From three-person unit to ₹30 lakh turnover: How a Dubai returnee built Udupi’s ready-to-cook brand

After more than a decade in the Gulf, Anilkumar Narayanan returned home with a clear, no-nonsense goal: to build a business of his own. A ten-year stint at a dosa batter manufacturing unit in Dubai had given him hands-on experience in large-scale food production. Drawing on this exposure, he launched a similar venture in Kerala, starting small with a compact unit and just three employees.

What emerged was a fast-growing enterprise anchored in traditional flavours. Operating from South Mankuzhi near Kayamkulam, KG Food Products steadily carved out a niche in the competitive ready-to-cook segment under the brand name Udupi’s.

Focused firmly on the Malayali palate, the brand offers a range of ready-to-cook staples including dosa-idli mix, appam mix, chapathi and porotta, along with rice flour and wheat flour. The chapathi and porotta are sold in half-cooked form. With more than 20 products already in the market, dosa, idli and appam mixes continue to account for the bulk of sales.

Steady scale-up
In just nine years, Anilkumar’s venture has expanded into a full-fledged manufacturing facility employing around 30 workers and producing a wide portfolio of items. Backed by an investment of ₹25 lakh in machinery, most operations are now mechanised. Developed in phases through loans supported by the Industries Department, the unit functions from premises owned by the entrepreneur himself.

Quality as the edge
Quality remains the enterprise’s key differentiator in a fiercely competitive ready-to-cook market. Only idli rice sourced from Tamil Nadu is used, with rice and urad dal blended in precise ratios to ensure consistent texture and taste. Fenugreek is added to the dosa mix but deliberately excluded from the idli mix. Hygiene and quality benchmarks followed in Gulf markets are strictly maintained at every stage of production. Products are priced competitively, often below prevailing market rates, and no colours or preservatives are used. The batter is known for its softness and can be safely used for up to five days when refrigerated.

Reliable sourcing from Tamil Nadu
Rice, wheat, urad dal and other raw materials are procured directly from Tamil Nadu through agents. Purchases are made against advance payments, eliminating dependence on credit and ensuring uninterrupted supply.

Sales across three districts
Udupi’s products are distributed across Alappuzha, Pathanamthitta and Kollam districts using five company-owned vehicles. A few distributors also operate on a commission basis. While chapathi sales remain modest, porotta enjoys strong demand. Dosa, appam and idli batters continue to be the top sellers. Expansion into wider markets, Anilkumar believes, would directly translate into higher volumes.

Advantages & Challenges
A strong focus on quality gives the enterprise a clear edge over competitors. The business does not depend on credit sales, reducing financial risk, and benefits from the existence of a large and steady market. The products are relatively easy to place with retailers, and all mandatory approvals, including GST, FSSAI, Packer registration, PCB clearance and Panchayat licence, are in place. There is also significant scope for diversifying the product line. The venture faces challenges primarily from the presence of low-quality products flooding the market, rising costs of raw materials and a persistent shortage of skilled labour.

Turnover and profits
The enterprise records a monthly turnover of around ₹30 lakh, with GST remitted regularly. While margins can be pushed higher, the company currently caps net profit at around five percent, Anilkumar says. Total capital investment, covering land, building, vehicles, machinery and other assets, has now crossed ₹1 crore. His children, Devanarayanan and Suryanarayanan, are pursuing studies abroad, while his wife, Mini, manages the household.

Next stop: Fully automated idli production
Anilkumar is now preparing for his next major leap, a fully automated idli manufacturing unit aimed at delivering fresh, hot idlis within hours of production. The proposed facility is expected to require an investment of around ₹60 lakh.