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Business News/ Companies / Start-ups/  iD Fresh to sell organic packaged food
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iD Fresh to sell organic packaged food

iD Fresh Food's entire portfolio will now be made of organic raw materials — organic rice, wheat and lentils
  • The word 'organic' will be displayed on all products going forward
  • Musthafa PC (Mint)Premium
    Musthafa PC (Mint)

    New Delhi: Bengaluru-based packaged foods company iD Fresh Food will now sell organic 'idli-dosa' batters, as the company moves to servicing consumers who are increasingly seeking more health benefits and transparency regarding the quality of food consumed.

    The packaged food company, which sells the popular 'idli-dosa' batter, 'parotas', and 'vada' batter said it was transitioning its entire food portfolio, and will now be made of organic raw materials — organic rice, wheat and lentils. Some of its key products such as the 'idli-dosa' batter and 'Malabar parotas' have already started selling their organic avatar starting this month in Bengaluru. Four more products will switch to organic raw materials over the next six to 12 months, Musthafa P.C., CEO and co-founder, iD Fresh Food, told Mint in an interview.

    The launch will also be supported by some changes in the product packaging with the word 'organic' displayed on all products going forward. “A dedicated team has been working on the organic product category for the last two years and we are excited to see how our customers respond to iD 2.0," he said.

    iD Fresh started selling its 'idli-dosa' batters in 2005. However, its business has seen scale in the last few years, with time-strapped and convenience-seeking urban households switching to packaged foods.

    “Since we entered this space, a lot more players have entered the market. Having an organic tag will also help differentiate our brand," Musthafa said. Among Indian consumers, perception around organic food was that it still came at a premium and "that’s what we want to change, so we have value engineered our back-end completely to launch products that are available at a similar price point," he added.

    Organic food typically refers to food that is free from toxic pesticides, synthetic fertilisers, growth hormones and antibiotics. It also refers to food that is grown under organic cultivation standards with respect to impact on soil, water and air.

    Going forward, iD Fresh will only work with vendors who are compliant with organic standards of food procurement. “We plan to take a systematic approach in transitioning from conventional to organic products," he said.

    As part of its transition, iD Fresh has hiked the price of its highest-selling product, the 'idli-dosa' batter, by 10.

    iD’s shift to organic food comes at a time when health-conscious consumers in urban India are gradually switching to organic fresh produce and ingredients. However, the trend is still limited to the more upwardly mobile consumer as organic foods typically come at a premium. By 2020, the market for organic foods is expected to touch 10,000 crore according to estimates by industry body ASSOCHAM.

    The availability of organic produce at affordable price points was likely to open up the market for organic produce, Musthafa added.

    The 15-year-old company backed by Premji Invest, Azim Premji’s investment arm, and Helion Venture Partners, is currently available in 28 cities and is set to start the sale of its packaged coffee concoction—a variation of the popular south Indian coffee—in the US. In the next few weeks, its 'dosa' batter will also be available in Muscat. In 2018-19, the company registered a turnover of 210 crore.

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    Suneera Tandon
    Suneera Tandon is a New Delhi based reporter covering consumer goods for Mint. Suneera reports on fast moving consumer goods makers, retailers as well as other consumer-facing businesses such as restaurants and malls. She is deeply interested in what consumers across urban and rural India buy, wear and eat. Suneera holds a masters degree in English Literature from the University of Delhi.
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    Updated: 28 Mar 2019, 06:48 PM IST
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