What are your top tips for setting up a new distributor in India?

Question

Would be interested to hear other users experiences of setting up and using distributors in India.

Answer

Hi Simon,

I’m sure our community can offer some great advice but it would likely help if you could explain a little about what product(s) you plan to export to India. That way our community can be sure they are giving you the most relevant information.

We are also conducting a webinar this Thursday specifically on getting started in India, which will feature several expert presentations and a Q&A session. You can register for it here: https://www4.gotomeeting.com/register/349992815. Registration is free.

Kind regards,
Kenny.

Answer

Hi Simon,
I agree with Kenny that more information is needed in order to provide you with a fuller answer. However, my company, TMG Advisory has helped several SME’s set up in India and a key item of advice is to ensure you recruit a dedicated distributor with suitable market experience for your product. There is a tendency for Indian distributors to collect a range of products and then to sell the easiest of these products in the market. This approach makes it difficult to maximise sales on UK products, which because of high import duties, need to sell on ‘technical merit’. Happy to discuss further on lparfitt@tmgdvisory.com
Best regards,
Les Parfitt
TMG Advisory (UK)

Answer

Hi Simon,

As i am sure, you are aware, India is a very big country with distributors operating on a pan-india basis as well as some who operate in certain states. The two main tips one needs to follow while appointing a distributor in the UK are:

1. To conduct proper due diligence on the distributor. What you see or hear is not what you get all the time. Reference checks will be very useful.

2. Be sure that you check the distribution contract carefully and avoid any exclusivity clauses.

Also, if my understanding is correct that Geotech is in the Environment and Water domain, it is a very specialized area with tremendous potential and you can find niche distributors who can assist with expanding your business in India.

Hope this helps. We have partner firms in India who can further handhold you with your plans.

warm regards
Chandru Iyer,
Kingston Smith LLP

Menu
Export Action Plan