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How the third generation entrepreneur is taking the legacy forward | Pansari Group
26 Plays5 months ago
Legacy businesses endure through generations by adapting to change while preserving their essence. Delhi-based Pansari Group is a quintessential example that has evolved into a multi-crore enterprise.Shammi Agarwal shares the group's inception story, recounting the many ups and downs—from the family's accidental foray into manufacturing to his strategic initiatives in shifting Pansari Group towards branded products, leveraging its heritage while innovating to meet modern consumer demands and expanding its market reach.
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Transcript
Introduction to Shamir Gerwal and Pansari Group
00:00:00
Speaker
Hi, everyone. I'm Shamir Gerwal, promoter director of Pansari Group.
Expansion from Edible Oils to Diverse FMCG Products
00:00:17
Speaker
So, should we first help you understand what what does Pansari Group do? Like a very broad overview. Pansai group majorly goes into edible oils only. When I joined before, it was just doing edible oils. Since I joined, what we have explored it into other categories. First is rice and flours as staples. After that, we have got into spices. That's blended spices and whole spices. Ready to cook products. And recently, Bonsai group in the last three years have entered into Horika range, which is seasonings and set up for food service. For people who don't understand Horika is hotel restaurant catering. Yes, Horika is called Horika. Horika, it's basically for all food service, hotel restaurants, the catering is a major. And also the snack seasonings, the snack manufacturers or the key accounts who manufacture, you know, like buff seasoning, buff manufacturers or chips manufacturers, such big manufacturers, seasonings for them as well.
00:01:18
Speaker
What will be the expected turnover in this financial year? If I talk about total group is gonna be 1800 but total group is gonna be 800 but when Sari group has a brand, the one which I take care of in North India, Marathara would say no, it's across India, it's gonna be somewhere around 500. What are the different divisions? You're saying there is Pansari Group and and there are other businesses also. Total turnover is 1800 out of which 500 is for?
00:01:50
Speaker
500 is the turnover for the fmcc but FMCG. but The 1800 is all FMCG, but it includes the export as well. It includes the B2B bulk tankers as well. We do a lot of trading in tankers or B2B institutional sales, but 500, 15 or 525, which I'm talking about is only brand. okay just The consumer products part of it. yeah yeah only Only the only the brand. And the export is also a bulk or export is consumer. It's a mix of both of the only 10% is brand, and but it's majorly bulk. So Okay. And bulk is the legacy business, right? That's what your father started.
00:02:35
Speaker
Yes, bulk is the legacy business and that time also it was ah around 700, I think approximately 700 when I joined. So it has also increased, but you have our moon main focus is on brands only now and building profitable brand is something which is different than building a brand. What is the bulk business? What do you sell? Let us help you understand that part of the business. In domestic, it's oils. Just tell me about how your father started in the business. Just take me through a history of the group.
Family's Transition from Trading to Manufacturing
00:03:11
Speaker
How my father started? lake We belong to Rajasthan and we were my family with my great-grandfather and my father's everybody was living in Calcutta. There's a lot of Marwadi's in Calcutta.
00:03:25
Speaker
So my fathers are six brothers. So my father is second number. So he used to do trading of commodities, not oil. That time it was oil seeds. You know, till oil seeds, mustard seeds. So what happened was in Calcutta, there is a lot of rights going on for banalis, non-banalis. That time my grandfather shifted my father to Delhi. You know, you should go in Delhi and start something, try to start something. so stay ah we were only into you know so yada just noru butcha the gigito oh that american hung looked at the archki of zgavaer trika So we one of the good big traders supplying to oil mills and supplying to genatorors general traders as well. So what happened that time?
00:04:13
Speaker
we were reading of till seeds, seeds from seeds. So that time it was very hard when our time the families what to do when they know what should we do with those seeds from seeds because it was a big loss. We tried to sell it. Sorry, I didn't understand that part. Because of ah one of the barish we gave you with you. ah my like smarter product average basically and Now traders on the oil mills company was wanted to buy that. So that time my family read a bold step what my father did. He was like, ah isskahuha gala what are the applications we can do with it? So majorly, we rented an oil mill.
00:05:06
Speaker
and we went to the oil company. That time, the volume one of the oil companies at the Canadian company was running. So my father rather went to take my take the token money back, but not the token money DNA. So I think that was the first move how we became manufacturer yeah um'm no bruka the yuca se mega process cardo japan and but women the five rubbies product which one which we were not able to sell we call a multiple of 7-8 rupees, two times double the times. Those others say we got to on the wild meal business. That's how it started. It was not a planned one, I would say. But I think God has been really kind to us. After that, it was like never looking back. So we rented ah five, six units in Delhi, rather across across India. And we started manufacturing oil and supplying too.
00:05:57
Speaker
oil trade instead of seed traders. And we were also doing OEM for big companies like DCM, that time was the Pangat. So we were doing all the packaging and Pangat was done by us only. Pangat was a consumer brand. Pangat was in two tens only. There was none no bottles at that time. And our family, my father was, so mother my father's name is Mr. Ramadagarwal. He was the first one who introduced bottles. no Then, tense ah perno kulaic to the di was up and the ra lu ah right that right we started blasting watering the first.
00:06:35
Speaker
When we started in 1997-96-98, due to political things and other things, oh we kind of closed the consumer business only. you know you the it was It's not that consumer business. may and ja za game h nine everything was you know It's like a piece of cake. but supply but support you So we
Shamir's Decision to Join the Family Business
00:06:58
Speaker
closed the business. And when I joined the business in 2010, 11, when I finished my MBA. So we had, I had options key that we have, we had both the things that we were into real estate, listed numbering for Sare developers. And that time there was a non-woven back But my family always wanted to
00:07:22
Speaker
doe a It was just a non-woven bag. It was just a promotion bag. And also the promotion bags, you know, the marketing bags and all that. So that time we had the factory in Uttarakhand. So that time it was introduced. So when I finished my studies, I had the option either go into real estate business or either do the factory stuff or this edible oils, you know, the legacy business, the old one. It was 400-500 cars, but it was all bus. This was all bus, right? Basically, tankers were wasted. Tankers were wasted and now we are in private labor for big companies as well. Okay. But not our brand. But our brand is maybe 5% of the business, yeah. And concept brands, can you consider the packaging?
00:08:21
Speaker
Oh, you know, we do it for, bi are government can because they we do it for Indian brand. garvinal baarte sendrop itc native fish see probably or okay okay and then it like second value yeah like other didn'tine refined oils majorly refin so they mines and or than by yeah muscleular li been the and and also We for If you are manufacturing, you will able to get special effects. So we can do that in Calcutta. But the and ummevara unit be and this is majorly all it needs to be. Okay. but But the biscuit may be while you use it, or that you provide let's get beta even why wentt ask me not me why went will So that is the power of the ID. That is also part of ID.
