Building Kerala's Largest FMCG Distribution Network

About this episode

In this episode of The eCom Show, host Shan A Salam interviews Shafwan Paravanchery, the co-founder of Eras Foods and Eras Ventures. Shafwan shares his entrepreneurial path, starting from his school days selling used mobile phones to fund his driving license. After studying multimedia and attempting an event management venture that faced significant challenges, he traveled to London for higher studies and worked in Dubai for five years. Upon returning to India, Shafwan transformed his family's traditional baby food business by expanding its reach from ayurvedic counters to major supermarkets. Recognising a market gap for healthy, organic products in Kerala, he and his partner Rizal established a robust distribution network for brands like Max Protein and their own label, Eras Foods. Shafwan details the operational structure of retail distribution, including margins, listing fees, and product return policies. He emphasises why starting small, focusing on packaging, and building trust-based relationships with retailers are crucial for long-term success in the FMCG sector.

Key takeaways

1. 1Packaging accounts for up to fifty percent of a product's initial appeal, making it a critical factor in getting customers to pick an item off the shelf.
2. 2Starting with a small test batch of three to four pieces per stock keeping unit helps minimise risks for both the distributor and the retailer.
3. 3A clear product return policy is essential for building trust with supermarkets, as expired stock can otherwise cause major financial losses for retailers.
4. 4Expanding into offline retail requires understanding the distinct margin requirements of retailers, distributors, and stockists within the supply chain.
5. 5Entrepreneurs should focus on their core competencies and delegate secondary tasks to partners or specialised teams to scale effectively.
6. 6In modern trade, brands must be prepared to navigate hidden expenses such as listing fees, display fees, and shelf space costs.

Chapters

1. 0:00Introduction
2. 5:06Event Management Company
3. 7:52After Failure
4. 17:45Big Break
5. 23:03From Online to Offline & Health Tips
6. 34:02Structure of Distribution
7. 39:04Listing in Market
8. 44:08Product Return
9. 51:49Future of Eras Foods & Health of Malayalis
10. 56:17Listing Fees, Display Fees & Other Costs in Modern Trade & General Trade
11. 59:51Hidden Fees in Hypermarkets
12. 1:03:48Shafwan’s Health & Closing Thoughts