Target Chemicals India Private Limited (TCL):In Search of Distribution Efficiencies

Target Chemicals India Pvt. Ltd. (TCL) is a leading manufacturer of industrial chemicals. TCL primarily produces Phthalic Anhydride (PA) that is regarded as a commodity chemical in Indian market. The case focuses on the challenges that TCL faces with its distribution channels design with the current scenario of PA market in Western India. The case highlights the mismatch between customer buying processes and the company’s selling process as a major factor for inefficient distribution. Uncertain consumer buying patterns and regulatory and related factors in PA market further complicate this already competitive and complex commodity market. The case discusses the distribution channel design of TCL and elaborate on several associated factors such as, managing relationship with downstream agents and dealers. Furthermore, the case discusses the challenges in formulating the structure and processes of TCL’s distribution and the resulting implication for distribution channel design. It brings forth various distribution strategies that a firm operating in commodity B2B market could use to maintain its distribution efficiencies and foothold with changing market variables. Besides providing a note on the challenges that firms operating in such industries face, the case also presents an overview of the commodity chemical industry in India and an elaborated view of the Indian unstructured B2B market.