StartupTalky presents Recap’24, a series of exclusive interviews where we connect with founders and industry leaders to reflect on their journey in 2024 and discuss their vision for the future.
The packaged nuts and seeds market in India is set to reach a projected revenue of $4959.3 million by 2030, driven by a rising demand for healthy snacks. ProV Foods is a leading brand in this sector that offers a wide range of dry fruits, nuts, seeds, berries, and healthy snacks sourced from trusted farmers worldwide.
In this edition of Recap’24, we spoke with Mr. DP Jhawar, CEO, ProV Foods, who shares his journey of building a brand that stands for quality and consumer trust in the dry fruits category. With over 2 crore units sold in 2024, Jhawar discusses how ProV is shaping the healthy snacking trend in India, utilising strong retail partnerships, e-commerce channels, and innovative products to drive growth. He also outlines the strategies to expand ProV Foods’ footprint, aiming for INR 1000 crore in sales by FY28.
StartupTalky: Tell us about ProV Foods. What does the brand stand for, and what products do you offer?
Mr. DP Jhawar: ProV was born out of a simple but revolutionary concept: to create a trustworthy brand in the dry fruits category to cater to the changing consumer trend of moving towards branded and organised retail products. The retail dry fruit market in India was highly fragmented with the emergence of many local brands that were mainly based on the trust of the consumers and the challenges in the supply chain.
At ProV, we aim at being well-informed in choosing the right products for a healthy snack that are tasty, healthy, and easily available. Our products are in the dry fruits and healthy snacks category. We source the best nuts, seeds, and berries from trusted farmers in India and other parts of the world. Although the company was established in 2016, the ProV brand was introduced in 2019 after the company had done its due diligence and engaged in the search for the right partners and products.
We now have over 150 SKUs of products that are divided into various categories of dry fruits, nuts, seeds, berries, and value-added products such as flavoured snacks and trail mixes. We aim to meet the needs of different customers and their lifestyles, thus providing them with options that would help them opt for healthy snacks.
StartupTalky: ProV Foods achieved a 96% YoY PAT growth and 43% YoY sales growth in FY24. What were the main drivers behind this success?
Mr. DP Jhawar: We have identified the two main factors behind our growth in FY24. ProV is now in over 20 states of the nation due to our active distribution strategy and geographic penetration, which we have been working on for some time. To ensure our products are available, strong alliances were created with key modern retail players like DMart, Reliance, Walmart, and Metro Cash and Carry.
Consumers have faith in our products thanks to our unrelenting commitment to quality, which in turn ensures we receive repeat business. Furthermore, in augmenting sales, reliance on online sales for D2C and e-commerce channels during this year, coupled with digital advertisement campaigns targeting to increase ProV recognition, were equally effective. Last but not least, appropriate supply chain organisation and stringent expense adherence were other operational focuses that consistently contributed to retaining a good bottom line.
StartupTalky: Healthy snacking is on the rise. What is ProV Foods doing to create the change in the market and what trends have led to the creation of your products?
Mr. DP Jhawar: At ProV, we are leading the change that is currently happening in the market with regard to healthy snacking, providing clean-label, natural products that are relevant to the consumers of today. We have seen a change in consumer behaviour when it comes to snacking habits, including snacking on the go, portion control packs, and high-protein snacks, and our product offerings are in line with these trends.
We have focused a lot on the nut and seed products, especially the flavoured nuts and seed blends while ensuring that they are both tasty and healthy. Also, the increasing customer demand for the products that are sourced and processed extensively influences our strategy of product creation.
Our ‘Indulgence’ series of chocolate-coated almonds is a direct response to the market’s demand for products that offer health benefits as well as the enjoyment factor. Even so, we have the ProV Mini which is the 18g pouch that targets individuals who are interested in consuming healthy snacks in the right amount. Also, we have changed the packaging of the ‘Fusion’ trail mix to improve the health benefits of the product in order to attract more health-conscious consumers.
StartupTalky: With over 2 crore units sold this year, which products emerged as customer favorites, and why?
Mr. DP Jhawar: Yes, this year over 2 crore units have been sold and some of the products have been bestsellers. Almonds and Cashews have always been bestsellers because of their versatility and popularity. Beyond that, our ProV Mini range of on-the-go snack pouches and the Fusion Trail Mixes have become popular, especially among the health-conscious and those who are interested in package-sized snacks. The Fusion Trail Mixes are particularly great as they provide the right balance between taste, nutrition, and convenience, thus suitable for those who are always in search of a healthy snack.
Also, the Gifting Range that we introduced during Diwali was a huge success. These packs were created carefully to offer the best quality products and beautiful packaging, which made them ideal for gifting during the festival season.
StartupTalky: What trends and opportunities do you see for growth in the nuts, seeds, and dried fruits industry in India and globally in the next 2-3 years?
Mr. DP Jhawar: As nuts and seeds are gaining recognition, there is an increasing demand for healthier meals as well as snacks. Moreover, functional foods are witnessing a swift development too. Added-advantage health products, such as protein-added snacks, are becoming popular on the market where consumers are after nutrition and easy-to-move food. Dry fruit hampers still remain good contributors in festive markets, giving a clear chance for brands to leverage seasonal sales.
