A year in development, Akshayakalpa bets on its new protein milk to power growth

The dairy company, backed by venture capital firm A91 Partners, has three major manufacturing and assembly clusters (one each in Tiptur in Karnataka, Chengalpattu district in Tamil Nadu and Rangareddy district in Telangana) that produce the bulk of its products. It partners 2,200 dairy farmers and processes 1.75 lakh liters of milk every day.

The company will also increase capacity utilization of existing units.

“Our facilities are operating at only 50% capacity as of now, we are working to increase it to 70% by next year,” Shashi Kumar, founder and CEO of Akshayakalpa, said in an interview.

Akshayakalpa’s scale is tiny compared to big players like Amul, other state-run cooperatives and larger private dairy companies like Hatsun Agro, Heritage Foods and Dodla Dairy. But the 15-year-old company’s distinct organic positioning in the market has resulted in it garnering an unusual brand premium even on core products.

Organic pasteurized cow’s milk is sold at retail ₹A half-litre pack is sold at $42, while a similar tonne of milk from the Karnataka Milk Federation brand Nandini is sold at $42. ₹24 for 500 ml. Similarly, a 400 gram barrel of curd cheese of Akshayakalpa is also sold for 400 grams. ₹80 against Rs. 28 Drink a half-litre packet of curd from Nandini. Of course, other brands like iD Fresh and Sid’s Farm also have products at prices close to Akshayakalpa.

By increasing operating income by over 50%, almost ₹600 crore in FY2026 last fiscal, and is sold primarily in Bengaluru, Chennai and Hyderabad, with products with longer shelf life retailing in many other Indian cities.

It is among the new dairy companies in India that combine premium products with apps that make ordering and home delivery easy. This group includes brands such as Milky Mist, Country Delight, Milk Basket, FTH, Daily Moo, among others. Some of these also deliver fresh produce, baked goods and other items.

protein push

The Bengaluru-based company launched a new high-protein milk on Monday, launching its first major product in nine years. Offering 25 grams of protein in a 250 ml tetra pack, the drink could become an easy alternative to whey protein powders and supplements and transform the way Indians meet their daily nutritional needs, according to Kumar, former technology executive at Wipro. Competing brands like Amul, Country Delight, Parag Foods, Mother Dairy are already selling high protein products.

One 12-ounce scoop of whey isolate powder is packed with about 30 grams of protein.

Kumar said he expects a significant portion of Akshayakalpa’s business to come from protein-fortified products such as milk, curd and paneer as the demand for health-promoting foods increases in the country in the next two years.

Akshayakalpa sees milk as a solution to India’s protein deficiency problem, thanks to its high frequency of consumption and easy availability. Milk sales currently account for about two-thirds of the company’s business; the rest comes from products such as ghee, cheese and curd.

The focus on protein-rich products comes as more than 75% of Indians consume less protein than recommended, according to Indian Market Research Bureau estimates.

“There is a very strong awareness and headwind in the space,” said Zoeb Ali Khan, partner at early-stage venture capital firm Sauce.vc. “Urban India has begun to realize that protein is an essential nutrient for building health and strength.”

Akshayakalpa had been working for over a year to perfect his protein-rich milk recipe to find the right balance of taste and nutrients; The launch of its high-protein pod this July showed strong traction and validated the bet on protein demand in dairy products.

Consumers are less likely to accept a nutritious offering if it doesn’t taste good, Kumar said. “For Indian consumers, taste trumps function. This tension is particularly acute in dairy products, where removing fat is important to make products healthier, but often compromises the richness and appeal that drive repeat purchases. It took us a year to find the right balance.”

premium shift

India is the world’s largest milk producer and its dairy market is projected to be worth over $274 billion by 2032. Milk production is India’s largest agricultural product and milk production reaches 239 million tonnes in FY24; is the latest such data available, according to the government’s Department of Animal Husbandry and Dairying.

Historically, the industry has been dominated by cooperative bodies such as Amul and state-run milk marketing federations, an unorganized local vendor segment and a handful of private players who use liquid milk as a staple.

Rapid urbanization, rising disposable incomes and expansion of modern retail are leading to an increase in the consumption of value-added products such as paneer, yoghurt, cheese and flavored milk; all of these are increasing faster than milk.

New players such as Akshayakalpa, Sid’s Farm, Two Brothers Organic Farms and Pride of Cows are trying to capitalize on this market shift and challenge the dominance of cooperatives and private dairy companies.

The newcomers focus on premium produce, organic sources and clean labels, tapping into urban demand for high-quality, traceable and functional dairy products.

Founded in 2010, Akshayakalpa has so far raised close to $40 million from A91 Partners, British International Investment and Zerodha’s Kamath brothers.

While Akshayakalpa has no near-term plans for a public listing, Kumar said Milky Mist’s upcoming initial public offering, along with increased awareness among consumers, will provide a boost to the new-age dairy market.