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Why Khetika's Dr. Prithwi Singh Chose Asset-Heavy Over VC Playbook | ₹247 Cr Clean Label Startup
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In this episode of Founder Thesis, Dr. Prithwi Singh, Co-founder and CEO of Khetika, shares the contrarian playbook behind building India's second-largest national batter brand and a multi-category clean label FMCG startup. From exposing marble powder in cumin to innovating cold stone grinding at commercial scale, Dr. Singh explains how Khetika sources directly from 25,000 farmers across 15 states to deliver zero-preservative spices, batters, and dry fruits. He discusses the challenges of achieving 10-day shelf life without preservatives, scaling through quick commerce channels, and why trust in food requires owning the entire supply chain. With $25 million in Series B funding and a target of ₹2,000 crore revenue by FY28, this conversation explores three mega-trends reshaping Indian FMCG: health consciousness, convenience, and the return to Indian palate. Dr. Singh shared his journey from SuperZop's B2B model to building Khetika as a consumer brand in this candid conversation with Akshay Datt.
What You'll Learn:
👉How Dr. Prithwi Singh built Khetika into a ₹247 crore clean label FMCG brand using vertical integration instead of asset-light models
👉The four types of food adulteration plaguing India's staples market and why legacy spice brands face toxin-free compliance challenges
👉Khetika's innovation in achieving 10-day batter shelf life using pasteurized RO water and 4°C cold grinding without preservatives
👉Why quick commerce is Khetika's fastest-growing channel and how small SKU packaging aligns with modern consumer behavior
👉The economics of sourcing from authentic locations like Sangli turmeric, Guntur chili, and Rajasthan cumin while building farmer trust through IPM adoption
👉Dr. Singh's strategy for competing with Tata Sampann and ID Fresh across spices, batters, and dry fruits categories
If you found this episode valuable, subscribe to Founder Thesis for more deep dives into India's most innovative startups. Follow Akshay Datt on LinkedIn and X for startup insights, funding updates, and founder stories shaping India's entrepreneurial ecosystem.
#DrPrithwiSingh #Khetika #CleanLabelFood #FMCGStartupsIndia #AgritechIndia #FoodAdulterationIndia #ZeroPreservativeFood #ColdStoneGrinding #VerticalIntegration #FarmToFork #QuickCommerceIndia #SuperZop #IndianFoodRevolution #ToxinFreeSpices #OrganicFoodIndia #SeriesBFunding #StartupFundingIndia #IDFreshCompetitor #TataSampannVsKhetika #DosaBatterBrand #FounderThesisPodcast #AkshayDatt #SustainableFarming #IPMAdoption #FMCGInnovation #HealthyFoodStartups #ConvenienceFoodIndia #SingleOriginSourcing #FoodSupplyChain #CleanLabelRevolution
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Transcript
Introduction to Khetika and Its Mission
00:00:00
Speaker
Hello, ah my name is Prithvi Singh. I am co-founder and CEO of Ketika, a clean label food brand.
00:00:19
Speaker
ah Dr. Prithvi Singh, welcome to the Founder Thesis podcast. You have been an entrepreneur in the agri-tech space for almost a decade now. ah Help me understand a little bit more about your business, Khetika. What is Khetika? What does it do?
00:00:38
Speaker
ah Hello everyone, thanks Akshay for inviting me for this podcast. ah ah My name is Prithvi Singh, co-founder and CEO of Khetika. Khetika is clean label food brand, mainly focused on a staple segment, ah which is like a spices, dry fruits, and we have a ah you know value added also like batters, tosa. So we typically have a four segments. One is fresh category which is batters and chutneys. Second is about spices. Third is dry fruits and fourth is staples like you have poha, peanuts, etc.
00:01:14
Speaker
And um ah we are a brand which is mainly focused on three things. One is zero preservative clean label products. Second, our differentiation is whatever processing we do, we do cold stone ground processing. um And third is whatever product we source, we directly source from single origin authentic location directly from the farmers.
00:01:39
Speaker
i'll Khetika is present across country in multiple platforms and ah ah ah to traditional stores as well as to all the quick commerce, online, modern trade everywhere. Mainly, initially, we started focus in the western part of the country, but later on, we expanded across the country.
00:01:59
Speaker
Western as in like Maharashtra? Maharashtra, Mumbai. Okay.
Direct Sourcing and Quality Assurance
00:02:03
Speaker
and Okay. um What is... So, you say that you are... ah selling in four categories. You're selling spices, you're selling dry fruits, you're selling staple products, and you're selling like batters and chutneys.
00:02:21
Speaker
I think what's unique about you is not what you're selling, but how you are sourcing it, if I'm not mistaken. um Because in a way, even like a there are a lot of ah people who are traders who will package and sell, right? But you're not that. You're not a trader who's packaging and selling. Help me understand what is the uniqueness of your business model?
00:02:50
Speaker
Yeah, you rightly said that it is about the sourcing because ultimately what consumers are consuming are raw ingredients, you know. And today, if you see in the food supply chain, there are huge adulterations. And mainly the adulterations are of four types.
00:03:05
Speaker
One is poor quality raw material, which is ingredients which is used either they are poor quality or fungal infested, etc. Second one is adulteration, which is a sort of to ah make it look good or to reduce the cost. For example, you have a white marble powder mixed in cumin or different kind of colors, dyes in chilies or, you know, polishing in mustard.
00:03:30
Speaker
So either to look it good or to reduce the cost. The third kind of adulteration is in the processing, which is basically high temperature processing. This is because of the commercial level production, which is started happening since the brand started developing and manufacturing happens on commercial scale. So it is high temperature processing and because of this high temperature processing the nutrients are not retained they are rather burned so whatever we are eating is not actually nutrient you know rich food though they may have a nutrient at the start but post processing nothing is left and fourth is to increase the shelf life people add lot of preservatives
00:04:09
Speaker
ah So our business model is unique in a sense that first is we do sourcing directly from authentic locations across the country, 15 states across the country. For example, cumin from western part of Rajasthan or coriander from Ramganjan Rajasthan. So we directly haldi from sangli.
00:04:28
Speaker
ah So we source directly from the farmer from authentic locations. Now, let me explain you what authentic location means. Authentic location is because this product is staples is grown in a particular agroclimatic conditions.
00:04:41
Speaker
To get the particular kind of taste, the quality, etc. You need to have those agroclimatic conditions which is present only on those locations, which is, you know, ah giving the best quality and taste and, you know, a different kind of quality in the ingredient. That's why they are called authentic locations.
00:05:00
Speaker
And it is true for all the stipples products. For example, you would like best haldi coming from Sangli, which is Rajapuri haldi in the country. Or best chili will come from Guntur. Or for example, you know, you will have, say for example, best coriander will come from Ramganj, which is in Rajasthan. So authentic locations, so we source directly from authentic locations, we source directly from the farmers.
00:05:22
Speaker
Because once we source from the farmers, what happens, many of adulteration happens ah because of supply chain. India has a very small land holding, different kinds of farmers grow it. And once these products come together, there will be different kind of varietal difference, quality difference in it.
00:05:40
Speaker
So when it is mixed in these staples, you cannot demix it, you know. Hence, sourcing directly from the farmers from authentic location makes a difference. And second is once we have entire supply chain, which is digital supply chain, we which means we ensure from sourcing to the final product manufacturing and completely end-to-end managed supply chain, um which means there is no adulteration in it.
