Epigamia, the dairy brand under Drums Food International, aims to achieve a year-on-year growth of over 25% by intensifying its emphasis on profitability. With support from investors like the French foods giant Danone, the company plans to enhance its offline distribution channels and introduce smaller packs in the yogurt segment. Concurrently, Epigamia aims to fortify its position in the beverage segment.
Rahul Jain, Co-Founder and CEO, Epigamia, said, “In FY24, our focus has been on the transformation towards the path of profitability and we have made significant progress in this regard. We are close to reaching the milestone of becoming EBITDA positive on an annual or financial year basis. We aim to garner a growth of over 25 per cent plus year-on-year.”
The dairy industry has been grappling with significant inflationary pressures for the past two years. Jain said that, aside from price hikes, the brand has been focusing on optimizing raw material sourcing, supply chains, logistics, and marketing costs to expand margins.
The brand is also introducing its yogurt at an entry-level price of INR 25 to enhance household penetration.
“We have already started doing soft pilots for the entry-level yogurt product priced at INR 25. We want to have a much wider distribution with this price point. We believe this will bring new consumers to our brand’s fold,” he explained.
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Simultaneously, the company is aiming for expansion in segments like beverages and desserts.
“We see massive growth opportunities in the beverage segment.We will soon also be launching the drinkable yogurt format,” he added.
Epigamia’s products are available in the leading 30 cities and across more than 25,000 outlets, encompassing both modern trade stores and general trade stores, in addition to key e-commerce marketplaces.
“We are looking to grow our distribution to about 50,000-60,000 outlets over the next few years,” he added.
The online channel currently contributes to almost 35 percent of the company’s sales.
“Consumers are now increasingly seeking “good-for-you” products, clean labels and functional benefits. Protein consumption has become an important conversation among users. So we are seeing good tailwinds in terms of demand,” Jain said.
