Kunal Soni did his Masters from Scotland but after returning home he joined his family business of Medicinal Products trading. He visualizes for a bright future in medicinal plants business.
Greenfield Agro Forestry Products deals in trading of agricultural, forestry and medicinal products. The company is located in Madhya Pradesh and is run by Mr. Kunal Soni. Mr. Kunal is a computer science engineering graduate. He also has a Masters in Business Information Technology Systems from the University of Strathclyde in Glasgow, Scotland.
Products and Procurement
Though Greenfield Agro Forestry Products carries a wide range of products, they specialize mostly in seeds that they sell in bulk. Some of the seeds that the company provides are:
• White Kinvach Seeds (Mucuna Pruita) “Mucuna pruriens”
• White Sandal Seeds (Santalum Album I.) “Santalum Album”
• Shataward Seeds (Asparagus Racemosus) “Shatawar”
• Katanga Bamboo Seeds (Bambusa Arundinacea)
• Eucalyptus (Eucalyptos Globulus)” Eucalyptus Globulus”
• Bael Seeds (Aegle Marmelos)
• Cassia Sammia (Cinnamomum Camphora) “Samia”
Since the company does not grow the plants themselves, different means are employed to procure their products. When asked about how they attain the products that they deal at the company, Mr. Kunal shared, “It highly depends on the product, as Greenfield is working throughout the country and items are purchased both locally and from other states as well. These are usually traders for bulk quantity and farmer or seed collectors for small quantities.”
Target Market
To boost the success of the company, Mr. Kunal has identified the company’s target market saying, “As of now our target customers are common people India who have empty land and want to do something different from the regular agricultural products such as wheat, rice or pulses.”
Greenfield also targets international customers through exportation. This is in order to branch out and expand the growth of the company. “Greenfield Agro Forestry Products (GAFP) is moving in to exports too, so that we could fulfill the requirements of people who are looking for [our] products and can’t find it in their country,” Mr. Kunal said.
As a result of their hard work, Greenfield has been successful in capturing 10 percent of the medicinal plant market. They have also been able to capture roughly 30 percent of the seed market.
Challenges
No business is without challenges and although the medicinal market is well known to be quite lucrative, it also carries its own risks. Some of the risks that the company has to deal with are the fluctuation of rates that they can sell their products for. There are also issues involved with the viability period of the seeds that they provide.
“If plants are to be provided alive for production, transport becomes a considerably big problem as mortality rate is sometimes high during its travel, and furthermore a few plants are supposed to be provided in a short period of time so air cargo is used which increases rates for customers,” Mr. Kunal expounded.
Competition
Trading in medicinal plants has become a very lucrative business. However, it is difficult to capture a market because there is little research being conducted on it. Mr. Kunal shared that there is difficulty involved when going up against other competitors in the market.
“It’s true that competition is fierce, and in order to stand in the market, prices are kept low. Low prices only provide feasible profit on high volume demands. Hence, we look for bulk orders and make sure that we buys from farmers directly so that procurement doesn’t go too high,” Mr. Kunal said.
Mr. Kunal also acknowledged that amongst the competition in the industry, he has a particular appreciation for the traders from Neemuch. He was unafraid to praise the traders and said; “Their working pattern is traditional but still amazes me when I see their reach the market. As these people are traditional, they lack innovation, but they work with a single goal to complete deals with high efficiency and profits.”
Future Plans
The future of Greenfield Agro Forestry Products is a bright one. With the boom in the medicinal plants industry and the demand for certain seeds growing in the international market, the company have a huge opportunity to get their foot in the door. When asked about his plans for the company in the next five years, Mr. Kunal simply said, “To make GAFP an international and well known trader of medicinal products.”
What are your impressions on the article. Feel free to post the query and comments on the subject. Kunal, shall be replying the questions.
