Gopal Snacks Limited Implements Backward Integration to Gain Control Over Manufacturing Processes and Improve Competitiveness.
Gopal Snacks Limited
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Gopal Snacks Limited , a leading snack food manufacturer, has implemented a unique strategy by Founder Mr. Bipin Hadvani to increase control over its supply chain, manufacturing processes and improve its competitiveness in the market. The company has embraced the concept of backward integration, with a focus on integrating all departments of the business.
Backward integration involves a company expanding its operations by producing its own inputs or raw materials instead of relying on suppliers. In the case of Gopal Snacks Limited, the company has taken this approach to the next level by integrating backward at every stage of the manufacturing process.
Starting from the procurement of raw materials, Gopal Snacks Limited has taken control of the supply chain by sourcing its own ingredients, such as potatoes, corn, and other grains, directly from farmers. This ensures that the company has access to the best quality raw materials at the best price, without relying on third-party suppliers.
Next, the company has invested in state-of-the-art machinery and equipment to process the raw materials in-house. This includes cleaning, peeling, slicing, and frying the ingredients to create the various snack products offered by the company.
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By implementing backward integration in all departments, Gopal Snacks Limited has gained complete control over its supply chain, reduced costs, and improved the quality of its products. The company has also been able to streamline its processes, resulting in faster turnaround times and improved efficiency.
In conclusion, Gopal Snacks Limited's commitment to backward integration has helped the company to become a leading player in the snack food market. By taking control of every aspect of the manufacturing process, the company has gained a competitive edge and established itself as a reliable and high-quality supplier.
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