Documente Academic
Documente Profesional
Documente Cultură
Putting spices in a Pakistani perspective, they also comprise the authentic recipe mixes used in
traditional cuisine. The Pakistani spice industry can be divided into branded and unbranded industry.
.
6
[SHAN FOODS
]
which are rural based . But with the emergence of modern industrial units, the share of these rural
based units is decreasing.
Spices form a substantial portion of Pakistans business in terms of imports
and exports.
S.No
1
2
Rice
11,821.0
FishandFishPreparations
2,482.0
Fruits
2287.4
Spices
1935.0
S.No.
COMMODITIES
FY2011 VALUE
(in Million PKR)
20,165.7
Wheat Un-milled
7367.4
FoodandLiveanimals
13,835.6
Tea
15030
Spices
5733
[SHAN FOODS
]
Since the last decade, there has been tremendous growth in the spices industry of Pakistan. In the
recent past, many new companies have been setup due to high growth prospects in this industry. To be
at par with local and international demands, these companies have come up with secure packaging and
branded packs, with technological changes having quite an impact. However, growth in this industry
revolves around quality, promotion and distribution network.
The following illustration gives an understanding of how work is routed in a conventional spices
(SMEDA)
There are many factors behind increased demand of spices in Pakistan; a major factor is the changing
lifestyles of people who now prefer ready to use ingredients over traditional home made spices. Also,
spices have always been in demand due to the sub-continental style of cooking where quality spices are
termed synonymous with good food. However, according to SMEDA report 2006,sudden increase in
demand for spices has never been experienced implying that the growth has been steady and is
dependent on:
Pop ulation growth in both urban and rural area.
Ratio of younger people in the population (according to 1998 census 64% belongs to age group
of 15 to 34).
Increase in urban life phenomenon.
Preferences shifting from popular homemade curries to ready to use cu
rries.
indirect competitors in the business of providing ready to cook, ready to eat, canned/ processed food
directly and indirectly compete against one another.Because the price sensitive buyers prefer to buy
8
[SHAN FOODS
]
unbranded spices as they provide a local touch, it becomes difficult for major players of the industry
who deal in branded spices, to attract more buyers. A major factor that creates competition in this
industry is brand loyalty because certain taste attitudes can only be satisfied with certain brands. Apart
from this, some of the major driving forces in the Pakistani spice industry are changes in societal
concerns, lifestyles and attitudes, product innovation and changes in who buy the product and how they
use it.
An organizations key success factors (KSFs) can be related to any of the following six categories:
technology, manufacturing, distribution, marketing, skills and organizational capability. Apart from
these, there can also be other KSFs for a company. All the aforementioned factors apply to the spice
industry and their individual importance cannot be denied in makingindustry players successful over the
long term.
Brand
Business Volume
Brandedandpacked
Rs.8billion
Loosespices
Rs.10to15billion
Market Share
40%
60%
[SHAN FOODS
]
Some of the major players in this industry are Shan, National, Mehran
, and Chefs Pride etc. New players
have also come up which includes Habib, Kitchen Secrets (with brand name Rivaayat) etc. The prices of
the branded packs are around30% more than unbranded ones.
Pakistan does not exist among the major spices exporters, and hence presents a great opportunity and
enormous potential for investors to invest in this sector
Mehran Foods
Ahmed Foods
Habib Foods
Zaiqa Foods
Kitchen Secrets
It sometimes becomes difficult for firms to compete and this is one of the main reasons due to which
many firms leave the industry. A noteworthy players were there in themarket in the last decade but
has closed down it operations now.The vital reasons due to which the firms might leave the industry are
low consumer response to the companys offerings due to dissatisfaction, high brand loyalty already
towards other brand/player, not shifting to other brands, and monetary and trade concerns. Despite
these possible reasons, there are number of players who have survived the stiff competition and have
come out successful.
Brand
Market Share In %
ShanFoods
50%
NationalFoods
35%
Chefs Pride
Others
10%
5%
10