DFM Foods_Crax going pan India

Posted by | Stocks | 7 Comments

It is hard to find somebody in north India who hasn’t had Crax as a kid; many even have it today after growing up just like I do

Crax brand is owned by a listed company called DFM Foods Limited. DFM stands for Delhi Flour Mills which was their original business and later got demerged into a private company of the promoter group.
Without getting into too much detail; I’ll give an overview of the company and then straight come to the point.
DFM now owns three brands: Crax (corn rings) being the flagship brand accounts for 76% of the topline,  Natkhat (wheat puffs) 5%, Krunchoids  which is the latest addition 5% and remaining from Namkeens.
Three decades old Crax corn rings are available at Rs 5 SKU

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What my neighbourhood jockey dealer has to say about the brand

Posted by | Stocks | 7 Comments

Earlier jockey was into premium range only, now its available at all price points
Indian brands like Rupa, Euro would cost you 90-100 for an undi whereas you can get a Jockey at 120

There are five separate distributors for different segments/range
So, out of the 6 working days in a week, five days you have a different Jockey distributor sitting in your shop and taking order. You order today and its delivered the next morning
Both distributors and dealers get credit of 15-30 days, however PDCs are given at the time of ordering. 2% discount for cash payment
Dealers are given 20% margin and mostly sell on MRP, its unlikely you would get discounts anymore

Very happy with company and the brand, value-for-money products – Good quality

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Some thoughts on Gillette India

Posted by | Stocks | 2 Comments

One common bullish viewpoint made by most of the investors regarding Gillette has been “Market potential is huge considering its a highly under-penetrated market & Gillette is largely a monopoly business”
 
Lets break up the target market into urban men & rural men and see if there is actually that kind of potential:
 
Urban Men (Metro/Tier I/ Tier II)
Look around and talk to any working man, chances are that he will be shaving with a Gillette razor.
 
Now if entire target segment in Urban area is already using a Gillette product where can the growth come from?

Uptrading: A guy using Gaurd/Presto could up trade to a Mach3 and later to Fusion.
Rise in working population: Every year some part of youth, which otherwise finds it cool to keep beard,

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How to fix india’s flawed education system

Posted by | Issues in India | 9 Comments

Before I come to the point, let me tell you where this post is coming from:

In my MBA program at least half of the subjects were same as I studied in my graduation, in fact for some the recommended books were of the same authors. It was during this phase I could compare the quality of teachers, the teaching methodologies and what dramatic effect these two can have on the learning.

Later I enrolled myself in one of the toughest finance courses in the world- Chartered Financial Analyst, USA. This is a self-study program where only the content is provided to the candidates and they have to appear for exams. During my three years journey, I never felt any need for classroom coaching. Why? It is

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