in 2017 we all came together eggs and Retail are not really good for consumption it's a 90,000 CR market so there is no standardization we building the category from the ground out we have egg MOS egg burgers or sub we are also building very interesting products things like 3 minute omelet kit adds a lot of exciting to the category because know in the category was only and we are here with the founder to break down the business challenges and opportunities competitors see for us the competition is the loser our job to be done is to create the Branded category larger goal is also to build egos into a brand which is synonymous with eggs see our vision is to build the am for [Music] X I would like to know your story so what motivated you to start this business when we really look at how quality of eggs is placed in India eggs in retail are not really good for consumption so there is no standardization so this really intrigued us to look closely at this market and we realized that it is a huge space it's a 90,000 CR Market we thought that it is very important that we solve these problems and also go after this opportunity and build the first national level brand of eggs and egg based products all three of us Adam and I are friends and batchmates from ID Kapur in 2017 we all came together and we ended up putting our first py Farm in biar Sharif over a period of time we expanded to madhia Pradesh and then up by say end of years we were managing around 80 85,000 birs so we're in Delhi NCR Bangalore and last quarter we've just launched Hyderabad Chennai and Mumbai tell us something about egos how OS works and what egos is we are the first brand that is holding ourselves accountable to customers second we are building the category from the grounder what does product proposition should be what should be the quality standards and uh you know how to deliver it to Consumers while maintaining a fmcg distribution in the market is there a complete procedure of checking that happens before an egg enter to the market each and every egg is checked for any cracks any deformities then once these eggs reach our processing centers all of these eggs are pass through safety checks and quality checks where each and every egg is checked for any deformity inside the Yol then these are thoroughly clean UV sanitized graded as per we and then they are packaged properly and then they delivered to the market the very next month so how do you manage your operations like this broadly what we have done is it's decentralized for da we procuring from in and around Delhi for South Market procurement happens from around Bangalore or around Hyderabad and all of these clusters so that ensures that once we pick up eggs from Farmers these eggs reach our processing centers within four to 5 hours so I save on time but I get enough time to process these eggs properly is your company completely bootstrapped or you have raised funding we are a venture B startup we have raised more than 100 crores so far from leading Venture investors from private Equity Funds see our vision is to build the Amo Forex in the coming years we are targeting ,000 CR Revenue which feel is entirely possible in in this large space what are the sources of revenues like how much do you earn from swiggy or blinket and what what percentage of your Revenue comes from the kirana stores a healthy majority portion of our Revenue comes from Modern trade and quick Commerce but a healthy share of our business which is more than 30% of our business has also now started to grow tremendously fast from a general trade and offline segments sir you said that you were doing poetry fing yourself before so are we not doing poetry farming ourselves now the production is outsourced so we work with Farmers under a contract farming model where we provide them purchase guarantee iot devices for their Farm site so that you know they also can bring their Farms online and free of cost maintinance support and feed support so do you use AI to enhance your business right from bir management which is impacts on productivity and right to predicting demand from Market eggs is a very seasonal business during Winters demand will shoot up if there is any say religious overlap then demand may also go very very downum so you need to be aware about all of these things and AI helps in predicting a lot of these stuffs so wanted to know a little about your unit economics so we're selling eggs at 10 Rupees in the market we procure eggs linked to the market rates a few of the notable benchmarks are NECC commodity price that come on their website and we pay a premium over and above the NC rate with the farmer we would be paying around 5 rup and to to our Farmers we spend roughly 50 PESA on Logistics Beyond this I would say around 80 to 90 PES on packaging that that that goes it so how much are we spending for the marketing thing and what is the customer acquisition cost for us marketing spend to revenue is in single digits will increase it depending on our aggressiveness to penetrate further into the market in terms of consumer acquisition cost it somewhere ranges from say you know 40 to 60 rupees on a per consumer basis and sir how many production units units does OS have and we have two major production units and the rest are small so one is in Delhi NCR in