Founder: Shashi Kumar
FY 2024–25 Target: ₹400 crore (vs. ₹286 crore last year)
Model: Organic, integrated dairy farming clusters + digital-first distribution
Founder’s Journey: From Global Tech to Rural Reinvention
After 17 years in tech (Wipro + IIT Chicago), Shashi Kumar returned to Attibele (Bengaluru outskirts) with one ambition: make farming viable for small and marginal farmers.
What started as coffee-table discussions among 27 Wipro colleagues turned into a crowdfunded NGO… which evolved into Akshayakalpa Organic (est. 2010).
His thesis was brutally simple:
- Farmers quit agriculture due to lack of stable income.
- The only asset they have is land, which must be monetised sustainably.
- Answer: Dairy + soil regeneration = daily cash flow + long-term fertility.
Why Dairy?
Shashi identified two structural levers:
- Daily income → dairy offers daily cash flow (unlike crops).
- Dung value-addition → processed dung improves soil organic carbon → productivity → wealth.
The model expanded into:
- Dairy
- Backyard poultry
- Beekeeping
- Integrated crop cycles
- Soil carbon restoration
- Hedge cropping + water harvesting
Over 14 years, it has become a holistic farm enterprise model, not a milk-collection business.
The Cluster Model
Akshayakalpa operates three integrated clusters:
| Cluster | Location | Farmers | Daily Milk | Animals |
|---|---|---|---|---|
| 1 | Tiptur (Tumkur, Karnataka) | 1200 | Part of total 1.2 lakh L/day | — |
| 2 | Chengalpattu (Tamil Nadu) | 80 | — | — |
| 3 | Gadwal (Telangana) | 50 | — | — |
Total footprint: 4,000 acres, 16,000 animals, 1.2 lakh LPD milk.
Clusters are spread over a 10 km radius, allowing tight extension services.
Read More: Lactalis USA Rolls Out “:ratio Pro-Fiber” — A High-Protein, High-Fiber, GLP-1 Friendly Snack Line
The “Farm-as-a-Startup” Infrastructure
Unlike cooperatives, Akshayakalpa has flipped the chilling model:
Farm-level chilling only
- Every farmer has a 50–200 L integrated chiller.
- Milk is chilled immediately to 4°C post-milking.
- Zero village collection centres.
- Farmers earn ₹1.50/L extra for chilling (entrepreneur model).
- Chillers financed via leasing, later transferred to farmers.
This gives Akshayakalpa:
- Lower bacterial load
- Better shelf life
- Zero middle handling
- Organic integrity control
Processing Plants
- Tiptur, Karnataka – 2 lakh LPD
- Neerpair, Tamil Nadu – 40,000 LPD
Economics: Price, Profitability & Farmer Income
Farmer Procurement Price
- ₹47/L + ₹1.5 chilling incentive
- Effective: ₹48–₹50/L (varies with fat/SNF)
Consumer Prices
- Milk (4% fat, 8.5% SNF): ₹85/L
- Ghee: ₹1,500/kg
- Paneer: ₹800/kg
- Curd: ₹150/kg
- Buttermilk: ₹30/200g
They sell liquid milk at:
- ₹60/L skim
- ₹75/L full fat
Average realization: ₹72/L (important—this is how the margin must be understood).
Farmer Earnings
Average farmer income today: ~₹1 lakh/month.
This includes:
- Milk
- Eggs (8,000/day sold)
- Beekeeping
- Vegetables & greens
- Poultry
This diversified income is the secret sauce.
Customer Base & Market Demographics
- Core buyers: middle & upper-middle class parents.
- Income: ₹80,000/month household average.
- Organic milk often purchased for children specifically.
- Only 5% are high-income households.
Distribution Channels
- Akshayakalpa App → ₹18 crore/month
- E-commerce: BigBasket, Blinkit, Zomato → ₹10 crore
- Offline retail: 8–10% of revenue
This is India’s first digital-first dairy brand.
Growth, Valuation & Funding
Growth
- 60% growth over 5 years
- Expected 30–35% growth this fiscal
- FY 2024–25 revenue target: ₹400 crore
- Recently turned profitable
- Bangalore market profitable; Chennai & Hyderabad still in build phase
Funding
- 2019: ₹40 crore
- 2022: ₹117 crore (UK govt + Zerodha’s Nithin Kamath)
- 2023: ₹250 crore (A91 Partners)
Valuation multiple: ~1.75× topline → classic “brick-and-mortar + purpose-driven” valuation.
Promoter Equity
- Shashi holds ~5%
- Early friends & colleagues: ~25%
8. Organic Certification & Veterinary Control
- Certified by APEDA-accredited bodies.
- 1,200 extension officers + vets ensure compliance.
- Fully organic feed.
- Strict antibiotic protocol → treated milk always segregated.
Expansion & Future Outlook
Target markets next:
- Pune–Mumbai belt → huge premium dairy demand
- Expecting to remain digital-first with subscription-led growth
Organic dairy market potential: ~30% YoY per Shashi.
Why Akshayakalpa Matters (Industry Lens)
This is not just a dairy brand; it’s a demonstration that:
- premium milk can scale outside cooperatives
- farmer incomes can be multiplied sustainably
- digital subscriptions can disrupt the morning-milk ecosystem
- organic dairy can become a ₹400–500 crore category
Shashi Kumar essentially built the “Amul for the premium, urban, organic consumer”—and did it without collection centres, without cooperatives, and without subsidies.
Join Our “Dairy & Food Jobs Updates” WhatsApp group
Disclaimer
I do my best to share reliable and well-researched market insights but occasional errors or omissions may slip through. Please view all content as informational, not financial advice.
Stay informed on all the latest news updates
All Agriculture Books Free Download
All Dairy Technology Books Free Download
All Agricultural Engineering Books Free download
All Horticulture Books Free Download
All Fisheries Science Books Free Download
For Daily Update follow us at:
Facebook Telegram Whatsapp Instagram YouTube
The contents are provided free for noncommercial purpose such as teaching, training, research, extension and self learning.
If you are facing any Problem than fill form Contact Us
If you want share any article related Agriculture with us than send at info@agrimoon.com with your contact detail.
