From a commodity to a brand, will it trigger re-rating? 4 stocks from an agro-related sector, where transition is stronger

There are some industries where the very nature of the business is commoditized. This means that every player in that industry is doing the same thing – buying raw material, processing it, selling it. The margins are very thin as there is not much value-addition happening. But over a period of time, some commoditised industries have witnessed a change. With slight improvements in the processing to ensure consistency of quality, some companies have been able to create brands. Now, once a brand is established, then the margins tend to improve – both in the domestic and export markets. It is a long-drawn process and, after years, some companies in agro-related sectors have been able to do that.