BY CHAN YUPING

DESPITE knowing little about the petrochemical industry, Narayanan Ellango left a cushy corporate job two years ago to set up Benzene International - which manufactures, procures, distributes and exports products such bitumen and palm oil.

Mr Ellango admits that giving up an iron rice bowl was not easy, but he was attracted by flexible working hours, autonomy in decision-making - and 'the dollar sign'. He also has a passion for taking risks, so he took the plunge.

Two years on, his decision to switch to entrepreneurship appears to have borne fruit.

Today, he supplies a range of bitumen products to companies in the road construction, paint and weather-proof material manufacturing industries. And he has a wide range of customers, as each type of bitumen serves a different purpose.

For instance, penetration grade bitumen is mainly used for road surfacing and industrial applications, while oxidised bitumen - which is produced by vigorous air blowing - is commonly used as an anti-slip layer compound in the piling industry and for electric cable joint protection.

Besides its core petrochemical business, Benzene International also distributes cooking oil under its Alfa brand. Last year, the company posted revenue of $9 million, an increase from about $7 million in 2008.

What makes it unique is that it is 100 per cent export-oriented. 'We do not sell to the local market, but bring money back to Singapore,' says Mr Ellango, who has over 20 years of experience with companies in Dubai, Saudi Arabia, Malaysia, India and the US.

Benzene International exports to countries in the region, as well as India, Bangladesh and much of Africa - where its biggest customers are.

Africa is a key market, says Mr Ellango. It is unsaturated and the demand for his company's products is growing as African nations start to industrialise.

Given the nature of the company's products - they are low in value and heavy in weight - exporting them to Europe and Latin America is much more costly, he says.

Although logistics remains an issue in Africa due to the backward financial systems and a lack of infrastructure, he says that it is such challenges that bring opportunities.

'You have to be patient when breaking into new markets,' he says. 'Even though it's easier to work with players in South-east Asia, you have to think big.'

Aside from being reliable, Mr Ellango believes that his company's key strength is its ability to market its low-cost, but high-quality products effectively. 'Ultimately, you're selling an idea, not just a product,' he explains

Despite the economic downturn, Benzene International managed to thrive. Not only did it win good tenders, it was also helped by government initiatives for SMEs through Spring Singapore, such as the Loan Insurance Scheme (LIS) under which local banks extended credit for operations.

On possible contagion from weak economies in the West, Mr Ellango is confident that 'Asia will not face much of a problem'. He believes that the key is spotting opportunities, while having realistic goals. 'If you fail to see opportunities, then you cannot sustain your business,' he adds.

He also highlights the importance of securing the right partners, especially in the highly competitive petrochemical industry.

On a recent business mission to Africa with the Singapore Business Federation (SBF), Mr Ellango said that he was given the opportunity to network with representatives of African nations, including ministers from Angola and Ghana.

'You get to understand the country's culture, business prospects and tax structure, and it's a stepping stone to getting partners and expanding in these countries,' says the engineering masters degree holder from the National University of Singapore.

Looking ahead, Mr Ellango is looking to Dubai for expansion, as having an office there would help regulate the company's business flows in and out of Africa.

For prospective entrepreneurs and budding startups, Mr Ellango's advice is to 'do your research'.

'Talk to industry players and be patient, it takes at least six months to understand a market,' he says.

This article was first published in The Business Times.