00:06:04
Speaker
And
Regulations and Farmer Relationships
00:06:05
Speaker
that meets the second difference in the in entire model. ah The third difference is, like I said, when we do the processing, which is we Generally processing happens is high temperature processing In our model, the processing happens is stone cold ground method through which we do the processing, which means the nutrients are retained and they are not burnt. Like spices which you eat through legacy brands, they are mainly burnt.
00:06:30
Speaker
But our spices are grinded in a low temperature through traditional stone ground method. And hence it is retained. Not only it's a nutrient, but it's a flavor, aroma, etc.
00:06:41
Speaker
And then we don't add any preservatives. So that that's what makes the model very unique. Okay, I want to zoom in on sourcing first. um ah There was this farmer agitation. I'm from Delhi and a lot of traffic in and out of Delhi was blocked because of that farmer agitation.
00:07:02
Speaker
um That was something to do with the procurement ah from farmers, right? Like buying from farmers. ah Isn't this a regulated space or can anyone go and buy directly from a farmer? How how does, ah how what is the traditional way in which sourcing works and what are you doing differently?
00:07:21
Speaker
So basically, ah there are different kinds of regulations in India. This varies state-by state by state, know, different state has a different regulations. But ah you can go and directly buy from the farmers. There are certain kind of, of course, particular licenses and all that you need to take and you need to go through that. So so you can directly go. What are the regulations for? ah Is it that the government feels that... ah farmers will be exploited unless there is an authorized middleman who is buying from them? And that is what the regulations are for? or like what What are they for? like
00:08:01
Speaker
So, for example, there are different kinds of things. you know Of course, one is there are the mandis and APMC's which is being set up. APMC is Agriculture Produce. Agriculture Produce Marketing Committee. you know They are like locations where the farmers can come and sell.
00:08:17
Speaker
there are benefits, there are pros and cons both are there. The pros are, of course, you know, ah at least there is a one place which is marketplace where farmer can go and sell it, you know, and there would be multiple buyers and it was the scenarios where, ah you know, ah earlier era when ideally to more the buyers, the better the rates the farmers will have. That was a concept and hence it was created. So it was created with the right concept at the time of when infrastructure infrastructure was very poor.
00:08:46
Speaker
Hmm. And it was mandated that all farmers will sell through these mandis and APMC's. That was a mandate. It is for the, so that's what said, it is across the country different kind of rules. So there is nothing like standard rules apply to that because every state has a different kind of APMC Act. So it comes completely in that, you know, state kind of. per view.
00:09:10
Speaker
So there are different kind of, there is certain levels where there is, ah you know, the buyers has amended, certain don't have. So it is it is not uniform, first thing. Second thing is that, you know, but now as the things are evolved, it is allowed. The government's allowed that you go directly and source from the farmers. Of course, again, you need to have certain kind of rules and regulations so that, you know, you need to comply so that nobody just takes away from the farmers without being right way and a lot of things are there in it but broadly now you can go and directly buy from the farmers provided you follow the rules but the biggest thing is not about the rules and regulations the biggest thing is about having a right ecosystem
00:09:55
Speaker
that ah where are buyer and seller both, you know, buy. And when you buy, then definitely ah there is no, ah there is no standardization in the quality norm. And what price should you buy? Because the product is not standard, you know.
00:10:10
Speaker
And that is what makes the biggest difference. Because today when you go to farmers and you go and you tell farmers that make a good quality product, farmers are ready to do that. yeah However, the market does not give a remuneration for the good quality.
00:10:27
Speaker
Commensurate to the, you know, the good quality. Not and necessarily you'll get the good price. Because price depends on the multiple factors. and And the biggest problem is no initialization.
00:10:39
Speaker
So what we are doing differently is first of all, we as a company, because we are providing to the consumer the best quality, we have our internal norms and like, for example, if we are providing the best quality, we need to source the good quality, best quality from the farmers.
00:10:55
Speaker
So it means our quality norms are fixed. We keep the quality norms well-defined. We tell this is the quality which we are procuring. And then we work with the farmers also to develop those qualities, you know, over the time, for example, if we are taking toxin-free, pesticide-free products, or for example, if we are sourcing a particular kind of, say, turmeric, having ah that kind of curcumin level.
00:11:18
Speaker
So we work with the farmers, uh, And we tell them that, you know, these are the best practices you adopt and these are the quality norms. If you fulfill those quality norms, then we will buy from that.
00:11:29
Speaker
Good thing here is that we are selling in our brand Khitika. So it means I need to give consistency to my consumers. So it means i will have to buy the same kind of quality every time.
00:11:40
Speaker
So which makes a kind of trust relationship that you know the farmers know that you know ah okay these guys will buy exactly this quality and hence even if I produce this quality, definitely I'll get the remuneration.
00:11:53
Speaker
Of course, initially we also ah face the problem where when you go in the market, you know, there is a trust deficit. Why should farmer listen to you? Because they will put so much effort and build the product and in the end, most of the people ah not there and or if they are there for the small period of time. So what we did is we started our farmer knowledge centers.
00:12:14
Speaker
ah And ah we started like in the Western Rajasthan in Jasalmer district. We have our farmer knowledge center. We are sourcing from Western part of Rajasthan in multiple centers. So we we tell farmers these are the best practices. If you have these
Consumer Demand and Market Positioning
00:12:30
Speaker
are the quality norms, these are the pesticides you should not use.
00:12:33
Speaker
And then these are the lot of things which will happen to improve. If you will use those best practices, it will increase your productivity. And slowly and slowly, the relationship with farmers starts emerging.
00:12:44
Speaker
This is also another difficulty in this category, stipples category, ah that if you make one change this year, it takes 12 months then again to learn from those things and repeat it again. So gestation period in agriculture is very high.
00:12:57
Speaker
ah So slowly and slowly, the farmers who started trusting and in the area where we initially did, it was around 5% people were using IPM, which is Integrated a Pesticide Management. Now, those areas have raised to up to, it has reached up to even 20% of adoption.
00:13:12
Speaker
What is IPM? IPM is Integrated Pesticide Management System of Agriculture where you don't use harmful pesticides. And, you know, ah So basically the adoption starts coming back.
00:13:25
Speaker
And this is what is, I mean, so our model is, ah you know, it's more of slowly and slowly em emerging, but now we are, you know, fully happy with the kind of results which has come. And now we we want to replicate and take it, ah you know, in a very higher scale.
00:13:42
Speaker
So do you typically give guarantees to the farmers that you follow what I'm telling you and I will buy all your produce? So here it is what happens is in Indian scenario, basically what happens the prices are at the season. You don't know how the prices fluctuate, what happens. It's difficult to forecast it.
00:14:02
Speaker
So we give the farmer to liberty, you know, kind of thing. And it is like, for example, if prices goes high, the farmer have a choice to sell. Farmer have a choice to sell to us Farmer has choice to sell to anybody.
00:14:13
Speaker
So we are not in a contact kind of model. We are just, it's more of open-ended. However, as we are buying a good quality, it is generally those qualities are not easily available, you know.
