iD fresh food all set to launch their coffee products.

The company, had test-marketed the coffee decoction products in the last three months of 2018.

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Azim Premji-backed iD Fresh Food India Pvt. Ltd believes that it’s newly-launched coffee decoction business has the potential to grow to ₹100 crore in a year.

The company, had test-marketed the coffee decoction products in the last three months of 2018 and expects this business to generate about ₹2.5 crore of revenue in February itself.

The company has received positive feedback as the products are getting sold out on almost the same day they’re stocked. “The travel pack especially is doing wonders for us. We got the product and the packaging right,” said Musthafa in an interview.

The company began operations way back in 2006 as a small store in Bengaluru selling fresh, branded, good quality idli and dosa batter. It is following the same strategy with coffee too. Rather than giving consumers a ready-to-use powder, it is retaining the freshness of its coffee by wet-grinding beans into a decoction.

About 8-9 months ago, the company had also launched a vada batter in a pack that allowed consumers to make traditional doughnut-like South Indian vadas with ease. However that has not been performing as expected due to supply chain issues.
iD, according to Musthafa, used more than ₹100 crore of the ₹150 crore that it raised from PremjiInvest, the family office of Wipro chairman Azim Premji, in March 2017 to expand production capacity. While it currently has the capacity to make 1.3-1.4 million idlis per day, with the expansion, that number will go up to 4-5 million a day.

As for coffee, the company’s decoction has been test-marketed in 2,000-2,500 outlets across the country so far. Its overall distribution reach across products is around 10,000 outlets. Musthafa plans to launch all the company’s products in Delhi, Kolkata and Gujarat and also plans to introduce its decoction in some international markets.

The startup’s other new products include vada batter and an expanded superfoods range. This, along with geographical expansion, is expected to help the startup’s revenue to grow 45% in 2019-20, according to Musthafa.

He expects overall revenue to grow between 19% and 25% in the current 2018-19 financial year to around Rs220 crore.

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