BACKGROUND OF BUSINESS
Gherkins, a vegetable belonging to cucurbit family, are a standard accompaniment for western food. The vegetable is and creeper with a short duration of 90 days. It starts yielding from 35 days from the day of seedling. It is hard harvested daily more than 45 days over the crop cycle time. The vegetable is then preserve, bottled in specific recipes for the final consumer market. The major advantages we have are in our growing areas in Karnataka, is low labour cost and wide agro climate window, so that ability to supply throughout the year unlike there or four months like the European Countries or US. This extended window is significant competitive advantage in terms of meeting market demand with good capacity utilization and reduced working capital requirements. Furthermore as there is no local demand for the crop, contract farming’s is successful operating model as the farmers are able to meet the commitments made unlike common vegetables like tomatoes where the farmer tends to sell the crop iun the open market when the price rises and dumps excess product into the factory when the price falls.
The market has been detailed in terms of worldwide demand and supply scenario in each segment and geographic region in subsequent sections and in the Marketing Appendix. This clearly establishes the attractiveness of the industry and the competitive edge that India and Karnataka in particular enjoys in terms of large land mass, favourable weather and low labour cost. However the critical issue is how to compete and where to compete is given the bas attractiveness of the industry. This is clearly a function of deep and specific industry knowledge, experience and the quality of Management.