00:14:24
Speaker
ah Because for example, if the spices are toxin-free, then it has to be, ah you know, in a right... you know we do a particular test and we buy it kind of thing so ah but we give the farmers have the freedom and choose where they want to sell but we have seen the over the time relationship building and having a mutual trust that okay no these guys will buy every time and they come and will buy so that's how it goes so even if and initially for example if we are training the farmers not necessarily they they just need to sell to us only you know
00:14:57
Speaker
kind of thing because it's the best practices slowly and slowly grows. It's not necessarily adapted also immediately. So, like what was the problem you set out to solve? Did you set out to solve a problem for the buyers that they are not able to buy good quality staples or did you set out to solve problems for farmers? which Which stakeholder do you resonate more with?
00:15:18
Speaker
So we started selling from demand. We started from demand side problem solution. How did you discover that there is a problem? So I had already worked in this industry, in a food industry before you know starting this. And we have seen that this supply chain was highly fragmented. So our vision was to deliver food in its purest form from farm to consumer split.
00:15:40
Speaker
you know And then when we started it, we realized that first we need to we are not able to we will not be able to solve everything in one go. So it's a better we start from the demand side and understand what the consumer's problems are. Because ultimately what consumer need is is the first thing to understand.
00:15:57
Speaker
And then when we started and initially we started, ah you know, and of course, understanding that and we saw a lot of alteration, which I mentioned earlier, that there are four kinds of major alteration in supply chain.
00:16:11
Speaker
So initially we started with the whole, ah you know, the product which are commodity and then slowly and slowly we started building convenience also in it. which means moving from whole spices to powdered spices. And now we will be launching our blended spices also because ultimately consumer also want, you know, more convenience, but at the same time health.
00:16:33
Speaker
So we started with the consumer side. And then when we saw that to source, to get that particular quality, it is not possible if we buy from somewhere in the middle, you know, because you need to go to the source location. So we went to the source location. Initially, you were buying from Mandis and APMC's. So initially when we started the model, when the initial phase was there, we trialed it and we tried to buy and we bought from that. But slowly and slowly we realized that if we want to give the good quality, that is only option is to go directly to the source.
00:17:02
Speaker
And ah now we are doubling down in our entire farmer sourcing ah network and building those knowledge centers. And that's that's the how do we want to go. ah which Which kind of customers did you have initially? Was it directly to end consumers that you wanted to sell? so Initially, we as a company, of course, it started as a B2B distribution through SuperZop, which was our distribution to Kirana stores in the same category, in the Staples category.
00:17:30
Speaker
So when we started in Mumbai, that's how we started. This was during the time when this ah I think Udaan would have started around like Udaan, Jumbo Tail,
00:17:43
Speaker
So similar different locations people started in different things, you know, times. You had the same pitch? ah We were not focused on FMCG. So Oda and Jabotel, other players were focused on FMCG and all. We were very clear that we would work in this category only and hence we were only focused in this category.
00:18:00
Speaker
So our model was very different than those models. And then when we started distributing to the Kiranai stores in Mumbai, we realized that, ah ah you know, the quality which we are giving to the customers, customers were having a bigger, of course, like I said, elitrition problem in between the COVID game.
00:18:18
Speaker
And then actually in this industry, in the food industry, customer has already fast forwarded. before even the brands could supply. So today also, if you see customers awareness and nutrition is very high level, ah whereas the legacy brands are not able to solve.
00:18:33
Speaker
And when we started solving it, we realized there is a good traction coming in. And then we, you know, went full deeper into it. And then we, ah you know, build those products which solves the consumer problem. Today, if you see the kind there are three mega trends are running with consumers.
00:18:52
Speaker
The number one is health. You know, now consumers want health and post-COVID this trend has become, you know, is stronger and stronger. a Second mega trend coming is convenience.
00:19:03
Speaker
ah Consumer want healthy product but they want convenience. And you see a lot of models, you know, you see quick commerce emerging because mainly on the convenience side. For example, the category which is better category, you know, is exploding because it's a difficult people to buy like rice and odat dal and make batter and then make dosa. So,
00:19:21
Speaker
This category itself, like, you know, is growing very fast. And all these are indicators that people are now more, ah you know, want to have options to spend multiple choices to spend their time and hence they want convenience in it. And third mega trend which is emerging is Indian food and Indian palate. Indian taste is coming back.
00:19:43
Speaker
Consumer want to have the taste which the regional taste, the customized taste which their forefathers had, ancestors had and Indians are not shying away from that which is not only Indian palate you take, not only in food, even you see clothing, you know, if you see any kind of like tourism. So,
00:20:01
Speaker
We're moving from pasta to dosa, basically. Yes, absolutely right. Pasta to paratha, pasta to dosa. So ah these are three mega trends emerging and we saw the opportunity here and we said that, you know, Khetika is sitting in center of these three mega trends.
00:20:18
Speaker
So we have the product which is zero preservative, healthy products. And we, of course, trying to give more and more convenience to them. Like, for example, we
Funding and Sourcing Expansion
00:20:26
Speaker
have batteries and not only the convenience in terms of product like our packaging. Also, we are first in the country with no gel based packaging for batteries. You know, it's a convenient to pour because otherwise your the chip based pouch gets very messy. And we got we heard from consumers. They told us that this is not This is, so you know, is messy for them. So can you improve on it? And then we innovated. So as a company, we are continuously innovating, you know, and of course, Indian palate is something where we are doubling down on it. Of course, like you said, dosa batters used to be earlier South Indian breakfast. Now not anymore.
00:21:02
Speaker
It's a national breakfast, you know, but people don't know that how to make those batters and chutneys. And hence, ah more value added in it. So the company is moving in the direction that these three mega trends which we are serving along with the direction and all our product range also in this direction.
00:21:19
Speaker
What ah you... and From SuperZop, now today you are Khetika. Is it just a name change or was there more to the change? Was it a business model change? because ah Are you still supplying to Kirana as the the original model which had? or So we are supplying to Kirana. SuperZop is still existing and SuperZop is basically now a distribution platform for Khetika.
00:21:41
Speaker
To the traditional trade. So, Super Shop still is there. Earlier was also Super Shop was there. But now, it's a mainly selling Khetika only. ah We started, you know, moving from unbranded. Earlier, it was not in-house. It was unbranded, actually. when kehiica It was more of selling those commodities to the Kiranais. Like the loose rice and the loose dars. Means 25 kg and more kind of.
00:22:07
Speaker
thing you can put it that way but now we are selling to the Khitika SuperZop will remain because the Kirana is going to be very important channel and where we will continue to maintain our strength but at the same time brand Khitika is because consumer buys from multiple platforms and we want to ultimately it's for the consumer so we want to be we want to reach to consumer through all the channels, wherever they want to buy. So we are omnichannel and we are, you know, and ah recently and very soon we will be launching our D2C brand also. So we we are through our website also we'll be enabling because we get those kind of customer calls that, you know,
00:22:45
Speaker
But majorly is ah through these channels where the focus will remain. Multiple channels, wherever a consumer is there, we will reach out to the consumers. And idea is that consumer should be able to buy whether it is quick commerce or whether it is nearby Kirana or whether modern trade, consumer should be able to buy it.
00:23:04
Speaker
You raised your first round in 2019, believe, about a million dollars or so. What was the pitch at that time? So pitch was same. Like, you know, we were supplying to the Kirana stores. This is stables. And we are sourcing from the farmers. So we have so far raised three rounds. The first round we actually...
