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Hari kiran
Insight guru • 11m
The idea seems like a workable model. However, the raw spice is more of a commoditized product. The problem with such models is the margin. Creating a brand out of this is a mammoth task and with all the backward integration, it may seem like the margins would improve but I think it would get more complicated. If you can think in the lines of creating a business vertical at each nodal point it would be more beneficial. For eg, with your own lands, a part of the land can be used for contract farming and supplying the yield to other spice manufacturers. A part of your manufacturing can create a white label for other dealers . Simultaneously , a part of everything can be used for your own brand. This is an age old technique many businesses in other sectors which created a backward & forward integration of their own were following. For this type of model, a robust dedicated team at each vertical should be prepared prior hand . And going forward , as a owner you should be able to identify which vertical is doing more and double down on that rather than trying to maximize focus on everything. Idea of creating a brand is always lucrative but there are thousands of businesses which got destroyed in pursuing it. This is my personal opinion.
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