Doing Business in Turkey

Shirish Patwardhan is one of the very first members to join the CorporateConnections UAE chapter and is a treasure trove of wisdom and information that benefits our chapter as well as members across different global chapters.

Shirish runs Rchemie International, a chemical business in specialty oils and performance chemicals with head-office in UAE and operations in India and Turkey. In this article he provides guidance to entrepreneurs looking at Turkey which is an economic bridge between Europe and Asia including the Middle East. Here is the interview we had with him on the topic – ‘Doing business in Turkey’.

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What is your business set-up in Turkey?

We are specialty oils manufacturers and performance chemicals distributor. Our company in Turkey – Rchemie International represents reputed principals in this sector and we have a manufacturing capacity for 24000 tonnes for specialty oils and another 6000 tonnes appetite for high performance lubricants.?

Our major consumers are industries in Turkey and also they are focussed on exports. We also have discerning clients in Middle East, Canada, South America, Africa, South Korea, who rely on us for very high quality made-to-specifications specialty oils.

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Why did you chose Turkey as a country to do business and when did you start there?

The principals that I was representing in Middle East pointed me to the opportunities in Turkey for their line of products. I went to Turkey to explore and found the need for our expertise in this sector.? I started going to Turkey in 2008 and it was not until 2012 that we realized that we required to be present locally if we had to scale up the business.? We opened our office adm plant in the industrial zone of Tuzla, which is near the Gebze port of Istanbul.

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Tell us a little more about how you went about setting up the office?

Things fall in place when you have a burning desire and in my case my plans to open in Turkey coincided with the career plans of a young Turkish sales professional I was interacting with for one of the local companies.

He wanted to quit his job, and go to China and start independently, but was undecided on the future course of action. I flew to Istanbul to counsel him out of his dilemma, and the session culminated in opening the office in Turkey with him as a stakeholder. From that point onwards I had a partner who ticked all the checkboxes. He shared our vision and values, was a Chemical and Industrial Engineer, knew the market and was young and energetic.

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What are your responsibilities for your Turkey business?

Turkey runs independently and my role is limited to business development and finance. Since I have worked the market earlier I know the clients and am able to guide them remotely. I go to Istanbul periodically to participate in review and strategy meetings or when we take part in exhibitions or have meetings with principals. I also visit key clients to maintain my rapport with them. I try not to miss our annual employee retreats.

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What are the three things that you consider as your success factors in Turkey?

Our success in Turkey would have largely to do with the size of the market for specialty oils for specific industry processes. Secondly, our people have the chemistry expertise to provide solutions that suit specific needs. And lastly, it is the right partner who has the same energy, vision and values.

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What are the qualities / difference of people who work for you in Turkey v/s UAE?

It would be hard to find differences between nationals of Turkey and the others that we work with here or in India. Many of the qualities are common across the people because we recruit only those that fit the mould.? Having said that, I do see that my team in Turkey is more system driven and once a process is laid down they will respect and follow it. I also find that things must be made simpler for them to understand and greater effort has to be made to provide adequate instructions.

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What are the business opportunities in Turkey for those who want to expand there?

Turkey is the gateway to Europe and is industrial powerhouse. It is economically rewarding to open operations in Turkey and some of the obvious industries are Textiles and Furniture. Focus should be on specialty textiles that does not compete with the East. The direction is westward and the products should be for that market. The same goes for furniture.

Leather is another industry where manufacturing potential is high, and the export market is huge. I am also rubbing shoulder frequently with IT professionals from India so I would think that is another area to look for expanding to Turkey. ?

Turkey is a first choice for many reputed European brands in high fashion as their production base.?

I wish you all a very successful foray into Turkey, and do reach out to me if you need any guidance or assistance.

Shirish Patwardhan, thank you for sharing your wisdom with our readers.