00:23:23
Speaker
ah try to understand the product and solve the sourcing part of it. not with Of course, you continue to evolve evolve. You don't fully solve at any point of time because then later on, you solve for scale and more of it. But initially, we solved the model for that. And there is a there is a proof of concept that it is going in a traditional trade with which we started.
00:23:44
Speaker
And then in the second part, when we raised a fund in 21, post that we started building brand Khetika. 21 was about $4 million dollars roughly. Right. That time we raised. And then we post that we built the Khetiga as a brand.
00:23:59
Speaker
And now Khetiga is presenting the channel. It is present we are ah you know sourcing also. But now we have raised that it's not yet We haven't invested in the brand. it's not Awareness is not there.
00:24:12
Speaker
So one is, of course, the building the awareness where which we are focusing. Second is, of course, the building more strength in our entire sourcing network. So we'll be opening farmer knowledge centers and working very closely with the farmers and ensuring that we continue to get ah those good quality products which we want because they are very unique. They are not present like toxin-free, traditionally stone ground spices. We are first in the country to launch, right?
00:24:37
Speaker
So we need to have those product sourcing available. So we will continue to have that. And ah you build the channel distribution. So typically, these are the three, four things.
00:24:47
Speaker
And of course, when you build a product, the product development and innovation is very critical. And then you have different kind of manufacturing centers for that. Okay. I'm going to stay with supply for a while. Then I'll come to the distribution. um So, okay. You source from farmers. Yeah.
00:25:03
Speaker
ah What is the next step in that? like Like it goes to a warehouse for sorting and packaging or what? Yes.
Manufacturing Innovations and Competition
00:25:09
Speaker
So we source from farmers and post sourcing from the farmers, we have our manufacturing centers. So it comes, for example, for the spices from across the country, it comes and we have our center in Unja near Ahmedabad.
00:25:21
Speaker
So it come there. So it is, of course, the grading, sorting, everything happens. And then more value addition means stone grinding. and everything and final product packaging happens over there so we have a different kind of these centers for example for makhana we have in Bihar or for example for spices like I mentioned in Ahmedabad and then these are your own ah centers that you've set up on your own or okay It is our own it is our own ah manufacturing centers.
00:25:48
Speaker
And then from there, it goes to different places. And for the fresh category for betters and all, we have four plants, which is in four cities, Mumbai, Delhi, Bangalore, and Hyderabad. And it is manufactured there because this product is low shelf life, 10-day shelf life product, very fresh product. So it goes there.
00:26:04
Speaker
Why not go asset light? A lot of players would probably work with third parties. So if you see here, there are two reasons to it. One is... The model itself is not very asset heavy, though it seems it is asset life because when we set up these centers, they are nano plants. Like, for example, our plants are not mega plants. We don't invest huge amount in the plants.
00:26:26
Speaker
We rather go very modular approach. So ah that gives us a flexibility as we have been a very cost conscious since the day one when we started. So, but the biggest reason is because we are doing lot of innovations, we don't find playbook for that to manufacture this.
00:26:43
Speaker
For example, in the batteries, I'll give an example that when we started, because we are zero preservative, we were getting those complaints that the product which is there is not having those shelf life, you know, initially in the trial phase.
00:26:56
Speaker
So then we did innovation and lot of things we did and we started not only the RO water but we set up the pasteurization plant also. We are first in the country and rather ah only in the country today who are not only using RO water but pasteurized RO water actually for the grinding. So which means the bacteria at the source are killed.
00:27:16
Speaker
And then when we have a lot of innovative range like first one to launch sprouted mumchilla batter, you know. which is high protein and high protein batters like have a soreness develops in it. Like you eat like, a for example, if you keep curd outside, it will get, ah it will get sore. Right.
00:27:34
Speaker
So how do you solve that? So then we, and we are not adding any acidity regulators because that's not a healthy. So what we said is that, okay, let's, do further R&D and we are strong in R&D and we found out that if you stone ground, if you cold temperature grinding, if you do it 40% it does not develop that soreness.
00:27:54
Speaker
So to do those innovations we had to develop those methods in-house and even the manufacturing also has to do innovation. So we don't find any playbook. For example, spices which you are grinding, it's a stone ground. So it's a first ah you know the brand kind of thing in the country which is stone ground. And There is no stone ground machineries available at this scale. Even the kind of stone which you need to choose when you we went and we did research, you would be surprised to know that in India, whatever the stone chakkis are there, they are not made from original stones. They are made of artificial stones, which is called emery stone.
00:28:30
Speaker
which is made of cement. So we were shocked to know that. okay And then we we said, okay, then what is the right stone? And then we went and did research and we found out for spices, the right stone is, which is red stone coming from Karoli.
00:28:45
Speaker
ah you know So it is it is from that query it comes and it goes to Jodhpur for making those machinery. And then it comes to the Ounja. So there are a lot of research and new innovation we have done.
00:28:56
Speaker
Through which we were able to develop those products. So it's not possible to go to, you know, third party. And as we are developing them, as we are growing, it's not a very asset heavy as well. Because it's it's a very modular approach.
00:29:11
Speaker
So it serves both purpose. Okay. Okay. Got it. um who Which is a... Brand that you see as a major competitor, would it like, say, a Tata Sampan? For Staples, like i guess that would be the most trustworthy brand, right, because of the Tata name.
00:29:30
Speaker
Yes, so if you see today, the first thing is I will tell you that the brand penetration in this segment itself is a very less. you know It is 10-15% brand So 85% is like loose or unbranded. So overall stipple segment I am talking about. But if you say the spices has a higher brand percentage, which is like for example 45-50% whereas a batter has only So the it ranges.
00:29:57
Speaker
And today, if you see, we are only startup, which is multi-category in a horizontal play kind of thing. If you see the three major categories where we are operating, one is in the spices, one is fresh and one is dry fruits. If I take these three major categories,
00:30:11
Speaker
oh All three have a different kind of behaviors. you know So, Batters has only one national brand. We are second national brand today in a Dosa Batters segment. And we recently launched our chutneys, which is very new product in the market.
00:30:29
Speaker
So there is not a much brand presence in this segment itself. but you I guess the only other brand is ID currently Fresh. So there is only national brand which is there is ID Fresh. You will find a very regional players but that there is no national brand other than we are the only national brand which are present, have the manufacturing center set up in all the four cities and ah mostly you will find very small small players but there is no brand penetration in that and there is only one brand. So ah That's very unique in sense of that.
00:30:57
Speaker
ah If you see spices, there are a lot of brands, but they are typically very legacy, regional brands which are there, you know, and hence which are there.
00:31:08
Speaker
And then you have dry foods, which is newer emerging segment. But if you see the clean food space, there is no brands are there. Like zero preservative in this segment you want here, you know. So it's in sense, we are very unique and new. Today, if you see overall, even clean label brand space is only less than 2%, you know.
00:31:26
Speaker
And my ah thinking is as consumer has moved ahead in a 10 years time, 5 to 10 years time, this number is going to go up very hard, big way. So it's a very huge wide space of label.
00:31:37
Speaker
And you see a lot of brands which are coming are horizontal brands. For example, Tata Sampan have. So we are in a sense of if you see three category wise, they are all three are very unique category and very limited brand presence in these three category. And for the clean label, anyway, it is not there. You know, we are first clean, largest clean level startups in this ah segment, if you see for that matter.
