Tata Chem forms mgmt teams with
Tata Chemicals has formed joint management teams with Floatglass
India and Vasishti Detergents in the initial phase of a revamp
exercise to create operational synergies with 40 main customers.
Economic Times March 8,
The Mumbai-based chemical and fertiliser major will extend
the alliance to other customers once the pilot projects are
over. The company is forging alliances with soda ash customers,
mainly glass and detergent producers. Its soda ash plant,
with a capacity of 8.75 lakh tonnes, is located at Mithapur,
A customer strategy, predominantly followed in the advertising
industry, has been replicated. The company has created the
post of key account managers to act as a conduit between main
clients. One manager will handle around six clients. This
is a marked departure from the past, when customers interacted
with multiple officials in the company.
"Its an effort to bring about close rapport with
customers spread across multi locations. Joint teams have
already been formed with four customers," said a senior
Tata Chemicals official.
The pilot projects are essentially to assess the areas of
mutual cooperation. The teams are currently doing brainstorming
to work out joint strategies, especially for inventory management
and better transportation facilities.
The company is exploring the possibility of using the sea
route for transporting goods to the long-distance markets
in the east and the south. This works out to be a cheaper
option since the Mithapur plant is located very close to Okha
port, said the company official. While Cochin and Chennai
are the major markets in south India, the entire Haldia belt
in Calcutta is the main market in east India.
The company is planning to provide a tailored offering that
is based on individual customer needs and modified on an ongoing
basis. To be precise, it is planning to manufacture soda ash
based on the specific requirements of the customers.
For instance, detergent-makers are particular about chemical
composition and bulk density of the product. Measures have
already been initiated to upgrade the technology for adapting
to different needs. For instance, the company has set up a
new dense ash plant in Mithapur.
The total size of the domestic soda ash market is around
Rs1,600crore. Tata Chemicals controls 40 per cent of the total
market. Its main competitors are Saurashtra Chemicals and
Gujarat Heavy Chemicals.
Ahmedabad-based detergent major Nirma has also joined the
fray when its plant commenced operations last year.