Iran Kandelous 2011 - Growing Inclusive Markets

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The traditional methods of planting and processing herbs can be augmented usingbiotechnological knowledge and therefore creating a higher level of profitability andcompetitiveness. The draft of a national technology road-map for herbal medicine is underpreparation. This will be a help for new producers.As the number of herbal producers increases, a stricter regulation regarding the collection ofnatural plants is being enforced. Since 2007, the companies who use wild plants from forests andplains are required to obtain a license from relevant authorities. The reason for this policy is toensure that those rare plants which are the genetic assets of regions will be preserved and noteradicated because of over-harvesting.Entering international markets will create challenges for Iranian producers. Since herbal productsare mostly in the form of medicine, cosmetics and food, strict regulations are enforced to avoidadverse effects. For instance, starting in 2011, all companies selling herbal medicine in theEuropean Union must obtain certain licenses. 13The drawback of this business model in terms of scalability might be that the founder has had ahigh level of attachment to his fatherland. Therefore, his local network and family connectionsand reputation helped him a lot. Hence, it might not be as easy for other entrepreneurs to replicatethe model in areas which they don’t belong to.Conclusion and Lessons LearnedKandelous Group has proved that business model innovation and applying technical knowledgeto traditional sectors can convert the ‘hidden assets’ of a region into assets with much highervalue added. In the case of the Kandelous village, the herbal plants which could be sold in driedpackages (traditional method) are processed and used to produce high value-added products.Likewise, the flow of tourism has increased the wealth of the inhabitants through making theirlands more attractive for urban visitors.The history of the company activities suggests that the poor may not be able to contributeeffectively in local development, environmental effort and even self-employment, despite theirwillingness, if they don’t posses necessary skills and linkages to the formal market. There is acycle of establishing business activities, training locals, and then leveraging their new skills. Theempowered local population can initiate actions independently in the next stage.13 http://www.chipsbooks.com/pracherb.htmCase Study ● Kandelous Agro-Industry Group 20
Case Study ● Kandelous Agro-Industry Group 21
Page 1 and 2: Middle East • IranKandelous Agro-
Page 3 and 4: Introduction“I started my busines
Page 5 and 6: availability of wild plants can be
Page 7 and 8: At the beginning, the company was m
Page 9 and 10: Kandelous Herbal ProductsCurrently,
Page 11 and 12: a successful producer of detergents
Page 13 and 14: ENGAGE IN POLICY DIALOGUEAs a proac
Page 15 and 16: Figure 2: A Business Model Based on
Page 17 and 18: A young woman working in the restau
Page 19: At the current setting, the company
Page 23 and 24: Some articles about the region, ava

Iran Kandelous 2011 - Growing Inclusive Markets

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