GLOBAL EXPANSION

Iran 2017 | ECONOMY | INTERVIEW

TBY talks to Mehrdad Fakher, Chairman of the Board of Fakher Holding, on diversification of activities, increasing the firm's footprint abroad, and competing with global companies.

Mehrdad Fakher
BIOGRAPHY
Mehrdad Fakher has been the Chairman of the Board at Fakher Holding since 2016 and CEO of Tipax Company since 2011. During his career at Tipax Company, he was Vice President from 2005, CEO Branches Deputy from 2002 to 2004, and the CEO Representative from 2001 to 2002. Mehrdad Fakher holds a bachelor’s degree in business administration from Adamson University in the UK. He also holds an MBA and DBA from the University of Industry and Mines.

What is your strategy regarding the diversification of Fakher Holding, and which sectors are of particular interest?

In addition to the activities in which some of our subsidiaries are currently involved, such as office furniture, decoration, and branded clothing, we intend to adopt and develop a forward-looking strategy toward diversifying our products and services in as many relevant business sectors as practically possible. To meet current and future market demands, this strategy should certainly contain elemental factors to expand, in particular, the operations of Tipax and TPX. For this purpose, we have to move toward the creation of a perfect business ecosystem with a capacity for new investments. Since Tipax is the first private post operator in Iran, we will apply the most advanced technology in each business sector in order to achieve a high market share in courier and postal services and enhance our competitiveness with pioneering international firms such as DHL. It is important to keep pace with the latest market trends, needs, and customer expectations, and we will do so by recruiting and training human resources equipped with knowledge, skills, and expertise.

With the signing of JCPOA, the opportunity has arisen to expand your operations abroad. What steps have you taken to increase Fakher Holding's footprint abroad?

We hope and sensibly expect that this deal will provide excellent opportunities for trade to flourish at local and global levels by changing the present economic climate. As such, we contemplate the concept of our dynamic presence in regional and global markets with emphasis on high service quality, competitive prices, after-sale services, and more active participation in international forums and exhibitions. To this end, we plan the development of our communications networks inside and outside the country. More notably, the first bold step has been taken by creating a trading company in London and Dubai. Today, Tipax is doing global business, and the aim is to expand it rapidly to become a top-performing, world-class postal service and logistics provider in the region.

How will Fakher Holding capitalize on the growth of e-commerce in the future?

E-commerce in Iran is still in its infancy. Fakher Holding has predicted some new business models in its survey that are hinged on the market potential and our proven track records. The current Iranian market is right and suitable for deeper involvement in e-commerce, which needs secure and express transport services to satisfy customers' demands. Tipax is one of our major subsidiaries and has substantial capabilities in this particular sector. Thus, Fakher Holding has contemplated e-commerce as one of its strategic goals by focusing on the upgrade of the logistics sector as the main facilitator. E-commerce has had tremendous positive impacts on the expansion, development, and growth of our courier services and has yielded productive results in customers' growing demand and increase in the volume of shipments as well as the growth rate in the B2C sector.

How do you view the potential of Tipax to compete with global industry leaders?

Tipax has started to broaden and diversify its range of services and has accordingly nurtured the 3PL approach at the level of executive directors. It is worth mentioning that Tipax initially included provision of logistics services as a response to market needs and customization. Currently, plans are underway for more investments toward full attainment, and we may use the successful models initiated and experienced by the credible international companies as a benchmark for future expansion of our logistics sector. Today, it is an undeniable fact that provision of logistics services and the creation of a proper supply chain are requirements of any activity in international trade and are regarded as the main tools for achieving an organization's goals. Tipax is backed by more than half a century of experience in private logistics and courier services. It has great potential to become a pioneering company in the Middle East and even far beyond, and to compete with the world's leading logistics companies.