfolio. How do you envision these expansions contributing to Petrochem's overall growth and resilience in the global market?

Expanding into Egypt and Saudi Arabia has been a strategic move in diversifying our international presence. As we prospered, we recognised the need for economies of scale and established a direct presence in key markets like Saudi Arabia, Oman, Qatar, Kuwait, and Africa. We took a unique approach, transforming from a distributor to a 'global distributor' by appointing our own distributors in various regions. This 'distributor the world' model allowed us to support and empower our distributors, enabling them to penetrate new markets and store products efficiently.

Our logistic and storage facility in Saudi Arabia is important and strategically located in the most significant market of the GCC, and plays a pivotal role in our operations. We've continued to expand our footprint to countries like India and, China, Taiwan and Singapore, creating an extensive network akin to an octopus with many tentacles. This, combined with the strategic creation of barriers to entry, has proven to be a winning formula for Petrochem.
 
Our reputation as a trusted and reliable partner, along with a strong visible presence and a commitment to excellent service, has further solidified our position in the global market. As we grew more prosperous, we decided to bring economies of scale. So we wanted to distribute and be in front of the customers, irrespective of the location. We appointed our distributors. Though we were a distributor, we became a global distributor; we call them ‘distributor the world’. We supported our distributors, encouraging them to go into newer markets and providing them support in terms of storing the product. As a result, we became a super distributor. This model was a success due to us having offices in all those different areas.

Your journey from working in your father's chemical manufacturing factory to establishing Petrochem Middle East is impressive. How did your early experiences shape your approach to leadership and business strategy?

My early life was marked by a series of failures, a year in particular where it felt like everything I attempted led to disappointment. These experiences were invaluable lessons. I often share with young individuals that failure is a powerful teacher, one that drives you deeper and leaves a lasting impression. It was a challenging period, and calling myself a failure was a harsh reality to accept. Looking back now, I realise it wasn't about mistakes but rather being a young player in a vast game, a small fish in a vast ocean.

I faced financial setbacks, even selling my wife's jewellery to make ends meet. It was a time of reevaluation, a decision to change my circumstances. An opportunity arose in Dubai, offered by a friend, and despite not fully comprehending its potential, I seized it. Belief played a crucial role. I convinced myself that I had the intelligence, education, and drive to become successful.

With the unwavering support of my wife, we embarked on this journey together, armed with hope and determination. This faith was our lifeline. Looking back now, with the wisdom of experience, I might have thought that success was unimaginable at the time. However, a touch of audacity and unshakable faith kept us going.

In Dubai, I committed to meticulous research, immersing myself in libraries and using the limited resources available in 1990. I created a file detailing imports, exports, market players, and GCC dynamics, a blueprint for potential investors. This groundwork led to finding an initial investor.

The journey continued, and through various partnerships and persistent efforts, Petrochem was founded in 1995. Starting with limited resources, my wife and I took a significant leap of faith, and we've never looked back since. The journey from a million-dollar company to a multi-billion-dollar enterprise has been marked by strategic growth and a relentless pursuit of our vision.

Looking ahead, what is your long-term vision for Petrochem Middle East? Are there any upcoming projects or areas of expansion that you are particularly excited about?

For Petrochem Middle East, our journey is just beginning. In the next decade, we envision becoming a 5 billion dollar company. While these are just numbers, they become meaningful with a clear roadmap. Our foundation for this growth lies in venturing into manufacturing, which we see as a pivotal step to transform our operations.

Over the next 2-3 years, we plan to diversify by acquiring companies related to our industry, as well as manufacturing chemicals and creating synergies and economies of scale. This strategic move will bring about significant incremental growth, given the robust platform we've already established.