Product Contributions and Market Trends
00:31:59
Speaker
And of course, there is Tata Sampan also operating in it. There are multiple players are also operating, but in some categories, some operate. so And having more players always make consumers aware and, you know, grow this segment because the biggest thing is this segment itself is a very new segment and consumer has moved ahead in terms of awareness.
00:32:19
Speaker
ah What are the contributions of the ah four categories that you are in as a percentage of your revenue? ah First, what what kind of revenue do you expect to do current year?
00:32:32
Speaker
So last year we did around 250 CR, 247 CR as a turnover we did it. And ah now also we are growing. So we have a certain part of B2B also and we have a brand also in that. And slowly and slowly the brand segment is growing very fast.
00:32:48
Speaker
So if you see the spices contributes very big in our portfolio around 35 to comes from the spices. And then we have a dry foods which contributes again a significant share. of fifteen Dry food is largely makhana or others? No, makhana is a big one but we have other dry food range, entire dry food range we have which is present today.
00:33:12
Speaker
So we have that also as a segment which contributes around 25% on that. The batters contributes around 10% only because it's a very... city specific yeah because it's a low shelf life product and we don't add a preservative also so it means our shelf lives are not also very high so ah it is only present in the four cities today Mumbai, Delhi, Bangalore and Hyderabad which also we recently launched so it's around that and then remaining comes from this staples so staples you're saying is about 10% or something like that staples would be around fifteen to twenty percent you know it spices itself
00:33:49
Speaker
is like such a massive business opportunity, right? I believe there have been a lot of M&A activity also in the spices space. I was listening to a podcast which was saying that spices have the highest margin profile in agricultural products, which is why there is so much interest in spice companies and spice companies being acquired also. um Why not... ah ah focus on one category and really be a market leader there instead of doing so many things.
00:34:21
Speaker
So actually, if I'll tell you, today we are mainly focused for the kitchen, you know, Indian kitchen and giving the clean label. So I see the category from the consumer point of view, which is what is like, if you see from the consumer point of view, it is that category. And all our adjacents, we started from the food, which is grown in the different products. So if you see like, for example, spices, for example, you see cumin coming from ah ah Western Rajasthan.
00:34:48
Speaker
Whereas coriander coming from say eastern Rajasthan or chili coming from Guntur versus peanut coming from Gondal. So the product category may be the different, but ultimately for the consumer basket, it is the same. So it's not like from that sense, it is not, you know, very uniform within the spice. Also, there are each spice has its own supply chain. So, so we look from the consumer point of view mainly, and we see like, you know, in the consumer basket, when you start providing, know,
00:35:15
Speaker
solution to say, for example, you know, ah one category, then for example, if you see the batters like Sambar consumer make and Sambar powder, like from the consumer sense lens, it is not a different categories.
00:35:28
Speaker
They need a one brand. If they trust one brand for their batters, they would want same brand to give the Sambar masala also to them. And hence, and we already had those strengths because whatever comes from this staples, if you see fresh, which is a different supply chain,
00:35:43
Speaker
Because fresh vegetables and fruits are like 150 kilometer area which is grown. Whereas, staple supply chain is a national supply chain, which is grown in a particular agroclimatic condition. For example, almond coming from California versus raisins coming from sangli. Both consumer treat in the same way, you know, in the same category.
00:36:03
Speaker
So from the consumer lens, they are not different categories. They are adjacent categories which are there. And we already have those strengths. And why not to provide to consumers those things? However, we are now deeply focused on these categories. Like spices itself is a very main focus.
00:36:18
Speaker
We have a whole of spices. We have CTC. Now it would be... What is CTC? CTC is a coriander, turmeric and chili powder, which they call in the CTC powders.
00:36:31
Speaker
Because these three powders are a big one, ah they are like a big in the share. So it is considered as a very small subset of it. For the consumer's lens, again, I'm saying it's not very different categories, you know. deep And then ah you have blended spices. So consumer is moving towards a convenient side also in this story.
00:36:50
Speaker
So according to us, it is very adjacent and it helps also. Having three categories very helpful to us. Why? Because batters is a category which is consumer use more frequently. you know It helps in a brand awareness. Very fast brand building happens.
00:37:04
Speaker
Why Amul is the largest brand today? Because you use every day the milk and more frequently used any brand. the stronger brand happens and the lesser marketing cost it needs to become the stronger brand. So for us, these three brands, these three categories, actually these three, four categories are actually for us more, ah you know, complementarying each complementary to each other rather than, you know, a separate one. and It helps us to ah reach to the consumers in ah entire thing for example you have certain food which is Khetika in a breakfast you have certain food in Khetika which is in lunch time then certain food in the snacks time and then you have in the evening so ultimately it for the consumer you are solving the holistically problem you are not leaving consumer to say okay I'll only solve this part rest part you go and search somewhere else
00:37:54
Speaker
ah And for us, it's a very adjacent also. It's like sourcing is we already know, we already know the processing. We are doing value addition for that. Like we are anyway sourcing rice and pulses. So making batter itself is not very different and it's just a value addition to it.
00:38:10
Speaker
For example, you already have like sambar. So sambar powder masala is not a different than giving chili powder and then giving to the dosa. They are not a different category actually. And you would see this trend emerging also. Very soon like Tata Sampan and all these are horizontal brand. They are emerging now.
00:38:26
Speaker
The next step is that. Because ultimately brand has to solve the
Multi-Channel Strategy and Growth
00:38:30
Speaker
consumer's problem. Not the product lens cannot be the right lens to do justification. Got it. Understood.
00:38:39
Speaker
What percentage of your sales is to consumers versus institutional buyers? Today, ah we are having the this around 25%. So basically, we are not directly selling to the consumers.
00:38:52
Speaker
We are selling through these channels only, modern trade and all of that. But the brand is today around 25% of the portfolio. and So 25% of your sales, people see Khetika branding on the package.
00:39:06
Speaker
No, Khetika, the core consumer premium and value added. Overall, Khetika is 70% because 25 kg in bulk also. We had Khetika as a brand which we were serving to Kirana stores.
00:39:19
Speaker
Consumers wouldn't see that packaging, right? Yes, So, consumer would see 25% part of the brand and the rest would be going to, for example, if we go to Horeka, it goes to different channels where a consumer directly, of course, don't see. But this part is growing.
00:39:33
Speaker
And by March, it would reach to around 40 to 50% of the entire portfolio. Okay. so So your channel's one is through Kirana's. So through Kirana's, you're selling more of the bulk or more of like, say, individual package, like say, half kilo, one kilo?
00:39:48
Speaker
Both, both. So it is going to, Kirana is now slowly and slowly. And that also is, you know, we are selling to Kirana also the consumer brands. So it is going to that. So all the channels we are, of course, sell more on the brand. Like I said, our portfolio will be 50% of the consumer brand. So it means all the channel will have the penetration of that. Then only it will reach to that level.
00:40:08
Speaker
Okay. So one is Kirana. Second is Horeka. Horeka is hotels, restaurants, caterers. Okay. Kiranas are there, then all the modern trade online is a big segment, which is the fastest growing segment also.
00:40:20
Speaker
Then you have institutions, institutional buyers, which is there. Horeka, we just is starting, not a very high right. Institutional buyer means what? Isn't it same as Horeka? So it is like a different kind of bias. For example, we source ah directly from the farmers, you know, from the locations, but we may not be directly using that completely because sourcing happens once in a year. So you source as per but of the forecast and you may not.
