ID Fresh Food (1)

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Jun 13, 2024

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1 iD Fresh Food Private Limited in India Name Institution Date

2 iD Fresh Food Private Limited in India Ready-to-eat/ready-to-cook (RTE/RTC) food takeaways are becoming more popular as customer tastes for packed meals change. Food consumers increasingly want higher-quality products, more variety, and faster delivery (World Food India, 2023). iD Fresh Food Private Limited, an Indian RTE/RTC food takeaway firm started in 2005, provides fresh, nutritious, and delicious Indian food to people worldwide (idfreshfood, 2023). Since its founding in Bangalore by PC Mustapha and his four relatives Jafar TK, Abdul Nazer, Noushad TA, and Shamsudeen TK, it has sought to become a $10 billion brand. The brand offers a variety of RTE/RTC goods made with natural ingredients, altering the way Indians cook and creating trust by offering nutritious and high- quality breakfast and snack options. Since its founding in 2005, it has faced many problems, but it has created tactics to overcome them to stay in the food industry. This paper examines ID Fresh Food's difficulties, methods for brand loyalty, and operations. The report also seeks to understand its market competitors. Nature of operations ID Fresh engages in the batter, RTE, and RTC food industries worldwide. The batter category serves clients who want to make idli and dosa batter without fermenting and grinding it at home (Nandi, 2019). According to Id Fresh's CEO, batter preparation is tough and involves chefs, grandmothers, and aunties. The batter contains 0.01 fenugreek seeds and 1:4 split black lentils to rice. The semi-solid batter is made with low-sodium salt and RO-purified water (Rizwana M et al., 2017). The batter is well-packed without preservatives for easy bowling. Before 2014, the batter was sealed in a pack that had to be cut to transfer to bowls and store. Another packaging innovation, a transformer pouch with an umbrella nozzle to make a precisely

3 shaped Vada with a hole, was made that allowed storing contents on the pack after opening (Rizwana M et al., 2017). According to Rizwana M et al. (2017), ID Fresh's CEO stated that the company develops products that are mostly ready to cook and not ready to eat because they are designed to first reach the kitchen before being served on plates. Its ready-to-cook products include Indian bread like “just heat” whole wheat parota, chapati, Udupi-style idly-dosa batter, and natural cottage cheese that is traditionally made using lemon (Rizwana M et al., 2017). These goods make it easy to make excellent Indian snacks and dinners. The company still makes ready-to-eat items that save time in the kitchen. These divisions meet customers' dynamic demand for efficient and convenient culinary solutions that balance traditional cuisine and modernism. ID Fresh Food Company is a monopolistic RTC/RTE food industry. Unlike other companies, it differentiates itself by offering traditional and high-quality Indian foods like idli and parotta with natural ingredients and no additional flavors or preservatives for consumer convenience. Nestle, another RTC firm, produced instant noodles that boil in water in three minutes. Product pricing is controlled in monopolistic competition (Dhingra & Morrow, 2019). This is due to product processing changes. According to Nandi (2019), ID started with value- based pricing to target the upper and upper middle classes; hence their product prices were more than their competitors'. In 2017, Hallimane, its competitor, sold one kilogram of idli dosa for INR55, while the company charged Rs70. Musthafa believes that if items give value to customers, the price is always appropriate. As other organizations use branding and marketing to attract customers, the market remains competitive, requiring companies to innovate to stay ahead. Challenges

4 ID business struggled to change public opinion about packaged food. The company had trouble encouraging individuals to switch from batter-making to pre-made batter due to unclear regulatory constraints on packaged foods and a lack of understanding (Nandini & Zachariah, 2021). Most Indians feel packaged goods are unhealthy because they contain chemicals, tastes, and preservatives. A company that claims to use natural ingredients was hard to accept. Most foods are packaged with preservatives to prolong shelf life, thus convincing consumers, staff, and merchants of their preservative-free products proved difficult. Cash flow for corporate finance was difficult. The company struggled to raise funds for commercial operations and necessities because none of the founders were wealthy (eSoft Training Solutions, 2024). The company’s CEO stated that they had to decline some orders that would have funded them since they didn't want to compromise their morals by working in a bar. The hot and humid climate in India lowered the shelf life of packaged items (Rizwana M et al., 2017), requiring the corporation to invest in various cooling systems that cost a lot of money. Lack of food business background is another issue. The company started by addressing a social problem (making idli), so the founders had no knowledge of how to make butter since chefs and grandparents did it and the group came from Kerala, where idli was rare (Nandi, 2019). Though the company made preservative-free food, fermenting the batter took time to achieve the correct consistency. The group worked for six months to perfect idli batter consistency. Strategies Identification of opportunities and use of common sense was the main strategy that ID Fresh company employed in its initial years. According to Nandi (2019), Musthafa observed that

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