bag industry has opportunities for growth, increasing demand for bags among diverse consumer segments, in resale & mfg.

How can i start bag business in India?

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Introduction –

Starting a bag business in India can be an exciting and rewarding entrepreneurial endeavor. The bag industry in India offers ample opportunities for growth, driven by the increasing demand for bags among diverse consumer segments. Whether it’s backpacks, handbags, laptop bags, or travel bags, the market presents a range of possibilities to cater to various needs and styles.

With a population of over 1.3 billion and a growing middle class, India offers a vast consumer base for bag businesses. The country’s fashion-conscious urban population, students, professionals, and travelers contribute to the thriving demand for trendy, functional, and high-quality bags.

To succeed in the Indian bag market, entrepreneurs need to understand the ever-evolving consumer preferences, tap into emerging trends, and deliver products that resonate with customers. Building a strong brand, offering innovative designs, maintaining product quality, and providing excellent customer service are critical elements for standing out in this competitive industry.

Moreover, the rise of e-commerce and digital platforms has opened up new avenues for bag businesses to reach customers across India. Online marketplaces, social media platforms, and e-commerce websites provide opportunities to showcase products, engage with customers, and facilitate convenient online transactions.

Additionally, with a focus on sustainability and eco-friendly practices gaining prominence, integrating such values into the bag business can attract environmentally conscious consumers and create a positive brand image.

However, starting a bag business in India also comes with challenges. Competition, sourcing quality materials, managing production costs, and creating effective marketing strategies require careful consideration. Thorough market research, a well-defined business plan, and adaptability are crucial to navigate these challenges and create a successful venture.

By leveraging India’s growing market, catering to consumer demands, implementing innovative strategies, and delivering exceptional products, starting a bag business in India holds significant potential for entrepreneurial success.

How can i start bag business in India?

Starting a bag business in India can be an exciting venture. To help you get started, here are some steps you can follow:

  1. Research and Planning:
    • Conduct market research to understand the demand for bags in India, target customer segments, and competition.
    • Identify the types of bags you want to produce or sell, such as backpacks, handbags, laptop bags, etc.
    • Define your business goals, mission, and vision.
    • Develop a comprehensive business plan that includes your budget, marketing strategy, and operational details.
  2. Legal Considerations:
    • Register your business as a legal entity, such as a sole proprietorship, partnership, or private limited company. Consult with a lawyer or chartered accountant to understand the best option for your business.
    • Obtain necessary licenses and permits required to operate a bag business, such as GST registration, Shops and Establishments Act license, and any specific permits for manufacturing or importing bags.
  3. Sourcing and Manufacturing:
    • Determine whether you want to manufacture bags yourself or outsource production.
    • If you choose to manufacture, set up a manufacturing unit or contract with a reliable bag manufacturer.
    • Source high-quality raw materials and components for your bags, such as fabrics, zippers, buckles, and straps.
    • Ensure compliance with safety and quality standards for your products.
  4. Supply Chain and Logistics:
    • Build relationships with suppliers for raw materials and negotiate favorable terms.
    • Set up an efficient supply chain to manage inventory, production, and distribution.
    • Determine the most cost-effective and reliable shipping methods for delivering your products to customers.
  5. Branding and Marketing:
    • Develop a compelling brand identity, including a unique brand name, logo, and tagline.
    • Create a professional website or e-commerce platform to showcase your products and enable online sales.
    • Leverage social media platforms and digital marketing to promote your bags and engage with customers.
    • Participate in trade shows, exhibitions, and fashion events to increase brand visibility.
  6. Sales and Distribution:
    • Identify target retailers, wholesalers, or distributors who can sell your bags.
    • Establish partnerships or negotiate contracts with these distribution channels.
    • Consider selling directly to customers through your online store or physical retail location, if feasible.
  7. Financial Management:
    • Set up an accounting system to track income, expenses, and profitability.
    • Maintain proper financial records and ensure compliance with tax regulations.
    • Monitor cash flow and manage inventory effectively to avoid stockouts or overstocking.

Remember, starting a business requires careful planning, perseverance, and adaptability. Seek advice from industry experts or business consultants who can provide guidance specific to your location and industry.

How much investment is required to start a Bag business?

