SIBUR shifts to industrial sales

The new sales principle brings benefits not only for clients, but also for the entire industry.

The realities of today’s market prompt major companies to opt for industrial sales rather than product-driven sales. This also goes for SIBUR: during 2021, the Company launched several industrial sales segments, such as Construction, Packaging, Transport, and Healthcare, with Textiles and Agriculture under consideration.

“We started this work in Q1 2021. Today, we are developing and implementing projects in water supply and sewerage systems, gas supply, and upstream pipelines to drive the consumption of polymer materials for pipe production,” said Yulia Rumyantseva, Head of Construction. “We also focus on the development and implementation of projects in energy efficiency, decarbonisation, and the consolidated replacement of mineral wool to increase the share of polymer thermal insulation solutions. In line with the Safe and High-Quality Roads national project, our main goal is to expand the application of geosynthetics, SBS, and other road infrastructure solutions.”

During 2021, SIBUR launched several industrial sales segments, such as Construction, Packaging, Transport, and Healthcare

The industry-specific approach to sales allows us to monitor and shape trends while building up demand for our products over the long term.

“The industrial sales organisation for Packaging was set up in March 2021. We currently have a number of key tasks such as ramping up collaboration with key brand owners and retailers, and building a shared R&D chain,” commented Sergey Roskoshny, Head of Packaging. “We also make every effort to foster demand and search for new growth points. An equally important focus area for us is the development and implementation of projects to make flexible packaging solutions fully recyclable. Moreover, we are lobbying for a favourable regulatory environment for the packaging segment within the circular economy, while also bolstering the demand for solutions from SIBUR’s sustainable product portfolio.”

The key objectives of the Industrial Sales function are to develop sales in individual industrial segments and to ensure accelerated sales growth and returns on existing and future production assets. The new function’s core tasks are to analyse the entire product value chain in each industry and interact with all its participants, implement demand development initiatives, promote new products and solutions, and seek out additional opportunities to strengthen SIBUR’s portfolio.

The focus on developing global solutions allows for a longer task horizon, so the transition to a new sales model could be a new round of development not only for SIBUR, but also for its customers.

“Healthcare and Pharma is a new segment for the Industrial Sales function – we only launched this September,” explained Yaroslav Sovetkin, head of the segment. “At the moment, we are identifying customers in the Healthcare subsegment across the Russian and CIS markets, all while putting together a list of projects to expand the use of SIBUR solutions in medical products. We are also building a business case for entering the intermediate goods and pharmaceutical substances markets (raw materials for manufacturing drugs).

For clients, the shift to an industry-specific sales model brings several benefits:

  • The Company gains a better understanding of the specifics, needs, challenges, and opportunities of the end-user industry and client

  • The focus shifts from the here-and-now price and volume points to the long-term synergies and mutual benefits

  • More time and attention are invested in exploring joint project, product, and service opportunities outside the traditional negotiation process

  • The client and SIBUR use a single interface for all products

“As of today, our development focus spans several areas,” added Anatoly Svetlikov, Head of Transport. “First of all, we are forging relationships with major Russian and international original-equipment manufacturers (OEMs). Secondly, we are putting together a list of projects to expand the use of solutions from SIBUR’s existing and future product portfolios. The third area is building a business case for SIBUR’s expansion into the intermediate goods market.

While product-driven sales imply a “company-to-customer” interaction model and product-based innovation, industrial sales mean engagement with key stakeholders and the development of solutions for the entire industry. Our focus on developing global solutions unlocks a longer planning horizon, meaning the transition to the new sales model may offer a new growth paradigm not only for SIBUR but also for its clients.

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