Shyam Sundar embarked on an entrepreneurial journey after being employed as the head of IT in a firm. With a vision to create a brand in the spice industry, he started planning for his venture in 2019-20. Despite facing challenges, including the Covid-19 pandemic, Sundar launched his spices company – North Gold Spices in 2020. He also quit his job to focus completely on growing his fledgling business. As a Micro, Small, and Medium Enterprise (MSME) startup, the government offered them substantial assistance. Through the Pradhan Mantri Mudra Yojna scheme, the brand received a 25% rebate and a loan worth ₹10 lakhs. However, they encountered challenges when traders and wholesalers demanded higher margins offline. To overcome this hurdle, the brand turned to Flipkart’s B2B platform, which enabled them to efficiently sell commodities in bulk. This strategic move allowed them to streamline their operations and improve profitability. In 2021, North Gold Spices joined the Walmart Vriddhi programme, which played a vital role in their business growth. Despite a slow first year, the guidance and knowledge imparted by Vriddhi resulted in close to Rs. 1 crore in revenue in FY 2021-22. With a plan to foray into spices export in the next financial year, North Gold Spices aims to expand its market internationally as well. A helping hand from Walmart Vriddhi and Flipkart has helped this former IT head in unfurling his entrepreneurial wings.
We talked to him about the company’s strategic moves to overcome challenges, among other things. Here are edited excerpts:
Can you tell us more about the challenges faced in launching North Gold Spices and how did you overcome them?
We faced a number of obstacles, including the Covid-19 pandemic during our launch phase at North Gold Spices. We overcame these challenges, however, through perseverance and strategic decisions. One of the primary problems was the demand for bigger margins in offline wholesale and bulk sales through our traditional channels, which made us take the decision to utilize Flipkart’s B2B platform. This decision enabled us to sell goods in bulk and directly to customers, allowing us to streamline our operations and increase profitability.
How did the Pradhan Mantri Mudra Yojna scheme and the government’s assistance contribute to the growth of North Gold Spices as a Micro, Small, and Medium Enterprise (MSME) startup?
The Pradhan Mantri Mudra Yojna scheme and government support were critical in the success of North Gold Spices as an MSME company. We obtained a 25% rebate and a loan of Rs.10 lakhs through the plan. This assistance provided us with tessential financial backing as well as a solid basis for our future growth. We were able to invest in infrastructure, purchase raw materials, and expand operations, thanks to financial help. It also aided us in managing our working capital needs and extending our market presence.
Can you elaborate on the strategic moves by North Gold Spices to overcome challenges in wholesale and bulk sales? How did this decision streamline your operations and improve profitability?
North Gold Spices joined the Walmart Vriddhi programme in 2021, which was critical to our company’s success. We learned a lot about inventory management, branding, marketing, sales improvement techniques, and production elements from the training. It pushed us to take on wholesale and bulk operations, and Vriddhi’s personal mentoring helped us achieve a competitive edge in the industry. The guidance and knowledge imparted by the training resulted in achieving close to Rs.1 crore in revenue in FY 2021-22.
What are North Gold Spices’ plans for future expansion? How do you envision leveraging your online presence to achieve these goals?
North Gold Spices has significant expansion ambitions for the future. We hope to expand our portfolio beyond ground spice powders by introducing branded whole spices. This change will enable us to cater to a greater spectrum of consumer preferences while also expanding our product choices. In addition, we are looking at B2B collaborations with hotels and catering businesses, through which we will be able to access additional distribution channels and reach a larger customer base.
North Gold Spices also intends to expand into spice exports in the coming fiscal year. We want to build a significant national and international presence in the spice sector by efficiently utilising online marketplaces and digital platforms.