India’s largest hyperlocal and omnichannel meat retail brand owes its origins to unsatisfactory shopping trips to the meat market. When Narendra Pasuparthy, CEO and Founder of Nandu’s, moved back to India from the United States in 2006, he found it hard to buy chicken from the local meat shops.
“I realised that the Indian consumer did not have easy and convenient access to high quality, fresh and healthy chicken. I saw a huge demand-supply gap in the meat retail space. The open markets, where meats were processed, were filthy and unhygienic. The largely unorganised meat sector in India was primarily responsible for the below-average quality standards,” said the architect of one of India’s finest farm-to-fork meat brands.
In 2017, Narendra founded Nandu’s, as the retail arm of the Nanda Group, INR-500 crore company that has been a pioneer in the poultry farming industry in the country for over five decades. “Nandu’s was conceptualised as the missing link in our supply chain to capitalise on the market opportunity. It was unfortunate to see that the superior quality chicken we were farming at the Nanda Group wasn’t reaching the Indian consumer’s table,” he said.
Market opportunity
Poultry is the most popular meat in India. In 2019, about four million metric tonnes of poultry was consumed in the country. However, much of the Indian meat industry is unorganised, with reportedly 8,000 registered and over 20,000 unregistered slaughter houses in the country. Experts believe that it is the unorganised nature of the industry that is holding back India’s meat industry - valued at US$44 billion with a compounded annual growth of 10% - from achieving its true potential.
Urban markets in the country are driving the growth in meat consumption today and account for nearly 60% of the demand. Nandu’s, positioned as the neighbourhood meat store, not only delivers a pleasant in-store meat-buying experience, but has also tapped into the e-commerce market with the facility to order through its website, app and other e-commerce marketplaces. That explains the brand’s meteoric rise as India’s fastest growing meat retail omnichannel brand, with 50 outlets across Bengaluru.
“We offer poultry free from hormones, steroids or antibiotics, and growth promoters. Unlike other players in the market, we not only own the supply chain - hatcheries, feed mills, breeding farms, processing centre, food factory, cold chain infrastructure and retail stores - but also have the technology that gives us 100% traceability across the supply chain. So, we can vouch for the health, hygiene and safety of all our products,” emphasized Narendra, commenting on the brand’s USP and fully integrated back-end operations.
Poised for growth
As urban customers get increasingly conscious about the quality of meat and convenience of shopping, brands like Nandu’s are steadily replacing the traditional meat shops as the preferred option. “Our value proposition to consumers is that they should know what they’re eating; how the chicken is grown; how they are processed; how they are finally brought to the customers’ homes,” explained Narendra.
Nandu’s, which has been self-funded so far, is now looking at private investors as it aims for pan-India growth. New markets in Hyderabad, Chennai, Mumbai, Pune, Delhi, and Kerala beckon. Narendra outlines the strategic plan – “125 outlets by March 2022 and around 600 Nandu’s outlets across India by 2025”.
Despite the many challenges posed by the global Coronavirus pandemic for India’s poultry industry, Nandu’s innovation mantra has ensured that the company has emerged stronger from the crisis. “While fresh chicken still remains our bestseller, the pandemic has spurred a surge in consumer demand for value-added products, such as chicken 65 and butter chicken masala,” revealed Narendra.
“Our recently launched ready-to-cook Biryanis – Nandu’s Nawabi Chicken Dum Biryani and Nandu’s Donne Chicken Biryani – have got an overwhelming response too. Customers are increasingly looking for convenient and safe food alternatives to arduous home-cooked meals or eating out,” he added.
The evolving tastes of the Indian consumer as well as their increasing awareness about where their food comes from bodes well for meat brands like Nandu’s. “Right from hygiene and safety to greater transparency and trust, brands will have to raise the bar to keep customers satisfied,” maintained Narendra.
