I didn’t understand why Priti’s margin should be less than its suppliers. Supplier is in a commodity business. Priti is selling finished goods b2b and b2c (online and retail outlets). Increase in B2C should only increase the overall margins.
What I see as a major differentiator between Priti and competitors is their ability to execute. Priti started in around 2007 and made its way in an area where differentiation is really difficult and where there were established players.
Also, handicraft products – They have handicraft products in their product mix. This segment is labour intensive and fixed assets are not required.
Rajasthan has a lot of companies which are in wooden handicraft business but most of them are not listed. Handicraft is a hit or miss business. Its about securing good buyers in Europe or America.
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