“My mum was unfulfilled. I remember her being really bored, like, ‘I want something to do.’ So I came up with this idea,” says Sanjay Aggarwal. As retirement hobbies go, they don’t get much more successful than Spice Kitchen. More than a decade later, what began as something to keep mum Shashi Aggarwal contented after she stopped working has evolved into a business selling spices valued in six figures to international markets.
Spice Kitchen is a homegrown business; on Christmas Day 2012, the Aggarwals listed a masala dabba (spice tin) featuring Shashi’s homemade blends on eBay. By Boxing Day it had sold. Adventures along the way have included freezing cold days at Altrincham market and Shashi using her sewing skills to turn unused saris into spice tin gift wrap. Now the company stocks a range of award-winning food products, with spice tins still lovingly wrapped in saris, and it even has its own cookbook.
“It’s expanded and moved from a kitchen table idea into a proper business and then a food manufacturer. It’s just incredible that we’ve got our products on lots of UK shelves, but also globally. Genuinely, we still pinch ourselves every day how far we’ve come and how far we’re going,” says Sanjay.
Having gained support to register as an exporter from the North West Department for Business and Trade and after attending trade shows in the UK and Ireland, Spice Kitchen started exporting into Europe in places such as Belgium, Germany and the Netherlands. In the past couple of years, the Aggarwals have expanded across the Atlantic. “We’ve already started exporting successfully, particularly to the US and that is really where we see a lot of our plans to expand further.”
With Spice Kitchen’s ambitions and exports growing, Sanjay feels it could well be time for some outside support. “As we expand internationally, we are going to need, potentially, to do bigger deals and get bigger distributors. We may need that extra level of funding and finance [that UKEF could support with].”
Cashflow can be an issue for businesses seeking export opportunities. Payment terms can vary and the ability to respond to larger orders often requires a ramping up of production capacity. For Spice Kitchen, investment in automation is a priority, as the filling and labelling of their products is currently done by hand. Sanjay states that this will allow Spice Kitchen to remain competitive. “With that investment, margins will come down, we can hit a better price point, and we can scale bigger and better internationally,” he says. But for growing exporters, the biggest barrier is often not demand – it’s access to the right kind of finance.
That’s where UK Export Finance can make a real difference. It provides loans, guarantees and insurance to help exporters access international trading opportunities.
“As exports grow, it’s not demand that limits you. It’s the cashflow and the timing and the risk. Those large overseas orders often need funding months before payment arrives,” says Sanjay. “UKEF gives confidence to exporters and support that helps you say yes to the right opportunities sooner.”
When launching into new markets, you want to avoid as many pitfalls as possible. But, as Sanjay notes, half the battle is actually knowing what those pitfalls are. “If you’re mainly operating in the UK like we are, there may be things that are relatively obvious to somebody else who’s dealt with the US for a long time, that we would be ignorant about.”
That’s where the knowledge of UKEF’s export finance managers can prove invaluable. Export finance managers can provide impartial consultations to businesses on their export finance needs. They help UK companies to check they are getting the appropriate export finance support and, if not, guide them on how to bridge any gaps, including government-backed trade finance.
Whether it’s guarantees for financing or insurance to protect against the risk of not getting paid, the support UKEF offers makes exporting that much easier. “Guarantees could help unlock larger working capital facilities during peak periods,” says Sanjay. “Insurance reduces the risk of expanding with new overseas distributors.”
UKEF support provides assurance, Sanjay explains, and “this confidence allows for planning, for stock, staffing, logistics and – as an owner of a small brand – peace of mind. It helps you sleep at night.”
As a South-Asian-owned business, Sanjay supports the work UKEF is doing to remove barriers for businesses run by members of ethnic minority groups. Although Spice Kitchen has had an overwhelmingly positive experience navigating the business community, he’s clear on the importance of specific small business support.
“Access to support is crucial because exporting can be a big leap, particularly for small businesses who are already juggling cashflow, growth and risk,” he says. “Knowing that there are organisations like UK Export Finance actively focused on backing Black and South-Asian-owned businesses sends a powerful signal: that these businesses are valued and that their growth matters.”
With exciting things on the horizon for Spice Kitchen, Sanjay wants to make sure they maintain the homegrown feel and family values that have powered their growth so far. “We do it as a passion project. We don’t do it to necessarily make millions, and that’s not the idea here. We do it because we love what we do, and it’s a fun thing to do and we have a great team.”
In just 13 years, his mum’s passion for spices and Sanjay’s entrepreneurial spirit have taken them from a kitchen table business to a family-run enterprise enjoying global success.
The Aggarwals are keen to make the most of every opportunity that comes their way. “You’ve got to keep innovating. You’ve got to keep looking at what the future holds. Everything that we’ve done so far has grown out of a bigger opportunity than we thought we could take on at that point in time. So it’s always scary but it’s also exciting.”
Find out more about how UK Export Finance can help your business at: ukexportfinance.gov.uk/from-local-to-global
