Akshayakalpa Farms & Foods Pvt Ltd, operating under the name Akshayakalpa Organic, has invested INR 15 crore to create a new milk sourcing ecosystem near Chengalpattu in Tamil Nadu. This strategic initiative is anticipated to facilitate the company’s expansion into the rapidly growing organic food market in Chennai, reinforcing its position as an organic dairy producer and milk product manufacturer.
The new sourcing ecosystem encompasses a network of 100 organic farmers, chilling centers of varying capacities, and a recently established milk processing center. Additionally, it features extensive Research and Development (R&D) operations, including model farming units and associated facilities, situated in Pooriyampakkam village near Chengalpattu. Significantly, this marks the company’s second processing facility.
“We have been working for the past four years to develop the ecosystem here in Tamil Nadu. We have onboarded farmers from the region through various engagement initiatives during these years. We started the construction of the processing factory by the end of 2022. It is now ready with a capacity to process 40,000 litres of milk every day,” said Shashi Kumar, CEO & Co-Founder of Akshayakalpa Farms & Foods.
Identifying approximately 100 farmers, Akshayakalpa Organic actively collaborated with them over a period of 2-3 years to establish a robust organic production system. The company played a pivotal role in farm design, providing comprehensive financial support, veterinary services, and related assistance. Each participating farmer is responsible for producing milk both in the morning and evening, which is then stored in the dedicated chilling facility. The newly constructed processing center will handle the chilled milk, producing a range of dairy products, including milk, curd, and paneer, to meet the demands of the Chennai market.
Continue Exploring: Akshayakalpa Organic raises $12 Million in funding round led by A91 Partners
At present, the company is sourcing approximately 4,000 liters per day from the group of around 100 farmers.
“In the next one year, we would like to increase the production capacity to 15,000-20,000 litres a day. We plan to achieve this by significantly increasing the number of farmers as also making the existing farms bigger,” said Kumar.
The local facility, equipped with the new sourcing system and processing unit, is poised to fulfill the entire demand for Chennai. Previously, the company catered to the Chennai market from its initial unit located in Tiptur within the Tumkur region of Karnataka.
According to him, the current sales volume in Chennai stands at approximately 5,000 liters, solidifying the company’s position as the primary supplier of organic milk in the city. Additionally, he emphasized that on a national scale, they proudly hold the title of the largest organic milk producer in India, boasting a daily production of 90,000 liters from their cluster in Tiptur.
The company is presently concentrating its efforts on three key markets: South Chennai, Bengaluru, and Hyderabad, boasting a customer base exceeding 60,000. Additionally, it extends its reach by selling long-shelf products in Pune, Mumbai, and the National Capital Region.
In the fiscal year 2023, the company recorded a revenue of INR 195 crore and anticipates concluding the current fiscal year with a revenue of approximately INR 300 crore.