The investment required to start a bag business in India can vary depending on various factors such as the scale of operations, type of bags produced, manufacturing process, marketing strategy, and location. It is essential to conduct a thorough feasibility study and develop a detailed business plan to determine the exact investment needed for your specific venture.

Here is a general breakdown of the potential costs involved:

  1. Infrastructure and Equipment:
    • Manufacturing Unit/Office Space: The cost will depend on the size and location of the space.
    • Machinery and Equipment: This includes sewing machines, cutting tables, printers, etc.
    • Storage and Warehouse Facilities: If you plan to maintain inventory, you may need storage space.
  2. Raw Materials and Inventory:
    • Fabric, leather, zippers, buckles, straps, and other materials required for bag production.
    • Initial inventory to start your business and meet customer demands.
  3. Licensing and Legal Fees:
    • Registration of the business entity, such as a sole proprietorship, partnership, or private limited company.
    • Obtaining necessary licenses and permits, including GST registration, Shops and Establishments Act license, and others.
  4. Marketing and Branding:
    • Developing a brand identity, logo, packaging, and other marketing materials.
    • Creating a professional website or e-commerce platform.
    • Advertising and promotional expenses to create brand awareness.
  5. Staffing and Salaries:
    • Salaries and wages for employees involved in production, management, marketing, and administration.
  6. Miscellaneous Expenses:
    • Utilities, maintenance, insurance, transportation, and other operational costs.
    • Contingency fund for unforeseen expenses.

It is challenging to provide an exact figure for the investment required, as it can vary significantly depending on the above factors. It is advisable to consult with industry experts, conduct thorough market research, and develop a detailed business plan to estimate the specific investment needed for your bag business in India. Additionally, consider seeking financial advice from banks, investors, or government schemes that support small and medium enterprises.

What is profit margin in Bag business in india?

The profit margin in the bag business in India can vary depending on several factors, including the type of bags, market demand, competition, pricing strategy, production costs, and operational efficiency. It is challenging to provide an exact profit margin as it can differ from one business to another. However, I can give you a general idea of the profit margin range in the bag industry.

In the retail segment, profit margins typically range from 20% to 40%. This means that if the selling price of a bag is INR 1,000, the profit per bag could be between INR 200 and INR 400. The actual profit margin will depend on factors such as sourcing costs, production costs, marketing expenses, and overhead costs.

In the wholesale or manufacturing segment, the profit margins may be higher due to economies of scale and direct sales to retailers. Profit margins of 30% to 50% or more are common in this segment. However, it’s important to consider the bulk production and operational costs involved.

To achieve a healthy profit margin, it is crucial to focus on cost management, efficient production processes, effective sourcing of materials, and competitive pricing strategies. Regularly reviewing and optimizing your business operations can help improve profitability over time.

Keep in mind that these figures are indicative and can vary based on the specific circumstances of your business. Conducting a comprehensive financial analysis and staying updated on market trends will help you determine a suitable pricing and profit margin strategy for your bag business in India.

What type of a Bags business in India?

There are various types of bags businesses that you can consider starting in India. The choice depends on your interests, market demand, competition, and available resources. Here are some popular types of bag businesses in India:

  1. Backpacks and School Bags:
    • Manufacturing or selling backpacks and school bags for students.
    • Targeting schools, colleges, and retail customers.
    • Designing bags with features like durability, comfort, and style.
  2. Handbags and Fashion Bags:
    • Designing and selling fashionable handbags for women.
    • Catering to the retail market, including online and offline sales channels.
    • Offering a variety of designs, materials, and sizes to appeal to different customer preferences.
  3. Laptop and Business Bags:
    • Producing or selling bags specifically designed for laptops and business professionals.
    • Targeting corporate clients, professionals, and students.
    • Emphasizing features like laptop compartments, organizational pockets, and professional aesthetics.
  4. Travel and Luggage Bags:
    • Manufacturing or retailing travel bags, suitcases, and luggage sets.
    • Focusing on durability, functionality, and travel-specific features.
    • Targeting tourists, frequent travelers, and travel agencies.
  5. Sports and Fitness Bags:
    • Creating sports-specific bags like gym bags, yoga mat carriers, and sports equipment bags.
    • Catering to fitness enthusiasts, sports teams, and gyms.
    • Offering features such as water resistance, separate compartments, and adjustable straps.
  6. Eco-Friendly and Sustainable Bags:
    • Producing or selling bags made from eco-friendly materials like organic fabrics, recycled materials, or natural fibers.
    • Capitalizing on the growing demand for sustainable products.
    • Targeting environmentally conscious customers and organizations.
  7. Customized and Personalized Bags:
    • Offering personalized bags with custom designs, monograms, or branding.
    • Providing customization options for individuals, companies, or events.
    • Utilizing online platforms and direct customer engagement.

