Channel development
How to appoint an adhesive distributor in South India
Appoint distributors who already sell to your target plants, agree territory, targets, stock and credit in writing, and support them hard for the first 90 days. Most failed appointments fail for the same three reasons: the wrong customer base, vague terms and no follow-up after signing.
By S. Sakthi Kumar, industrial adhesives & sealants consultant · · 3 min read
Start with the map, not the dealer
Before you meet a single candidate, decide where you want to be strong. South India's industrial demand sits in clusters: the Chennai belt (Sriperumbudur, Oragadam, Ambattur), Hosur, Coimbatore, Bengaluru, Hyderabad, Visakhapatnam and Kochi. Each has a different industry mix, so each needs a different kind of partner.
Decide too which accounts you will serve directly. Large OEM production accounts usually need your own technical people. Maintenance business across hundreds of smaller plants is what distributors do best.
Where to find good candidates
- Bearing and power transmission dealers. They visit maintenance departments every week.
- Fastener houses. Every bolt they sell is a threadlocker opportunity.
- Industrial tool, safety and MRO supply houses.
- Hydraulic and pneumatic dealers, who already sell fittings that need thread sealants.
- Your own customers. Ask maintenance engineers who supplies them and who they trust.
Specialist adhesive dealers exist, but the best partner is usually someone who already walks into your target plants with other products.
How to check a candidate
- Customers. Ask for their top ten industrial accounts and visit two of them. A dealer that sells mostly over the counter to hardware shops will not open plants for you.
- People. Is there at least one person who can talk technically with a maintenance engineer?
- Money. Check payment record with two or three of their current principals.
- Conflicts. Which brands do they already carry? Carrying a competitor is not always a deal-breaker; being its main dealer usually is.
- Owner interest. If the owner is not personally interested in adhesives, the range will sit on a shelf.
Terms to agree in writing
| Term | What to agree |
|---|---|
| Territory | By cluster or by account type, not a whole state on day one |
| Targets | Quarterly, by product category, linked to the territory |
| Margins and schemes | A base margin plus incentives tied to targets, not extra discounts |
| Stock | Opening stock and a minimum stock of fast-moving grades |
| Credit | Credit days and limit, and what happens when they are crossed |
| Price discipline | No selling below the agreed street price, no selling outside the territory |
| Your support | Training, demonstration kits, samples, joint calls and technical back-up |
| Review and exit | A formal review at 90 days and 6 months, and a notice period |
On margins: they vary with category, volume and brand strength, so any single number would be wrong for many ranges. The test is simple. The dealer's margin plus incentives must make selling your range at least as rewarding as the competing brand on the same shelf, at a stable street price.
Red flags
- Wants exclusivity for a whole state, without targets.
- Cannot name the plants they sell to.
- Asks for long credit before the first order.
- Is already the main dealer for a directly competing brand.
- The owner hands everything to a junior from the first meeting.
The first 90 days
- 1Week 1Product training for the dealer's sales staff, with demonstration kits.
- 2Weeks 2 to 4Joint calls on their ten best industrial accounts.
- 3Month 2Demonstrations and trials at the accounts that showed interest.
- 4Month 3Review against targets. Fix what is not working while everyone is still keen.
Dealers push the brands that stay in touch. The first 90 days decide whether your range becomes a priority or a catalogue entry. If you want help with this, see channel development.
Questions people ask
Should I give a distributor exclusive territory?
Give exclusivity by cluster or by account type, tied to targets and reviewed every six months. Avoid giving a whole state up front: it is hard to take back if the distributor under-performs.
How many distributors does an adhesive brand need in South India?
Start with one strong distributor in each major cluster you want to serve, such as Chennai, Coimbatore, Bengaluru and Hyderabad, then add dealers under them as demand grows.
How soon should a new distributor show results?
Expect first orders from new accounts within the first quarter. A fair judgement of a distributor's potential is at about six months.