The Organic World, a prominent grocery retailer, wrapped up the last fiscal year with earnings of INR 35 crore. Now, they’re setting their sights even higher, aiming to close this fiscal at INR 60 crore. Gaurav Manchanda, Founder and Director of Nimida Group (the parent company of The Organic World), shared that they’re determined to transform into a INR 100 crore brand by the end of FY 25.
Over the past years, the brand has consistently experienced month-on-month growth ranging from 2.5 to 5 percent. Each year concludes with an impressive 20-25 percent overall growth rate.
Manchanda remarked on the brand’s profitability, stating, “On a unit basis, we’ve achieved break-even, and our stores remain profitable. However, profitability at the head office level is still elusive.”
In order to fuel further growth, the brand intends to broaden its offline presence by entering new cities and delving deeper into its current markets.
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Presently, the brand runs a total of 17 stores, comprising 13 company-owned and operated outlets, alongside 4 franchise stores. In the current fiscal year, it aims to inaugurate an additional 10 company-owned and operated stores, alongside 25 franchise stores.
“Our objective is to launch 100 stores within the next 18 months. We’re seeing significant interest from cities such as Hyderabad, with Chennai and Bengaluru close behind. Initially, our focus will be on these three cities, before gradually expanding into others like Coimbatore and Mysore,” he explained.
“Ultimately, our aim is to venture into metropolitan areas such as Mumbai, Pune, Ahmedabad, Delhi, and Gurgaon by 2026. However, at present, due to supply chain limitations, our focus is solely on South India,” he elaborated.
Of the 100 stores the brand aims to open, it plans for 75 to be franchise-operated and 25 to be company-owned and operated.
The bootstrapped brand has no intention of fueling expansion by raising funds; instead, it plans to finance it through internal accruals.
“The CAPEX required to establish a turnkey and operational company-owned and operated store amounts to INR 60 lakh. Spanning across 1,000-2,200 sq. ft., it offers 3,500 SKUs. In contrast, the CAPEX for a turnkey and operational franchise store is INR 20 lakh. Spanning across 500-800 sq. ft., it offers 2,500 SKUs,” he elaborated.
He mentioned, “For us, a substantial portion of our business is driven by 20-30 per cent of the SKUs, such as dairy, bakery, snacking, and staples.”
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Currently, the brand features three private labels across distinct categories: Happy Harvest Farms provides organic staples, WellBe offers snacking options, and Osh Life attends to consumers’ homecare needs.
“Moving forward, we aim to introduce additional private labels in categories such as personal care, vegan, and gluten-free products,” he emphasized.
WellBe can also be found in around 1,000 other retail outlets, including More Retail, Lulu’s, and Nature’s Basket, as well as The Organic World stores.
“Moving forward, our course of action involves introducing WellBe into the general trade market, prioritizing smaller pack sizes. Our aim is to achieve national distribution within the next 18 to 24 months,” he explained.
Currently, private labels account for 55 percent of the brand’s sales. Looking ahead, the brand aims to elevate the contribution of private labels to 65-70 percent.
Presently, offline retail accounts for 90 percent of the brand’s revenue, with the remaining 10 percent generated from online retail.
“We aim to achieve an 80/20 split soon by boosting our average basket size. Additionally, we will introduce our products on quick commerce platforms,” he emphasized.
The brand’s average basket size is INR 960.
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