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By Ruth Le Pla
Solid Energy’s national marketing manager David Ferguson acknowledges he is a relative newcomer to the Indian market.
Yet in two years he has racked up some 12 visits to the country and built on the institutional knowledge gleaned by colleagues.
Solid Energy is by far our largest exporter to the country.
Over the past 20 years it has built up a formidable business supplying high-quality cooking coals for India’s vast steel industry.
In 2007, India accounted for 36 percent of the company’s total export sales as Solid Energy continued to balance its market diversification with Japan, China and South Africa.
India’s significant hunger for steel is driven by huge infrastructure and construction projects, plus a growing demand for cars and whiteware.
New Zealand’s cooking coals – which are low in ash and high in reactives – are perfect for blending with India’s domestic coal.
According to Ferguson, there are some standout messages for Kiwi exporters.
Firstly, he says, you need to clearly define and redefine your value proposition.
This may require independent research.
Next, build in a huge reservoir of patience: business is characterised by slow qualification and slow negotiations.
Ferguson stresses the importance of having the right agent, representative or consultant, and of investing time to understand customer requirements.
This, he says, includes market visits.
He urges New Zealand companies to find commercial solutions to any disputes in India and adds, “As everywhere, relationships are important.”
He recalls business meetings in India where the two Solid Energy representatives have fronted up to find 30 people on the Indian side of the negotiating table.
This article originally appeared as part of ‘Encountering the unexpected in India’, by Ruth Le Pla, in Bright magazine on February / March 2009. Issue 32.
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