'' Booming change ''
Without trading the raw materials alone those who do value-added business are all doing better nowadays. Even a country's economic growth can only grow faster if goods are valued and exported. An example of this is Japan. Japan was the worst-hit country during World War II. But the global economy is recovering rapidly from that position.
Japan has reached the top in development. The most important tactic they followed is value addition.
Japan still uses the tactic of importing raw materials from abroad where they lack very much and adding value to those raw materials and trading them all over the world. That is what is still followed as the motto for their economic growth.
But India, which is rich in all raw materials, is still unaware of the greatness of doing value-added business. We are constantly monitoring the economic growth of those who value goods and trade in our country.
What are Value Added Products?
It is very sad to read in the press that the value of vegetables and fruits wasted in India every year is around Rs 40,000 crore. Similarly, studies show that the value of food grains wasted in our country without proper storage facilities, warehouses and cold storages is over one lakh crore per annum.
On one hand prices of vegetables, fruits and essential food items are skyrocketing. Governments are struggling to control prices, hence the government intends to reduce the price of food products by importing from other countries. Abandoning the idea of importing vegetables, fruits and food grains in our country with a population of over one billion better to increase the production and improve the infrastructure to protect the food products from wasted will be the permanent solution.
Similarly, if everyone knew the methods of adding value to the products, the value of the wasted goods would be greatly reduced.
Japan is the fastest growing country in the world, giving value to the magic word of value addition. Japan was the worst hit country in World War II. Everyone knows that the most active people are the Japanese, who work very hard without wasting time. Most people do not remember that the strategy used by the Japanese to gain economic strength faster than all these was the massive philosophy of 'value addition'.
The Japanese, who do not have much of a raw material, turn their attention to their agility and hard work by adding value to their products. They utilize advanced technology. Raw materials are imported from other countries at a cheap price. They convert imported raw materials into value-added products and sell at many times the price in the world market. This is why the Japanese economy grew so fast. In our country, all kinds of raw materials are easily available but they are mostly traded as raw materials. If you develop the idea of doing business with a little value added, you can definitely grow very fast economically.
Well ... what is value addition? That can be easily explained with a small example. A kilo of paddy sells for a maximum of ten rupees to twelve rupees per kilo. If the paddy is valued and sold as rice, it can sell for thirty-five to forty rupees a kilo. The by-product bran can be sold as fodder. If you sell the same kilo of rice as flour, you will get more price. There is no better example than this to explain value addition in a simple way.
Everyone knows February 14th is Valentine's Day. On that day many people were selling roses on the side. There is only one rose bud. It may cost three rupees. But people sell for twenty rupees that day by tying a small coloured ribbon around the bottom of that bald white glass paper with the stem and sticking the symbol of love on it. The value-added tactic of sellers who sell a three-rupee flower for Rs20 is amazing and keep in mind it is 300% profit business.
Which products can add value to everything? How much capital will be required to add value? Who can do value addition? Can I get a bank loan? What is the government subsidy for value added and other benefits? How to do packing and packaging design? How to market value added products?
You can get answers to all the above questions in coming articles.
When you add value to an object, that object alone is not going to rise in value. Surely you too will rise in value if you are going to do it effectively.
Also Read :- How To Find Business Opportunities In Export – Import Business & How To Implement It ?
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