Choosing an Indian distributor: what a Russian exporter should check
Appointing the wrong Indian distributor costs a Russian manufacturer more than not appointing one at all — because a bad appointment ties up the territory while producing nothing.
The criteria that predict performance
Service capability, not sales capability
For equipment of any kind, this is decisive. Indian buyers will not purchase machinery they cannot get serviced. A distributor with a strong sales team and no engineers will win an order and then lose the account when the first breakdown is not answered.
Ask how many field engineers, where they are based, and what spares they hold. Then verify the answer by visiting.
Territory coverage that matches your market
India is not a single market. A distributor strong in the west may have no presence in the south. Match coverage to where your product’s demand actually sits rather than accepting a national claim at face value.
Existing lines — complementary or competing
A distributor carrying a directly competing line will use yours as a negotiating lever with the incumbent. A distributor carrying complementary lines sells to the same buyers and gives you reach immediately.
Financial standing
Distributors carry stock and extend credit. One that cannot fund inventory will order in small quantities and never build the market.
The criteria that mislead
The size of the claimed customer list. Easy to assert, hard to verify, and rarely predictive.
Enthusiasm at the first meeting. Universal, and uninformative.
Willingness to accept your terms immediately. Often a signal that they do not intend to invest, and are taking the line defensively to keep it away from a competitor.
Structure the appointment carefully
Exclusive territory should be earned rather than granted at signature. Performance thresholds with a defined review point, initial exclusivity limited in time or geography, and a clear exit are all standard and all worth insisting on.
One specific point: consider carefully who holds the Indian product certification. A distributor holding it acquires substantial leverage, because changing distributor then means re-certifying. Holding it yourself, through your own local representative entity, preserves your freedom.
Visit before you sign
Warehouse, workshop, service infrastructure, staff. A one-day visit tells you more than three months of correspondence, and it is the cheapest due diligence available.
Common questions
+–Should we give an Indian distributor exclusivity?
+–Who should hold the Indian product certification?
+–Can you verify distributors for us?
More guides
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