00:09:22
Speaker
tika okay guard So yeah you had these choices then what did you decide to do? So I think ah I was lucky first have a taste of all the things gives kiss me go order and since my aunt from family lives in Kolkata and my father and one of his brother lives in Delhi so that time I was only the next generation who was in Delhi so they wanted me to do stuff in Delhi only real estate was kind of kind of the option was we still have a few factory owners and we are going to be using one of them. I think I am blessed that we are going to be using one of them and just see that we are going to be using one of them. I used to use one of them and I used to use one of them and I used to use one of them and I used to use one of them and I used to use one of them and I used to use one of them and I used to use one of them and I used to use one of them and I used to use one of them and I used to use one of them and I used to use one of them and I used to use one of them and I used to use one of them and I used to use one of them and I used to use one of them and I used to use one of them and I used to use one of them and I used to use one of them and I used to use one of them and I used to use one of them and I used to use one of them and I used to use
00:10:17
Speaker
ah the fabric factory was again not in Delhi so i started first of all going to the fadad but i saw it was more of an undisguised employment k upjari or pario there is no not much of the value creation you are doing d yeah so it was like my uncle ma yeah and the z here car meto let's try a brand and and it was an annual theto hegan regime ah those about teams are badi I think that was like yeah and and I can see I can see a lot of hopes here all the factories more or less dependent on them as well.
00:11:06
Speaker
So that that's how I made my mind. Let's do brands. Let's do Pansari as a brand. When we started out, it was majorly only mustard oil. Instead of Sarsapatil, we went out. In Delhi market, sales and salesmen also have helped in the market. And slowly, we introduced refined oils. So it was all oils for the first 2-3 years I would say. And i didn't look at the it ten be i because that I think mother it's it's all efforts. it's not gay my don women ali but yeah The best thing was since I've studied from Australia and you know abroad, I've got exposure in hostel as well. So I was not shy at all.
00:11:49
Speaker
be kujai market karnayev kuja malguarnadu i was not try like kar now let's see kitana kadi but So I think that that really helped. kati And there was no burden. I was enjoying it. burhan temple so that through that business data i was enjoying it hererojana ro inja guroas milan And slowly, slowly realized it's a doable thing. But after two, two years, when when you a mar ofborn email i reach check belejikika ya yeah ah ligar but that time it was like, aka jagar
00:12:26
Speaker
So we realized it was more of a loss considering a lot of bad debts were there. So that time I became very focused. so seems toically clear they getting arab though it not support me repto or aggressively ran or and ze so that time i've became very focused And with the oil, what we realized is that the oil is not going to be a waste of time. So that's how we entered into other commodities. So that's old customers, new product, what we can do. So that's how we entered into Flows and Rice. So that's how we entered into Flows and Rice. So that's how we entered into Flows and Rice. So that's how we entered into Flows and Rice. So that's how we entered into Flows and Rice. So that's how we entered into Flows and Rice. So that's how we entered into Flows and Rice. So that's how we entered into Flows and Rice. So that's how we entered into Flows and Rice. So that's how we entered into Flows and Rice. So that's how we entered into other commodities how we entered into Flows and Rice. So that's how we entered into Flows and Rice. So that's how we entered into Flows and Rice. So that's how we entered into Flows and Rice. So that's how we entered into Flows and Rice. So that's how we entered into Flows and Rice. So that's how we entered into Flows and Rice. So that's So I think the days have brought us how we entered into Flows to 2000, I would say, I think 2015 was introduced, which is again a very low GP, but a good brand value, brand presence product. What did low GP mean with low gross profit? Yes, very low. It's like low GP, but it's a very low GP, but it's a very low GP, but it's a very low GP, but it's a very low GP, but it's a very low GP, but it's a very low GP, but it's a very low GP,
00:14:17
Speaker
branding packaging of image dailyli go boditi barrakata So much like that most is may be able which toalgu in a ham and same with rice so ah ri still add little margins amid rice miganana there is a lot of different varieties you can do. and RDM is the major thing is you can play with the shokar hill best packaging are low and acha fine art are less moisture all the technical terms but whenever Kansari group enter into something we do full R&D when we say full R&D we do all the competition analysis what is customer need now we get on boards with the best of the best you know the partners or agencies to work with us here we have been inside some leg on selling all the reports all
00:15:02
Speaker
so buta um mira We got decent decent mileage here and we rice. the first The best thing we did was the first thing. We the best location store it and the the big store and the best lu location store. was temperatureed to customer interaction and now what do you listen from customers direct from their mouth and it's amazing. whatever it is It is not a sales, it is more of a marketing, it is more of a consumer insights. The competition spirit is very different from the competition spirit. We thought of launching it for 100 rupees and the other brand is selling it for 70-80 rupees.
00:15:52
Speaker
you're lucky Buy one get one, but I want the volumes. Simple changes, but I want the P&L, but I don't want the P&L on stage, I want the volume. So I think when it used to rise, it worked really nice. Lot of consumers took it for either scheme and later, repeat the trade fair, the restaurant was not, it took the year and year, the people wait, and they were always looking for a friend. That kind of retailers, that kind of end consumer,
00:16:21
Speaker
but ja be jabi ata rice and all youra and I started studying the balance sheet of other FMCs. What is their GP? what is how they do how How do they do? Have you ever had a rice business of mallavana and number of crores for 22 years? And they closed saying it's a low GP product. What brand is it? It's a brand. who I don't know the applications I've interviewed their their team of, ah you know, Rice. We interviewed them a lot.
00:16:55
Speaker
but ika business dominatmini lot of become like biruka your business ah you business zealand neighborhood dey mo ra So, lasy um maybe you that I a lot of channel partners. They said in fact, that was only Delhi or some part of Punjab that time. North, North. But we can't move to other other states just saying here. So that time we realized we should enter into a high GP product. And targeting same customers, a high GP product, we call them into spices.
00:17:41
Speaker
Before, in the first initial year, I think that was in 1617, so that time we were getting spices, job work from some other manufacturers, we were giving our own products, our own whole spices and he was processing and giving it to us. But due to a few quality issues, we ended up deciding either we should close the business of spices or we should have our own manufacturing facility. So that was the time I think 2000 and it's not even 3 years but the factory is going to be 3rd by
Establishing In-house Manufacturing for Spices
00:18:13
Speaker
then. So after 16-17 we started Spices 2 years and then we started talking about the job. But the job was quality issues and then we were like what are you going to do now? What are you going to do now? Instead of brand value, people don't trust me, people don't trust me, people don't trust me, people don't trust me, people don't trust me, people don't trust me, people don't trust me, people don't trust me, people don't trust me, people don't trust me, people don't trust me, people don't trust me, people don't trust me, people don't trust me, people don't trust me, people don't trust me, people don't trust me, people don't trust me, people don't trust me, people don't trust me, people don't trust me, people don't trust me, people don't trust me, people don't So we decided that trust me, people we should get into manufacturing. So that was the first time me as a person, I wouldn't say I'm not into manufacturing, but I decided to get into manufacturing, both of our technical products, technical technologies and you know, I read a lot about personality. So I'm a high D, high I, you know, talking to people and taking reason, but not consistent with your study. Those skills will get on boards, those people as well.
00:19:04
Speaker
We started manufacturing spices. So that's how the journey evolved from you know you can say more of a brand to a manufacturing unit as well. So in two thousand nineteen twenty the mother we made the factory and it got operational fully in twenty twenty one. Yeah, we are not that this day every thirty years. butly yeah
00:19:32
Speaker
The wind gear manufacturing spices ourself, the control log of the quality of the product, acceptance increased, you know the confidence of the sales team of the channel button increased.
