How Akshayakalpa Organic's Farmer-Centric Model Achieved Rs30 Cr Monthly Revenue
In 2010, a group of 27 technology professionals, led by Shashi Kumar, took a bold leap of faith. They left behind lucrative careers in the tech industry to venture into the world of farming. This unconventional decision was driven by a shared vision: to prove that farming could be viable and sustainable. Thus, Akshayakalpa Organic was born, a crowd-funded initiative that aimed to revolutionize farming practices in India.
"Akshayakalpa Organic started as a crazy attempt by a group of us who believed in the potential of farming. We wanted to prove that farming could be sustainable and viable," says Shashi Kumar, CEO of Akshayakalpa Organic.The name Akshayakalpa Organic is derived from two Sanskrit words: "Akshaya" meaning infinite and "Kalpa" meaning possibilities. This reflects the company’s belief in the endless potential of sustainable farming.
A Unique Approach to Farming
Akshayakalpa Organic's approach to farming sets it apart from other brands in the market. Instead of focusing on market demands, the company prioritizes sustainable farming practices that benefit both farmers and consumers. This farmer-first approach encourages farmers to grow crops without chemicals and pesticides, ensuring the produce is safe and nutritious."Our focus is on growing food the way it should be grown, without sprays or chemicals. We tell farmers to grow for themselves first, and only market the surplus," explains Kumar.This methodology not only reduces the financial risks for farmers but also promotes healthier soil management and sustainable agricultural practices. One of the standout products from Akshayakalpa Organic is their organic milk, which emerged as an "accidental product" while addressing the farmers' cash flow and soil health issues.
The Farmer-Centric Process
Onboarding a farmer into the Akshayakalpa Organic system is a meticulous process that takes close to three years. This period involves transforming traditional farming practices to align with Akshayakalpa Organic’s sustainable methods. This includes changes in manuring systems, soil management, and integrating dairy farming into the agricultural ecosystem."Once the management changes are complete, the farmer becomes part of our system, sourcing products like dairy, poultry, greens, and honey," Kumar details.This rigorous onboarding process ensures that all products sourced from Akshayakalpa Organic farms meet high standards of quality and sustainability. The company’s operations currently span three major cities: Bangalore, Chennai, and Hyderabad, with plans for further expansion.
Maintaining Quality and Purity
Akshayakalpa Organic farms are among the most technologically advanced in India, with a strong emphasis on traceability and quality control. Each farm is closely monitored by an agronomist who ensures that all farming practices adhere to the company’s stringent protocols. This includes daily testing of milk for antibiotics at the farm level."We are the first company in India to test milk for antibiotics on a daily basis at the farm level. Quality checks are integral to our operations," states Kumar.The company’s technological prowess extends to herd management, pricing systems, and order management, ensuring efficiency and transparency at every stage of the supply chain.
Sustainability at the Core
Sustainability is at the heart of Akshayakalpa Organic’s operations. The company’s farming practices focus on increasing soil organic carbon, with Akshayakalpa Organic farms achieving levels of 3.5 percent, compared to the national average of 0.4 percent. This not only improves crop yields but also contributes to combating climate change by sequestering carbon back into the soil."We manage soil organic carbon to improve crop yields and combat climate change. Sustainability is embedded in our farming practices," says Kumar.
Additionally, Akshayakalpa Organic has implemented a unique packaging return policy. Consumers are encouraged to return milk packets, which are then sustainably recycled, reducing plastic waste and promoting environmental responsibility.
Market Presence and Consumer Acceptance
Currently, Akshayakalpa Organic's products are available in Bangalore, Chennai, and Hyderabad, with an expanding presence on e-commerce platforms like Amazon and Swiggy. The brand has achieved a monthly turnover of around ₹30 crores, reflecting strong consumer acceptance and loyalty."Consumers have responded very well to our products, with high repeat purchase rates. The average Akshayakalpa Organic consumer spends around Rs 2,500 per month on our products," Kumar notes.The direct-to-consumer (D2C) model has been a significant driver of Akshayakalpa Organic’s growth. By delivering orders directly to households, the company has built a strong relationship with its consumers, gaining valuable insights into their preferences and purchasing behaviors.
Marketing Strategies That Work
One of Akshayakalpa Organic’s most successful marketing strategies is its "Visit a Farm" program, where consumers are invited to spend a day with farmers, experiencing firsthand how their food is produced. This initiative has brought over 25,000 consumers to the farms in the past year, fostering a deeper appreciation for organic farming."Our biggest marketing investment has been in raising awareness of organic farming. We invite consumers to visit our farms and see how their food is produced," Kumar shares.Sampling events in apartments and communities also play a crucial role in introducing consumers to Akshayakalpa Organic’s products, further strengthening the brand’s presence in the market.
Future Growth and Expansion
Looking ahead, Akshayakalpa Organic aims to continue its focus on dairy products, with plans to introduce more value-added items like dairy-based fusion products. The company is also exploring the introduction of millets and other organic staples their farmers produce."In the next five years, we aim to become a Rs 1000 crore company, with a primary focus on dairy and value-added products," Kumar envisions.