00:40:45
Speaker
So you sold to the another B2B players who want that quality. And there are different kind of mix of the players. Some of them, of course, are Horeca also, but it is we are open to selling that because ultimately I need to sell those products which I'm sourcing.
00:40:59
Speaker
And it helps also to maintain the profitability because ah it helps in the capacity utilization. and But slowly and slowly this entire thing is shifting and it's shifting towards main focus is to directly sell to the consumers this brand and that is what the Khitika brand is now moving towards.
00:41:16
Speaker
Okay, okay. So, institutional would be like people who put their own brand on it? Like, they would buy from you, put it in their own packaging? There are many kind of people who use a multiple things. Like, Horeka B is a one of that. The people use it and they can use whatever way they want to use it. Okay. Multiple uses there.
00:41:32
Speaker
And ah how much percentage is from quick commerce and online? So today, if you see around, ah yeah, around, I think, 20%, 15, I think 10%, you can say from that segment, 10 to 15% would be that. Of course, as I speak, it keeps changing as evolving because that channel is also evolving. So 10 to 15% comes from that channel.
00:41:58
Speaker
Okay. Okay. Okay. and Understood. So ah what do you think is the... Path to, you know, let's say if you want to hit, say, a thousand crore kind of a turnover, what's the path to that?
00:42:11
Speaker
How do you see the business evolving? Yeah, so business will evolve in that. There are three things in that, which is the number one is about the product expansion, which is like, for example, I said we are in whole spices and then powder spices. Now we'll be launching blended spices and so and so forth. Like in the, we have the range of dry fruits. Now we are launching. So we have like makhana, we'll be launching valuated makhana. So it's more of expansion of range for example we have betters and chutneys but we are adding more kind of you know value-added products in it so it's more of product expansion is the one thing which will be the very big one the second one would be the channel expansion like you expand to more channels for example we will be launching now we launch the du export also as a channel because there is a lot of demand of the quality products in that and then expanding to different kind of these even modern trade quick commerce regional channel
00:43:07
Speaker
ah We are not present today in all these locations there. So it's expansion of channel including the Kiranai stores. so So that's the second one which is I think is a very big one.
00:43:17
Speaker
ah The focus of expansion. Third is about creating brand awareness to do that. So that more pull comes on that. so So I think these are the three important areas where we are working to build that one. And I don't see a thousand crore is a very big one because target adhesible market which you call TAM is very big for this category.
Challenges in Scaling and Product Margins
00:43:37
Speaker
Whereas the clean label brands are almost not there. You know, it's it's a new, it's a completely white space, which is available. So I see it's a great opportunity opportunity to build no ah big brands in this space.
00:43:50
Speaker
What is the hard thing about scaling in agriculture sector as compared to, say, if you were selling software or if you were selling, say, electronics or any such other categories compared to that? What is uniquely hard? So what is about...
00:44:04
Speaker
the sourcing thing, you know, because if you can't source that good quality, you know, then ah the entire thing, you know, you are not true to your brand and you will not be able to give consistent quality.
00:44:17
Speaker
And sourcing is fragmented like you're Sourcing, like I said, it's a very ah fragmented because the farmers' landholding is small in the country. And the products are also like in the staples is more tougher compared to the foods and vegetables. They have their own challenge, but this has a bigger challenge in terms of it is grown in a particular agroclimatic condition only.
00:44:38
Speaker
you cannot grow best quality haldi, say, in Punjab or best quality, say, cumin in Maharashtra kind of thing. And for example, Maharashtra will best sangli, will have best haldi, which is grown.
00:44:50
Speaker
So, so and so forth because of particular agroclimatic conditions. So, the sourcing channels are like these supply chains are very unique. Each product is unique supply chain. So, you need to solve for that.
00:45:01
Speaker
So, I think that's a very big one challenge. The second one is, according to me, is because of the food, And we are in a clean label. The biggest one zero preservative clean label is that how do you manage this food? Because it's grown in a particular climatic condition in a particular time. Harvesting happens once in a year, whereas the consumption happens throughout the year.
00:45:22
Speaker
So how do you manage it? How do you process it? How do you pack it and then you know handle entire supply chain and manufacturing part is very complex in this. up which is very unique which makes it ah so these two challenges according to me are a very big challenge to have that to provide the product consistently and therefore you need to master this and then oh The third one I would say is a more opportunity. Like now because the consumers are evolving, they are ready to use it, experiment it. So you take those original things to the consumer and tell them so they are ready to experiment. So you, like I said, these three mega trends are there. So you build the product range and do lot of product R&Ds needed in that. Because if you are not adding any preservative, then you need to do lot of R&D to develop that product which is which has actually ah that much of stability that it reaches to the consumer.
00:46:15
Speaker
ah in a way you want it to reach and ah you know provide those aroma, those flavors and everything. So in India, it's not only about selling the food, which is zero preservative food, but it has to be, the taste also has to be there. But the Indians, you know, so the taste is also critical in this category. So not only it's about Having those products which are like, you know, ah you just supply it. you One side you need to ah balance, the you need to build the product which is zero preservative, but at the same time tasty ones. Today, if you see a lot of products which are preservative free or no preservative, but they don't give that much taste.
00:46:53
Speaker
But if you'll see Khetika product, if you'll try Khetika spice powder, they are best spice powders today in the country, I can say. ah Because ah ah they not only provide zero preservative, but they provide best taste also. The reason is simple. We do the sourcing from the best locations. And then we do the stone ground, which preserves their aroma and flavor. So I think these are the three big challenges ah which which makes this category a very unique category.
00:47:20
Speaker
How do you solve that once a year ah but cycle? Like you have to... predict how much you will sell in that year and make sure you procure all of it and then store it for the remaining 11 months of the year. yeah So this is what is the challenge actually. And therefore we are working slowly and slowly.
00:47:37
Speaker
So we are sourcing it. We need to keep it with the, you know, there are, we need to store it, whether the product has to be stored, for example, particular and kind of chilies has to be stored in cold supply chain to maintain that color and that aroma versus, you know,
00:47:52
Speaker
other kind of products also has to be stored in a particular way. So yeah, that's also is a complexity which we need to do that. So it's not really the kind of business where you could double. And we partner with a lot of business partners. We take help here. Here we use lot of ecosystem players and we do the partnership with them who are having expertise in storage and, you know, work with them to store it.
00:48:17
Speaker
So if like like doubling your turnover each year is very hard because You would need to really take that big bet at the time of procurement that I will buy double of what I bought. No, actually, it's not that much if you understand this very well, because the biggest thing is that the supply chain is national. you know For example, Cuban, Western Rajasthan produces around 30% Cuban to supply to entire world, not only to that.
00:48:41
Speaker
So very good strength of that sangli produces the turmeric, which is good enough to supply two large parts so of it. So once you solve that supply chain, it's it'ss that gives a a benefit of this supply chain also. So there are complexity and then there are advantage of this category also. The biggest advantage of this category is it is supply chain is national or international.
00:49:02
Speaker
Once you are in a one zone and whether you are solving that for 100 ton or you are solving for 10,000 tons, mostly the mechanism is similar, you know, kind of thing. And so that gives the huge advantage and therefore you make this category scalable. If you'll see the brands today also, they are, you know, thousand crore, building a thousand crore brand in this category is not a big challenge.