00:19:43
Speaker
So till that time again it was flours, spices, rice and oils. Oils we we were targeting. That time modern trade was growing and only general just started online online was the big basket. They just started. So like we were targeting to reach to consumer very very fast. um gu i i they want a premium product. So we introduced another oil, cold press oil by the brand name of Oriel. I started from HUL because they have different positioning, different brands. Though it ittting includes a lot of costing or it includes a lot of focus on different brands as well. <unk> game roas are taer like a de button <unk> So very good launching things, deciding things,
00:20:34
Speaker
but yeah growth kill be yeah your name tetan road with a best launchking yeah and and after spices we realized that we are not in the factory but spices are very small part of the business so this this is a new strategy how what else we can make from this factory so I think that time Corona just well I would suggest before Corona just Corona came in So people were, everybody was a home chef. So people were, everybody was a home chef. So people were, everybody was a home chef. So people were, everybody was, everybody was, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like, like,
00:21:16
Speaker
and be isja So again we have MTR, the biggest one we get, SOGA, TALO, DOGA, GM and other things like that. We also have a portfolio strategy and we introduce a brand called Indemix. It is very easy to use. Once you go to the same factory, you can see the same thing. But he realized it's not, it's more of a modern trade on online product than a GT product. In GT, person who is selling All-Rise or Rata, they won't be able to sell that build. But giy market it sunny that would data the market is And still the product quality may not be compromised throughout. Product quality is widely accepted. I the Indian Xpansaria, Indian Xpansaria, Indian Xpansaria.
00:22:13
Speaker
And my wife is also too much into cooking. When I say too much into cooking, she is fond of cooking and she is one of the best cook I have ever made. the best I would say better than lot of good chefs, senior chefs as well. but our our economic With professional teams. She was the one with the quality quality.
00:22:36
Speaker
and <unk> maistamibura bannamili that ra we We had somebody as a we have some we still have somebody as a partner. As a matter of fact she facilities are business that put out them are a spices cubby and the ready cook cubby. Then spices ready cook was done and was temp is a matter of a hyperbure was launched. The Horica was the biggest for service. This is Horica. And Pansari was there on general trade, more on trade, semi-more on trade. We were there in government details like, you know, police, Navy, Army, Kendri Bandar, Nafet stores, Ministry of Finance. yeah so got there We food service was a bigger bigger mother more bigger business. So that time, this is the, and what can be made in the same factory again, the Radi Coop was not that big, that big a business. It's a niche.
00:23:22
Speaker
So if you know food service seasonings, you see not just chilli fillets, you know it's ski by albii more the ama powders so the taste and answers of their food service. So this is new this is the new one, this is what we realized that there is a market which we don't have any experience of the product as well, of the channel as well. just see there was This is the inorganic growth I would say, keep different a different market, a new market, a new product. I don't know if it's an old market new product or maybe new market old product but this was something different. This was like here in Bandra factory, it took us.
00:24:04
Speaker
2 years to honestly make that product. yeah ru r and d road rejection r and d but ti are me was aens youli cha withhi but the best are it baro but the a so now weve launched our now it's it's It's been almost 2 years but we have had seasoning by the brand name Chefies with love from chef. The art attack line is with love from chef. And Pansari Group is a commodity trader or a commodity manufacturer. Shifted like a click. It was like more of a value-added company. They understand flavors. They understand product. So we got good mileage. First year, it was very slightly in the high sales cost. 1% or 2% commodity cost. It was the and he was like that that doesn't see cost because so
00:24:58
Speaker
you know to convert restaurants or convert the restaurant owners it was it was like telling them it was not just a selling product it was more of showing them the application how ah consistent it's gonna be or how much money you will save how much time you will save dependency you will save on your team members so it was more of an educational marketing and I would still say very less competition I wouldn't say very less competition but the competition is very strong whether VQL is one that Kia and only HUL HUL can't organize your seasonings And after that, I am proud to say it's only our product which is accepted in the market. But at par, you can say VQL is actually a Pansari. As I said before, the quality of the product is very high. The pricing will be very high. But the product will be very low. It's not like lifetime. Because once the product has the potential, it sells on its own as well.
00:25:52
Speaker
If you remember, when I was in India, I tried to go get him on board and he was like, he said, if you convinced him, he said, let's do it. What I do I will send my juniors, juniors to you, a third do it hard later nija alllavanda yeah this could agree with what i'm getting and guide him. We will still have a mentor to us and I will tell him, he will tell you, he will tell you, he will tell you. and trust me that guy only helped us and ah be ahed as I mentioned Delhi NCR may seasoning your is maybe have a very good season presence. It's not a you can see up a mass market product, it's only for hotel restaurant characters and wedding descent. We are looking at the fact that we can make it.
00:26:44
Speaker
But Horika has a different, different ball to game volume altogether. It's not, he can sell her eyes. It's a little bit of great market as well. And supply, supply chain has to be, has to be strong. To what we products, we should not do products extension, we have more products in consumer brand. We should do more products in Horika.
Growth Strategies in the Horeka Sector
00:27:04
Speaker
So we launched set-ups. We We realized 90% of the good market is captured by Monin.
00:27:14
Speaker
The set up brand. So we are going to start with the following video. Let's see and get inspired from them. What is unique they are doing. We have got into that how the bartenders hold the bottles. Bartenders hold the bottles like this. They hold the bottles upside down like this on two fingers. so me juice or bottle, you know, the same type of bottle that we used to drink. So we went to to that level, we were blind, the body would have your eye to have the weight of the bottle and the shape of the bottle is that that same key people won't feel a difference. ah the tf has been per qualygan the women exactly but What we did and what extra we did, Indians have a flavor of Indian ethnicism, gulab jamun, gulab jamun drink, jeera drink.
00:28:02
Speaker
or whether such color or not. So many Indian ethnics launched here. People accepted our Indian, I think it's really, really that direct play versus a watermelon, green, apple, blue, blue, all this will be followed by that. It's all about portfolio and last year or this year or this year in March only we have launched these firstly him a chalong gri the pansari chai with a very good tagline. My general value is that the focus was again the best.
00:28:37
Speaker
and which is accepted in the market. What is the pricing, maximum pricing but should not be compromised by poverty So this is the real portfolio journey of Vansari, how we evolved, why we evolved, why people ask, what are our strategies? But i would I think it's it's all strategic move. It's sos not here. It was all decided. Next two years, we don't have any plans. I don't have plans. It's planned. We just launched T and T in general, ah you know, the consumer market. And for our case, we know. And you launched sit-ups and seasonings.
