Transforming Dairy Starting with small-scale pilots in 2016, they allowed customers to subscribe and pay for milk in advance. By 2019, they established a solid customer base of around 5,000 subscribers, setting the groundwork for their D2C journey
By Kavya Pillai
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
In a rapidly evolving digital landscape, the dairy industry has embraced direct-to-consumer (D2C) models to meet changing consumer preferences. One company has successfully navigated this transition, overcoming traditional distribution challenges.
The journey began in 2012 when the founder and Dr. J.N.S. started selling milk in Bangalore. Initially successful, they sold 18 litres through a distributor. However, by 2016, payments from distributors became inconsistent. He noted, "That is when we decided this challenge is not viable; we need to build our channel." This realization prompted a shift to a D2C approach.
Starting with small-scale pilots in 2016, they allowed customers to subscribe and pay for milk in advance. By 2019, they established a solid customer base of around 5,000 subscribers, setting the groundwork for their D2C journey. As the founders explored e-commerce, they recognized the potential of platforms like Swiggy and Blinkit. "One of the things in the business problem that we wanted to solve was to directly go to customers," he explained.
Currently, the company operates in Bangalore, Chennai, and Hyderabad, focusing on organic milk and fresh produce. The founder emphasized, "Our expansion is limited to where we can get to market." Plans for physical retail stores are also underway, with a goal to enhance customer engagement.
Managing fresh produce poses unique challenges. To minimize waste, the company adopted a subscription-driven model, allowing for better demand forecasting. "We have tried to do is subscription driven, not just driven by demand," he shared. This approach has resulted in a high retention rate, with about 60 per cent of customers renewing subscriptions after one year.
With a strong growth trajectory, the company aims for 400 crores in sales by 2025. The founder confidently stated, "We would like to hit around 400 crores in sales this year." Their journey serves as an inspiring example of how traditional industries can thrive through digital innovation.
