How Oright Is Unclogging Milk Supply Chain Bottelneck

In the last 30 years, the Indian dairy industry has grown leaps and bounds in a country that once was grappling with a dire shortage of milk. Thanks to Verghese Kurien’s Operation Flood, commonly known as The White Revolution of India, the country today accounts for 24% of the world’s total milk production, contributing 4-5% towards its own GDP. By 2030, India aims to further expand its global milk production share to 30%.

However, despite the growth, the country’s presence in the global dairy export market remains minimal. This disparity is largely due to India’s struggles with meeting international sanitary standards and certification requirements. Issues related to milk adulteration, contamination, and the presence of harmful substances like pesticides and veterinary drugs further hinder India’s ability to compete on a global pulpit.

Who is to blame? Well, the error lies in the fact that the Indian dairy industry, to this date, lags in the adoption of modern dairy farming practices, such as automated milking, precision feeding, and other sustainable farm management technologies.

This has hampered the product quality. Moreover, there is a significant gap in research and development in areas like cattle genetics, feed quality improvement and disease management, leading to suboptimal dairy practices.

This is where ORIGHT claims to be rejigging the equation. Founded in 2019, ORIGHT is focussed on creating an ecosystem that benefits all stakeholders in the dairy industry.

By incorporating advanced technology into the milk procurement process and ensuring timely payments to farmers, the startup seeks to foster transparency and efficiency within the dairy supply chain.

Helming the startup are Utkarsh Kapoor and Rame Ji Kachroo, who bring technical know-how from their diverse professional backgrounds. While Kapoor has a background in deploying robotic process automation across markets in the US, India and Southeast Asia for American Express, Kachroo is a technocrat, who has spent nearly two decades at Canon developing business applications and sales systems.

The founders first met at INSEAD in 2017, and from there, the inception story of ORIGHT started, which finally came into being in August 2019.

Upon their subsequent interactions, they identified and zeroed in on the problem areas, including milk adulteration, which they vowed to help the Indian milk supply chain get rid of.

With their experience in technology integration, the founders decided to transform these operational challenges by digitising the milk supply chain, thereby addressing the pressing need for clean and safe milk collection practices.

ORIGHT’s Dairy Tech Vision Gets Validation

In the early days of founding ORIGHT, the founders laid stress on addressing the issue of milk adulteration within the dairy market. During the Covid-19 pandemic, they worked on creating a comprehensive software solution. Besides, they were also working on building a device to test adulteration, which became the base of their first pilot project.

During this period, they also engaged with various dairy companies to understand their specific challenges and to identify how they could effectively address these problems.

In early 2020, ORIGHT conducted a pilot with a small dairy company in Haryana. This pilot gave them the validation the two had been looking for.

After this pilot, the founders went on a business development spree, conducting meetings with clients across India.

Their efforts paid off when they onboarded Ananda, one of the largest private dairy companies in North India, as their first client.

“What we’ve accomplished with Ananda is remarkable; their entire supply chain, from 500 to 5,000 collection centres, is now utilising our solution. Every stakeholder, from farmers to the head office personnel, can access real-time data through our application. This transparency has been incredibly satisfying and rewarding for us as founders and creators of this idea. Not only has our solution helped Ananda save significant costs, but it has also improved the quality of the milk being collected at their centres,” Kapoor said.

ORIGHT’s Suit Of Solutions

After completely digitising Anand’s supply chain, ORIGHT began receiving orders from other dairy companies, including Kamdhenu and Amul. Currently, ORIGHT offers a suite of solutions to enhance transparency, efficiency, and inclusivity throughout the milk supply chain.

One of its primary offerings is the Supply Chain Management Mobile App, which enables real-time data access and analytics for all stakeholders, including producers, collection centres, chilling centres, dairy plants, and end consumers.

The app not only streamlines operations but also empowers small and marginal farmers by providing them with access to vital agricultural inputs like silage and feed. It also offers educational modules on better farming practices.

“We provide farmers with a digital milk passbook that clearly outlines the amounts they are owed from the dairy. Second, we ensure that the collection centres maintain accurate records and collect high-quality milk. For dairy companies, we guarantee that both the quantity and quality of milk are verified right from the transport level, with all data provided in real-time. This eliminates any issues of pilferage or inflation in the supply chain,” Kapoor said.

In addition to the mobile app, ORIGHT has introduced ORIGHT Sense, a plug-and-play IoT device that extracts milk testing data and uploads it to the cloud. This data can then be accessed in real-time for a transparent procurement process.

Another interesting offering from the startup is MilkoReader, an IoT-enabled milk testing machine. This device can test for six adulterants and eight milk composition parameters in under 45 seconds, providing rapid and accurate results that enhance the integrity of the milk supply chain.

“The industry has evolved significantly since we began. Initially, there was a strong emphasis on addressing milk adulteration and improving quality control. Over time, we’ve integrated more technology into our offerings, adapting to the needs of the market,” Kapoor said.

What’s Next For ORIGHT?

Currently, ORIGHT has also built a revenue model relying on two primary streams. First, the startup generates one-time revenue through the sale of its IOT devices, which is also the largest contributor to its revenue stream.

In addition, it earns revenue through its Software as a Service (SaaS) platform. The startup generated $1 Mn in FY24 revenues. The company is looking to amplify this number by two to three times this fiscal.

Just last month (September 2024), it raised $1 Mn in a round led by Aeravti Ventures. Besides this investment, Loyal VC had infused $500K (pre-seed) in the company by 2022.

Going forward, the startup plans to expand its offerings by deploying a comprehensive fintech solution within its existing application to cater to the diverse needs of the farmer community, suppliers managing collection centres, transporters, chilling centres, and dairy professionals.

It is also planning to introduce an Aadhaar Enabled Payment System (AEPS) to allow farmers to withdraw cash from their bank accounts at the same collection centres where they deliver their milk. By utilising biometric authentication, the process ensures security and ease of access for farmers, streamlining their transactions and enhancing financial convenience.

Additionally, ORIGHT plans to roll out a loan facility for farmers through the application, beginning in November. Moreover, it is looking at expansion into the Global South by targeting emerging economies. For this, the company will have to shift its focus on tailoring its product and service offerings to meet the specific needs and regulatory requirements of each region.

As of now, the startup is trying to operate at the centre of the Indian dairy tech ecosystem, providing everything from quality checks to supply chain automation and management via its app and IoT devices. In addition, its fintech aspirations seem bold at a time when the RBI is apprehensive about extending credit lines.

All in all, ORIGHT is operating in one of the world’s most promising dairy sectors. Giving heft to this are projections that the Indian dairy industry would become an INR 49.95 Lakh Cr opportunity by 2032, growing at a CAGR of 13% from 2023.

[Edited By Shishir Parasher]