Diversifying Product Portfolios: SHEFEXIL's Support in Developing Value-Added Products

Diversifying Product Portfolios: SHEFEXIL’s Support in Developing Value-Added Products

By AdminPublished On: February 21, 2025Categories: Shellac Export Promotion Council0 Comments

In today’s dynamic global marketplace, the ability to adapt and innovate is crucial for sustained success. For exporters, diversifying product portfolios by developing value-added products not only enhances market appeal but also strengthens competitiveness. In India, the Shellac and Forest Products Export Promotion Council (SHEFEXIL) plays a pivotal role in guiding and supporting exporters through this transformative journey.

Understanding SHEFEXIL’s Mission

Established in 1957 under the sponsorship of the Ministry of Commerce and Industry, Government of India, SHEFEXIL was initially known as the Shellac Export Promotion Council (SEPC). Its primary objective was to promote India’s exports of shellac and lac-based products. Over the decades, recognizing the vast potential of India’s non-timber forest produce (NTFP), the council expanded its mandate. In April 2005, it was designated as the nodal Export Promotion Council for NTFPs, encompassing a diverse range of products such as vegetable saps and extracts, guar gum, sesame seeds, herbs, and more. This evolution led to its rebranding as SHEFEXIL. By 2018-19, SHEFEXIL was supporting 860 individual products, contributing to exports worth USD 2,140.94 million.

The Imperative of Diversification

For exporters, relying on a limited product range can pose significant risks, especially in the face of fluctuating market demands and global economic shifts. Diversifying into value-added products offers several advantages:

Enhanced Market Appeal: Value-added products cater to evolving consumer preferences, often commanding premium pricing due to their unique features or superior quality.
Increased Profit Margins: Processing raw materials into finished goods can significantly boost profit margins, as consumers are willing to pay more for refined products.
Market Resilience: A diversified product portfolio can cushion exporters against market volatility, ensuring stability even if demand for one product declines.

SHEFEXIL’s Role in Promoting Value Addition

SHEFEXIL has been instrumental in encouraging exporters to venture into value-added segments. Its multifaceted approach includes:

Market Intelligence and Research: SHEFEXIL provides exporters with up-to-date market insights, helping them identify trends and opportunities in the global arena. This information is crucial for developing products that align with international demand.
Quality Standards and Certification: To ensure Indian products meet global standards, SHEFEXIL offers guidance on quality control and assists exporters in obtaining necessary certifications. This not only enhances product credibility but also facilitates smoother entry into foreign markets.
Capacity Building and Training: Recognizing the importance of skill development, SHEFEXIL organizes workshops and training sessions focused on best practices in production, packaging, and marketing of value-added products.
Financial Assistance and Incentives: Through various schemes, SHEFEXIL provides financial support to exporters, aiding them in upgrading technology, improving infrastructure, and expanding their operations.
Promotion and Networking: The council facilitates participation in international trade fairs and exhibitions, offering exporters a platform to showcase their products and connect with potential buyers.

Impact of SHEFEXIL’s Initiatives

The concerted efforts of SHEFEXIL have yielded remarkable results:

Export Growth: Between 2019-20 and 2021-22, exports under SHEFEXIL’s purview grew from USD 2,558.14 million to USD 2,779.66 million, underscoring the positive impact of diversification and value addition.(Eurofins)
Product Diversification: The inclusion of nutraceuticals under SHEFEXIL’s umbrella has opened new avenues for exporters. This sector, encompassing dietary supplements and functional foods, has seen increasing global demand, presenting lucrative opportunities for Indian manufacturers.(Ministry of Commerce and Industry)
Empowerment of Marginalized Communities: By promoting the export of NTFPs, many of which are sourced from forest-dependent communities, SHEFEXIL’s initiatives have directly benefited tribal women, marginal cultivators, and economically challenged populations, especially in the North Eastern regions of India.

Altus Exports: Bridging Indian Manufacturers to Global Markets

While organizations like SHEFEXIL provide the necessary framework and support, the role of export facilitators is crucial in translating potential into tangible success. Altus Exports stands out as a premier merchant exporter dedicated to bringing India’s diverse products to the global stage.

Why Partner with Altus Exports?

Quality Assurance: Altus Exports prioritizes quality at every step, from sourcing to packaging. Their rigorous quality control processes ensure that products meet the highest international standards.
Extensive Network: With a robust network of trusted suppliers, manufacturers, and artisans across India, Altus Exports offers a diverse range of products and swift response times to meet global demands.
Customer-Centric Approach: Understanding the unique requirements of each client, Altus Exports provides tailored solutions, ensuring satisfaction and fostering long-term relationships.
Sustainable Practices: Committed to eco-friendly and ethical business practices, Altus Exports ensures that their operations minimize environmental impact and support fair trade.
Competitive Pricing: Efficient supply chain management enables Altus Exports to offer high-quality products at competitive prices, delivering exceptional value to clients.
Global Reach: With extensive international trade experience, Altus Exports exports to numerous countries, ensuring seamless transactions and compliance with global trade regulations.