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Dosa-idli batter maker iD Fresh Food launches coffee division


Azim Premji-backed iD Fresh Food today announced the launch of a strategic business unit (SBU) for coffee. This comes exactly a year after the packaged foods company, known for its batter for dosa and idli, forayed into the non-alcoholic beverage space with ready-to-use South Indian filter coffee decoction.

“iD Fresh sold about 10 million cups of its filter coffee clocking revenues to the tune of Rs 6 crore since its launch in September 2018. We aim to sell three billion cups with the coffee SBU and add Rs 100 crore to the company revenue over the next two years,” said Musthafa PC, co-founder of iD Fresh Food.

Unlike the conventional coffee powders, iD’s filter coffee comes in the form of ready-to use sugarfree liquid decoction in 30 ml single-time-use sachets and 150 ml family packs. The Bengaluru-based startup currently sells its coffee in India, USA and UAE markets in omni-channel format. With the SBU, the plan is to take the product to non-metros in India and new regions in UAE and USA. Musthafa is also eyeing Canada, Australia and South-East Asian markets.

Param Brahma Mohapatra has been appointed as the head of iD’s filter coffee division. Having worked with FMCG companies such as GlaxoSmithKline (GSK) and Hindustan Coca Cola Beverages, Mohapatra has a decade-long experience in consumer products business.

In 2018-19, ID Fresh registered a turnover of Rs 210 crore, up 57% YOY from about Rs 134 crore revenue reported in 2017-18. Currently, metro cities contribute to 82% of the sales of iD Fresh and 95% of the sales comes from offline channels like general trade, modern trade and standalone modern trade, according to Musthafa.

The 15-year-old Bengaluru-based brand provides 55,000 kgs of idly/dosa batter per day, alongside ready-to-eat products like parotas, vada batter, chapati and paneer to over 21,000 retail outlets.

With iD’s foray into non-alcoholic beverage space, Musthafa has plans to extend into other beverages as well. The company is also currently working on affordable products for smaller towns and rural India market.