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“Reaching Rs 100 cr testament to our strategic approach”
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Monday, 19 August, 2024, 08 : 00 AM [IST]
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 Eggoz Nutrition is India's first egg-focused consumer brand. The company, founded by Abhishek Negi, Uttam Kumar and Aditya Singh who are IIT-Kharagpur alumni, intends to bring farm-fresh and chemical-free eggs to every health-conscious Indian. The company works under a tech-enabled asset-light farmer integration model where it offers implausible support to local farm owners through an extensive network that facilitates the quick and smooth distribution of egg produce.
Abhishek Negi shares his thoughts about the F&B industry, sustainability, online and offline outlets, and the company’s strategic approach to reaching Rs 100 crore in Annual Recurring Revenue, in an email interaction with Kimberley Almeida. Excerpts:
Tell us briefly about your company.
Eggoz Nutrition is dedicated to standardising the egg industry and supporting Indian farmers. By integrating advanced technology throughout our supply chain, we ensure the delivery of farm-fresh, odourless eggs that undergo 11 safety checks. Our mission is to establish the gold standard for eggs and continually innovate to improve the egg experience for consumers across India.
We aspire to become the "Amul of eggs" in India, driven by a clear purpose and core values which include being purpose-driven, prioritising our customers, leading with innovative practices, and focus on sustainability.
Our unwavering commitment to quality, innovation, and empowering farmers has resulted in remarkable growth, with our daily egg production soaring from 50 eggs in 2020 to 380,000 eggs in 2024 across eight cities.
The food and beverage industry has improved in the past few years. Comment.
The food and beverage industry has indeed seen quite a few advancements in very recent years, especially post-pandemic. Innovations in technology, such as our 11 safety checks, bio-monitored farms, farmer’s app and delivery systems, have significantly enhanced product quality and consumer convenience. Additionally, there has been an increase in emphasis on health and wellness, leading to the growth of more nutritious and functional food options. Sustainability has also become a key focus, with many companies adopting eco-friendly practices. We're keeping up with these trends by implementing AI and ML (Artificial Intelligence and Machine Learning) in our tech, offering high-quality, nutritious products, therefore, aligning with the industry's evolution towards healthier and more sustainable choices.
What are the difficulties faced by the company in this competitive space?
In the competitive food industry, we face several challenges, including intense market competition from local and established brands and the need to constantly innovate to meet evolving consumer preferences. The company also grapples with maintaining product quality and consistency while scaling operations to meet growing demand. Additionally, navigating supply chain disruptions and ensuring adequate distribution channels are crucial hurdles. Despite these challenges, we remain committed to delivering high-quality, nutritious products to our customers.
What sets your company apart in the industry?
The company distinguishes itself in the industry through its dedication to delivering farm-fresh eggs nationwide. We prioritise consumer health and satisfaction by ensuring that each egg is of the highest nutritional value and quality. Our rigorous 11-step safety checks, combined with eggs sourced from hens on a 100% herbal diet, result in vibrant orange yolks rich in lutein, Vitamin D, and Vitamin A. This meticulous approach guarantees that our eggs are not only fresh and odour-free but also offer exceptional nutritional benefits.
How was the last fiscal and what kind of sales are being looked at in the new fiscal?
The last fiscal year, we witnessed a 50%+ growth while improving our EBITDA, expanding to 4 new geographies and launching one-of-a-kind egg snacks. This fiscal we are targeting 60%+ growth, expansion to more cities and doubling our offline presence.
What are your long-term goals for sustainability?
Our long-term sustainability goals focus on expanding our market presence and diversifying the product range, including innovations like egg bhurji momos and egg burger patties. We aim to strengthen our distribution network while reducing greenhouse emissions by 30%. By enhancing our farming practices, we strive to minimise our carbon footprint and promote healthier living. Our commitment is to uphold quality standards and positively impact consumers, the environment, and the industry.
Tell us about your offline and online outlets.
We have established a comprehensive sales network that spans both online and offline channels to reach and engage with its customers effectively. Our online channels have played a pivotal role in building credibility and raising brand awareness, positioning us as a leading name in branded eggs. This online presence not only facilitates direct consumer engagement but also supports our high customer retention rate of 75%, ensuring a solid foundation for market expansion.
In addition to our online strategy, our general trade and wholesale network is instrumental in extending our reach into traditional markets which are dominated by unbranded eggs. We are currently present in all the major Modern Trade, SMT and GT (General Trade) stores in NCR and Bengaluru. Our GT network includes distributors, wholesalers and retailers.
The company recently generated Rs 100 crore in revenue. Elaborate.
Reaching Rs 100 crore in ARR (Annual Recurring Revenue) is a testament to our strategic approach and innovation. This milestone validates our business model and serves as a significant proof of concept for our strategies. As the first “only egg” brand to achieve this feat, it highlights our market leadership and provides invaluable insights for future growth. This achievement celebrates our success and inspires us to continue pushing the boundaries of excellence.
Are you planning to introduce anything new given the trend in the market?
Yes, we are planning to:
- Expand our D2C side of the business.
- Invest in our supply chain to make it more tech-driven than manual.
- Create digital and trade marketing campaigns that are consumer-centric.
- Diversify our product portfolio into healthy snacking by innovating with new egg-based products such as snacks, ready-to-eat meals.
What about new plans for expansion, diversification, and collaborations?
We will be expanding to newer geographies and cities in the western and southern regions of the country, increasing our offline outlets by 100% and penetrating further in terms of our business share in online channels. To support our geographical expansion, we are onboarding more farmers and scaling up our machinery and processing centres.
We are diversifying our portfolio of products - we have come up with a range of mass premium eggs, fortified eggs and egg snacks ranges. Under the umbrella of Eggoz we will be having - Eggoz Everyday (mass premium range), Eggoz Nutrition (premium eggs range), Eggoz Nutra (fortified eggs range) and Egg snacking ranges (Anda bhurji momos, burger patty and nuggets).
Collaboration extends to internal and external -
Internal collaboration - Being a high growth startup, we are actively hiring experienced leaders and managers who not only enrich us with their experience but also build the team. Our culture is ever evolving and we are constantly looking for ways to foster teamwork and create an environment for continuous learning.
External collaboration - We are exploring new ways to create synergies with external partners ranging from investors, advisors to channel partners and resellers. Our external partners have an in-depth understanding of the industry and the market and we seek to learn from them.
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