Akash Agrawal, Co-founder, Zoff Foods

Akash Agrawal, Co-founder, Zoff Foods

How Akash Agrawal, Made His Company Zoff Foods Achieve Approx INR 100 Cr Turnover in 6 Yrs of Its Launch

Akash Agrawal's entrepreneurial journey began with his MBA education from IIPM New Delhi, after which he joined his family’s steel business in 2010. Despite his initial expectations, he found the steel market to be heavily regulated and saturated. His passion for technology and innovation drove him to launch his own venture, a social media platform called CheckedIn.

However, Akash faced significant challenges in building the right team and managing costs, leading to a substantial investment of INR 1 Cr with limited success. Realizing the need for a new direction, he shifted his focus to the food market, specifically the spice industry. He identified a gap for a brand specializing in whole spices and decided to pursue this opportunity, aiming to create a unique presence in the market. In 2018, Akash with his sibling Ashish launched direct-to-consumer (D2C) spice brand Zoff Foods (Zone of Fresh Food).

Akash’s journey is quite remarkable. Transitioning from a family steel business to exploring technology and finally finding success in the food spice industry showcases a lot of adaptability and strategic thinking. Here are a few key points that stand out:

1. Identifying Opportunities: Akash’s move from steel to technology, and then to food spices, reflects a keen sense of market trends and opportunities. Recognizing the potential of social media and then pivoting to the food sector when technology didn’t work out shows a strong ability to read market signals.

2. Navigating Challenges: It’s clear that he faced significant challenges, from the difficulty of scaling a tech venture without sufficient funding to the financial strain of burning through a large sum of money. These experiences, though tough, likely provided valuable lessons that contributed to his success in the food industry.

3. Strategic Decision-Making: Akash’s choice to enter the spices market by identifying gaps in quality and organization was strategic. The decision to build his own plant to ensure quality control demonstrates a commitment to excellence and long-term thinking.

4. Achieving Success: Achieving INR 100 Cr turnover in just six years is a testament to his effective strategy and hard work. It also highlights how understanding market needs and positioning your business effectively can lead to significant growth.

Akash’s story is a great example of how pivoting and leveraging market insights can lead to success.

Further, technology has played a crucial role in his journey, particularly through the adoption of e-commerce and quick commerce. Here’s how technology has been integrated into Zoff’s business strategy:

Role of Technology

1. E-Commerce and Quick Commerce

Consumer Convenience: Leveraging e-commerce and quick commerce aligns with the growing consumer demand for convenience. With platforms such as Flipkart and BigBasket, you can offer quick delivery, which is increasingly becoming a consumer expectation.

Market Penetration: E-commerce allows the company to reach a broader audience across different regions without the need for physical stores. Quick commerce takes this a step further by offering even faster delivery, appealing to modern consumers who value speed.

2.Sales Channels

E-Commerce Platforms: Zoff’s primary focus on e-commerce, with platforms such as Flipkart and BigBasket, reflects the shift towards online shopping. By integrating with these platforms, Zoff benefits from their established logistics and distribution networks.

Inventory Management: The inventory-based model used by Flipkart allows for efficient stock management and faster delivery times. This model helps ensure that their products are readily available to consumers, which can be a significant competitive advantage.

3.Product Categories and Market Trends

Whole Spices: As Akash identified, whole spices are a top-selling category because of the lack of national brands in this space. Technology enables Zoff to highlight and promote these products effectively on e-commerce platforms.

Seasoning and Condiments: Recent additions to Zoff’s product line- seasonings and condiments, align with current consumer trends and preferences.

4.Way to Navigate Operational Challenges and Solutions

Logistics Integration: Efficient logistics are essential for maintaining the quick delivery promises made by quick commerce platforms. Integrating with platforms that offer inventory-based models helps manage stock levels and streamline the distribution process.

Bottlenecks: Common issues in quick commerce can include managing inventory in real-time, ensuring stock availability, and handling returns. Effective technology solutions and partnerships with logistics providers are crucial for addressing these challenges.

Future Plans and Strategies

1. Focus on Depth Rather than Breadth

Market Penetration: Akash’s strategy is to deepen Zoff’s presence within existing categories and channels rather than expanding into new product lines. This approach allows for more focused marketing and better customer understanding.

2. E-Commerce vs. Quick Commerce

Profitability: While e-commerce has been more established for Zoff, quick commerce is seen as the future. This trend is expected to grow as consumer preferences shift towards faster delivery times.

Scalability: As quick commerce continues to evolve, adapting Zoff’s logistics and inventory management systems to meet the demands of rapid delivery will be crucial.

3. Geographic Focus

Tier-I and Tier-II Cities: Zoff’s sales are strong in major metro and mini-metro cities, indicating a robust urban market presence. Leveraging technology to analyze and target these regions more effectively can help maintain and grow its market share.

While Zoff’s website currently contributes a small percentage of sales, focusing on e-commerce platforms has been more effective. A direct-to-consumer (D2C) model through its own portal could be considered in the future if it aligns with its growth strategy.

It’s strategic use of technology to drive growth and adapt to market trends shows a forward-thinking approach. Continuing to leverage e-commerce and quick commerce while optimizing logistics and inventory management will be key to scaling further.