Remember to conduct thorough market research to identify the demand and competition in your chosen segment. Additionally, consider your expertise, resources, and target market to determine which type of bag business aligns best with your goals and capabilities.

What is the success rate in Bag Business in India?

The success rate of a bag business in India, like any other business, can vary significantly depending on various factors. It’s important to note that success rates cannot be generalized and are influenced by individual circumstances, market conditions, business strategies, and the ability to adapt to changes. However, several factors contribute to the success of a bag business in India:

  • Market Demand: Understanding and tapping into a strong and consistent market demand for bags is crucial. Conduct market research to identify target customer segments, their preferences, and evolving trends.
  • Differentiation and Competitive Advantage: Differentiating your bag business by offering unique features, designs, quality, or pricing can help you stand out from the competition. Having a clear competitive advantage can contribute to success.
  • Product Quality: Maintaining high-quality standards is vital to ensure customer satisfaction and loyalty. Focus on using durable materials, reliable manufacturing processes, and consistent quality control measures.
  • Branding and Marketing: Effective branding and marketing strategies play a significant role in the success of any business. Develop a strong brand identity, create compelling marketing campaigns, and engage with customers through various channels to build awareness and drive sales.
  • Operational Efficiency: Streamlining operations, managing costs, optimizing production processes, and maintaining good supplier relationships can help improve efficiency and profitability.
  • Customer Service: Providing excellent customer service and addressing customer needs promptly can lead to customer loyalty and positive word-of-mouth referrals.
  • Adaptability and Innovation: The ability to adapt to changing market conditions, consumer preferences, and technological advancements is crucial for long-term success. Stay updated with industry trends, continuously innovate your product offerings, and be open to new opportunities.

It’s important to note that starting and running a successful bag business requires dedication, hard work, continuous learning, and a long-term perspective. While there is no guaranteed success rate, with proper planning, market research, and a customer-focused approach, you can increase your chances of building a successful bag business in India.

What should be the strategies to succeed in Bag Business?

To succeed in the bag business in India, you should consider implementing the following strategies:

  1. Market Research and Targeting:
    • Conduct thorough market research to understand the demand, trends, and customer preferences in the bag industry.
    • Identify your target customer segments, such as students, professionals, travelers, or specific niche markets.
    • Tailor your product offerings, designs, and marketing strategies to cater to the needs and desires of your target audience.
  2. Unique Value Proposition:
    • Develop a unique value proposition that sets your bag business apart from competitors.
    • Differentiate your products by offering innovative designs, high-quality materials, superior functionality, or sustainable features.
    • Highlight the unique selling points of your bags and communicate them effectively to your target customers.
  3. Branding and Marketing:
    • Build a strong and recognizable brand identity that resonates with your target audience.
    • Develop a compelling brand story, logo, and messaging that reflects the values and aspirations of your customers.
    • Utilize various marketing channels such as online platforms, social media, influencer partnerships, and traditional advertising to create awareness and drive sales.
    • Engage with customers through content marketing, storytelling, and interactive campaigns to build relationships and loyalty.
  4. Quality and Customer Satisfaction:
    • Focus on producing high-quality bags that meet or exceed customer expectations.
    • Implement stringent quality control measures throughout the manufacturing process.
    • Provide excellent customer service, including timely responses to inquiries, efficient order fulfillment, and hassle-free return or exchange policies.
    • Encourage and respond to customer feedback to continuously improve your products and services.
  5. Pricing Strategy:
    • Develop a pricing strategy that balances profitability with market competitiveness.
    • Consider factors such as production costs, market demand, perceived value, and competitor pricing.
    • Offer occasional promotions, discounts, or loyalty programs to incentivize repeat purchases and customer retention.
  6. Distribution Channels and Partnerships:
    • Determine the most effective distribution channels for your bag business, such as direct-to-consumer online sales, retail partnerships, or wholesale distribution.
    • Establish strategic partnerships with retailers, e-commerce platforms, or distributors to expand your reach and access new customer segments.
    • Regularly evaluate and optimize your distribution channels based on sales performance, customer feedback, and market dynamics.
  7. Continuous Innovation and Adaptation:
    • Stay abreast of industry trends, technological advancements, and changing customer needs.
    • Continuously innovate your products by introducing new designs, materials, or features.
    • Be adaptable and flexible in adjusting your strategies and offerings based on market feedback and evolving consumer preferences.

