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The country contributes 25-30% of total revenue, CEO says
photos provided
Indian staples Idli and dosa have surged in Emirati households during the pandemic as the batter used by iD Fresh Food’s CEO and co-founder PC Musthafa revolutionized the healthy and fresh food business.
The son of a coolie (daily wage worker) from a village in Kerala, Musthafa had to drop out of school but went on to finish his engineering and earn a degree in management. He is an inspiring story of overcoming adversity.
Today, the company’s idly/dosa batter products are sold in over 30,000 stores in India and abroad, including the UAE. “We are passionate about innovations that benefit our customers, farmers and society. Make healthy Indian food accessible and affordable to people of all socioeconomic levels, using state-of-the-art technology while keeping it simple,” he said. said in this interview.
iD Fresh is expanding into new markets after India and the UAE. I know you have a unit in Ajman. Do you see your trip to the Gulf as a return to being here as an entrepreneur?
The UAE is an important market for iD Fresh. We see significant growth opportunities and have aggressive expansion plans for the region.
As far as going home, you are right. Saudi Arabia and Dubai were my early career home. I have fond memories of those times. In fact, it was during my stay in Dubai that I finally got the courage to quit my lucrative corporate job and start a business in India.
Are you obsessed with innovation in the fresh food sector for which you are a pioneer?
Honestly, when we started our small operation in 2005 in a 50 sq ft kitchen in Bangalore, we had no such desire!
Back then, it was common to see idli and dosa batter sold in unhygienic plastic lids sealed with rubber bands. My cousins Abdul Nasser, Shamsudeen TK, Jaffer TK and Naushad TA, and I was upset by the poor hygiene standards and thought, “Why don’t we do better?” This is how iD Fresh was born – as Simple solutions based on common sense.
Our patented extruded and fried vada batter packaging design blends the intricate art of traditional vada making with the simple science of modern technology, based on the same principles. We thought – “How can we make it easier for people to enjoy delicious homemade vadas?”
In my opinion, innovation is nothing more than understanding people and solving their problems with common sense. The job of an entrepreneur like me is to discover great business ideas, execute them well, and scale. And, yes, I take my job very seriously!
After the worst of the pandemic, iD has narrowed its losses. Is this a growth versus profitability scenario?
A business must be profitable or it is not a business. However, profit has never been the ultimate goal of iD Fresh. Growth and innovation drive us to create businesses that positively impact people’s lives.
At a time when companies around the world are looking to extend the shelf life of food products, iD Fresh focuses on selling fresh batter. When conventional manufacturing could not meet our business expectations, we worked with a German company to develop a machine that can produce 1,500 kilograms of batter per hour, 100 times the output of conventional machines.
Whether it’s our award-winning boat-shaped, reusable idli and dosa batter packaging, or our authentic South Indian filter coffee in a unique ready-to-use liquid form, we’re always trying new things.
We are committed to exploring the benefits of 100% natural packaging. Not only will the food stay fresh longer, but the environment will also be more environmentally friendly. Our Smart Sip Tender Coconut and Coconut Shredded Coconut are completely plastic free products. They come in “God’s own packaging” and bring us one step closer to a plastic-free future.
At iD Fresh, we are passionate about innovation that benefits our customers, farmers and society at large. Making healthy Indian food affordable and accessible to people from socio-economic classes is as important as adopting state-of-the-art technology because it keeps things simple.
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What is the revenue in the UAE market? How much has the UAE impacted your business and growth? How many dosa and idli bags do you sell in UAE?
The UAE contributes 25-30% of our total revenue.Last financial year, we received Rs 100 crore (Rs 100 crore) from UAE operations and sold around 2.5 million idly-dosa batter packs serving around 50 million idlis or 30 million dosas
Break even this year? You have been in this business since 2005.
We would like to retain this information for future use. Our current (revenue) run rate is Rs 500 crore.Currently, the company serves more than 45 cities from 30,000 retail stores in India, UAE, US and UK
Ready-to-eat food is a daunting task. very competative. What makes you different?
Yes, packaged food is a tough business. However, for the past 17 years, we have been at the forefront of change in the fresh food sector.
First of all, we are synonymous with 100% natural and nutritious food prepared in a hygienic kitchen, not a laboratory. All of our products are prepared without the use of any chemicals, preservatives or artificial colors.
Our products are positioned as your professional assistants in the kitchen to help you quickly create healthy and authentic Indian meals.
It’s also important to note that we own the entire supply chain, allowing us to remain agile to meet changing consumer demands, along with rigorous quality control and faster time-to-market.
Are you self-made, from humble backgrounds? Does it keep you and your business grounded?
Our early years have shaped us in countless ways. As the son of a daily wage worker in a remote village in Kerala, life hasn’t always been smooth sailing. Our village has no electricity, no roads, and only one primary school. For high school, kids have to walk for miles. So, they usually drop out after grade 7 to work in rice fields, coffee farms and tea houses.
I also dropped out in sixth grade, but then with the encouragement of my teachers, I went back to school. Eventually, I went on to study computer engineering in Coimbatore before graduating from IIM Bangalore. My humble beginnings taught me gratitude, patience, hard work, perseverance and resilience.
My decision to quit a high paying corporate job and become an entrepreneur was driven by a desire to change people’s lives. My cousins Abdul Nasser, Shamsudeen TK, Jaffer TK, Naushad TA, I want to build a better world driven by kindness, empathy, trust and equality.
Your business has some major backers, including Azim Premji. Any new rounds of funding that your vision grows?
Earlier this year, we raised Rs 507 crore (Rs5b) in a Series D round led by Asia’s leading secondary private equity firm NewQuest Capital Partner and existing investor Premji Invest.
We see growth as an ongoing process and we will definitely raise more funds in the future. However, there has been no concrete progress in this regard.
An offbeat question: do you make a good dosa?
For the longest time, I couldn’t do it. But with our new iD Dosa Maker, even I can make perfectly round and crispy dosa. We plan to launch it in the market soon.
How are you acquiring and retaining employees during the pandemic and mass quits?
Our effort is to be one of the most popular companies. We have been at the forefront of delivering ESOPs to employees outside senior management. In fact, to date, 48% of ESOPs are offered to junior managers, while middle managers make up 20% of the company’s ESOP pool and senior managers 15%.
For example, during the pandemic, we supported our employees, thanked them for their efforts, and assured them that there would be no layoffs. In fact, we employ 100 people across functions.
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