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, 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, when 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 assess 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 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.

The total size of the domestic soda ash market is around Rs1,600crore. Tata Chemicals controls 40 per cent of the total market. Its main competitors are Saurashtra Chemicals and Gujarat Heavy Chemicals.

Ahmedabad-based detergent major Nirma has also joined the fray when its plant commenced operations last year.