ID is one of the most successful companies in the Rs 5000 crore Indian ready-to-cook market. Born in a small village in Kerala, the company that makes idli dosa dough is today a business empire of 500 crores. It is estimated that 20 lakh idlis and 40 lakh dosas are made in the country every day with their flour. Let's understand in detail how ID achieved this success.
In 2006, India was very different from what it is today. There was a section of the population which was not much interested in ready-to-cook packaged food. Some products like Maggi have already started making changes in the market, but things have not reached the level of using fully packaged food. But it was also a time when the market was changing. Many home-made products such as pickles, wheat flour, yoghurt, etc. were packaged. ITC was the market leader. It was during this time that ID founder Mustafa realized this potential in the market.
Mustafa comes from a small village in Kerala. Mustafa's father, who was a labourer, did not even have enough money to feed the family for three days. He completed his engineering from NIT and MBA from IIM. He's had a great career. But in 2005, his cousin, who ran a small supermarket in Bangalore, noticed that the demand for ready-to-cook idli dosa dough was increasing and informed Mustafa. It was also a time when many small traders and housewives turned to making and selling flour. But these doughs were of low quality and came in unbranded and unhygienic covers. It was during this period that Mustafa and his cousins started ID Fresh, India's first dosa idli dough company. Start with a small investment of Rs 50,000.
The reason why ID is leading in the country itself is because of their three success secrets. The first is that they have been successful in gaining the trust of the customers towards them. This is possible without compromising on quality. While other small scale industries made flour from ration shop rice and a lot of soda powder, they made flour only from natural products like fenugreek after boiling rice. When the big companies tried to extend the period by adding chemicals, they made flour without adding any chemicals, so the duration of ID flour is only 5 days. They have also shared a detailed video of the flour making and factory on YouTube. ID flour is more expensive than other types of flour because it is made in the highest quality. But as they managed to gain the trust of the customers, people were willing to pay this premium price.
To reduce wastage, large companies like ITC need to give their products a longer shelf life, for which they add preservatives. But I don't ever do that. When people buy South Indian food, which is very popular in the country, they will definitely notice its quality because their consumption rate is very high. So there is no drop in the quality. Moreover, they think about the next product only after the success of the first product. In the last 20 years, they have only produced 10. Their style is to bring out a product that stands out in quality, gain the trust of customers, reach a stage where people say it is good, reach the top in the market and then come up with a new product. This has helped them a lot.
The second is the secret of their success. Let's take a look at how they work effectively. They have a presence in 40,000 stores across 45 cities. They have also spread to the Middle East. 75% of their sales come from offline stores. However, their share is only 2%. This is possible through the use of technology.
ID follows a zero inventory model. They don't store any products. To understand how they can do this, you must first understand how they make flour. The first step is cleaning and drying. The second is to grind and grind them. The third one is mixing. The fourth one is fermentation. The fifth is the packaging. It is a very difficult process to perform all the processes in the factories itself and deliver on a day to day basis. So they do something special in the factory and allow the rest of us to walk while sitting in transit. That is, when things up to the packaging are transported from the factory in temperature-controlled trucks, they are put to fermentation. This not only helps to reduce waste but also allows them to work efficiently without additional costs. Apart from this, they use AI technology, deep learning, etc. to stay efficient.
The third secret of their success is the communication of the brand. While other big companies advertise using film stars, ID always advertises highlighting mothers, children and the family environment. This will increase the trust and confidence of the customers. Moreover, their idea was trust shops, that is, you can take the product of your choice from the shop and put its amount in the box there, there will be no cashier or camera. This was also an idea of trust brand communication. Similarly, there is another successful idea that they did during Covid. Fill the van with products and stop in front of the flats, people can take what they like, put the money in the box there, and there is no cashier or camera here. ID follows the principle that if you trust your customers, they will reciprocate.
Their excellence in product innovation should also be highlighted. The packaging of the dough for making vada is such that it makes the whole process of making vada very easy. This is one of their most successful products.