Remember, the bag business is highly competitive, and success requires a combination of product differentiation, effective marketing, quality assurance, customer focus, and the ability to adapt to changing market dynamics. Regularly assess your strategies, monitor performance metrics, and be willing to iterate and refine your approach as needed.

What is difference between Resale & Manufacturing Bag Business?

The resale and manufacturing bag businesses in India differ in terms of their primary activities and the nature of their operations. Here are the key differences between the two:

  1. Primary Activities:
    • Resale Bag Business: In a resale bag business, the primary activity involves acquiring pre-existing bags from various sources, such as wholesalers, manufacturers, or individual sellers, and reselling them to customers. Resale businesses focus on curating and selecting bags for resale, often based on market demand, trends, and customer preferences. They do not engage in the manufacturing or production of bags.
    • Manufacturing Bag Business: A manufacturing bag business is involved in the production or manufacturing of bags. Manufacturers design, produce, and package bags according to market demand and specifications. They focus on sourcing raw materials, manufacturing processes, quality control, and efficient production. Manufacturing businesses may also engage in wholesale or direct-to-customer sales alongside their production activities.
  2. Inventory Management:
    • Resale Bag Business: Resale businesses need to manage their inventory effectively. They acquire bags in bulk, curate their selection, and store them until sold. Inventory management involves tracking stock levels, monitoring product turnover, and ensuring a diverse range of bags to meet customer preferences. Resale businesses aim to maximize the value and profitability of their existing inventory.
    • Manufacturing Bag Business: Manufacturing businesses typically produce bags based on specific orders or demand forecasts. They manage raw material inventory, work-in-progress (WIP), and finished goods inventory. Manufacturers focus on optimizing production schedules, minimizing waste, and maintaining adequate inventory levels to fulfill customer orders efficiently.
  3. Value Addition:
    • Resale Bag Business: Resale businesses add value by curating and selecting bags that resonate with their target customers. They may offer a unique assortment, exclusive designs, or limited editions to create a differentiated offering in the market. Resellers often focus on branding, marketing, and customer experience to enhance the perceived value of the bags they sell.
    • Manufacturing Bag Business: Manufacturing businesses add value through the production process itself. They have control over the design, materials, quality, and customization options of the bags they manufacture. Manufacturers focus on product development, quality assurance, and innovation to create bags that meet market requirements and customer expectations.
  4. Supplier Relationships:
    • Resale Bag Business: Resale businesses establish relationships with suppliers, such as wholesalers, manufacturers, or individual sellers, to source bags for resale. They negotiate terms, pricing, and quantity to ensure a steady supply of bags that align with their target market and business objectives.
    • Manufacturing Bag Business: Manufacturers build relationships with suppliers for raw materials, components, and equipment required for bag production. They focus on establishing reliable partnerships to ensure a consistent supply of high-quality materials. Manufacturers may also engage in supplier development and optimization to streamline their production processes.

It’s important to note that there can be overlap between resale and manufacturing bag businesses. Some businesses may engage in both resale and manufacturing activities, such as manufacturing their own bags while also reselling bags from other sources. The specific business model and operations may vary based on individual strategies and market dynamics.

How to findout wholesale market for purchase Bags for resale?

