A year in development, Akshayakalpa bets on its new protein milk to power growth

The dairy company, backed by venture capital firm A91 Partners, has three main production and assembling clusters – one each in Karnataka’s Tiptur, Tamil Nadu’s Chengalpattu district, and Telangana’s Rangareddy region – that manufacture the bulk of its products. It partners 2,200 dairy farmers and processes 1.75 lakh litres of milk every day.

The company will also increase capacity utilisation of the existing units.

“Our facilities are running only at 50% capacity as of now, we are working on taking this up to 70% by next year," Shashi Kumar, Akshayakalpa's founder and CEO said in an interview.

Akshayakalpa's scale is tiny compared to large players such as Amul, other state-run cooperatives, and larger private dairy companies such as Hatsun Agro, Heritage Foods, and Dodla Dairy. But, the 15-year-old company's distinct organic positioning in the market has landed its with an unusual brand premium even for its basic products.

Its organic pasteurised cow milk retails for ₹42 for a half litre packet, while the comparable toned milk from Nandini, the brand of Karnataka Milk Federation, is priced at ₹24 for 500 ml. Likewise, a 400 gm tub of Akshayakalpa's set curd sells for ₹80 versus Rs 28 for a half-litre packet of curd from Nandini. To be sure, other brands such as iD Fresh and Sid's Farm have products with pricing close to that of Akshayakalpa's.

Akshayakalpa, which expects to grow its operating revenues by over 50% to nearly ₹600 crore in fiscal 2026 over last fiscal, sells primarily in Bengaluru, Chennai, and Hyderabad with its longer shelf-life products retailing in several other Indian cities.

It is among a crop of new dairy companies in India that marry premium products with apps that make ordering and home delivery easy. This group includes the likes of Milky Mist, Country Delight, Milk Basket, FTH, Daily Moo, among others. Some of these also deliver fresh produce, bakery, and other items.

Protein push

The Bengaluru-based company launched a new high-protein milk on Monday, its first major product roll-out in nine years. The beverage, offering 25 gm of protein in a 250 ml tetra pack, could become an easy substitute to whey protein powders and supplements, transforming the way Indians meet their daily dietary needs, according to Kumar, a former technology executive at Wipro. Competing brands such as Amul, Country Delight, Parag Foods, Mother Dairy, among others already sell high-protein products.

A 30 gm scoop of whey isolate powder is packed with approximately 30 gm of protein.

In the next two years, Akshayakalpa expects a significant part of its business to come from protein-fortified products, including milk, curd, and paneer, as demand for good-for-you foods in the country increases, Kumar said.

Akshayakalpa sees milk to be the answer to India’s protein deficiency problem, guided by the high frequency of consumption as well as easy availability. Milk sales currently account for nearly two-thirds of the company’s business, with the rest coming from products like ghee, cheese, and curd.

Its focus on protein-rich products comes as over 75% of Indians consume less protein than recommended, according to Indian Market Research Bureau estimates.

“There is very strong awareness and tailwinds in the space," said Zoeb Ali Khan, partner at early-stage venture capital firm Sauce.vc. “Urban India has started to realize that it (protein) is an essential nutrient to build health and strength."

Akshayakalpa had been worked on perfecting its protein-rich milk recipe for more than a year to find the right balance of taste and nutrition when a launch this July of its high-protein paneer showed strong traction — validating the bet on demand for protein in dairy products.

Consumers are unlikely to accept a nutritious offering if it lacks taste, Kumar said. “For Indian consumers, flavour beats function. This tension is especially acute in dairy where removing fat is key to making products healthier, but it frequently compromises the richness and appeal that drive repeat purchases. It took us one year to find the right balance."

Premium shift

India is the world’s largest milk producer and its dairy market is projected to be worth over $274 billion by 2032. Dairy is India's largest agricultural product with milk production reaching 239 million tonnes in FY24, the latest such data is avaiable, according to the the government's Department of Animal Husbandry and Dairying.

Historically, the sector has been dominated by cooperative structures such as Amul and state-run milk marketing federations, the unorganized local vendor segment, and a handful of private players with liquid milk serving as the primary staple.

Rapid urbanization, rising disposable incomes, and the expansion of modern retail is driving growth in consumption of value-added products such as paneer, yogurt, cheese, and flavoured milk — all growing at a faster clip than milk.

New players such as Akshayakalpa, Sid’s Farm, Two Brothers Organic Farms, and Pride of Cows, are attempting to capitalize on this market shift and challenge the dominance of cooperatives and private dairy companies.

The newcomers are focusing on premium products, organic sourcing, and clean labels, capitalizing on urban demand for high-quality, traceable, and functional dairy products.

Founded in 2010, Akshayakalpa has raised close to $40 million so far from A91 Partners, British International Investment, and Zerodha’s Kamath brothers.

While Akshayakalpa doesn’t have any near-term plan for a public market listing, Kumar said that the rising awareness among consumers as well as the upcoming initial public offering of Milky Mist will give a boost to the new-age dairy market.