Mahindra Agri Solutions bets big on organic food

Mumbai: Tractor-to-software conglomerate Mahindra Group is studying the possibility of introducing its own brand of organic food to tap into the growing urban market of conscious eaters.
Mahindra Agri Solutions, a group company, may leverage the Mahindra brand to overcome the lack of consumer trust in the authenticity of organic food products.

Developing consumer trust in the authenticity of an organic product and the stark price difference between organic and regular food are the two barriers to the market in India today, said Ashok Sharma, managing director of Mahindra Agri Solutions. The entry of a brand like Mahindra can help develop that trust, he said, meanwhile the price differential will be narrowed as the business scales.

The company has already invested in Mera Kisan, an organic food manufacturing startup, to explore this business. It is aiming to scale to a supplier base of 25,000 farmers over the next three-four years to source at least 2 lakh tonnes of organic food. Presently, it has about 8,000 certified organic farmers in its fold, Sharma said.

“India itself is a big opportunity,” he said, pegging the domestic organic food market at Rs 1000 crore annually. “There is also demand in exports and there also we want to contribute.”

It presently sells its products through partners like Haiko Supermarket and online retailers like Big Basket, Amazon and Flipkart. Mera Kisan on Wednesday signed cricketer Ajinkya Rahane as its brand ambassador. The Indian test cricket team vice-captain also picked up a minority stake in the company.

The Mahindra-backed startup is looking at break-even by 2024 with revenue of Rs 150 crore. Its target is to be among the top three organic food brands in India, according to Sharma.

Mahindra Agri Solutions sells seeds, micro-irrigation systems, agricultural chemicals, and is also one of the leading exporters of fruits from India to European markets.

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