Entrepreneur Behzad Mirzaei is planning a corporate restructure to cope with the growth of Litamos, his electronics export business

Iranian engineer turned entrepreneur Behzad Mirzaei found Hong Kong's business friendly environment and simple tax system a boon to his electronics trading company, which he founded in 1997 to export electronics components and parts to global markets.

Mr Mirzaei, Founder and CEO of Litamos Electronics Ltd, said that when he first started he found most clients from the Middle East wanted to buy their entire electronics bill of material from one source. "I was their procurement agent in Hong Kong. I would source from everywhere, do a package and ship to them," he said.

Nowadays, Litamos supplies mainly electronics related products like ICs, connectors and cables and other telecommunication products for the manufacture of telephones, handsets and switch boxes for call centres and OEMs. About 75 per cent of his customers are from the Middle East and the rest from India, Russia, Eastern Europe, Mexico and the Chinese mainland.

Branch office

Two years ago, he set up an office in Tehran. It was a typical small and medium-sized enterprise (SME) of less than 10 local staff. "There are lots of import/export rules and regulations and you need permits for this and that. Having local staff to deal with these problems makes everything easier," he said.  

Mr Mirzaei believes that Hong Kong companies wanting to do business in Iran, especially those in technology sector, would be better off dealing with the Trade and Industry Department. "We must make sure that we are dealing in products (which are) 100 per cent for peaceful purposes and for the development of the country," he stressed.

He said that two way trade between Hong Kong and the Middle East is on the rise. More and more Hong Kong business people are looking for opportunities in the Middle East especially in Israel, Egypt, Dubai, Iran, Kuwait and Syria. "The Middle East is not an easy market but a profitable one. I would advise people to pay a visit to the country of their choice, see what products are needed and employ a know-your-customer approach."

Profitable venture

Mr Mirzaei said he knows of a Hong Kong businessman who buys marble slabs from Iran, ships them to China, has them cut and then sent back to Hong Kong where they sell for good profit margins.

He added that he came to Hong Kong in 1997 as he wanted to grow his entrepreneurial skills in a place which is known as the freest economy in the world, and to be part of the economical and globalisation challenges of the 21st Century.

He found that it was a good base to do business. "The tax system is relaxed, it is a good bridge between the East and West and I would encourage Middle East business men to come here and set up a business."

Mr Mirzaei said he is ready he put into action what he believes in. He has submitted a proposal to the Iranian Consul General based in Hong Kong to start an Iranian Chamber of Commerce in the city. "My message to business people in the Middle East is that Hong Kong and China are really good places to do business. The culture and values are different and they must appreciate and learn them, but people in Hong Kong are hard working and dedicated and the environment is so suited for business."

On track in China

Mr Mirzaei also has a joint venture in Zhejiang, Northern China to manufacture electronic modules for non-fossil energy driven vehicles. "I chose Zhejiang as the required start-up capital was a lot lower than for southern China. We are doing well and are on track to do even better this year so my China experience has been good. I will soon have to restructure the company to reflect its growth potential," said Mr Marzaei.

Related links
Litamos Electronics Trading