Ahmedabad: As denizens in the country are rapidly gaining awareness about organic products, the demand has witnessed a rapid rise. The total organic industry market in the country is worth an average of Rs. 20,000 crore, of which Gujarat’s share is 25 percent, i.e. Rs. 5,000 crore, said Nirav Solanki, co-founder of Ayudha Organics.
Solanki stated that there has been strong growth in the segment after the Covid-19 epidemic. The industry is growing at a rate of 20 percent annually. Most people have become health conscious. In addition, with the increase in people’s disposable income, demand has also increased in cities like Tier 1-2 and Tier 3.
Company founder Anil Patel said that on average, more than 550 farmers have been associated in Gujarat. It has a total customer base of 2.75-3 lakhs with over 43000 listed customers. The grocery segment has an average repeat ratio of 85-90% across stores.
The company’s product range includes organic groceries, fresh fruits, vegetables and the highly popular A2 cow’s milk. The company has also established a strong foothold in the digital space. Apart from its website, the products are available across the country through platforms like Amazon and Flipkart.
25% equity distributed at a valuation of Rs 15 crore
A startup company in the organics sector, Ayudha, has raised funding as part of its expansion plan. The company has distributed an average of 5% equity to five people at a valuation of Rs 15 crore. The company has received an average funding of Rs 1.5 crore. Investments will be made to accelerate warehousing and packaging innovation in the coming time. There are plans to expand to other cities besides Ahmedabad and then to other states.
The company has adopted the FOCO model for expansion. The company currently has 15 operational organic stores. The target is to open more than one store every month on an average and to open 25 stores by the end of the year. Out of the total operational stores, 3 are company-owned. While the rest are franchises and FOCO (Franchise-Company Operated). The company has a product portfolio of more than 150.