On an international scale, there is an increase in the preference for clean-label, sustainable, and unprocessed foods, which complements consumers’ concerns over food and health choices. Such trends pave the way for convenient packs and novel mixed snacks to be made, especially for the younger generation, who stagger for healthy, wholesome, and on-the-go food in today’s busy world.
StartupTalky: ProV Foods is targeting INR 1000 crore in sales by FY28. What are the key strategies you’ve set to achieve this?
Mr. DP Jhawar: To begin with, geographic expansion is a dominant strategic objective as we are looking to increase our footprint in not only the metros but also the Tier 2 and Tier 3 cities where there is considerable potential for growth. Secondly, innovation in products will be fundamental in maintaining growth. We expect to additionally introduce value-added products and premium blends that respond to changes in consumer tastes.
Digital is also a major area of focus. We intend to develop our e-commerce and D2C channels to expand our market reach and sales. Moreover, we are also focused on developing a good distribution network through more distributors and retail partners, which will enable us to grow our reach even further. Finally, brand recognition matters a lot. We plan to conduct brand-specific marketing activities to foster brand loyalty and position our products among consumers as the first consideration during every interaction with them.
StartupTalky: What challenges did you face in scaling operations and meeting growing demand, and how did you overcome them?
Mr. DP Jhawar: The unorganised market was one of the biggest barriers we needed to address. In these types of markets, quality becomes an afterthought, and low prices are all that they offer. To counter this, ProV Foods has concentrated on creating knowledgeable consumers who are fully aware of the advantages of purchasing branded products and effective quality marketing. Juggling multiple sales channels proved to be difficult for us, especially working towards maintaining standard prices for consumers regardless of which sales outlet they utilised.
Moreover, there are still numerous changes in regulations that have been implemented to combat unregulated competition, and this puts us in a volatile state. Nonetheless, our primary focus remains on quality and consistency, which are two crucial and unyielding aspects of our brand. If the consumers have to deal with complex supply chain issues, we have been able to work around them by employing multi-pronged approaches that create effective supplier partnerships that promote range and stability.
In response to increasing market needs, we incorporated additional production equipment. In Surat, we are expected to open a new manufacturing facility at the end of fiscal year 25, enabling us to expand our production capability four times. Expansion of this magnitude will not only help us keep pace with the demand but will also strengthen further sales growth and product innovation.
StartupTalky: How do you manage your multi-channel distribution strategy, ensuring ProV’s products are easily accessible both online and in prominent retail stores like DMart, Metro, and Big-basket?
Mr. DP Jhawar: Our efforts to expand the business have us investing and promoting ourselves in numerous spheres. In the case of modern trade, we have a strong association with DMart, Reliance as well as Metro. For the Kirana stores, we have built a strong reach through the local wholesalers and the small retail shops around them. E-commerce has also become an important aspect of our work during the period of digital development that we are undergoing and partnerships with services such as Amazon, Flipkart, and BigBasket are very crucial. Moreover, we are working on direct-to-consumer strategies by improving our company site to enhance our branding and customer interaction strategies.
StartupTalky: What are the different strategies you use for marketing? Tell us about any growth hack that you pulled off.
Mr. DP Jhawar: A comprehensive development strategy is implemented through several channels of marketing. For festive sales, we use bulk sales techniques, which help us sell large quantities during robust selling periods. In terms of digital marketing, social media is being used to target and increase brand awareness among younger consumers.
Our sampling campaigns also include samples of products that are offered at selected retail outlets in order to encourage sales and enhance public awareness of our brand or product. To tackle this problem, however, we did carry out a growth hack, which in our case was searching the data for fast-moving or operating SKUs. This enabled us to fine-tune our inventory levels and sales plans in a way that ensures supply meets demand while avoiding stockouts and overstocking issues.
StartupTalky: How do you plan to expand ProV Foods’ customers, SKUs, and team base in the future?
Mr. DP Jhawar: In order to grow the customer database of ProV Foods, we want to target not only the Metro but also the Tier 2 and Tier 3 cities and increase the points of contact with the customers via the online channels. In the context of SKUs, new products will be introduced into the market, including new snack blends and premium products, which will be targeted at urban consumers. As for the team, we are looking to grow our team to include more people in various positions to help and contribute to our goals.
StartupTalky: As a founder, what advice would you give to emerging D2C brands looking to scale profitably in the FMCG space?
Mr. DP Jhawar: In my professional opinion, selling food within the FMCG umbrella falls into the category of a successful experience if one possesses in-depth knowledge of strategic marketing, offers quality goods, and maintains an unwavering willingness to learn from the market. This goes without saying, but creating a product that targets the needs of your potential customers only becomes possible if you have a deep understanding of the audience.
Next, maintain a consistent quality of your product. This will not only help you garner a good reputation in the industry but also develop consumer loyalty. It is also advised to remain flexible and strong in a fast-changing world, facing supply chain obstacles and other challenges. Enhanced customer interaction and better running of operations can also be achieved through the adoption of an ever more digitalised world and educated self-service websites.
