Epigamia Expands Manufacturing Amidst Rising Competition in Dairy Sector
Epigamia, a prominent player in the Indian dairy and snack market, is preparing to introduce a new, larger manufacturing plant to increase production capacity. This move comes in the wake of a significant 50% growth in revenue over the past two years. Currently, the company runs eight factories, operating at approximately 85% capacity utilization. Most of these facilities are managed through co-manufacturing partnerships, and the company is selling around three cups of its products every second across India.
The planned expansion will not require additional capital from external investors, according to Ankur Goel, co-founder and COO of Epigamia. The company is financially self-sufficient and does not anticipate a fundraising requirement at this time. This expansion strategy aligns with the leadership vision set by the newly appointed CEO, Ritesh Gauba, and COO Ankur Goel, following the passing of co-founder Rohan Mirchandani.
Epigamia's decision to expand comes amidst growing competition in the value-added dairy sector. Rivals such as Tamil Nadu's Milky Mist and Amul are also bolstering their production capacities and diversifying their product offerings. Meanwhile, venture capital-backed companies like Akshayakalpa Organic are expanding their ranges of flavored yogurt and desserts, pushing Epigamia to maintain its competitive edge.
Founded in 2007, Epigamia has raised over $80 million from investors like Verlinvest and Danone Manifesto Ventures. The company was last valued at ₹1,250 crore in December 2023. Despite its growth, Epigamia continues to innovate, with Greek yogurt comprising more than half of its revenue. However, it is also expanding its product line to include protein milkshakes, smoothies, and lactose-free products.
The company reported operating revenue of ₹180 crore for FY24 and narrowed its net loss to ₹17.4 crore from ₹67 crore in the previous year. Distribution strategies have also evolved, with a near-equal split between quick commerce, e-commerce, and traditional retail channels.
While Epigamia had plans to enter the United Arab Emirates market through a partnership with the e-commerce platform Noon, these plans are currently on hold due to geopolitical tensions in the region. For now, the company's focus remains firmly on the Indian market.
