India’s Dairy Industry Poised To Reach $227 Bn By 2030: Akshayakalpa Organic Co-Founder

Shashi Kumar’s journey from a South Karnataka farming family to founding Akshayakalpa Organic is remarkable. Witnessing rural poverty first-hand, he pursued computer science and later telecommunication engineering in Chicago. After 17 years in technology, he returned to India driven by a desire to transform the agricultural sector and improve the economic conditions of small farmers, inspired by his own family's shift away from farming.

In 2010, with veterinarian Dr GNS Reddy and the support from colleagues, Shashi launched Akshayakalpa Organic. Today, it's India’s largest certified organic milk company, serving over 3,00,000 people daily in Karnataka, Telangana, and Tamil Nadu.

In an exclusive interview to Bizz Buzz, the entrepreneur based out of Bengaluru, said the initiative has enabled 1200 farmers to increase their earnings 3-4 times, achieving financial stability.

A down-to-earth person, Shashi Kumar is fully committed to ensuring every farmer's material well-being and providing nutritious food to consumers. He said his life and lifestyle are closer to that of the farmers he works with, often choosing simplicity over convenience

How is the Indian dairy industry and the projections for growth in the near future?

The Indian dairy industry is one of the largest in the world and plays a vital role in the economy and nutrition. The market was valued at $115.57 billion, per Fortune Business Insights. It has grown to $124.93 billion in 2023 and is expected to reach $227.53 billion by 2030, at a CAGR of 8.94 per cent. India is the world's largest producer of milk, and a key exporter of dairy products, with the sector contributing to nearly 5 per cent of the economy and sustaining more than eight crore farmers.

At Akshayakalpa Organic, we believe in sustainability and organic practices and strive to stay in sync with nature. Our farmer-entrepreneurship initiative encourages farmers to achieve self-reliance while harnessing the power to grow organic, safe and healthy food. As consumer demand for organic and natural products rises, we anticipate continued growth in the dairy sector, supported by government initiatives to enhance production and infrastructure.

When was your dairy formed and how is it different from others?

Akshayakalpa Organic was started in 2010 by 27 technology professionals to overcome the shortcomings in India’s agriculture economy through a self-sustainable farm model. Being India’s first certified organic dairy enterprise, we deliver milk and products without antibiotics and synthetic additives. Our commitment to sustainability is evident in our eco-conscious initiatives that engage customers directly.

Providing experiential farm visits at our farms in Tiptur, Shad Nagar and Pooriyampakkam we help consumers to see sustainable practices in action, building trust and community. These visits highlight our eco-conscious initiatives and ethical treatment of animals — all in a commitment to promote the fact that healthy soil can produce healthy food. Additionally, initiatives like "Give Back the Milk Pack" to encourage customer participation in recycling efforts. By integrating these eco-friendly practices into our operations and customer engagement, Akshayakalpa Organic differentiates itself as a leader in the organic dairy sector, committed to building a healthier world through nutrition and standardized market access with stringent regulations on pricing including the middlemen margins/distributions.

Being a reputed firm in the Indian dairy industry, can you please elaborate your insights on how the organic food industry in India has evolved and what the future holds for it?

The organic food industry in India has grown steadily in the last ten years owing to the growing consumer interest in health and environmental concerns. At present, 18 per cent of Indian consumers are buying organic products, which is one of the highest rates in the world, and Akshayakalpa Organic is leading this charge by offering high-quality organic dairy products that are free of harmful chemicals and additives. The future is positive as more government policies are promoting organic farming, thereby favouring the growth of the sector. The Indian organic food market is expected to grow at a compound annual growth rate CAGR of 25.25 per cent from 2022-2027, due to the increasing demand for organic products. With the improvement of technology and distribution systems, organic food should be available to a larger number of people. In the process of enhancing the awareness of organic farming, there are still many opportunities for innovation and development in this sector.

There is talk about sustainability in the dairy industry. What initiative have you taken in this regard?

Since the inception of our sustainability initiative in 2022, Akshayakalpa Organic has successfully recycled over 40,000 kg of plastic across Bengaluru, Chennai, and Hyderabad, highlighting that when people come together for a common cause, small actions can create a big impact. Our recycling program encourages consumers to follow three simple steps: rinse the pack for 30 seconds, hang it to dry, and return it by placing it in a delivery bag. This process enables consumers to play a pivotal role in creating a sustainable future for generations to come. In addition to the "Give Back the Milk Pack" initiative, we are committed to fostering a culture of sustainability through community engagement programs like lake cleaning drives and neighbourhood cleanliness initiatives. By inviting communities to participate, we emphasize that every small action contributes to a larger positive impact on the environment.

Our practices at Akshayakalpa farms are based on the principles of circular economy and co-existence farming to reduce our ecological footprint. Our farms are self-sustaining and embody how nature operates through symbiotic relationships. We practice a closed-loop soil management system where fodder for cows is grown on-site, cow dung is converted into methane gas for electricity, and the slurry is returned to the soil as manure. Through our initiatives, we provide farmers with end-to-end technological know-how and guidance to ensure these sustainable practices are implemented at the farm level. This holistic approach enhances productivity while fostering a healthier ecosystem, reinforcing our commitment to sustainability in the dairy industry.

Now the government wants education for the consumers. Please elaborate if you have taken up any such initiative to change consumer perceptions and food choices?

At Akshayakalpa Organic, we have implemented several initiatives aimed at changing consumer perceptions and food choices. Partnering with various parent influencers is a key strategy in our commitment to consumer education and the Good Food Movement.

In addition to engaging influencers, we have established farm visit programs for schools and colleges. These visits allow students, along with their teachers, to understand the source of food, and the importance of soil, farmers, and natural resources. They also learn about label reading and making informed food choices. Following these visits, we extend the initiative to "Good Food for Schools," where children can grow simple vegetables on school premises. This hands-on experience reinforces their learning and fosters a sense of responsibility towards food and agriculture. Consumer education is central to our mission, and we prioritise transparency by openly sharing details about our sourcing and manufacturing processes. We invite consumers to visit our farms, allowing them to witness our cultivation practices first-hand. This transparency builds trust and assures consumers of the authenticity of our organic products. Through these efforts, we aim to create a community of informed individuals who share our values, inspiring positive change in perceptions of food and agriculture.

What is your commitment to empowering young farmers? Can you elaborate on the support provided to them, and how does this contribute to the overall sustainability of the organic farming ecosystem?

At Akshayakalpa Organic, our commitment to empowering young farmers is fundamental to building a sustainable agricultural ecosystem. We provide comprehensive training programs that equip these farmers with knowledge about organic farming techniques and best practices. Our goal is to create a farm model that is financially self-sustaining and rewarding. We strive to establish a free market system for agriculture supported by consumers willing to pay fair prices for quality farm produce.

This approach enables young farmers to access best-in-class production practices and tools, facilitating their transition from conventional to organic farming.

Currently, we handle 1,20,000 litres of milk daily and cater to 100,000 households. We proudly collaborate with 1,500 certified organic farms in our Tiptur cluster, along with 100 certified farms in Chennai and 65 in Hyderabad. By supporting young farmers, we contribute to their economic stability while promoting sustainable practices that benefit both communities and the environment.