The company has already invested in Mera Kisan, an organic food manufacturing startup, to explore this business. it's progressing to scale to a supplier base of 25,000 farmers over the following three-four years to source a minimum of 2 lakh tones of organic food. Presently, it's about 8,000 certified organic farmers in its fold.
Tractor-to-software conglomerate Mahindra Group is studying the chance of introducing its own brand of organic food to tap into the growing urban market of conscious eaters.
Mahindra Agri Solutions, a group company, may leverage the Mahindra brand to beat the shortage of consumer trust within the authenticity of organic food products.
Developing consumer trust within the authenticity of an organic product and therefore the stark price difference between organic and regular food are the 2 barriers to the market in India today, said Ashok Sharma, managing director of Mahindra Agri Solutions. The entry of a brand like Mahindra can help develop that trust, he said, meanwhile the worth differential is going to be narrowed because of the business scales.
The company has already invested in Mera Kisan, an organic food manufacturing startup, to explore this business. it's getting to scale to a supplier base of 25,000 farmers over the subsequent three-four years to source a minimum of 2 lakh tones of organic food. Presently, it's about 8,000 certified organic farmers in its fold, Sharma said.
"India itself may be a big opportunity," he said, pegging the domestic organic foodstuff at Rs 1000 crore annually. "There is additionally a requirement for exports and there also we would like to contribute."
It presently sells its products through partners like Haiko Supermarket and online retailers like Big Basket, Amazon, and Flipkart. Mera Kisan on Wednesday signed cricketer Ajinkya Rahane as its brand ambassador. The Indian test cricket team vice-captain also picked up a minority stake within the company.
The Mahindra-backed startup is watching break-even by 2024 with a revenue of Rs 150 crore. Its target is to be among the highest three organic food brands in India, consistent with Sharma.
Mahindra Agri Solutions sells seeds, micro-irrigation systems, agricultural chemicals, and is additionally one among the leading exporters of fruits from India to European markets.