'The Organic Dairy Category Is Experiencing 25% to 30% CAGR Growth YoY': Shashi Kumar
In a new episode of Pitch BrandTalk - a video series that engages with the senior management of brands to churn out innovative insights - Pitch had an insightful conversation with Shashi Kumar, Co-founder and CEO of Akshayakalpa Organic, a producer of antibiotic and additive-free milk products where he talks about his entrepreneurial journey and building brand Akshayakalpa with transparency, sustainable farming practices, and fostering consumer trust. Building a Dream with a Collective Vision Shedding light on his entrepreneurial journey, Kumar recounts Akshayakalpa's origin story, established in 2010 with a unique funding approach the brand began in 2010 as a seed-funded initiative. "We were 27 IT professionals driven by a shared vision of empowering and working alongside farmers in rural areas." Kumar acknowledges the inevitable challenges faced by any startup. "The past 14 years have been a rollercoaster ride, just like any other entrepreneurial journey," he says. However, he remains grateful for the unwavering support that Akshayakalpa has received. "Thankfully, we've garnered tremendous support from both our consumers and our dedicated network of farmers," Kumar says. This foundation has fueled Akshayakalpa's remarkable growth over the past few years. "We're not just selling a product we're striving to address fundamental issues within the agricultural system, and consumers have demonstrably embraced our mission”, says Kumar. The Organic Market: A Booming Landscape with Room to Grow Regarding the organic market in India, its size and growth trajectory, Kumar admits "While I can't pinpoint the exact size of the organic market, the category itself is experiencing phenomenal growth, around 25% to 30% CAGR year-on-year." Despite this impressive growth, Kumar identifies a critical hurdle: scaling up production systems to keep pace with the rising demand. "Organic production needs to happen for the organic trade to truly flourish," he stresses. Kumar sheds some light on Akshayakalpa's position as an organic milk producer, processing a staggering 100,000 litres of milk daily. This translates to annual sales of approximately 300 crores. He estimates their category to be roughly 10% of the overall milk sales in India. Kumar adds, "We're a leading producer of organic milk, yet we only occupy 10% of the market share. There's immense room for growth" Unique Differentiation: Beyond Collection The conversation further pivots to Akshayakalpa's competitive edge in the crowded milk market where major players like Amul, Nestle, and established regional brands are all fierce competitors. Kumar reveals what sets his brand apart from competitors pointing to a critical flaw in the conventional milk production system across the country. "There's a fundamental lack of focus on what truly matters at the farm level," Kumar explains. "Production costs, quality checks, fair compensation for farmers, soil conditions, and the source of cattle feed - none of these aspects receive proper attention in the industry, irrespective of the brand." "Everyone follows a collection model where they set up village collection centres, work with middlemen, and simply collect milk”, Kumar says, referencing established players. While acknowledging the efficiency of this approach for large-scale distribution, Kumar emphasises that it overlooks crucial aspects of farm-level well-being. "Are the cows being fed the right quality food? Are antibiotics used in milk production? What about proper waste management practices on the farms?" Kumar asks, highlighting the areas Akshayakalpa prioritises. He further elaborates on Akshayakalpa's in-depth approach to farming, allowing them to control various aspects of milk quality and ensure adherence to ethical practices. This commitment is evident in the stark contrast between Akshayakalpa's production model and traditional models. "To produce the same amount of milk as Akshayakalpa, with our focus on quality and ethical practices, traditional models would require a staggering 80,000 farms and farmers," Kumar reveals.
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