India’s domestic market gathers pace

India is known as a sourcing country. However, its domestic market has been developing well for a number of years, and its marketing prospects are promising. This becomes particularly apparent in the IT and trade fair city of Bangalore. From the organic supermarket The Organic World, the organic delivery service and the Eco-Hotel Green Path to the first organic vegan  restaurant in Karnataka, Carrots, a richly varied scene has emerged, behind which there stand convinced and committed activists. Every year in November, BioFach India turns this city into the bio-hotspot of the whole country.

(Picture: H. R. Jayaram, the founder of the project The Green Path explains his concept in the video interview)
 

The internal market in India is developing at a fast rate: in the urban middle class in particular, there is growing awareness of healthy eating and a sustainable lifestyle. Added to this, the aims of the organic industry and of various governments in the federal states are very ambitious – they are endeavouring to achieve turnover of a billion dollars in the organic sector as a whole by the end of 2015. As a study carried out by the Berlin Humboldt University and the Indian International Competence Centre for Organic Agriculture (ICOOA) discovered, marketing has been concentrated principally on the big cities (see our earlier report). Evidence of this phenomenon is the level of sales in the organic retail trade in the huge cities Bangalore, Mumbai and Hyderabad, that together in 2012 contributed around 9.5 million US-dollars to total turnover. This is a significant achievement for India, that still features in international statistics as an emerging country. (Picture: Street trader in Calcutta)

The organic trade is growing and thriving especially in India’s third biggest city, Bangalore (8.4 million inhabitants), where BioFach India together with India Organic is held every year (see our report). Bangalore (in the southern federal state Karnataka) has over 180 shops where you can buy organics. According to the statistics of Nina Osswald (in her book on organic marketing), you find an organic offer in about 23 organic food shops, 17 non-food shops, 7 restaurants, market stalls and around 120 conventional outlets. (Picture: Small selection of organic products in the organic-vegan restaurant Carrots)
 

Among the approximately 1000 certified organic products that are available, there is substantial demand especially for fruit and vegetables and – typical of Indian cuisine – spices, rice, pulses and tea.  The important online news portal Oneindia estimates that in 2010 around a million Indians bought organic products from about 2,500 organic outlets. Experts in the organic industry assume that in the medium to long term organics can achieve a 5% - 6 % share of the Indian food market (currently ca. 360 billion euros).

(Pictures:The offer of processed organic products is increasing all the time: in this case the brand 24Mantra by Sresta) 



Bangalore has recently seen the launch of a number of new organic businesses: The Organic World, the online shop of Greenlife Organic and the vegan organic restaurant Carrots. With The Organic World, the family of the investment entrepreneur (IIM) Shibulal has entered the organic industry. His daughter Shruti Shibulal opened a flagship store in June 2013. In contrast to many other organic stores in India, that offer a mix of certified organic and non-certified products, The Organic World claims to sell a product range that is 100 % certified organic. Under the motto “from beans to jeans and bathing soaps to cushion covers”, the shelves in the store (an estimated 200 m²) are stocked with packaged products and natural cosmetics. There’s also a large area for fashion, household textiles and a restaurant (café, salad bar) that can seat about 20 people. They also market their products via an online shop.

(Pictures: The Organic World: 100 % organic offer in a sophisticated ambience, fashion, textiles, restaurant and food)



Greenlife Organic is a cooperative of organic farmers, organic suppliers and organic consumers that has been operating since 2003. The cooperative markets the products of the organic farmers in Karnataka who belong to the Karnataka State Cooperative Organic Producers Federation (KSCOF), and Greenlife is a member. As well as selling food in various member shops and online, the plan is, with the help of investment by members, to set up Greenlife stores and restaurants called Café Organica, Wine Organica, Marinate and Protein Organica. The motto of the enterprise is “Live a Healthy Organic Lifestyle and Save our Generations. It is in your hands to join us in this organic revolution by supporting our Greenlife venture".

Carrots opened in 2013 in Bangalore as the first 100% vegan organic restaurant. The managing director Krishna Shastry (left), a vegan for 15 years, explains that their aim is creative, conscious veganism that strives for health and a better future. He says that important pillars of the business are not only organic farming and fair trade but also the communication of awareness of the environment, nutrition and a sustainable lifestyle. There is no lack of experience: Shastry used to run a restaurant in another state, and he was also involved in various organic projects. Carrots aspires to be more than just a provider of food – they want it to be a place where the vegan lifestyle is propagated. Catering, to-go offers, cookery courses, renting out rooms for events and a limited product range for when you want to buy just a few organic items – all that is on offer at Carrots. (Picture: The Carrots team see themselves as promoters of organic, fair trade and a vegan lifestyle)

The Green Path has a certain tradition and is one of the pioneers in organic marketing. The Green Path stands for a comprehensive concept: since 2007 this wholefood store has been operated by H.R. Jayaram. A lawyer by training, he grew up in the countryside and has fulfilled a dream with his store and above all with his organic farm Sukrushi (since 1998), that is an hour away from Bangalore in Nelamangala. Tirelessly, Jayaram expands his eco concept and is an advocate for organic farming and the marketing of organic products. This absolute commitment has given rise to the eco hotel The Green Path in Bangalore (50 rooms), an eco resort in Coorg in the countryside, and The Green Path Foundation. In various networks, Jayaram promotes organic products and a sustainable lifestyle. (Picture: In the video, Jayaram explains the comprehensive concept of Green Path)

 

(Pictures: The Green Path store, The Green Path mobile shop, The Green Path Eco Hotel)