Spicy
Spicy Success
Success
Owner
• Dadaji makes daily rounds of factories markets & dealers
• His motivation to work is being sincere in product quality sold at
affordable prices
• He owns 80% stake in MDH
• He took more than 21 crores of salary in 2016-17, higher than Adi Godrej
& Vivek Gambhir of Godrej Consumer, Sanjiv Mehta of Hindustan Unilever
& ITC’s YC Deveshwar
• 90% of his salary goes to Charity
Indian spice market
• Largely unorganised market & the branded segment makes about Rs.6500
• Market is dominated by players suchas MTR, Badshah, Catch, Everest,
Ramdev, etc
• Tata Chemicals has launched its spices brand Tata Sampann spices
Exports
• India exports close to 52 different spices & exports grew to USD 626.8
million during the first quarter of 2015-16
• India exported 215,215 tonnes of spices during the first quarter of 2016
as compared with 213,443 tonnes in the same period last year
• The market is projected to reach approximately USD 18 billion by 2020,
the growth is expected to be led by branded spices and spice mixes
• Aggressive promotion of spice exports through various initiatives such as
setting up of spice parks
• Spice parks offer processing facilities to both producers & exporters.
History of MDH
Own business to
Parental business
-MDH
Mahashian di
Hatti – “the shop
of the 10 bed eye
Mahasay
Magnnimous “in hospital at Arya
Dharampal Gulati
Punjabi Samaj, New Delhi
1923 1937 1975
1919 1933 1947 1984
Mahasay Chuni Lal
Spice business Left school post • Came to India
5th Standard 20 bed hospital
“Deggi Mirch Wale” • Rs. 1500/-
in JanakPuri,
The pot chilli people • Rs. 650/-
New Delhi
after one of their • Small wooden
famous spice mixture khokha
Growth of MDH
• Hand-ground spices → automated machines
• First cardboard box packaged in 1948 → new innovation
• 30 tonnes of packaged spices a day → 10g to 500g
• Fully automatic manufacturing plants at Delhi, Gurgaon (Haryana),
Naguar(Rajasthan), Ghaziabad(UP) & Amristar(Punjab) & Sharjah(UAE)
• Super stockists so that products to reach customer at every sale-point
→corner shops, discount stores, convenience stores, supermarkets &
hypermarkets
• Over 2000 employees employed
• Ranked 490th among unlisted Indian companies (2000-01)
• Co-opted as members of several committees of the bureau of Indian
Standards
• Global - Top 3 ranking in its category (spices)
Product Mix
• The speciality of MDH is traditional & unique blend of different spices that
are used for specific product items.
• MDH offers a recipe for products on its related spice box & on its website
for interested customers.
• Bulk of sales comes from- deggi mirch, chat masala & channa masala- over
a crore packets of each every month
MDH
Group D Spices Blend Spices Other Products
• MDH Black Pepper MDH Amchoor Powder Kesar
• MDH Dhanya Powder MDH Biryani Masala MDH Dant Manjan
• MDH Haldi Powder MDH Butter Chicken MDH Havan Samagri
• MDH Jeera Powder MDH Chana Masala
• Kashmiri Mirch Powder MDH Chicken Masala
• MDH Kasoori Methi MDH Chunky Chat Masala
• MDH Lalmirch MDH Chutney Podina Masala
• MDH White Pepper MDH Curry Powder
MDH Dahivadar Raita
MDH Dalmakhani Masala
MDH Jal Jeera
Market Share
• MDH is the second largest leader in the Indian market & has market share
of 12%
• Whereas the competitor, Everest has a market share of 13% (leader)
• MDH is the undisputed leader in North India with more than 70% market
share
Product Development Strategy
• Segmentation
1. Eastern & Rajashthani people prefer Mirch in food
2. Southern people prefer Kali Mirch Sambhar masala
3. Foreigners prefer Chicken masala
• Positioning
1. Traditional
2. Hygiene
3. Full of flavor
4. Tasty