00:29:18
Speaker
Now we're gonna go deep in the market and in ah you know increase the channel base. So I'll tell you how we increase the channel base as well. fourteen fifteen that dom looks safe for ser deen yamey you know i think when the getab gias guy is in wo do people's youries dws market What we are proud to say, we have a good presence, a strong presence. Among our even companies, we have the highest amount of share with it respect to presence as well as in Delian CR. All the semi-modern trades, modern trades, all online, all modern trades, all government portals, everybody is setting up our products. And all all are in our brand. just say more for bringnew able side other brands with
00:30:00
Speaker
Delhi was our major but somehow one of our team members was shifting Delhi to Punjab. He said, I don't want to shift, I don't want to leave the company. So that was the first movie, let's see, Punjab market. And see, it's been eight years, still our channel partner is the same. youmi la ah agreement the we open a company deep point zita <unk> ra vija but no ju java and ruba logza him kagarre It's a good decent business. Tomnip, Punjab and Himachal we started. So we were happy to increase the So we lately i after corona ah i what what happened was there was a guy ah South Indian guy stuck in North India due to the transportation and everything was stopped. So through a strong reference he came to me. oh he in guatero my love you know Strong when I say
00:30:57
Speaker
with business, roby, business people or with even the persons whom we are dealing with, employees, we are team members, we have a lot of different combination of team members. When we meet, when at least I meet them, I make sure I give them proper respect and talk to them nicely as well. So this is the reference I have without any FMCG background. He was like, I was getting this much, I was getting this much, but give me one chance. But I was very clear. I was like, here, Abhi Kaan, North India, South India. I was like, if you take a stop, whatever medium you think is your expense, you take that. But that guy, what he did was, he started calling himself. And our short of two months, people were paying us 100% advance from South India where company never thought of going. And today, it's three years, our South India business is approximately
00:31:58
Speaker
4-5 crores or all in advance like a 60 crore business annually.
Market Penetration in South India
00:32:04
Speaker
100% advance we have a team of 40% that guy who joined us as a telecaller has now been slowly slowly promoted as Zoonal sales manager. So we realised when there is a will there is a wavelength without any mark but but the product worked fit was different. In north it was majorly mustard oil. In South, rice was the leading rice was a leading one. People eat rice all the three times a meal. So South is the biggest rice in the market. And we realized that in South, rice was the largest one. That's how from now, there are 10 years to South, we expanded. We realized that in doing 100% advance. In Delhi, we are doing 100% advance. In Delhi, we are doing 100% advance. In Delhi, we are doing 100% advance. In Delhi, we are doing 100% advance. In Delhi, we are doing 100% advance. In Delhi, we are doing 100% advance. In Delhi, we are doing 100% advance. In Delhi, we are doing 100% advance. In Delhi, we are doing 100% advance. In Delhi, we are doing 100% advance.
00:32:51
Speaker
But once the you know when ones up so person sends the money to us and the time he gets the product, the time was way too high, 10-7-8 days. and are number three likega four to five days car list hang other So to cut it short, what we have done, we have recently like last year, he last year only we have opened depos depots across India to go deeper in the market. Now the company has their own Deepon Hyderabad in Ahmedabad. in Calcutta, in Lucknow and also from April we will be having a deep one Mumbai as well. So now the product thing has been built, the product as its product is ready, is accepted with respect to quality pricing. Now this year's community targets will be going deeper in the market, not just north, we have opened deep one Gujarat as well, in Mumbai as well, in Hyderabad as well, in Calcutta as well and increase the team size like I would say we have doubled the team size across in year to year.
00:33:47
Speaker
sales team and zi namara how we expanded the channels. he you know how weend it janna's been Wherever you see we have different team, we have different team for general trade, we have different team for modern trade, we have different team for semi-modern trade, government, retail and now companies are tenders, DCR and only, government is not into common tenders but we are realizing A procurement is strong. We have the best of the best guys of procurement got from somebody from ITC as well. Imagine when the ITC is doing spice purchase for us. What kind of experience and the expertise they have. And at the same time, a d launchs ferieto guy one of the biggest markets is corporate gifting. The company has ended into corporate gifting as well.
00:34:35
Speaker
ah lovevi it We did it gifting in holy this time. This is the first ever time we did gifting in holy. but butra butmaan giing with die yeah We tried to explore all the channels. that he This is my personal but belief. yeahaltu wasarvo but say a strong ownerage you know it's It's very head hard sell for a premium product. For a good quality product. If you're getting an all cost and minimum premium, that is also okay for us. but to increase the reach the trade fair strategies works amazing for us and also this corporate gifting and whether we are there on d2c platforms as well all the marketplaces we have built their own app so we were there majorly on all the things and how we learned and evolved was our question as well just channel and parq and world how we learned and evolved
00:35:28
Speaker
When I joined, it was like team member of 2-3 persons and Prabh to say now it's 1000 plus. So we were like, we team's team. And slowly, slowly we build the structure. It was more, what we were keeping with more of a, you know, known person with our trust, you can, where you can build this guy as you can see, but with more trust because it was, you know, as known person.
00:35:55
Speaker
and I myself is a great, I am a virtual learner. I would say I am a great learner. If I don't learn anything, I don't know any course. That time, 2014, first of all, when I was getting married, I was like, you know, I have to give family time as well. That time was the first time we got seniors on board, you know, when I say seniors on board, more responsible people, more responsible and more senior guys. It was in 14 May, we got away and still both of them are still with us. One in marketing and one in back operations. So, I was like, this is the way I wanted to do them and the way they told me. It was not like, this is my vision, this is how I want to do it. And they told me, this is the way I want to do it. So 14 was the time, I think the milestone was that I was going to change it.
00:36:49
Speaker
We started building the team. In 2016, we got a mishapening from the past few years. And thanks to our relationship with the vendors as well, everybody supported us with respect to credit terms, machine release and supply chain. That time we realised that the team was very much bonded. Our team supported us in all possible ways. So that time the environment, the culture built us very nicely. Also, I did a course of Raul Jayanalab. I did a course of 16 with this symbol after GSD gste northern day from nor wind and there was the year of Raul Jayanalab. I did a course of Raul Jayanalab. Operation Excellence is coming out to be free from operations.
00:37:35
Speaker
So, company invested, you know, started using technology lot, we are building our own app, technology lot, keepbe inventory management systems are stronger. Imagine we have 550 SKUs, spread over 9 deep holes and with one click, you know, kzara koaal campe nama and everybody, it's it's like a flat board, everybody can see, all the sales team can see you the jack yaggy what is the inventory.
Post-COVID Focus on Technology and Team Building
00:38:01
Speaker
ah you know So, that time it was all good.
00:38:07
Speaker
So after Raujan operations was sorted and we were going towards building sales and brand sales and this branding. So in COVID time, when we were, you know, sitting at home, read few books and I read a course on branding. So it was online course. I read a course on branding from brand of desire is a good marketing company. So I read a post with them and realized there is too much to do in marketing. Imagine an FMCG company and marketing department. The girl. the girl but She is still with us. So, FMCG company and a marketing department, there's only one person. So, there's a lot of need of professional people.
00:38:48
Speaker
he sort of ah I won't say that we were responsible for this, but there was a need for professional people. so From 2021-24, you will see that we a proper HR system, all the SOPs were made. Now in marketing, we have 12% team and aggressive team. The marketing has said so far aggressive team. We have 9 ideas and 9 ideas. Your product development may be, you want to start your business at combat. So much to all now we thought of, we focus on getting professionals and professionals with a family mindset. So imagine he e culture of aboutja reggi people used to call me Bhaiya, Bhaiya, Bhaiya, you know, and with that mindset and getting professionals on board. But I think it's it's major of the communication. If you do a proper communication with your team,
00:39:43
Speaker
and you you listen to them, you talk to them, everything is aligned. My love Abhi, if I talk about professionals, they are the best. If I have a finance guy, he's a rank holder CA. Imagine a company having a finance head, a rank holder CA, a marketing lady who is 14 years into experience and total aggressive and a purchase ground from ITC. a development person who is totally finicky with respect to the development, develop many things and it was a shock but you know somebody is super passionate packaging guy so I got the best of the best but the who who are in their field definitely has to be better than me yeah so this is the you know see you can say success mantra we got in Bansari
00:40:35
Speaker
As I mentioned I do a lot of courses. There is a motivational speaker who said that if you want to go far you have to go in team. If you want to go fast you have to work in the room.
