There are some industries where the very nature of the business is commoditized. This means that every player in that industry is doing the same thing – buying raw material, processing it, selling it. The margins are very thin as there is not much value-addition happening. But over a period of time, some commoditised industries have witnessed a change. With slight improvements in the processing to ensure consistency of quality, some companies have been able to create brands. Now, once a brand is established, then the margins tend to improve – both in the domestic and export markets. It is a long-drawn process and, after years, some companies in agro-related sectors have been able to do that.
