D-Chem Case Study
Many small businesses struggle with challenges that range from market penetration, sourcing, and supply challenges, to the need to develop skills required to grow the company. Each of these challenges demands different and strategic solutions. Our client, D-Chem Group; struggled in the competitive chemicals market, competing against larger, more established firms, and had significant capacity constraints limiting their growth potential.
The Durban Chemical Cluster (DCC) facilitated by B & M Analysts, assisted D-Chem Group to source cost-effective local suppliers (African Chemicals Imbizo), attain a liquids partnership, and develop business management and strategy skills (Professional Skills Development Programme).
D-Chem Group is now a diversified chemical manufacturing company that is based in Pietermaritzburg. Through the support form Durban Chemicals Cluster, D-Chem Group has been able to broaden their product profile with perfume and hand sanitiser products and supply chemicals to retailers. D-Chem Group predominantly sourced its raw materials from China. D-Chem Group achieved sponsorship to attend the African Chemicals Imbizo, a strategic buyer, supplier match making initiative conceptualised by B & M Analysts. From attending the exhibition, D-Chem Group was able to source local raw material suppliers, greatly expand their horizons through marketing their company and meet other companies that are willing to partner on some projects. Through this engagement, D-Chem has partnered with RN Liquids (another Durban Chemical Cluster member), to manufacture sanitisers. This strategy has overcome limited capacity and created access to new markets.
As a cluster member, D-Chem Group received assistance from the comprehensive Professional Skills Development Programme offered by our Durban Chemical Cluster (DCC). This programme was created to provide small businesses with entrepreneurial skills they need to tackle industry challenges. After working with our team, D-Chem Group were able to strategically achieve growth as a new entrant and become a successful entity.