00:40:49
Speaker
so but i was there's a people i think charullo by doing this us me or rorima like he said This is not i'm not aligned. If you want to go fast you have to go fast.
00:41:03
Speaker
I can't be here, I can't be here, I can't be here, I can't be here, I can't be here, I can't be here, I can't be here, I can't be here, I can't be here, I can't be here, I can't be here, I can't be here, I can't be here, I can't be here, I can't be here, I can't be here, I can't be here, I can't be here, I can't be here, I can't be here, I can't be here, I can't be here, I can't be here, I can't be here, I can't be here, I can't be here, I can't be here, I can't be here, I can't be here, I can't be here, I can't be here, I can't be here, I can't be here, I can't be here, I can't be here, I can't be here, I can't be A node spanner would say a company invests a here, I can lot of money, a lot of time on trainings and trainings. Basic trainings.
00:41:39
Speaker
A mindset training is a different leadership training. How stress, how to open your mind. But i all those, what are the leaders doing? Training from somebody who's training in IAM as well. You know, those kind of trainers. I want to understand more about profit margins. A lot of your story was about how to get more profit margins. So you're saying that the rice, oil, may profit margins come in, ah unless you do differentiation. So just help me understand, what is the and the products?
00:42:12
Speaker
ah to wo yeah extra che order so a product let just say ajata profitableable ah and or yeah categoryka likeries no so you can tell me category wise oil lata and first thing is oil, first thing is oil just yeah as I mentioned here we have launched a different brand of premium oils as well so what we did was we launched cold press oils which gives extra flavors, cold press is basically a process in which you have fed the oil in the room temperature below 25 degree temperature this can that you can say more nutrition is there and more flavor come
00:42:47
Speaker
And we realize that you know demand of cold-pressed soil or demand of premium cooking oils works still in India and it's a bigger demand than a generic one, with a less competitive space. So that's how I focused on oil margins and even with the respect to the general mass product, Pansari, Gobi and Golan and Raghu. You know, the consistency of the checklist we have from procurement of seeds to processing of seeds to packaging a bottle, the checklist is a big one. the teachers go blame me with You say you're consistent enough that there is no quality consequence of for complaints and if you build that trust over a rule period of time, so you get that primamism. And with respect to rice,
00:43:30
Speaker
ah There are only few brands who are doing fortified rice to go oil, even though many brands are doing fortification. It's like adding vitamins and minerals. But with is with respect to rice, we are amongst the few, amongst the problems, the only one we have amongst the few would be fortification of the rice. What is the process like? and In every 100 grains, you have to add one grain. with it which is made of minerals and vitamins. This is things which we have incorporated to stand out from the crowd. or Obviously, the packaging, the designing works and as I mentioned, we get we get the packaging and designings done from the experts only. It's not the expert with the blend of reow steam in zira but can'll give it the experts only. And floor as well, we maintain the, in other floors, you'll see the moisture of
00:44:20
Speaker
yeah know matraing ba and fourteen bus ten our flo is maximist den den our person moher so once the per people once somebody uses in understand it's little di other love many bun obviously while she is they will but that they will absorb more water them than always a kiatta So this is the product differentiation we have made in Literally, all the categories are gone. Although, I told you about the commodity, same with the whole spices, we have ETU plant as well. But in India, ah people brand... What is ETU? ETU plant. It's basically to kill the jumps, it's majorly used for exports of spices. In India, it would...
00:45:00
Speaker
My concern was that we have that technology as well, but we can let the flavour suppress all that. Instead of suppressing the flavour, going through treatment, it's just like a fumigation, you know, put the chemicals in, across and, you know, sort of chemicals can flame, see. You know, harmful, you know, you can kill them, but it will seem to obviously, when you kill the harmful things, the flavour, you'll have the loss of flavour as well. So, you know, how, what, what, what are possibility is thing is possible with respect to product technologies. We do call the measures. Going forward. the system
00:45:40
Speaker
and ramadi and we don't want to go loose in the chamber double bell chamber yeah staples staalties So it's, you know, it's not, I would say it's a mindset. It's a mindset. If there is a, if there's a market of only, uh, you know, unhealthy product or You can say, we are not a good quality product. We won't get into it. It's a mindset. Basically, we are clear on whatever we are giving. We are giving with confidence. And yes, we want to promote that it is very healthy. Packaging may be, product quality is our ease of packaging. We are amongst few. We realize that it is not opened in one and consumed in a single go. It is not opened in one and You must be consumed in a single go. American consumer. We have to merit floors as well. It's all ziploc. They don't want to, you know, empty one of the containers.
00:46:39
Speaker
You have to use it to either use it or you have to store it. You have to use it to either use it to either use it or you have to store it to either use it to either use it or you have to store it to either use it to either use it or you have to store it to either use it to either use it to either use it or you have to store it to either use it to either use it or you have to store it to either use it to either use it or you have to store it to either use it to either use it to either use it to either use it to either use it to either use it to either use it to either use it to either use it to either use it to either use it to either use it to either use it to either use it to either use it to either use it to either use it to either use it to either use it to either use it to either use it to either use it to either use it to either use it to either use it to either use it to either use it to either use it to either use And now we are building a tech tech as well. All our sales team is ordering on a PHP-based app.
00:47:19
Speaker
my when i ask ah quoing ticket ah user really haven going forwarders can order their in their own meantime imagine butrabu yeah raji is even the mubi or livelu And will see all the processes. to complete Just say, you know, value-addition is standing out in the process, in the technology, in the bar product, in the packaging. but bye mother i'm i all the all that i i say I'm blessed to have the strong team. So this is like a new store. Now, this year as we have planned, we're not focusing on introducing new technology, but at the same time, this year we'll work on getting category managers. see we number portfolio gas if We have a category manager here.
00:48:04
Speaker
A sales ad is a different thing, but a category manager is the front line person for different channels. While the category manager is the single category is book iki here only, he will take care of the You can the partners or the example from the bigger companies. And a category manager will be responsible for those categories, pricing, packaging, promotion. Yes, majorly overall PNN at the same time sees this as well. He, because of the demand for a general trade consumer, a general trade channel will be much different from the modern trade, will be different from the hotel, Harika range, the hotel, four service one, will be different from the
00:48:49
Speaker
the corporate gifting one. So he has to see what is the, you know, if he's only focused for T. So yeah, they work on those things. I think usually if I'm i'm taking you up as a category manager for all the things, but at least I'm taking your category manager's table only. But T, you know, then it makes those end-to-end skills, make your category manager's choices by your skill level. So now going forward, they see work on, but you know, those strategies, how to go further deep dive into the market, the penetration. Even recently, even in the south, people want chicken masala with a Murga photo on it, chicken connet. So this is the original thing, they want a regional language, regional packaging.