00:49:24
Speaker
You know, it can be done easily if you keep your found fundamentals right and your basics right. So what is the difference in margin profile? Like, uh, A kilo of makhana versus a kilo of cumin versus a kilo of pulses. So, margin profile is actually driven more by value addition you do and how you do. So, more the value addition, the higher the margin.
00:49:49
Speaker
For example, let's say his spice powders. you know You would have a whole spices which is commodity versus you have a... coriander, chili, turmeric powder versus you have blended.
00:50:00
Speaker
So the margins would be higher when you do more value addition versus the margins which are there which is in the basic simple commodity. so it And it is true for all the product categories. It is true for everything. So therefore the margins would be higher in the spices and the spice powders as a category versus ah the basic products categories.
00:50:21
Speaker
Like batters and chutneys would have much higher profile of the margin. So they'll have the margin profiles in, you know, higher percentages. so Can you share some percentages? Like how much would be for, let's say, a blended spice?
00:50:35
Speaker
It varies. But yeah, ah they would be in a range of around 50% kind of thing. The blended would be like, you know, higher margin profiles versus commodities would be having lesser margin profiles. So yeah.
00:50:45
Speaker
How much would be a commodity? like So again, like I said, it's there is no uniform standardization. It varies. There are multiple factors also, you know, which channel you are providing, whether you are doing yourself or you are selling to somebody else. so it it varies on that.
Consumer Behavior and Clean Label Appeal
00:51:01
Speaker
um So margin profile varies on these things, but in the thumb rule is more the brand, the better at the margin because ultimately when you are having, so your cost is also slightly higher because you build a brand on that. You have a clean label product category. So which means the brand would be, you know, ah the clean label have the higher cost also in that. So, depending on ah the product and factors, it would vary the margin profiles. I would not be able to comment uniformly to that. But in general, the thumb rule is that the more the value addition, the higher the margins. Okay. Okay. ah what How is the funding scenario like for agri-tech companies? How hard was it for you to raise funds or how easy was it for you to raise funds?
00:51:47
Speaker
So we call ourselves as, you know, ah the the food ah so food brand today. If you see, it's like, of course, agriculture is very core to it. But ultimately, we are a food brand, you know, because where we are competing in the areas where we are competing, it's a pure food FMCG area space where we are competing. So we are a brand. that change And but what I see is today as consumer awareness is growing, these there is a huge white space there. So I don't see funding as a challenge in this, you know, because provided you do real value addition, you build a business which is profitable, you build in a profitable manner and you have the foundations right. So I don't see a challenge, funding challenge in this.
00:52:29
Speaker
Because we are like I said, today we are one of the largest clean label food brand in this segment. We are second largest brand. And in the segment wise also you see like today in the fresh batters and chutney category is the second largest national brand, you know.
00:52:42
Speaker
So we are very uniquely positioned and we don't see a challenge in the funding. ah Overall funding scenario is of course improving. But the biggest thing is now there are pretty profitable models which are there and Indian is startup, overall Indian funding scenario is also maturing.
00:52:58
Speaker
yeah You know, getting matured. If you see, even for that matter, the lot of IPOs getting listed, they are doing profitably. So I think it's an evolution of the cycle which is there. Yeah.
00:53:11
Speaker
VCs and overall is startup ah you know funding, who's giving the funding, they also is now in a stage they understand which businesses to fund and which is doing real value addition.
00:53:22
Speaker
So I think vanity metrics won't do much now. you know It is the real business if you are building, then I don't see funding as a challenge. And there is a money, plenty of money available to that. And there is a clear cut proof available now that what kind of business will do good.
00:53:40
Speaker
Like, for example, in the segment we are operating, the consumer is moving towards clean label food brands, you know. ah so and the market size is really huge the biggest beauty of indian market is that india everything in india you do if you do right then it ultimate scale is not a challenge you know in any of the segment you forget so so i i don't see a challenge or that and so for a vc you're not compared against a agritech like say a Ninja Kart or Dehat but you are compared against Slurp We are completely different which is completely food brand because ultimately that's where the money coming from. you know so ultimately your Your comparable would be more like a Slurp Farm. Our comparable would be for example you have ID Fresh in the better side. So of course we are not compared to each individual of them also but if you see our segment wise comparable is there. That's what it still is a wide space. Why? Because it is emerging. Why we are unique.
00:54:36
Speaker
Because we are in multi-category start, you know, the the clean label brand. So there is there is no multi-category clean label brand today in it in India. So we are a unique one, you know, whereas all others are operating in a very niche space.
00:54:50
Speaker
And hence, we are taking leadership positions in these unique, but ultimately for the consumer, it is more of horizontal story, which will emerge as a brand because for the consumer, it's more of multi-category playbook consumer looks as a single brand. so So, we are uniquely positioned in that sense and hence we are compared, of course, we will be compared with these brands only.
00:55:11
Speaker
We are not definitely not compared with the agritech players because they are working in a different way and their source comes from where they sell. Their business revenue comes from what they sell to farmers. Our business comes from what we sell to the consumers, you know, and do more value addition in that side.
00:55:27
Speaker
Okay. um Does clean label allow you to charge a premium pricing? Are consumers willing to pay more? Does your dal cost more than a, let's say, a Tata Sampan dal? So, consumer definitely willing to pay more for the clean label.
00:55:41
Speaker
And it is not only true for this segment. You pick up any other segment also. Like, for example... you know, different kind of protein bars and, you know, there are different segments. So consumer is ready to pay more definitely.
00:55:54
Speaker
And which is evident by our growth in a quick commerce and all, which is less price sensitive platforms also, if you see, or modern trade, even in the general trade also.
00:56:04
Speaker
So the consumers are willing to pay more ah for that. You we see, even in the segments also, like we have a normal batter, but our specialty batter range is also growing very high. The healthy range which we have, we have Raji batter, which is called Sprouted Moongchila batter. So they are doing much, much better. Like, you know, chutneys, which is zero preservative free chutneys, doing much better because consumer is willing to eat them. So chutneys are not only it's a first one the itself it's a category but I think they are replacing even we have seen in a consumer behaviors that people are replacing from ketchups and sauces to chutneys you know along with the dosa and with the other products also. So the chutney as a category is not only adjacent to the batters it is coming up with many use cases and consumer is willing to pay for that clean label yeah and convenient ah you know convenience for that. So
00:56:55
Speaker
And India actually is not a uniform segmentation. Also, India has a multiple segment of consumers in a multiple stages of their journey. So and it's a mass. So beauty of this is we are like, you know, we are targeting the mass segment.
00:57:12
Speaker
but with a premium quality products. So we don't charge also very high as a niche, but we we charge as equal to as a leading brand. So our pricing would be equal to the leading brand, but the quality would be the superior.
00:57:25
Speaker
So consumer gets the benefit of it. And of course, ah In general, we are seeing a trend that consumer is willing to pay more to the clean label. If they are given the two choice between that, they'll pick up the clean label.
00:57:36
Speaker
And in some cases, of course, like normal better versus specialty better, they'll pay more ah clearly, ready to pay more for that. Okay. um But what is the price difference? Let's say in something as simple as a dal, does your dal...
