Credit: Special Arrangement
Bengaluru: Organic dairy company Akshayakalpa Organic is planning an aggressive expansion into the Maharashtra market, after establishing a strong presence in Karnataka, Tamil Nadu, and Andhra Pradesh. Accordingly, it is investing Rs 200 crore to set up a new organic milk dairy in Mawal, located between Pune and Mumbai, which will be ready in the next two years.
“We started working in Maharashtra close to a year ago. Already, we have planned to invest around Rs 200 crore in the next two years. We are looking at launching our products in November 2026. Initially, the milk will go from Hyderabad. Then we will start producing milk there in 2028,” Akshayakalpa Organic Co-founder & CEO Shashi Kumar told DH.
Following the success of its high-protein paneer, launched earlier this year, the company introduced its high-protein organic milk recently.
Shashi Kumar said the company has enough capital to oversee its Maharashtra expansion. “We are very well-capitalised. We raised around Rs 100 crore primary capital this year. In 2023, we raised a lot of money. Also, we mobilised close to around Rs 100 crore bank debt. So that is keeping us going. Virtually, we are not burning money now,” he said, adding, “We are a profitable company. I just need money for expansion. I don’t need money for burning capital.”
Shashi Kumar said the company possesses a cash reserve of Rs 300 crore, which will be utilised to fund the expansion in Maharashtra.
The organic dairy player turned positive during the first half of this year. In FY25, the company reported a topline of Rs 363 crore, and it expects to close FY26 with a topline of close to Rs 600 crore, with an EBITDA of 10% and 2% PAT, he added.
The company intends to tap the capital market with its IPO in 2030. “My shareholders are telling me to do it much earlier, by 2028. We will take a call later,” he said.
During the previous year, Akshayakalpa has managed to enroll around 150 farmers in Maharashtra, who are currently undergoing the organic certification programme. It is a 3-year journey, before they turn organic. “Our plan is to get at least 10,000-15,000 litres of organic milk a day by 2028, so that we start selling in the Mumbai-Pune market,” he said.
Currently, Akshayakalpa produces 70,000 litres of organic milk per day, from 2,200 farmers in Karnataka, Andhra Pradesh, and Tamil Nadu. The majority of the production comes from farmers in Karnataka.
Accordingly, Akshayakalpa has helped farmers increase their monthly income to Rs 1,28,000 per month, from just around Rs 10,000, a month earlier. “Our aim now is to help farmers increase their monthly income to Rs 2 lakh and above. Our R&D unit is working in this direction,” Shashi Kumar stated.