In a recent discussion with Nitisha from EFY, Rupali Pawar, Senior Vice President of Business at Mukunda Foods, provided valuable insights into the advancements in kitchen automation and its transformative potential for the industry.
Please talk about Mukunda Foods.
Mukunda Foods Pvt. Ltd was founded in 2012 by Eshwar K Vikas and Sudeep Sabat, engineering students and roommates at SRM University. Their initial ambition was to create the ‘McDonald’s of Indian food.’ However, they decided to close that venture due to challenges with inefficient delivery. This setback led them to develop Dosamatic, an automated dosa-making machine. Initially, they designed Dosamatic to address their restaurant challenges. However, its success garnered interest from other restaurateurs facing similar consistency, labour, and replicability issues. Consequently, this shift in focus marked the company’s transition from running a QSR business to specialising in kitchen technology.
How has Mukunda Foods revolutionised kitchen efficiency?
As the company grew, it expanded its product line to include solutions like Walkie, an automated cooking station capable of preparing various dishes. Over time, it ventured into enterprise solutions, collaborating with brands like Faasos (now Rebel Foods) and Chaayos to develop customised solutions for biryanis, Asian food, and tea making. The partnership with ITC created a fresh vending machine for Yipee noodles. The company offers a broad product range, automating 80% of global cuisines. Moreover, it has expanded services to include kitchen layout design, aiding brands in workflow optimisation and waste reduction. This comprehensive approach to kitchen efficiency has positioned Mukunda as a valuable partner for numerous food industry brands.
What key innovations and approaches set your equipment apart from others?
It is not advisable to overdesign machines; instead, we focus on using reliable and accurate sensors, displaying current temperatures, and automating processes like basket removal from the fryer. This automation includes double-dip mode, ensuring food is crispy and golden brown, and signalling when ready to avoid waste. Such innovations have reshaped industry practices, offering a faster ROI than international brands. For instance, while not significantly more expensive than others on the market, our steamers include a menu management system for easy operation. This approach sets us apart as we strive to make equipment smarter without significantly increasing costs for our customers, ultimately improving their business efficiency and consistency. We focus on providing tangible value and a clear ROI, ensuring that our equipment makes sense for businesses.
What technological features have you incorporated into your machines?
Mechanisation is a significant trend, but the Internet of Things (IoT) is a crucial feature in all our machines. For example, our connected machines allow business owners to monitor their equipment’s usage and performance remotely from a central location. This level of connectivity enables them to analyse data and make informed decisions, such as introducing new menu items or optimising equipment usage. IoT features like predictive AI can also help optimise energy and resource usage by suggesting when to use specific machines based on historical data. IoT and AI are instrumental in helping our customers effectively address real-world business challenges.
How are startups influencing technology adoption in India?
Automation and technology integration can significantly improve industry efficiency. Educating markets about these technologies is crucial for adoption. The Indian market has shown rapid adoption in recent years, driven by new-generation entrepreneurs more open to technology. Established players are also starting to embrace these changes. Startups in India are thriving, creating a favourable environment for technological advancement and adoption.
How does the software adapt to different user levels?
Customers can access backend software tailored to their needs through a laptop or mobile, with different access levels for business owners, store operators, and managers. Initially included with the machine, the system will eventually shift to a subscription model for advanced services, offering flexibility in pricing based on the modules and services desired.
Is essential operation possible without advanced features?
If someone prefers not to use advanced AI or IoT features, the machine can still operate at a basic level, with basic programming and mechanisation. Additional features can be added later for optimisation but are unnecessary for basic operation.
What is the pricing model for machines with IoT capabilities?
All machine features, whether standalone or IoT-enabled, are included in its value. For example, the machine is a one-time charge in a company sale. There are no current subscription fees, but a future nominal fee, like 10% of the machine’s value, may apply for lifetime services. Separate monthly charges are not currently in place. Prices range from around INR 35,000 for an eco-fryer to INR 300,000-400,000 for combi ovens and about 2.5 lakhs for automated cooking stations. The products vary in price from INR 30,000 to 500,000.
How do you protect your products from being copied?
Preventing others from copying our products is challenging, as there will always be attempts to replicate them. However, we are confident in our intellectual property and ability to stay ahead of any attempts to copy us. We prioritise data security and confidentiality for our customers, using measures like NDAs to ensure their trust. While our technology is visible to customers, the specific coding details remain undisclosed. Ultimately, in the business-to-business environment, it’s more productive for each party to focus on enhancing their own operations rather than trying to imitate others.
What drives your equipment maintenance strategy?
After customers recognise our machines’ problem-solving abilities, we finalise sales agreements. For major clients, we establish standard operating procedures (SOPs). Our internal culinary team collaborates with customers to develop and update these SOPs. Once finalised, machines are manufactured and dispatched according to these SOPs. Our nationwide after-sales team manages installation, training, and support. We prioritise preventive maintenance over reactive services. IoT-connected machines enable us to predict and resolve issues and ensure high uptime. This strategy allows us to address customer challenges throughout the equipment’s lifespan.
Where are you sourcing your components from?
We manage everything from design to R&D internally. While we may import a few components, the majority will be sourced from India, with the possibility of some coming from China or Taiwan. Although certain parts might need to be imported, our supply chain predominantly consists of Indian suppliers, making up 80% to 90% of our sourcing.
Which products do you hold patents for?
We currently hold a total of fourteen patents in food processing technology. Among these, three patents have been granted for innovative products designed to revolutionise kitchens’ food preparation. Our first patented product, Dosamatic, is an automatic dosa-making machine specifically designed for commercial kitchens. It streamlines the dosa-making process and increases efficiency. The second product, E-Cook, is an automatic dosa-making machine tailored for domestic kitchens. It enables home cooks to prepare dosas easily and quickly with minimal effort. Our third patented product, Doughbot, is an automatic machine that handles dough kneading, prepares dough balls, and even makes chapatis, although it does not include a cooking function.
Who manages data security and accounts?
We operate servers, like AWS, for data storage. An R&D team manages and works with this data. They handle data security and account creation, ensuring only specific customers receive relevant information.
What is the current installation and growth status?
We have surpassed 10,000 installations, with the majority occurring in the last year. Our numbers have consistently grown quarter on quarter, reaching the highest ever. This growth trend is expected to continue for another five to six years. We anticipate crossing the 20,000 mark soon, with many machines dispatched and delivered to end-customer locations.
What are the primary revenue sources?
The primary revenue source is machine sales, with a smaller portion coming from R&D project fees.
Where are your manufacturing facilities located?
Our headquarters and manufacturing facility are in Bengaluru. The 2787.09 square-metre (30,000-square-foot) plant is a significant investment, boasting state-of-the-art features. The exact investment value is unknown. The plant has the necessary technology, space, and capabilities to support our operations. Additionally, we have sales teams in various cities across India, with smaller offices in Delhi and Mumbai.
How many brands are added quarterly, impacting revenue?
Our business is poised for continued growth, particularly in terms of partnerships. We add around two hundred brands to our product portfolio every quarter, ranging from small outlets to more prominent brands. This growth in our customer base can be seen as a form of partnership. This trend of adding 200+ brands per quarter is significant and will undoubtedly contribute substantially to our revenue.
What was last year’s revenue growth?
Our revenue doubled last year, and we anticipate a growth of nearly 2.25 times the revenue of the prior year. This corresponds to a run rate of 600 million.