00:57:52
Speaker
cost more than no we are not ah so so the dal so our main focus in these three categories if i just say spices dry foods and the batters these are the three category where we are more mainly focused and building that differentiation so in these three categories also where value addition is more of the consumer is willing to pay more premium to that because then convenience also comes into the factor So, there is no like to like comparison. but So, if you see the like to like comparison, if you see in the spices, spice powders, the the clean label is spice powder which is toxin free traditional strong ground versus spice powders, consumer is willing to pay more to that because okay there is so much of adulteration in spices. Spices is one of the most adulterated category today.
00:58:36
Speaker
The legacy brands are also like, for example, consumer is willing to. So if I'm getting toxin free or if I'm getting stone ground spice powders, which they are hearing, they are ready to, ah you know, experiment and pay more for that. So definitely there are there signs are clearly visible that consumer is willing to pay more for that.
00:58:55
Speaker
ah However, our strategy is that we don't want to build as a very niche category. We want to rather build as a mass category because In India, as e economy is evolving, the consumer's paying capability is increasing, even the masses also moving up. It's not like they they value for money, actually, and willing to pay where they find the value. so ah Have you ah got any insights around what works for each distribution channel, like you were mentioning in quick commerce, consumer? is ah not so price sensitive? What strategies work for quick commerce? What strategies strategies would work for say ah Amazon kind of a marketplace? Or what strategies work for modern trade? How do you sell to each of these channels? So one thing is, it's not about for the quick commerce price is not sensitive. Today what segment is there is more of convenience driven segment and hence they are not price sensitive. But as if quick commerce has to be reaching to masses, they'll have to solve the value as well.
00:59:55
Speaker
along with the convenience solving. So it's it's about the consumer segments and today they are they represent a very small percentage of the overall market. If they want to solve to the bigger, larger audience, like for example, DMART, what they have sold, they'll have to solve for value also. So ultimately, it's not a niche ah game anywhere. If you want to solve for the scale, it has to be the value game.
01:00:17
Speaker
It cannot be the just a niche game. So But in general, like I mentioned, there are three mega trends are i emerging. Like health is becoming important, not only health important to the one segment, but multiple segments.
01:00:30
Speaker
For example, and all the channels are also evolving. Now, one channel, for example, if you see Reliance, they would want to, they will be in a multiple channels. You know, they are also evolving. Each player is evolving. They are having their Amazon, having their quick commerce launching. Everybody will be wherever consumer is there. You know, the platforms will follow where consumers there.
01:00:51
Speaker
And of course, they will solve in a relatively different way. There are different... oh ways to solving to everyone, of course, but largely as a brand, our strategy is if you provide a very good quality product to the customer, ultimately it is the customer who will come back because they are coming to buy that product ultimately.
01:01:10
Speaker
The platforms are providing service to make the product reach them. But ultimately, consumer is buying the service and the product. sorry So if consumer is buying the product and if your product is really good, which is solving the consumer's problem, which in case of Ketika it is solving, like solving the problem of like health, we are not only giving the clean label, we are giving healthy alternatives also. For example, you are having the normal battery, you have a ragi battery also, you have moong chila also.
01:01:36
Speaker
sprouted mungchil also. So I think consumers will come but some of the occasions may vary. So you'll have to build your SKU range. For example, if it is top of the small SKU size. In general, we have seen the small SKU size are, ah you know, gaining more traction because consumer behavior nowadays in kitchens are getting smaller or if the kitchen has more appliances than is storage just space. people want to. And we are giving a clean level so we want to also give in the freshest manner possible. With the quick commerce coming you can make the product reach faster. So we don't need to give the bigger pack sizes because you can order more frequently.
01:02:15
Speaker
So I think it's a consumer behavior which is ah evolving and slowly and slowly it would be taking, you know, different kind of channels which will be adopting those consumer behavior.
01:02:26
Speaker
And consumer behavior is same, you know, they either buy monthly shopping and they top up. And now as convenience is becoming is stronger, they are moving from, you know, as they need kind of behavioral change coming. Definitely it's a stronger like convenience as a trend is not a small trend. It's a very big trend evolving.
01:02:43
Speaker
And we are also working in that. But at the same time, Indian market is a huge, like I mentioned. So there are all kinds of customers are present for all kinds of trends. So ah whether it is solving in a ah a modern trade or in the Kiranai stores or in the quick commerce, SKU size slightly vary, but over the time they would be overlapping.
01:03:05
Speaker
What kind of marketing spend do you do? Like, Do you advertise on quick commerce? now, we are not spending huge on the marketing. ah We have just started now. Our idea is there. So we are not very hugely spending on the marketing. We are not doing ATL. We are mainly doing at the digital ah or in the terms of physical stores, it would be at the point of purchase kind of marketing in a store. But mainly it's a digital marketing which we are starting and doing more of targeting marketing which we want to do.
01:03:37
Speaker
to reach to the consumers and you have a clear cut depending on what works, what does not work. So like i said, in this funding, it say initially we are in a very experimentation phase to understand what marketing works and it has to be more targeted marketing.
01:03:53
Speaker
ah more social media ah slowly and slowly. I think it's more targeted marketing which will work on the platform than you do out of the platform also. It has to be very targeted. So that's how we are not spending hugely on ATL. You're not planning like a celebrity endorsement and things like that. ah so So like I said, ah right now we are not doing it and idea is of course, so first is to reach to more locations, more channels and, ah you know, do the right targeting. Once you have a bigger reach and all that, ah then leakage is lesser. But right now at this stage, I don't think that we are ready yet for that.
01:04:30
Speaker
Okay. So, Prithvi, I want to end with understanding how consumer food habits are evolving in the country. What are the new opportunities which you see coming up?
01:04:42
Speaker
Yeah, so like I mentioned that there are mega trends which are their health and convenience and Indian palates. And around these, there are newer food categories which are emerging. Like for example, dosa batters segment which we are doing. you know The batters is not only a South Indian breakfast, it's a national breakfast. But within the batters also you will see people are moving towards like ragi batter. So if you see ragi batter, it's a healthy batter.
01:05:06
Speaker
It's convenient. But ragi also is a traditional food which Indian millet used to eat. So those millet batters are newer categories which are emerging. you know So in these three mega things, if you'll see, for example, makhana.
01:05:22
Speaker
Makhana is a superfood which is emerging because it's a very high in a dietary fiber, very high in a protein. And lot of product built with makhana will be slowly and slowly taking attraction value added with the makhana segment.
01:05:35
Speaker
And in general, if you will see all these categories, like, for example, India is ah see the consumer behavior. India is known for charts, which is when you go outside of the home and chutneys within the home. And there is no brand which gives that representation. When we launched chutneys, we were surprised to know that it's selling really, really good, particularly in a Delhi also kind of market.
01:05:58
Speaker
Though they are like, you know, South Indian taste, particularly which we initially launched these three chutneys. We will of course launch with the other taste palette also. But we saw the public which is cosmopolitan, India is cosmopolitan now and they want to eat those products which are basically, you know, from their roots. So they want those tastes also to be available them. So newer product categories will be emerging around these trends.
01:06:22
Speaker
and We are also launching our new products range, which is catering to these mega trends and we see a huge traction towards that. Thank you so much for your time, Prithvi. It was a real pleasure.
01:06:33
Speaker
Yeah, thank you. Thanks, Akshay. It was great interacting with you. Thank you.