The agtech start-up incubated at T-Hub seeks to address the genuine problem that farmers are facing in the country – little or no value added to the produces they sell, resulting in low income levels.
Our Food, which closes the financial year 2020-21 with a turnover of Rs 85 crores, has processed 10,000 tonnes of food grains.
The start-up relies on low-cost, small food grain processing equipment to keep the cost overheads under control. It identifies progressive farmers with small farms in villages and assist them get bank loans to set up village-level franchises.
‘Each unit would need a capital expenditure of Rs 7 lakh, including Rs 3 lakh from potential rural entrepreneurs. We assist them secure a bank loan, in addition to investing in equity,’ said Bala Reddy, Founder and Chief Executive Officer (CEO) of ‘Our Food‘.
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To date, 1,000 such processing units have been set up in nine States. ‘Each unit can handle up to 400 kg of grain or other agricultural produce,’ Reddy said. The company would also retain the farmers to sell their products either to bulk buyers or to sell them through the company’s brand.
On Friday, the company entered into an agreement with the Government of Telangana to set up more than 20,000 microprocessing units in various parts of the State with an investment of Rs 15,000 crores.
The start-up has a manufacturing facility for processing equipment in Zaheerabad of Sangareddy district of Telangana State.
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