Differentiating in a trading business

Dubai: Kamran Torjani selected a niche in 1996 – personal safety in industrial environments. He specialised, and now, through Atlas Safety Products (ASP), supplies head-to-toe personal protective equipment from leading suppliers around the world.

How did you get into business?

My route was not straight even though the ‘seeds’ of my business are from my family. After graduation, I worked for 4 years before joining the family business (in Iran) of safety equipment. Marriage brought me to Dubai. I started work as a sales engineer -a job in which I excelled. After 2 years, I realized that I needed to be on my own. Searching for ideas I connected with family, asking them what they needed. They gave me their requirements and I established myself as a supplier of safety equipment.

Was it so simple?

My first company was a one-man-show; I was selling whatever people wanted. Atlas started in 1996 after I got the distributorship of two large companies - Aearo and Ansell. From 1998 the business steadily expanded as I added products and services. ASP is the umbrella company. We also manufacture Safety Signs, Custom made Uniforms & also chemicals – related to Textile Industries – in a free zone.

From being a salesperson to a businessman?

Being a salesman triggered it. I realized that if I could be the best salesperson in a company then why not do start up my own. Initially things didn’t work as I thought they would. Business wasn’t that great. At that low point, a desire to be successful motivated me. I had also told my family that I will make ASP the best safety company in the UAE so I had no choice but to find a way to achieve that success.

How?

I did what I had done as an employee. As an employee I worked 24 hours. I used to be relentless. I had started using mobile phones to instantly connect. In 1993 pagers were popular. I fixed a computer and fax machine at home. I used to wake up at 2:30am with an alarm to send faxes. And then call the principals to confirm deliveries. My suppliers liked my persistence. I had done this for a job. I now had to do this for myself.

Responsibility and persistence leads to success. I use this as an example to motivate my team.

How difficult was it to convince companies to work with you?

This was challenging. I had two ideas when I started; either buy locally and sell or become a distributor. Companies that buy locally and sell make lesser margins but can grow rapidly. The purchase prices made this option unworkable. Selling prices needed to be competitive. The idea was risky from the rate of growth perspective. What if I didn’t grow? I shifted focus on companies that didn’t have exclusive distributors or were not here. I searched, found some companies, started discussions and negotiations. The introduction and dialogue was easier with companies not present.

I had to convince them about the potential of the region, my vision for my business, and seriousness of my interest. Aearo was the first partner. I started their business with purchases of US $20K. This then became approximate. $2m when 3M acquired Aearo 12 years later.

How did you develop a trading business and make a principal reliant on you?

I learnt by observing others. I had to be different. Everyone focused on products. But no one was developing staff to deliver results. I focused on creating a good team that delivers results. I demonstrated that I was investing in developing the team through training. I ensured that the team, and through them the customer understood 100% value of the product and brand. I safeguarded that the product value was not lowered in the market. For this, price management is important.

I also focused on developing the knowledge and staff of customers. Companies have different safety cultures. Some, like oil and gas, are diligent. Others, in logistics, are sometimes lax. Knowledge helps us to establish high standards.

Is trading about business or relationship with partners?

Companies like you for the business you bring. After Aearo was acquired, their VP came personally to the region to present my credentials to 3M. It wasn’t easy after that. 3M doesn’t work with exclusive distributors. Our competitors accessed products that were exclusive to us. Yet it also became an opportunity because we got access to other products. Sales volumes went up.

Was getting staff a challenge?

Having brands to distribute is important, having stock is important, but the most important asset is the people one has. I have spent and lost a lot of money to understand this. Finding the right people is the challenge for every manager. I had a lot of difficulty in finding the right people. After 15 years, I believe have the right team.

Is retaining staff an issue too?

People always leave if they don’t fit. I don’t try to be what I am not to keep people. I am a tough manager, strict, and give space to people to transform and deliver. I accept and admit my mistakes. I am also happy learning from the staff.

How important was pricing when you started?

It has become more important now. When I started, I was an exclusive distributor and could price higher based on market conditions. I had to maintain prices in the market on behalf of principals. Today everyone can get the product. This makes pricing an art. Pricing is today a function of stock availability. Customers don’t wait. Hence predicting purchases, keeping inventory, and service have become more important. I handle more than 1000 SKUs. As a one-stop-shop, product variety is a value we bring both to customers and brand owners. Customers get everything at one place. Brand owners know that we are specialists and attract more customers. Pricing a product is different from pricing a complete package with services.

When did you start to draw a salary from the business?

It took me 6 years to draw a regular salary. During that time, the company was only paying my expenses. I didn’t consider taking a salary as something important. After 6 years, the company was strong to pay my real salary. Initially, one should ensure that staff and suppliers get priority.

Any other challenges?

Contract law is very challenging. If somebody doesn’t want to pay, one can’t do much. How good is a post-dated check that can’t be cashed? I have had bad experiences, both while selling and buying. A customer, manufacturing oil rigs, announced bankruptcy. A supplier sent us wrong goods so we returned the products and got no money back. These problems, however, have helped me grow. I am establishing systems (ISO 9001) to safeguard against such risks.

What prompted you to start the factory?

We had achieved a big market share in trading some products. We had technical people in the team to sell. They had been working on the products; even got a few patents. Analysis showed that the breakeven point was low.

Mechanical engineer making chemicals?

We started from logistics. Volumes went up and after years it became manufacturing. It is a small plant with few machines for blending, mixing, and packaging. It can be easily controlled. We were already selling the product. They just had to make it. We did all the small things – make samples, request tests, got feedback and made adjustments. It still took a year to stabilise.