00:49:33
Speaker
so Okay. Interesting. Interesting. Interesting. Okay. And you're talking of how good products work. Like some products are sold on cash basis. We were never in the favor of those things. So I would say, that's a different market. um ne was mu with volba zini ga what but but You have to have a clear focus, vision, teaching. If I want to impress everybody, I won't impress anybody. So I think this is the market, I think it is across India, there is no market. But people don't know about them. This is unbranded products basically. Unbranded products.
00:50:18
Speaker
onekavo qua neighbour but These days now, tier 1, tier 2, tier 3 cities even smaller, they want a packet one. Our government, her websites, our social groups, companies like us also can approach them and we can to educate them. What is the difference between a non-branded and a branded one? And I think When we launched Aata and Rice, thanks to Modiji government, what they did was, they did brandy-norm-ready-to-techs. They did brandy-to-techs 5% and norm-ready-to-techs 0%.
Impact of GST on Sales Strategies
00:50:59
Speaker
So, mind you, brandy-to-techs will be expensive 5% automatically.
00:51:04
Speaker
If you have teens, other companies, they sold a brand new brand name and I will text zero as a TT. I think you are right. If you don't have a brand register, what government came up with a brand register, then it means anybody can copy your design and you don't have any claim on it. but say negatives that yeah but They many smaller players. They kept considering atta ah you know i on zero GST. But again, thanks to the government, they kept on selling rice on zero GST. But again, thanks to the government, say below, so you will be counted as a text, not brand job un branded. So now, this is Apple to Apple. You know, you are selling a packet, showing me a brand registered name, but that is, our sales has increased tremendously after that. So but I will thank the government as well. I think, jubi water is search nateam like imi butlu of turkey cabinet yeah but if you go deep, I will do it. It's for masses only.
00:52:24
Speaker
Okay. Okay. Understood. And, uh, brands, create cases spices, create, create, create for the ready to, uh, ready to cook range. So, uh, why, uh, why not just make one brand, uh, because how brand could create correctke you'll have to have marketing spend on it? They are very right. Uh, But, if you talk about the world, where the science comes from. For starting, we were doing only police tables. So, Pansari was working. I got my premium card. Obviously, people won't understand the premium product from Bazzari. It was like, what is the difference between a Camry and a Lexus? Only the outlook for it was the same. The average is the same. So, this was clearly premium.
00:53:22
Speaker
But then I realised that every category, every category has their own identity. If you talk about any brand, if you talk about any brand, you only listen to oil, but you don't listen to business, you listen to fortune. If you say fortune is only oil, you listen to it, you listen to it. This category miss is just mineral water. But this category has number of rescues, amulets. Amulets have over 1000 rescues but even we only know amulets milk. We don't know which chips we have.
00:54:02
Speaker
So, this is the science we realise from our partners, the brand of desire. yeah got make but it should be but If you want to be be that that big company, you have to be your basic creator. ah la kati really a likehi brando Brand extension works a little bit. I won't say it doesn't work, we can play with brand extension. And as you mentioned, yes, marketing costs are low, business costs are low. But the brands lay but brands in't p ah standingning english normany vica you name whichlaney know like with to do with a brand new venture. But again, they realize that a lot of it, now they have repacked it and earned another brand of pastas. But again, pastas is the known for based on it. It's going to be hard to create that, create that awareness. Though, long term,
00:54:55
Speaker
I think a different brand was needed and also in future if you want to create brands, if you want to sell one of the brands and on the output, you can do that as well. but Creating a different brand value for each brand. Okay, okay, okay. okay ah Like Unilever does this a lot, like they keep buying brands and selling brands. based on which brand is growing, which is not growing. So that is your strategy here. Okay. Interesting. Interesting. Okay. Uh, but, uh, for a small company, uh, one of this is harder to do now. It will take you longer, uh, to build each brand up and, uh, investment also like will, it'll take you longer to, because you can't invest a lot of money. You have a limited budget to therefore time will be more important. You know, you're very right and it is creating a lot of questions from the sales team as well. hecuzarija the other thing he says in the roul andjati kunzari this was raul linjate My love brand extension is very much required to go technically as there is a book of Unilever as well as the singing factory. They also talk about the brand extension, where it feels, where it works. So we have kept as a commodity, it works. But for value,
00:56:08
Speaker
Though my team is not not that aligned, I would say. But we are working on it, how to make sure that we are bundling with Pansari products from baha open sa but cha barrota but she me ba baing and dealing howma are with that but power only estate of the holding and holding his rads with Pansari.
00:56:32
Speaker
Yes, we are very redwood. Now we focus on time. This year, since we have created category managers, ah you want a branding d make so would we have a We have for position for brands, but if you want to make it a bigger one, if you just want a brand presence, if you just want a category presence, you can do it with ah any any brand, but if you really want to compete with the leaders, you should have a separate habit. This is our thing, and be prepared.
00:57:08
Speaker
and the court mother you other for you mar yeah E-N-G, I would say, even Dabar is a lot of brands. Why do you want to learn from somebody who's not able to do it? And even Saphola, I should be Saphola here and Saphola is Saphola here. Michael. I think Nestle does this well. no like Nestle has like chocolate baby Kit Kat as a brand hair but it's like Nestle Kit Kat. They have ah like milk also and they have Maggie also, the whole Maggie age.
00:57:40
Speaker
nor be a mother and in sun live motherly ah bigger companies are gonna bigger go into you know that extension and this brand extension is different, brand category is different. So, as I mentioned earlier, I did a branding marketing was that time I realised that yes, this is a need and you are very very expensive but there is no other option. Either you don't do it or if you are into it, do it properly. yeah but um beeniding and izi and got li our mil ah littleur i was a go ruy and zarina jaal
00:58:12
Speaker
and i'm green den is caral that's like here expansion gradually but that doesn't mean you understand that okay Okay, understood. Okay, so what is the ah different Channel-wise profitability, mill a week as i say up <unk>tors kthru bitro which is called general trade of distributors, wholesalers, and then retailers. Modern trade, which is like, say, Reliance and Demart and these. And then there is online, like, quick-commerce, groupers, and Zepto and all. In my profitability, what's the difference? ah
00:58:50
Speaker
In my profitability, may there's not much difference. People say modern day for the system. I think it's it's not different at all. number But the term time is different. Then generate the money rotates very fast. Money rotates like advanced payment, maximum 7 days. Money rotates very fast at the same time. You can't dictate your term to modern day. They will have their own payment such as the demand doesn't 5 days, thumb doesn't 15 days, 30 days. but So and obviously a person giving us 7 days will enjoy the cash discount and more than they do do have this option of not enjoying the cash, but the they can enjoy the more cash discount, but it's entirely up to their recall. So I wouldn't say profitability is a different way and government works differently, you know, how the licensing works, how the, they have a two months premium cycle payment. So and it's all managed with respect to.
00:59:40
Speaker
return um investment Government procurement is for like say the government run canteens so or like ah so ah for government we are doing government retails of police canteens that is 2,500 police canteens across India then army is CSD but Indian Navy he then Kendra Bandar then let me be a second I'm say Tamil Nadu police so as I mentioned our focus is there and as a and different team who's working with them working for them So, obviously, and they compare the prices of generate rate as well. Modern rate also will check the prices of keep going commerce and everybody. So, it's very hard to give a different pricing to everybody. Either you have a different product, but it's majorly defined by the how how fast your money is rotating.
