India is known to be a milk-rich country having tonnes of dairy suppliers. Osam Dairy, a brand under Jharkhand based company, H.R. Food Processing Private Limited, has left no stone unturned in significantly achieving profit in such a competitive market.
The journey started in 2012 by setting up dairy farms by four friends turned partners, namely Abhinav Shah, Harsh Thakkar, Rakesh Sharma, and Abhishek Raj. They had sold over 1000 liters of milk by the end of the year, and their journey began. C.A. Abhinav previously worked as a manager in Ernest & Young till January 2012; C.A. Rakesh worked for a variety of MNC, CA Abhishek worked with MNC and delivered the idea of startup first, whereas Rakesh got into the FMCG business.
Initially, the team purchased 40 animals and lost 26 of them to disease but did not lose hope and pooled capital from savings and started its business. After getting an FSSAI license, they started selling unbranded raw milk through door-to-door selling. The sales rocketed from 300 litres, which jumped to 1,000 litres in six months, and the company soon gained pace in the distribution sector. The company became operational in 2017 after the Patratu plant construction, a fully-automated, 50,000-liter plant where no physical contact is required.
In 2003, it raised its first round of funding from Aavishkar Ventures. The other investors include Lok Capital and CDC Group, which believes in Osam Dairy and its long-term goals. They also hired industry experts from the dairy business who helped the company achieve great heights.
With 140 distributors and over 3,000 retailers in Jharkhand, Osam Dairy currently operates in 19 districts and aims to spread its roots deeper into the Bihar and West Bengal dairy segment. Their team started with seven employees and now has more than 450 employees delivering daily service to thousands of people. Approximately 20,000 livestock farmers regularly supply the company with milk, which is then distributed through 250 distributors and over 8,000 retailers in Bihar and Jharkhand.
Osam Dairy’s mission includes creating a dairy brand that inspires confidence amongst consumers for its unfailing quality, processing, and infrastructure delivering nutrient-rich and hygienic products to mass. The milk is assumed to be 100% pure without any adulteration, filled with ample calcium and proteins, freshly delivered, having no preservatives.
Assocham& Ministry of Agriculture awarded Osam as the ‘Best Company’ in Agriculture & Dairy Category and received the Best Young Dairy award from the Jharkhand Government in 2013 and the Most Promising Dairy Brand award by Assocham in 2016.
Dairy milk costs about Rs 21 for half a litre and is sold in 14,000 retail outlets in 24 districts in Jharkhand and six districts in Bihar. The company is expected to cross a turnover of Rs.500 Crore by 2022. Having built its foundations on milk, Osam Dairy now makes value-added dairy products, including dahi (curd), paneer, lassi, peda, and more. They aim at expanding its market reach and serving all over the country.
