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An agtech start-up incubated at T-Hub is attempting to address a unique problem that farmers in the country face – little or no value-addition to the commodities that they sell, resulting in poor incomes.
Our Food, which is closing the financial year 2020-21 with a turnover of ₹85 crore, has processed 10,000 tonnes of foodgrains.
The start-up is relying on low-cost, small equipment for the processing of foodgrains in order to keep the cost overheads under control. It identifies progressive farmers with small holdings in villages and helps them get bank loans to set up the village-level franchises.
“Each of the unit would need an investment of ₹7 lakh, including ₹3 lakh from the rural entrepreneurs. We help them secure a bank loan, besides investing in them in equity,” Balareddy, Founder and Chief Executive Officer of Our Food, told BusinessLine.
It has so far set up 1,000 such processing units in nine States. “Each unit can process up to 400 kg of grains or other agri commodities,” he said. The company will also handhold the farmers to sell their produce to either bulk buyers or to sell it through the company’s brand.
On Friday, the firm entered into an agreement with the Government of Telangana to set up over 20,000 micro processing units in different parts of the State with an investment of ₹1,500 crore. The start-up has a facility to manufacture processing equipment at Zaheerabad.
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