Khetika commits Rs 100 crore to spices, targets Rs 1,000 crore category revenue in 3 years

The food brand plans to expand pesticide-free spice manufacturing, testing, distribution and exports. It has invested Rs 10 crore in a 15,000 sq ft Unjha facility and aims to scale its farmer network from 20,000 to 50,000.

— Source published Thu, 20 Aug, 2026, 14:21 IST · First seen Fri, 21 Aug, 2026, 09:47 IST · Source ET Retail

What happened

Khetika is investing up to Rs 100 crore in pesticide-free spices manufacturing and testing in Gujarat, targeting Rs 1,000 crore annual spices revenue in three

Key facts

  • Rs 100 crore planned investment over three years
  • Rs 10 crore invested in Unjha facility
  • 15,000 sq ft facility
  • 500 MT initial capacity
  • Rs 1,000 crore annual spices revenue target within three years
  • Rs 2,000 crore spices business target over five years
  • Rs 500 crore expected current-fiscal revenue
  • Rs 375 crore FY26 revenue
  • Rs 120-150 crore expected online-channel revenue
  • 20,000 farmers currently covered under SAATHI
  • 50,000 farmer target
  • 20% international revenue target

Why this matters

Khetika’s investment in Unjha-based spice capabilities, farmer sourcing and exports makes it a more consequential potential partner or competitor for food companies seeking differentiated, pesticide-free spice portfolios.

What to watch

  • Evidence of the remaining Rs 90 crore investment being deployed, including new processing, packaging or testing capacity.
  • Farmer-network growth, procurement volumes and the share of directly traceable spice sourcing.
  • Retail distribution additions in supermarkets, quick-commerce platforms and national e-commerce marketplaces.
  • Export-market registrations, certifications, shipment announcements and any residue-test outcomes.
  • Pricing premium versus mass-market spice brands and signs of repeat purchase rather than trial-led demand.
  • Revenue mix between branded retail, B2B and exports, which will determine margin quality.
  • Competitive responses from established spice brands through clean-label, organic or pesticide-residue-tested launches.
  • Working-capital buildup from seasonal spice procurement and inventory holding.
  • Expand residue-testing, traceability and certification infrastructure at the Unjha facility.
  • Sign farmer procurement arrangements and deploy agronomy support to grow the sourcing network toward 50,000 farmers.
  • Launch or broaden premium spice SKUs across modern trade, quick commerce, marketplaces and direct-to-consumer channels.
  • Build export distribution partnerships, likely prioritizing Indian diaspora and residue-sensitive developed markets.
  • Increase brand spending around pesticide-free, origin-led and lab-tested product claims.
  • Pursue institutional, foodservice, private-label or ingredient-sales contracts to accelerate capacity utilization.