Fragmentation of supply side is the reality: Parag Dhol, MD, Inventus Advisory Services
When a country is diverse, and entrepreneurship is very ground up, we will have many examples of startups focusing on solutions to the fragmentations in supply chain, says Parag Dhol, MD, Inventus Advisory Services. Here are three examples he mentioned, during the course of a brief chat with YourStory, on the sidelines of an IBM event.
This is a portfolio company, a buying club for small and medium enterprises (SMEs). The idea is that Maruti buys paint at Rs 100 per unit, whereas an SME pays Rs 160 per unit. Can you aggregate that demand of five SMEs and get him that unit of paint at Rs 130? So that’s what Power2SME executes. Because the SME guy is buying paint on a weekly basis; he needs it. It is his raw material; sixty seventy percent of the cost. So Power2SME is playing in that area.
BookMyShow is an example in the multiplex space.
This has relevance to the many single-screen cinema theatres.
Parag says that the approach exemplified in the above cases has broad application, simply because entrepreneurship in India is very ground up and the country is diverse. “Fragmentation of the supply is the reality in every marketplace, in every supply side. That is why I think there are so many examples, and we will continue to focus on that,” he concludes.
