Aleph Trade Founder and General Manager Yunus Emre Karahan Answers Our Questions

In the interview we conducted, Yunus Emre Karahan, Founder and General Manager of Aleph Trade, answered our questions. Emphasizing that they are a young and dynamic team, Karahan stated that they place importance on the African market and have taken very positive steps in this market through Afro Turco projects.

Could you briefly tell our readers about yourself, your educational background and professional experience?

After completing my business administration degree in Turkey, I finished my MBA at Brandeis University in the United States. I am currently a doctoral student in International Foreign Trade. My interest in petroleum began at a fuel station owned by my family. Upon returning from abroad, I started work at SOCAR Turkey and Petkim, where I was responsible for the purchase and sale of international commercial petrochemicals. It was a highly productive learning experience for me. I had the opportunity to become familiar with many types of petrochemicals, including polymers, liquids and gases. In 2013, I left this productive school and founded Aleph Trade.

Which sectors do you reach domestically and internationally with what types of products? You have significant activities targeting the African market; what are the activities you are conducting within the scope of the Afro Turco project?

Domestically, we conduct sales and supply of polymers, solvents and additives for various sectors such as paints and coatings, detergents, MDF, plastics, bags, mineral oil, glass, food and cable. Our inventory regularly includes Butyl Acetate, Hexane, IPA, Methanol, 2-EH, base oil, additives, etc. Internationally, we have transit trade and export activities to India, Azerbaijan and Greece. We attach great importance to our Afro Turco project. We mention it on every platform. As we discuss it, we see manufacturers alongside us who want to bring their own products to the African market. This makes us very satisfied and forces us to work even harder as an indicator that we are on the right track. Of course, Africa is a continent with its own unique dynamics… Cultural differences can make it difficult for businesspeople when investing. Currently, many companies we speak with, despite having analyzed which country to sell which product to and at what price, have been unable to take action because they cannot establish secure supply channels. African consumers want to purchase products they can touch. With Afro Turco, we have established a warehouse inventory sales network to make products manufactured by Turkish industry tangible in the African market. Currently, we are in Tanzania. Within the next 3 years, we aim to be present in Congo, Kenya, Benin, Niger and Côte d'Ivoire. As of now, we represent each product variety with one manufacturer and introduce them to the Tanzanian market, and we are very selective on this matter. Mineral oil, baby/women/elderly diapers, detergents and paint chemicals are the products we are currently offering to the market.

Can you provide information about your products related to the cosmetics, personal care and household care sectors?

We supply LAB and LABSA to detergent manufacturers; and food-grade wax to the cosmetics sector.

What kind of activities does Aleph Trade conduct in the areas of innovation and R&D? Can you provide information about product development and innovative products you have developed within this scope?

We are a young and dynamic team. I believe our innovation presents a different perspective alongside the veterans who have supplied raw materials to Turkish industry for many years. Frankly, our work becomes difficult. As it stands, the raw material suppliers we currently compete with do not offer much opportunity to new players either through distribution or with exclusive sales rights. Therefore, we conduct systematic work to reach products with less competitive conditions or manufacturers that have started new production. This year we developed approximately 55 different petrochemical/chemical products and began trading in 12 of them. In particular, we expanded our portfolio with additives such as nano-technological Tungsten disulfide from American company NIS.

What kind of difficulties are experienced in Turkey's chemical sector in terms of raw materials used? How do you think these problems can be solved?

Unfortunately, every beautiful thing has a flaw. Our country possesses plenty in terms of productivity, skilled human resources and work ethic as well as discipline and genetic predisposition. These are our internal dynamics and only our free will can limit its boundaries. But unfortunately, our dependence on imported raw materials makes it very difficult for us to reach our targets. Our manufacturers' competitiveness is declining; profit margins are narrowing. I do not know if such an institution exists; if it does, let me mention collective reasoning, readers please forgive me. We need to act as manufacturers, universities and the state. We should establish workshops to either produce ourselves the raw materials that we supply at relatively high prices with the currency risk we depend on externally (by financing during transit time, putting a burden on ourselves), or to encourage existing international producers to produce in Turkey.

Do you think the R&D activities carried out in chemistry in our country are at a sufficient level? What can be done for improvement; can we learn your comments and suggestions?

R&D is the most important mechanism that will elevate a country… It requires very long-term, very patient, very researching scientists whose passions will be supported; very incentivizing, very supportive, very large financing. This issue should not be left only to businesspeople; universities, the state, institutions and industrialists must establish a common chain of interests. We must discuss what each of us has; and as soon as possible, implement R&D mechanisms with responsibility chains. Unfortunately, we are not sufficient and we are late. Who knows, perhaps the time will come in the new future.

Can you evaluate 2016 in particular within the framework of the chemical raw materials sector? What are your predictions for 2017; what kind of a year awaits us? Can you provide information about your new investment and project plans for the periods ahead?

When we examine 2016 from the perspective of refineries, raw material traders and manufacturers, I can say that manufacturers and refineries had stronger positions compared to raw material traders. I believe manufacturers captured higher profit margins by passing on less of the discount they received on raw materials to their finished product prices. Unfortunately, the same market rules applied to those in raw material trading. In 2017, I do not think manufacturers will stockpile for the long term. They will turn to finished goods. I believe raw material trading companies will similarly remain uncertain about whether to hold goods in inventory. While respecting the decisions of our other competitors, as Aleph Trade we planned to continue our principle of maintaining finished products in our inventory. Essentially, what enables buying and selling is that buyers and sellers meet at a common point and act accordingly regardless of external world conditions. Trade in every aspect is risk, and despite there being a crisis environment globally, we are confident in our tomorrow. As Aleph Trade, we will continue to serve Turkish manufacturers both with our Afro Turco project and with the new products we plan to supply. Thank you for giving us the opportunity to introduce ourselves. With the hope of spending an even better year together thanks to you, I present my respects to all my colleagues and manufacturers. I wish them a more beautiful and prosperous year and success in their endeavors.