01:00:30
Speaker
Anytime moderate is a bigger one, you can you see moderate as a growing one, so you end up spending more for display for presence in the building a brand, and generally it is high on volume, so there isn't much of the expenses in all. Okay, okay. And what about quick commerce? Graphers in Zepto and all. We treat them like modern day, whether they buy and sell. They only work majorly for services. I won't take it. They give us any premium, but yes, they they have sales. A generated distributor will be as big as the one crore, two crores a month. And it will do five crores a month for us. Majorly,
01:01:12
Speaker
If they have the volumes, they will try to dictate their terms. And we need to be strong enough to negotiate what is the best possibility for win-win for both of them. Both of us, I would say. We think about this as a brand, but we don't think about our general partner. It won't work. And the same type of blanket is where any general partner. and As you mentioned, the kind of relations we have, it's not just a relation. you are if you are If they are making money out of your product, they will listen to you, as simple as that. If they are not making any money, they don't get any money. Hundreds of brands, they are but they're not doing everything possible to get on blanket zaps. So, we can't have this loophole in the service that they are going to extravising. Because if you have not just, you have more money, even for the government stores. Only the marketing strategy is different.
01:02:00
Speaker
In the online web, quick commerce, you have to have, you know, buy, you know, banners, SEOs, for general rate, maybe holdings work better, or in-shop branding does good, good. For government, yes, in-shop branding and majorly, correct SKUs. Because these days the space in Gelatry and Modern even the quick commas, they have dark stores. They will only keep you of view if you are in the category for top 2 or top 4. If you are below top 4, whether they will throw you out very simply. If you have any sales in the car though, whether we are just giving you the platform.
01:02:36
Speaker
Quick commerce made, they they buy it from you and then they sell it further? their on Yes, they buy it from us and then they sell it. That's a quick commerce in the marketplaces. Company decides like we are doing the credit store as well. flip carga is an oh yeah So in in all those marketplaces, we decide the pricing and we want to see if you want to burn the money or not in the D2C. But in good commerce, they buy-in. But at the same time, they look for the commitments. ski mithi ajahi but they know you What are the strategies behind it? Our team and their team make a plan all together. What is the concept in which we are going? In regional-wise, what is the concept behind it? It's a lot of study but little behind it. What is the SCU? It's a lot of study behind it.
01:03:20
Speaker
And you also have to invest in marketing. But if you're working with the commerce, they expect to be online advertising. 100% 100%. It's lucky days days like given you this see this amount of space. I think on it and very practical, it's very honest. Like if we go to them here, now we have launched, please keep it. Why would I keep it? I'm already happy sharing other brands. What is the difference? Either give me more margin or give me more sales. So for extra sales, what as a brand you are doing? For extra margin as a brand, what are you doing?
01:03:57
Speaker
The only thing, a modern trade, they give you the platform but at the end of the day, it's brand, equal responsibility to make money for them. They generate money when the shopkeepers will only keep the so fast-moving or other evenings of marketing activity. yeah was standing got but eight years myum awarenesscar So it's like a 360-day one.
Challenges in Modern Trade and Financial Negotiations
01:04:24
Speaker
but comma's modernrate you And I'm totally aligned with the family. And there was a moderate degree I did. So I was requesting them to keep my rice and what they offered me was like, why don't know me seven legs kaicta I And So you asked the one debit note. And it was like, he does laka business muji up I business guy means i only seventy thousand um mean ila bananga thought i um but but of that clearity and i was very happy with that very and now and brand just civil dig care he's right he's giving us space and you ru yourself do whatever marketing strategy going to do talk to them and it it
01:05:17
Speaker
I don't know what it is, I don't know what it is, I don't know what it is, I don't know what it is, I orbiji we what yeah just me don't Yeah, just like in modern trade, you have to sell products across all their stores. so Then, how do you ensure that you sell through holdings and banners and all? Holdings, banners, promoters, we will have in-shop promoters. We will do the outside activities in different groups. kmara groups available whether We do all the marketing for them as well. and Now, it's as a responsibility, it happened with lots of people.
01:05:52
Speaker
but give my un city lay I give you a chance, but only if you are okay to take up this channel just as a challenge. And I think I was very much aligned with the business. that I would be here to replace the business. But I think the rest of the business will do it. giving this space to a brand is also a, you know, it's a daring step. It's a big step, or we want to with other brands, just a little more competitive. But as a brand or as a company, we in a proper bar way. but We have an expert team, we have all the dates, we have Indian primary, secondary, or
01:06:42
Speaker
customers consumer insights time of buy yeah that end we on those things as well ah jackki data appkibas are there Do you have a general trade with the distributor? Do you have data? I don't know, I don't know, I don't know, I don't know, I don't know, I don't know, I don't know, I don't know, I don't know, I don't know, I don't know, I don't know, I don't customers and consumer insights, time of buy. If you take the example, he is getting to say 300 to 400 shops. So that kind of data is going to know. be proper inside.
01:07:28
Speaker
Data apps are distributed with platform use? It's companies, secondary apps, field, sales, etc. So that is field-assisted, M-assisted, Bizom, and there are four or five apps in the industry. But we are building our own app. We have primary orders, primary orders. But going forward, we will have an order manager for retailers as well. is me They can see last time, they can see the frequency of last time. And there is a case-free patient painting. They know that once they have painted, they have to shop. So if it's possible for them, it's possible for us as well. It's how to maintain things and how to be data-driven to be going forward. It's all about data-driven.
01:08:17
Speaker
yeah the more you have the consumer aside and the more you work on it, the more strategy you can make. But that link also works as much as time, but the proof of purchase is very much important to evaluate the company.
Strategies for Launching New Products
01:08:32
Speaker
Okay. ah how How does your new product development happen? When you have a child launch process, you have to get data from your child and then you have to do that. People ask me why I don't know why I don't know why I don't know why I don't know why I don't know why I don't know why I don't know why I don't know why I don't know why I don't know why I don't know why I don't know why I don't know why I don't know why I don't know why I don't know why I don't know why I don't know why I don't know why I don't know why I don't know why I don't know why I don't know why I don't know why I don't know why I don't know why I don't know why I don't know why I don't know why I don't know why I don't know why I don't know why I don't know why I don't know why I don't know why I don't know why I don't know why I don't know why I don't know why I don't know why I don't know why I don't know why I don't know why I don't First thing, we saw that in the channel, know why it was the same thing. Tea can be catered to all the channels we are doing. We are doing modern day, general day, Horeka Iwan. So, every channel can do tea. India is one of the biggest thing, Porto for Tea. We have seen a lot of it. So, we see that as a fit in one side, we can majorly catered to back them channels and break them first day. And yes, we have seen a lot of tea, we have seen a lot of it, we have seen a lot of it.
01:09:41
Speaker
So the vision of the team and vision of the company has to be aligned key. What is his expectation? What is our expectations? It was clear. And I would say in India, India is the biggest market vote tea for any any brand, for any to largest population and tea level. The market was, market size also defines, you get the number of market sizes, though it's region specific. So regional wise it's different, but it's a bigger market. So we see the, how potential is the market, how we can get into it. What is the competition doing? How can we differentiate from the competition? They say in North Tata was the only leader, but Vaabhadri took
01:10:27
Speaker
good market share, but there are different quadrants of tea. Somebody from West did marketing in North and did a good market share in North. There is lot can be done. So we talked to the team member before we do it and we take their advices and then we tea market size and all. That's how we define it. he talking her name But ah in the decision of DAL vs T, the reason to choose T is because profit ah the gross profit is higher in T as compared to DAL. Gross profit is higher and the market size is again bigger. but And you say Pulses... You say DAL with the market size is bigger. But ah what were with respect to Pulses is majorly brands. Dry item, do they try to do it travel level. T majorly, they try to do it travel level.