To find wholesale markets for purchasing bags for resale, you can follow these steps:

  1. Online Research:
    • Conduct online research to identify wholesale suppliers, marketplaces, and directories that specialize in bags.
    • Look for reputable B2B platforms, such as Alibaba, IndiaMART, TradeIndia, or Global Sources, which connect wholesalers and manufacturers with retailers.
    • Explore industry-specific forums, blogs, or social media groups where retailers discuss wholesale suppliers and share recommendations.
  2. Trade Shows and Exhibitions:
    • Attend trade shows, exhibitions, or industry-specific events related to bags, fashion, or retail.
    • These events often gather wholesalers, manufacturers, and suppliers under one roof, providing an opportunity to establish direct contacts and discover new products.
    • Network with exhibitors, distributors, and other retailers to gather information about potential wholesale suppliers.
  3. Local Wholesale Markets:
    • Visit local wholesale markets in your area or nearby cities known for their wholesale trade.
    • Explore areas with a concentration of bag wholesalers, such as wholesale markets, trading hubs, or industrial estates.
    • In major cities like Delhi, Mumbai, Kolkata, or Chennai, you may find specific wholesale marketplaces for bags, such as Kamla Nagar Market (Delhi), Heera Panna Market (Mumbai), or Fancy Market (Kolkata).
  4. Trade Directories and Associations:
    • Refer to trade directories, industry-specific publications, or membership directories of trade associations related to bags, fashion, or retail.
    • These resources often provide a list of wholesalers, manufacturers, and suppliers in the industry.
    • Contact trade associations or chambers of commerce for bag manufacturers or wholesalers, as they can provide guidance and recommend reliable suppliers.
  5. Networking and Referrals:
    • Connect with fellow retailers, industry professionals, or business owners in the bag industry.
    • Attend networking events, industry conferences, or business meetups to expand your network.
    • Seek referrals from trusted contacts who may have knowledge or experience with wholesale suppliers of bags.
  6. Supplier Verification and Evaluation:
    • Once you identify potential wholesale suppliers, conduct due diligence to verify their credibility and reliability.
    • Evaluate their product quality, pricing, minimum order quantities, delivery times, and return policies.
    • Request samples or visit their facilities to assess the quality of their bags firsthand.
  7. Negotiation and Building Relationships:
    • Reach out to potential wholesale suppliers to initiate contact and express your interest in their products.
    • Negotiate pricing, terms, and conditions to ensure a mutually beneficial arrangement.
    • Build strong relationships with reliable suppliers to establish long-term partnerships, secure competitive pricing, and access new product offerings.

Remember to research and compare multiple wholesale suppliers before making a decision. Consider factors such as product quality, pricing, reliability, and customer reviews. Regularly reassess your suppliers to adapt to changing market dynamics and stay competitive in your resale business.

What are the key features of Bag Business?

The key features of a bag business can vary based on the specific niche, market segment, and business model. However, here are some common key features that apply to many bag businesses:

  1. Product Variety: Bag businesses offer a diverse range of bags, catering to different purposes, styles, and customer preferences. This may include backpacks, handbags, tote bags, travel bags, laptop bags, sports bags, and more. Providing a wide product variety allows businesses to attract a broader customer base.
  2. Design and Innovation: Bag businesses focus on creating attractive, functional, and innovative bag designs. They stay updated with the latest fashion trends, customer preferences, and emerging market demands. Design elements may include patterns, colors, materials, and features that make the bags unique and appealing to customers.
  3. Quality and Durability: Bag businesses prioritize quality and durability in their products. Customers expect bags to withstand regular use, carry heavy loads, and remain in good condition over time. Using high-quality materials, robust construction techniques, and rigorous quality control processes ensures that the bags meet customer expectations.
  4. Branding and Brand Identity: Building a strong brand identity is crucial for bag businesses. It involves creating a recognizable brand name, logo, tagline, and overall brand image. Effective branding helps differentiate the business from competitors, build trust with customers, and establish a positive reputation in the market.
  5. Marketing and Promotion: Bag businesses employ various marketing strategies to create awareness, generate interest, and drive sales. This includes digital marketing techniques such as social media marketing, content marketing, influencer collaborations, and search engine optimization (SEO). Traditional marketing channels like print media, trade shows, and word-of-mouth referrals also play a role.
  6. Distribution Channels: Bag businesses utilize multiple distribution channels to reach customers effectively. This includes retail outlets, both physical and online, as well as partnerships with e-commerce platforms, wholesalers, distributors, and other retailers. Offering a seamless buying experience through various channels expands the business’s reach and accessibility.
  7. Customer Service: Providing excellent customer service is a key feature of successful bag businesses. Promptly addressing customer inquiries, providing product information, and offering assistance before and after the sale creates a positive customer experience. This can lead to customer loyalty, repeat purchases, and positive word-of-mouth referrals.
  8. Sustainability and Ethical Practices: Increasingly, bag businesses are incorporating sustainability and ethical practices into their operations. This may involve using eco-friendly materials, reducing waste, supporting fair trade practices, or contributing to social causes. Demonstrating a commitment to sustainability can attract environmentally conscious customers and enhance the brand’s reputation.
  9. Adaptability and Innovation: Bag businesses need to be adaptable and innovative to stay ahead in a competitive market. They must keep up with evolving customer preferences, technological advancements, and industry trends. Being open to change, embracing new ideas, and continuously improving product offerings and business processes is essential for long-term success.