goodgo and another one is in Bangalore and then we have smaller distribution centers in jaur in Mumbai Hyderabad chenai and all of these locations so what is your business model exactly our business model is that all of these eggs are sold in package boxes now we have a range of products which are the white eggs fortified eggs brown eggs that come from a different bird and free range eggs we're also building very interesting products things like uh 3 minute kits the V tags that you see over here are around 12 to 14 rupees and for smaller packs the per unit price increases so 14 rup now coming to our neutr plus so these are available at 152 rupees then we have brown eggs that are available at 180 for a 10 pack then are free range eggs that are available at around 120 for 6 eggs now in addition to this we have launched these value edit PS so things like egg MOS then we have egg nuggets and and egg burger packs adds a lot of exciting to the category because you know in the egg category it was only under let's say this 30 wi EG packaging what is the expense that you incur in percentages this would be around 5% so in smaller packs it can go as high as 8 to 9% as well and for say premium packaging like free range this goes even higher to 11 to 12% can you please uh help us with the breakdown of the expenses for example out of 100% roughly 50% we are paying to Farmers say 5 to 8% is packaging uh then Logistics as I mentioned earlier is at around 5% of our Logistics in terms of rentals Factory expenses and all of it is is a small percentage in our business it's roughly 2 to 3% Manpower expenses is somewhere where we currently investing U significantly you know we spend somewhere around 10 to 11% of our Revenue as of now so what do you feel competitive SC see for us the competition is the ler because we are operating in a market where say 97 98% of the eggs are still sold and lose our entire job to be done is to create the Branded category customer anyone can consume right from children middle-aged people or older age people or Fitness freaks or mothers who we consider as our target audience are mothers and with kids so how many staffs do we have in this office in this office we have around 72 in total we would be around 160 onr employees and another 150 contractual employees sir if I am starting in business like this I would really recommend the person to spend few amount of time in learning the product from the ground up any brand needs to be standardized it cannot give random quality each and every time second is understanding supply chain and lastly I would say is learn about your strategy so bottom line I would say is that start outside in which is learn the product and then ask yourself very deeply on why will the consumer even care these question will help you with the next set of questions and we'll give you a pathway to think more so the guys these are the Eggos these are the Frozen products so I was asking you are three co-founders working together so what is the work distribution between you three so my co-founder Adia he looks after sales and cost function and also Human Resources utam looks after supply chain I look after marketing technology and apart from this you know business intelligence and finance so sir how did you come up with this brand design and how did you position yourself in this market what you see is a know bright orange color that from our lens it is the color of morning sunlight of breakfast second thing if you see if I tag these parts branding is done you know very loudly we are speaking loudly that this is AO products now lastly all of these eggs that you see will come with this OS nutrition stamp now this is a kind of QC seal then that you put at the end of the process as an entrepreneur if I come in this industry and build my own startup what are the opportunity that I should keep in my mind to leverage during 2020 2021 there was a huge rush on d2c brand the challenge or the opportunity for us was that either we invest behind d2c or we build it the way it needs to be built so the opportunity we chose was let's build a brand first let's build an fmcg company first so I think today we have a lot of learnings on our hand that that we are able to leverage when we go about our Market expansion sir in the coming 10 or 15 years where do you see your brand to go or to boost up our goal is to make OS theix the larger goal is also to build OS into a brand which is synonymous with eggs in next year we are planning that OS can grow 20 times 25 times from where we are I see lot of opportunities in value added consumption so which is the city where you sell the most number of eggs a largest market is Delhi NCR as per us and as per data we know that per capita egg consumption is really great in in South India and it's a really big and profitable market for us so what should a person do now to get some innovation in this sector when you look at Western countries the entire egg category is far more developed you have a very Diversified line of products need egg liquids or egg powders or egg based ready to eat products so I think there is huge scope to do all of that in India I think that is a space where new entrepreneurs should enter and must work thank you so much sir thank you so much so much it's a great learning from you sir