01:11:18
Speaker
Variety of pulses is very huge. But you know, egg pulses, if it's, the variety of tea is also very huge. But tea was more lucrative with respect to all the channels. You know, green tea tips, shelters, hotels, restaurants. I don't take milk. No coffee, no tea. But green tea, I love green tea. So, I don't drink green tea. There are a few restaurants we are giving the green tea example at the cost of 10 to 15 rupees per piece and they are selling it at the cost of 300 rupees the same thing because they are giving the experience. Obviously, it's not just the cost of the tea, it's the cost of the year is experience, the aura. But the quality of tea if you go to any fine dining restaurant, it's missing.
01:12:04
Speaker
but you You can have a good green tea in airlines, you can give a green tea in 5 stars. You know, rose flavour, green tea, mint flavour, green tea, fish. So that's, you know, market risk gap as well. But if you talk about, say, pulses, it's measurable. You can't do a value addition over there. You can't do something unique. So we see he what what else we can do. But other than market size, there's no scope.
01:12:31
Speaker
okay All this parameters make checklist every all those parameters we study before we talk about the there are there have been Incidences job nice watch out how many current dropped or? Maybe one of the incident we were killed We launched a pasta and we tried him logo wouldn't do room with how do room with how do room with guy? But Indian consumer clear and that's really magazine, but it was you in here Why do you want a I think you can compete with them. Interesting. We don't Now once you decide how to make a product launch, what is your team's packaging? What happens after you decide you want to launch? First of all, when we decide the product launch, then we get a first delivery team. For example, who will be heading this project and under have that. his team, the backend, the processes, everything is managed and how all the competition study, we talk to a lot of competitors as well. We meet
01:13:38
Speaker
lot of people in the industry, get their insights, talk to people. and notcuba As I mentioned, we give it to Malabdo, our team also are confident enough that they have all the major data, but then we give it to the expert. We want to do this project and they will show give us the viability with respect to market size, what other brands are doing, they'll do all the market size, primary, secondary, whatever is needed. There's like a consultant you will hire. We have Hamarabas, what types of A.K.E., brand of desire. three chi and but It's a decent, good company based out of Delhi only. They do and like market research and they tell you, why will it kiss price? pi on it for not a year and All of that they will tell you. Prizes, I think they will tell you.
01:14:25
Speaker
rising be here But it seems like, it's it's like, you know, parallel, not just, my love gear and then they do talk to our team, our sales channel, they study our sales channel as well. har And they talk to our dealers, our recruiters as well and our team as well. And I think it's it's like a hand on hand, their team and our team work together. And finally, we come to our validation, our final Malab. blueprint that this is what we are expecting, and this is doable or not. So yeah, but but this is okay an expert, as ah as I mentioned, obviously experts are experts, whether you want, but the owner's driven company tends to do most of the things by himself only. But if the fact is that it's much needed, way cheaper than doing it yourself.
01:15:15
Speaker
Do my team at times is taking much longer and whether we attend or factory is involved too. Okay. And how would the packaging work? Our designing team with their design team will obviously first cut, will tell you will know what is expected and has to be stand out and all those things. So yeah, we work together. There has been chances that people say in AMF product image, whatever, they brand black or not. But they say put your protocols. Yeah, you know, so protocols, they fix new format thing. Name has to be clear, clearly visible, you know. Image could never have been in any other colors and all those brand names. They have best practices. Best track. Fairly with us there, we have a number of devices first. Just see the logo. Yeah.
01:16:06
Speaker
has the catling it those korea b brand one when it teach jagar you see things to yeah have italy agl major i was a did and a teach ah but the gender and the brand name has to be short and clear Even the taglines But imagine for Pansari Chai we have Pansari Chai is called Hojai, you know? Because this is the emotion which grows with Thi or Hojai. I think that's been given by our family, even my wife, is infused wellness with joy and greed.
01:16:43
Speaker
but um Each word has to, has to, has some um meaningful conversation with respect to brand. i seniorium ne webi bo over now shaa mewaju and and the bm board resident ah drop of cru So, you know, it has been, yes, it has, I would say, it's a joint effort by our our team and our partner as well. And we came out really nice. but but yes i beeny they dont live it has been company or there there has been team go your bosses willing you
01:17:15
Speaker
but here the thing is keep listen to them and they listen to us and packaging also but the video to
01:17:24
Speaker
Okay, my last question to you. So what is the difference of being a Being an entrepreneur in a family business versus being a first-generation entrepreneur.
Managing a Family Business: Trust and Roles
01:17:36
Speaker
For example, we could start to accept it purely from scratch instead of joining the family business in a different scale. How does an entrepreneur in a family business think? What is their approach towards building the business?
01:17:51
Speaker
ah I would say that I am blessed to have such a family. key rene bora or boness vidi um yeah i worked like a you know he first stage on only That is very much required. The way they have shown trust and confidence in me, same thing I think I have shown that trust and confidence in my team as well. so ye confidenceance on an aca here per we you want but do is this but them that is very much required but make family may
01:18:21
Speaker
internet challenges me i but yeah ru i won't say it make a bi need to but i see my friends didn't get basis and maybe whats yeah it's all on gion my love with playy if i figure also So they are with me or if i do well as well there with me so this this kind of but atmosphere which they have created as family values, I am glad to have this thing. yeah sort of and raic who gay risk taking up But the same time, you have to have you know corporate the governance. withliium term go kiba They do corporate governance and they will audit us and they will guide us. Obviously, experience definitely counts. And again, as a majiki I mentioned, I have that free hand.
01:19:05
Speaker
he having the biggest toll in our world, it takes a lot of money and lot of time to present on that. children because you will agree yeah and' the mess up but the word is out So, brand value is very tough, both they are more emotionally attached. But thanks to the e ecosystem across across vo gro yeah would set up sharping the cb article with the hairkaak can new innovation on yeah And people are listening to the brand valuation and you see that is you we will navigat doing youando but i and i know best i'm gonna go love but urban currently but they tell me at the But if you see the other companies,
01:19:54
Speaker
i think youto a correctionally easyy habit but Now it's been almost 10 years or 10 years. So now they have trusted me and I think it should be fine. It should be fine. I think this is I would say this is the last question is here the most important question. How to deal with it? I think people are listening to it. If you are involved in family, the roles and responsibilities has to be clearly defined. But it's not like he undisturbed his employment.
01:20:26
Speaker
The roles and responsibilities have to be defined within the team as well. Somebody is taking care of procurement, so I won't get into it without him. I'll ask him if he can cast it as well. If I am leading Kansari as a brand, I have that openness or authority to lead it. They can guide me, they can advise me, but the final will be, it's yours, you decided how to do it. um be thank you so much for your time chami
01:20:57
Speaker
thank thank you suza thank you
01:21:17
Speaker
Amazing.
01:21:22
Speaker
Thank you so much for your time, Shami. Thank you. Thank you.