Truefarm Foods, a fledgling organic food company, is gearing up to tap the fast growing organic food market in India, which at present is estimated to be Rs 1,000 crore (certified organic food market) and is growing at nearly 40 per cent per annum. The company seems well set to make its presence felt in 40 cities across the country and eventually in the US and European markets. It has also lined up plans to get into ready-to-eat and ready-to-cook categories.
“Organic Food market in India is in early growth stage and there are several players in the market. However there are not too many established brands in this space yet in India. Indian market size is currently estimated in excess of Rs 1,000 crore for certified organic products. We see immense opportunities for growth in organic food in India. We expect that this market can grow at 30-40 per cent per year with awareness initiatives from stakeholders and we are committed to playing our part,” said Ravi Jakhar, founder-director, Truefarm Foods. The company is expecting to reach at least 10 per cent market share over the next two years and emerge as the market leader in its specific product categories.
At present Truefarm’s product portfolio includes super foods such as Red Quinoa, Chia seeds and Teff flour, breakfast cereals such as Oats and Muesli, multigrain nutrition flours, spices, pulses, rice and many more 100 per cent organic products. “Our USP is our expertise in nutrition science. We deliver exceptional nutrition without using any harmful chemicals. For an example, our protein plus flour made after researching nearly 28 grains, delivers 24.37 per cent protein, with all organic grain sources and cooks better than ordinary wheat flour for both Indian chapatis and pizza bases. We shall continue to add more products in both grocery category as well as ready to eat foods in near future,” said Jakhar.
He added, “We will soon expand into ready to cook and ready to eat categories and deliver nutrition through our range of 100 per cent Organic foods.”
At present, the products from the Truefarm Foods’ stable are available in India through online marketplaces such as Amazon, as well as physical stores including both large format modern trade chains as well as neighbourhood general trade stores. The company is now expanding its presence and moves are afoot to have a store footprint across all top 40 cities of India over the next six months and consumers from any part of the country can already order online with free delivery to their doorstep. “We have our plans in place for Europe and North America and will be launching our products there by around end of June 2018. We have significant plans for US and Europe,” said Jakhar, adding, “Organic Food in India is still a bit niche and driven by awareness and hence the share of e-commerce is much higher as compared to conventional groceries. We expect that 25 to 30 per cent of our business will come from online sales in 2018 and we see that touching 50 per cent by 2020.”
The company, which has lined up plans to raise nearly Rs 100 crore from PE funds to back up its expansion programme, is working on to promote and position itself as a “100 per cent organic food company, driven by nutrition science”.
Jakhar said, “We are looking at reducing carbon footprint and eliminating diseases caused by toxins and chemicals in our food. The company sees it as its responsibility to restore ecological balance, which has been disturbed by centuries of exploitation and contamination of resources such as soil and water by use of chemicals. Our domain requires constant and deep engagement with consumers. Hence we focus on in-store communication and marketing initiatives and digital marketing is critical for us to plan effective campaigns.”