TCL, in its salt segment, removed one layer from its distribution network as part of its revamping to meet competition and improve efficiency levels

TATA Chemicals – Reaching Out to the Masses

 

TCL, in its salt segment, removed one layer from its distribution network as part of its revamping to meet competition and improve efficiency levels

 This caselet gives an overview of the distribution network of TATA Chemicals Ltd (TCL) till 2001. It discusses the subsequent restructuring of the distribution network to meet the emerging competition, with an emphasis on the rural network. Other initiatives to help the farmers increase their productivity are also described in the caselet.

Issues:

» Importance of restructuring distribution network.

» Impact of effective distribution in rural areas.

» Effect of special initiatives on farmers



Introduction

TATA Chemicals Ltd (TCL), in existence since 1939, had firmly established itself in the areas of inorganic chemicals, fertilizers, and food additives in India. Its products spanned soda ash, sodium bicarbonate, salt, caustic soda, urea, and others, which served a variety of industries like glass, detergents, paper, textiles, agriculture, photography, and pharmaceuticals. TCL which started producing salt (TATA salt ) in the mid-eighties, had been one of the leading players in India in the branded salt segment…

Questions for Discussion:

  1. TCL, in its salt segment, removed one layer from its distribution network as part of its revamping to meet competition and improve efficiency levels. What were the problems with the old system and how did the new set-up improve efficiency levels? 

  2. TKS was perceived as a one-stop shop for farmers’ agricultural needs. How did this initiative help farmers improve their operations and increase their income levels?

Image result for distribution network

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