How Home-Grown Brand Mitra is Positioning Itself in The Indian FMCG Market

The FMCG market in India is poised for impressive growth, with a projected CAGR of 14.9 percent which is expected to reach $220 billion by 2025. The packed food market alone is expected to exceed $70 billion in the next two years.

The D2C boom, primarily driven by Tier II, III, IV (called Bharat), is growing at a CAGR of 25 percent. Consumers in these markets are experimenting with newer brands like Mitra, a Direct-to-Customer FMCG brand that is one of the first brands with a complete range of products under one roof.

The brand is actively catering to Tier I, II, and III markets, the latter markets being largely ignored in terms of organic, healthy, and vegan food. Mitra FMCG founder in an attempt to change this, ventured into the FMCG market. Mitra aims to break down barriers and provide access to a healthy lifestyle for all and is committed to making the kitchen gender-neutral and removing the taboo of men in the kitchen.

Inception

Incepted in December 2022 with the launch of its flagship product, Mitra Flour, the brand’s progress has been unwavering, having achieved remarkable feats within a short period of Eight weeks.

“We are proud to state that we have emerged as one of the top two brands in our existing market with a 70 percent repeat rate and have expanded our operations to Eight cities, and our efforts have gained the support of over 700 distributors and retailers,” stated Abhishek Kaushik, Founder, MITRA.

In addition, the brand has gained the support of over 700 distributors and retailers, achieving a GMV of Rs 1.28 crore with a staggering 42X growth rate in the last four weeks. The brand’s second product, Mitra Gram flour, was introduced within six weeks of its inception and received pre-orders for over 250 tons for the next month.

Options Galore

Mitra's portfolio currently comprises over 10 product categories, featuring more than 40 variants that include flour, gram flour, millet-based products, ready-to-eat meals, and instant mixes. With its diverse range of offerings, it is able to cater to a broad customer base and meet various dietary needs and preferences.

Mitra's growth plans include expanding into six new categories to complement its existing portfolio. These categories are flour, spice mixes, millet-based products, organic pulses, premium rice, and instant mixes.

“We will introduce dry fruits and nuts, which will further enhance our offerings and meet the evolving needs of our customers,” added Kaushik.

The brand’s USP however, is the use of superior quality MP Sharbati wheat, which is single-breed isolated for consistent flavor and quality. Moreover, Mitra uses a controlled environment for grinding and packing, which keeps moisture levels at 11 percent and results in a higher shelf life, addressing common storage-related issues faced by other brands.

The founder further added, “Our direct sourcing from farmers who own their mills allows us to maintain strict quality control standards while eliminating middlemen, giving us a competitive edge in quality. We prioritize high standards for packaging and quality while keeping our products affordable and appealing to customers, including Gen Z consumers.”

Technology and FMCG

Mitra employs cutting-edge technology to ensure the highest quality standards for its products, the advanced techniques include Single Breed Isolation to maintain consistent flavor and quality, Moisture Controlled Packing for an extended shelf-life, and fully automated packing equipment to minimize human touch.

The brand’s patented automated weighing system and 120-micron packing ensure precision and accuracy in every package. Moreover, the brand utilizes a dustproof fully automated packing technology and Batch Mixing Technology for spices, while its Stones Grinding framework allows for the production of finely ground grains and spices.

Thus, Mitra recognizes the importance of investing in advanced machinery technology to ensure superior product quality, effective packaging, and extended shelf life and aims to continue to implement its patented machinery technology to further enhance the quality and freshness of products.

Growth and Marketing

Mitra has observed growth of 42X increase in the last quarter, while achieving a repeat rate of 70 percent, up from 58 percent. The brand’s delivered orders amount to Rs 1.28 crore with significant net margins contributing to its profitability.

Mitra has further expanded from one to eight locations and is gaining a favorable response from customers, distributors, and investors. Having closed two rounds, the brand is gearing up for the upcoming Pre-Series A funding round in the next couple of quarters.

Recently, the brand raised Rs 1.5 crore in funding, the funds received have been strategically allocated towards three major categories - introducing new and exclusive products, expanding operations, and upgrading packaging machinery with advanced technology.

“We have also focused on further strengthening our marketing and distribution channels to increase our reach and maximize our potential for growth,” said Kaushik.

Retail and Marketing

As a brand, Mitra’s retail strategy is focused on going omnichannel for maximum reach and expanding to new states in India, having customized its packaging options to appeal to both wholesale and retail customers.

Mitra's D2C channel has been fundamental in its inception as it allowed for a direct connection with customers and facilitated the provision of high-quality products at an affordable price point. Moreover, Mitra aims to go omnichannel in the near future as it has witnessed a significant increase in its sales and revenue from all channels within a few months.

Future Plans

Mitra aims to expand and be available in every nook and corner of India, however, it also aims to expand beyond the borders. The brand has received queries from Nepal, Bhutan, and certain parts of Europe, particularly the UK, where there is a large population of Asian residents.

One may find Mitra products on the shelves of supermarkets in the UK soon. Talking about the India expansion Kaushik stated, “Expanding Mitra's market reach is a top priority for us, and we have already made connections in three additional states in India - Assam, Jharkhand, and West Bengal.”

Within the next 5 years, Mitra aims to become a household name and a top FMCG brand in India by launching exclusive products that cater to both Indian and global customers.