Thank you, @Parakh
The product mix is clear & easy to understand. It’s a blend of a Maggie Noodles, Balaji Wafers, and Haldiram Namkeen, if you may.
The positives that I see are:
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Built distribution in the East, where no one else has been successful. IF they’ve addressed this unaddressable market, and captured it, then the’ve planted the flag where others haven’t and may not even try to.
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Size - due to their comparatively smaller size, they’re quicker in implementing changes and taking decisions.
Major challenges:
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Product Mix: They aren’t namkeen only, noodles only, chips only, and moving forward, Chinese foods, breads, juices & drinks only. This is like Maggie launching a Chings sauce, or Chings launching a Haldiram namkeen, or Haldiram getting into Paper Boat Juices. They’re all of this. Are they spreading themselves too thin?
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Advertising: As they venture into organised & controlled markets, they’re up against the big boys. ATL/BTL and all the other retail jargon will come into play. They cannot out-advertise, they cannot out-distribute in these areas, so how they get an edge remains to be learned. And, they have to do this across multiple product verticals.
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E-commerce: I read that they’re also focusing on D2C with Amazon / Flipkart. Is this smart or a distraction, given the tall task they’ve setup for themselves?
I like the underdog story, and root for it, but is this biting a lot more than they can chew?
They will need to raise a LOT of funds. Will need a clear product introduction strategy (cannot bring in bread + juice + Chinese, etc etc all together), will need team divisions and/or clear milestone based plans regarding e-comm/retail, and they will need some celebrity brand ambassadors who will help establish a footing in the controlled markets.
Having said this, they’ve raised funds from some astute and visionary early-stage investors. Ajay Upadhyay is no rookie, and no fool.
So, there must be something cooking that public shareholders are not privy to, as yet?
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