Tata
Chem forms mgmt teams with Floatglass, Vasishti
Economic Times
March 8, 2002
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.
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 which are mainly glass and detergent
producers. Its soda ash plant, with a capacity
of 8.75 lakh tonnes, is located at Mithapur, Gujarat.
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 where customers
interacted with multiple officials in the company.
"It’s 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 asess 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
the 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.
Total size of the domestic soda ash market is
around Rs 1,600 crore. Tata Chemicals controls
40 per cent of the total market. Its main competitors
are Saurashtra Chemicals, Gujarat Heavy chemicals.
Ahmedabad-based detergent major Nirma has also
joined the fray when its plant commenced operations
last year.
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