A product from Bihar is all the rage in USA, UK and Dubai... and people outside India are paying a 4000% margin on it
I bet you’ve had fox nuts or Makhana at home in India. My mum makes a Paneer Makhana sabzi, also does a great raita of roasted makhana among serving it as a light evening snack.
If you look up Makhana on Amazon, you’ll probably find it for Rs 800 per kg to like Rs 2000 per kg depending on the brand, the flavour, packaging etc.
And the same item sells for upwards of Rs 8000 per kg i.e. USD 100 / kg on Amazon USA.
The cost at the farmer level is about Rs 200 per kg.
The market size of Fox Nuts globally is estimated to be around USD 175 Mn, which is just about Rs 1400 crores - and India is the largest producer, followed by China and Japan.
Within India, 85% of the production comes from Bihar.
US, UAE and UK take up 50% of the exports from India... and there are almost 1000 exporters from India and 2500 buyers as of now...
However, given the product is being positioned as a healthy snack, tastier alternative to pop corn, because it’s essentially popped seeds of the lotus flower... if the rage takes off more in the US, there’s a massive opportunity for this market to grow rapidly.
Moreover, it’s growing in popularity in France, Germany and Italy too.
It’s said that less than 10% of the Makhana produced is exported from the country as of now... and in the final sale to customer lies the maximum opportunity for profit.
Indian brands like Too Yum and Mr. Makhana are betting on this opportunity, and I feel there’s a massive whitespace for people to make a global brand out of it.
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A Chartered Accountant with about 10 years of experience in areas of Tax Advisory, Startup Consulting, Fundraising, Audits, Deal Advisory, Business Modelling and contract CFO services.
Winner of the ISB Young Leader Award 2017 and the Best All Rounder, PGP Class of '17, Sarthak has also been published about in the leading financial newspapers such as The Financial Express as possibly the youngest Indian to have completed the courses of CA, CS and CMA along with a graduate degree in Financial & Investment Analysis from University of Delhi, all by the age of 23 years.