These features collectively contribute to the success and growth of a bag business, regardless of the specific niche or market segment.

Critical Analsysis of Bag Business startup in India?

Critical analysis of a bag business startup in India involves assessing various aspects to understand the potential challenges, opportunities, and risks. Here are some key factors to consider:

  • Market Competition: The bag market in India is highly competitive, with numerous players ranging from established brands to small-scale businesses. Conduct a thorough analysis of existing competitors, their market share, product offerings, pricing strategies, and distribution channels. Identify gaps or niches in the market that your startup can target effectively.
  • Market Demand and Trends: Evaluate the demand for bags in India, considering factors such as changing consumer preferences, fashion trends, lifestyle patterns, and economic conditions. Identify target customer segments and assess their needs, preferences, and purchasing power. Stay updated on emerging trends and adapt your product offerings accordingly to remain relevant in the market.
  • Product Differentiation: Assess the unique selling points and competitive advantages of your bag startup. Consider factors such as design innovation, quality, materials, functionality, and sustainability. Differentiating your products from competitors is crucial for attracting customers and creating a distinct brand identity.
  • Manufacturing and Supply Chain: Evaluate the feasibility of manufacturing bags in-house or outsourcing production. Consider the availability of skilled labor, sourcing of raw materials, production costs, and quality control measures. Build relationships with reliable suppliers and ensure a smooth supply chain to maintain product consistency and meet customer demands.
  • Marketing and Branding Strategy: Develop a comprehensive marketing and branding strategy to create awareness and generate demand for your bags. Consider the use of online platforms, social media, influencer marketing, content creation, and traditional advertising channels. Effective branding and marketing campaigns will help position your startup as a desirable choice in the market.
  • Distribution Channels: Determine the most effective distribution channels for your bag startup. Assess the advantages and disadvantages of online sales through your website or e-commerce platforms versus physical retail outlets. Evaluate the potential of partnerships with retailers, wholesalers, or distributors to expand your reach and access new customer segments.
  • Financial Viability: Conduct a thorough financial analysis to assess the startup’s financial viability and sustainability. Consider factors such as initial investment requirements, production costs, pricing strategy, profit margins, cash flow management, and return on investment (ROI). Develop a realistic financial plan and consider alternative sources of funding if needed.
  • Regulatory Compliance: Familiarize yourself with the legal and regulatory requirements for operating a bag business in India. Ensure compliance with licenses, permits, tax regulations, and intellectual property rights. Seek professional advice from lawyers or consultants to navigate the legal aspects effectively.
  • Customer Acquisition and Retention: Identify strategies to attract and retain customers. Consider factors such as pricing, product quality, customer service, warranty or return policies, and after-sales support. Develop a customer relationship management (CRM) system to build long-term relationships and foster customer loyalty.
  • Risk Management: Identify and analyze potential risks and challenges that may affect your bag startup. These can include changing market dynamics, economic fluctuations, supply chain disruptions, intellectual property infringement, or shifts in consumer preferences. Develop risk mitigation strategies and contingency plans to minimize potential impacts.

It is essential to conduct thorough research, gather market insights, and develop a detailed business plan that addresses these critical aspects. Seek advice from industry experts, leverage market research reports, and engage in continuous learning to stay updated on industry trends and dynamics. This critical analysis will help you make informed decisions and increase the chances of success for your bag business startup in India.

Conclusion –

In conclusion, starting a bag business in India requires strategic planning, market research, and a focus on differentiation. Key considerations include understanding customer preferences, maintaining product quality, developing a strong brand identity, establishing efficient supply chains, and implementing effective marketing and distribution strategies.

By carefully addressing these aspects and staying adaptable to market dynamics, a bag business has the potential to succeed and thrive in the competitive Indian market.

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