Reconstap Consulting
Your Advisory & Execution Partner in New Markets
Case Studies

American manufacturer of lubricants for air compressors, refrigeration equipment and industrial equipment

      Objectives of India Project- To appoint an effective import distribution Partner in India

Support provided by Reconstap- After gaining an in-depth understanding of the product portfolio & end-user markets of the principal company, Reconstap identified & profiled 61 companies across India in the categories of national and regional distributors of industrial lubricants.Post identification, all these companies were contacted to introduce them to the product portfolio of the principal company intending to enter into the Indian market. Basis this activity, 14 distribution companies showed their preliminary interest in considering the opportunity of partnership with the principal company. Face-to-Face meetings were held with all these 14 companies to give them detailed presentation on the principal company and also to evaluate the capabilities of potential partners basis factors like- infrastructure (offices, warehouses, technical & commercial manpower etc.), experience in import distribution of industrial lubricants, familiarity with end-user markets & key client accounts, blending & packaging capabilities etc. Basis these face-to-face meetings, 3 companies were shortlisted that had strong capabilities and interest to partner with the principal company. Final steps involved, organizing direct discussions between the management of principal company and management of shortlisted partners. Post these thorough evaluation exercise & discussions, one of the leading lubricant distributors was selected as an Exclusive Partner by the Principal Company. Major criteria of selection were- around 20 years of experience in import distribution of industrial lubricants, prior experience in representing leading global lubricant companies in India like Klueber (Germany) and Rocol (UK, Part of ITW), experience in undertaking OEM approvals, strong Pan India presence (through a network of around 45 sub-distributors) and techno-commercial manpower of 25 employees.

We also provided advisory support to the principal company in drafting the terms & conditions of partnership and developing a Memorandum of Understanding (MOU) to be signed with the Indian partner. This was followed by providing our assistance in negotiations of terms & conditions on behalf of the principal company with the Indian partner like time bound and result oriented exclusivity of representation, credit period and non-compete clause.

 

French provider of products & services in the areas of energy management, automation and electrical components

      Objectives of India Project- To extend the distribution network in India for new product offerings

Support provided by Reconstap- Our client wanted to appoint specialist distribution partners in India for launching its new products that included solar inverters for residential, small commercial, off-grid and power backup applications. We identified major distribution companies across India involved in distribution of these product categories and conducted a stringent evaluation on their capabilities as per the desired criteria’s of the client. These included capabilities and interest to develop the market for premium inverters, strong after sales service network (with time bound on site and off site resolutions) in at least one region, experience of supplying in projects and dealing with relevant stakeholders and financial strength to purchase and maintain sufficient inventory and spares.

We assisted our client in appointing three distributors (with regional exclusivities) across India and also provided support for negotiations on terms and conditions for the partnership (credit periods, performance expectations to retain exclusivities and inventory management).

 

American manufacturer of networking and power cables for industrial and residential applications

      Objectives of India Project- To understand the feasibility of developing exports in the Indian market

Support provided by Reconstap- We assisted our client in conducting a comprehensive research of the Indian market to gather insights on market sizing for different categories of cables, understand the strategy of current suppliers of similar products with regards to products sold in the market, pricing, sales channels and their expansion plans and regulatory approvals required for selling the products in India.

Basis these insights, we made strategic recommendations to our client on selected product categories to be launched in India, approximate landing costs in India, ideal sales channel structure (number of partners and major regions of focus) and identified key partners in major regions across the country.

Other Projects

Italian family owned manufacturer (with revenues exceeding € 100 Million) of plumbing, sanitary and heating valves(Ball Valves & Pressure Reducing Valves)

Summary of India Project- The principal company was already present through a Distribution Partner in India since 10 years. However, its sales were gradually declining and reached € 400,000/year from an earlier consistent sales of € 1.5 Million/year in the Indian territory. Reconstap was assigned the project to provide advisory and execution support for revamping the sales on behalf of the principal company. Post competition mapping (of Indian & Global valve manufacturers present in the Indian market) and understanding their sales & distribution structures for targeting the market, we concluded that since the partner was only based and focused in the western region (Maharashtra), it was hindering the prospects to tap high growth oriented southern & northern regions of India where real estate prospects were bright. The Indian partner only had approvals with consultants in the western region, which made it difficult to generate sales in other regions because of lack of consultant approvals in these geographical locations.

This was followed by providing the execution support to the principal company in appointing 2 additional Distribution Partners that can cater to the high growth markets of South (primarily Andhra Pradesh, Karnataka and Chennai) and North (primarily Delhi & NCR).