Big opportunities in a small side-dish

Sarvesh Mauzekar and Viddesh Ghure chose to give up their corporate jobs in Bengaluru and return to Goa to have their own start up and now plan to revolutionise the food business in Goa

| JULY 13, 2018, 02:35 AM IST

When one possesses the spirit of entrepreneurship, (or more aptly, when one is possessed by that spirit,) one tends to value risk and growth rather than the uneventful stability of a job. Young entrepreneur Sarvesh Mauzekar also went the same way. “My partner Viddesh Ghure and I were working at the same office in Bengaluru, but the idea of coming back home to Goa and starting something of our own was nagging at us for a long time.” says Sarvesh. He had an MBA degree and a high-paying job with a multinational firm but he chose to give up all that and return to Goa to start his own business- of selling papad and spices. 

Looking at the scene in Goa, one can see that there are a number of women’s self-help groups already engaged in selling the same products across the state. So, two obvious questions crop up here: is it wise to start the business in the face of such tough competition? And secondly, why would a corporate white-collar guy enter into a business that is mostly run by cottage industry? 

“To be honest, it is a very pragmatic decision” says Sarvesh, explaining his foray into papads and spices. “From the market perspective, food industry is an ‘immortal’ industry. It cannot be affected by economic downturns, because frankly, people are never going to stop eating!” he quips. “In foods, we specifically chose papad because we already had the knowledge and experience. My grandfather was into production of papad back in 1950s and 60s. All we had to do was to take his recipe. Secondly, Viddesh’s family had been making spices for a long time.” 

Sarvesh agrees that they faced competition from from various other local papad manufacturers. “If you have good quality, right approach to customers, and good marketing strategy, you can beat competition” says the businessman, elaborating how he used his business acumen and experience to ensure a steady growth. “We made a comprehensive market survey. This helped us  design a good marketing strategy to cover the whole of Goa” says Sarvesh. We found that most domestic papad makers in Goa have their own small shops where they sell their product, and their reach is limited to their villages and surrounding areas.”  The two partners then presented the market survey to EDC Ltd, and secured a loan under Chief Minister’s Rojgar Yojna to kick start their business. “Next, we studied the business model and logistics of a famous pan-India papad company and adapted that model. Thus, we continue to grow despite competition.” he informs. 

The duo had estimated that it would take them at least 7 years to break even, but managed to do it in their fourth year itself after starting the business in 2013. Commenting on further on market-reach and business strategy, Sarvesh says that their nassent firm ‘GM Enterprises, and their brand “Aswaad” needs more market development for better growth. “Despite our reach to most retailers across Goa, we have tapped only 20% of the market, and there are areas such as corporate and school canteens that we could tap; there are hotels, also, temples around Goa need lots of papads and spices for their ‘Mahaprasad’ and that’s a huge market.” 

According to conventional wisdom, one of the best ways to grow your business is advertising, but Sarvesh states that embarking on an ad-campaign needs some serious thought. “If you are spending Re.1 on advertising, you should get at least five times more than that in return. You should choose at what point you need to start advertising. If we are a new company, we cannot afford to spend on advertising when we are new in the market. It is only when you have made a name for yourself that you should think about advertising.  We have just achieved market stabilisation and will venture into advertising only when all other fronts are stable.” he says. “Also, you should target the right audience and the right platform for advertising. I can’t just put up an advertisement of Aswaad at a musical concert. The crowd there is totally different.” Sarvesh adds. 

GM Enterprise currently sells three varieties of papad: the Goan Taroti papad, Red Chilli apad, and Garlic papad. In spices, they have Garam Masala, Premium Garam Masala, and Chicken-Mutton Masala. Apart from these, the firms also sells turmeric powder and chilli powder. “Now we are planning to expand into various “khada masala” powders i.e. dry-roast spice mix powders such as pepper powder, and on papad front, we are planning to introduce tomato papads, potato papads, and sabudana papads.” says Sarvesh, adding that they have already reached areas such as Kudal, Banda nad Sawantwadi in Maharashtra, and have plans to grow even bigger. 

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