Wednesday, May 27, 2009

If you can’t offer competitive prices, you can not have an edge in the global market.

The Most Revolutionary Concept In Education PLANMAN CHE CENTRE FOR HIGHER EDUCATION, Supported by IIPM India’s Leading B-School

“we do have an edge”

B&E: What does food processing industry has in store for the Indian economy? PLK: Although the food processing industry is perceived to be a small scale industry, it is the only industry which has grown more than 15% on an average during the last three months and this is the period when the ongoing slowdown seems to have affected the Indian economy.

B&E: But, don’t we still process just 2% of the country’s annual production? PLK: Yes, compared to what we produce, we have not been able to process to that extent. At least 30% of our agri-production is wasted due to our inability to preserve and process. But we have abundant opportunity because, unlike other countries, we have our own production of fruits and vegetables.

B&E: So, what holds us back when it comes to capitalise on our agri-products and livestocks? PLK: Logistics and cold chains are definitely two major bottlenecks, which often stops a small scale entrepreneur from export. Then there are the multiple laws and sales taxes that varies from state to state and often force manufacturers to charge a higher cost on the finished product in the market. If you can’t offer competitive prices, you can not have an edge in the global market.

B&E: Where does India stands vis-à-vis Malaysia & China? PLK: The wide variety of land and climate enable us to harvest regular crops and then there are unique products like asparagus. Moreover, we are also organic by nature. These features definitely give us an edge over these countries.


For more articles, Click on IIPM Article.
Source :
IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and
Arindam Chaudhuri (Renowned Management Guru and Economist).


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