In an industry where scaling swiftly is often synonymous with success, a Delhi-based food startup, Aweri Foods has made a mark with its unique dates pickle. What began as a modest venture from a home kitchen has now transformed into a burgeoning business, poised to make a significant impact in the offline retail market.
Over the past three years, the brand has witnessed exponential growth and has launched six more pickle products from one. The company now operates a 14,000 square foot manufacturing unit in Okhla, Delhi, a significant leap from its home kitchen beginnings.
In addition, it has also entered the sweet market with its dates barfi and has launched savoury products. “For the first nine months, I only sold date pickles from our website. Then we launched six other pickles. I was procuring so many dates that I thought, let’s make something out of them, and we entered the sweet market with dates barfi,” recalls Akshay Awasthi, Founder & CEO, as he shares insights into the brand’s journey from an online startup to its ambitious plans to expand into offline retail.
This pivot was driven by the market’s increasing demand for healthier alternatives to traditional sweets laden with sugar. Awasthi’s innovative dates barfi, made from dates, nuts, and ghee, quickly found a niche.
Focus on E-commerce and Community Building
This focus on health-conscious, high-quality products has helped Aweri Foods carve out a niche in a competitive market. “The established players have invested so much in their product lines. They cannot quickly change,” Awasthi points out. This gives Aweri Foods an edge, allowing them to offer products free from unhealthy ingredients like palm oil.
With this since its inception, Aweri Foods primarily has focused on its website. “Our approach was to take feedback from customers and build a community, not just a business-customer relationship,” Awasthi says. This strategy helped the brand refine its products and cultivate a loyal customer base.
Ready to move in Offline Retail Space
With a solid foundation in e-commerce, Aweri Foods is now ready to venture into offline retail. “We’ve started expanding into different channels, with retail being one of them. Our plan is to hit stores in and around Delhi NCR by this Diwali. Also we have brought in an expert with 17 years of sales experience to lead this expansion,” Awasthi reveals. The goal is to achieve a 50-50 split between online and offline sales in the coming months. For this, the company is working on on-boarding distributors and locating offline stores to hit.
However, there are massive challenges to tackle, Awasthi highlights. Acknowledging the challenges, he feels the need for working capital and managing potential waste. “Retail is uncharted territory for me, but we’ve secured funding to ensure we have enough working capital. Most FMCG purchases happen offline, so we need to be where consumers are,” he states.
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While the demand side has not been a major issue for Aweri Foods, the supply chain remains a critical area of focus. “Supply chain is something that we have to strengthen. We have to de-risk our supply chain,” Awasthi acknowledges. Optimizing production through automation and securing the right talent for various channels are also high on his agenda.
Strategic Planning and Execution
The company is focusing on general trade (GT) first, gathering feedback to fine-tune its products and price points. “We’re not aggressively expanding our product range. I believe in a focused approach. If we do it right, even a single product line can build a business,” Awasthi asserts.
Looking ahead, Awasthi has set ambitious targets for Aweri Foods. “Our aim is to prepare for Diwali 2024, our peak season. We want to ensure we have the right team and financial muscle in place. Currently, we’re at about INR 5 crores in annual revenue. While I’ve been using personal capital and family support, we will need to raise capital to reach INR 100 crores,” he shares.
