CHENNAI : "In universities, you cannot study cashew processing, knowledge comes from experience,” say Barathy and Sarathy Reddy, founders of cashew processing firm GI Agro Technologies Private Limited. From setting up a 600-sq-ft processing warehouse in 1994 to establishing several units across the state, the identical twins and businessmen strived to modernise the cashew manufacturing industry. Currently, with their model zero-waste factory, constructed this year near Tindivanam, they aim to share their wisdom, which spans 30 years.
As children, they would watch as their father toiled in dense paddy, and groundnut fields, sowing seeds and harvesting crops at Ananthapuram in Villupuram. In search of better opportunities, their father moved their family of seven to the bustling city of Chennai. With roots in an agricultural family, the twins’ entry into cashew processing manufacturing began years later, with GI Agro Tech centered around the motto ‘Design, Develop, Deliver’. Through this conversation, they mention that their factory is open for any aspiring entrepreneur to examine: “Experience is knowledge. Our factory is like a school; anyone can come and learn.” Barathy and Sarathy share the anecdotes of their journey, insights into the cashew industry, and plans of entering the global market.
Excerpts follow
How did the idea of the cashew manufacturing unit spark?
We started Gayathri Industries as a cashew processing machinery manufacturer in 1994 and initially began with just one machine — a dryer — and then added more. We named the company after the first child born in our family, Gayathri. The firm used to supply machines to cashew factories across India and started giving end-to-end solutions with producing machines packaging, and processing cashews. In 2007, we gradually began the export to East and West Africa. (During this time), we changed the name to GI Agro Technologies. Apart from machines, we give our vendors the technology, knowledge, and training on how to use these machines. In 2015, we became a world-leading company as only a few firms gave end-to-end solutions. Our vision is to do research and development, for cashew processing, as nobody else does it in the world.
Share memories of your childhood.
Our father moved to Chennai and we studied in a government school in Saidapet from sixth standard to 10th standard. When he died, we had to search for work in that situation. We studied IT electrical (courses) and became technicians. After that, we began the company in a 60 sq ft workshop and now, it has grown to 60,000 sq ft.
How does the factory function?
The factory is a modern one located around 120 kilometers outside Chennai, near Tindivanam and Puducherry. If one has to set up a cashew factory across the world, one can examine our company’s factory. We set it up so it could be a model and example to others so nobody has to struggle while setting up their factories. We also kept in mind the need for employment opportunities and new technology. Around 95% are women workers, many of whom have not had access to education and are in rural areas. We trained them in cashew processing and our company, if someone takes up technician work, then they could also get a job abroad. In the first phase, we employed 450 people. It is a zero-wastage factory and is 30% energy-efficient. Each factory section has machines made from our innovations, and we complied with the BRT Standard norms while building this factory. With the idea of establishing livelihood opportunities and bringing in foreign investments, the Tamil Nadu government signed an MoU in 2020 for this, and after approvals, the construction began. In March this year, after training 480 employees, we began production. Our raw material processing capacity per day is 60 metric tonnes. Nobody else has invested `70 crore into a factory like this or has R&D in the cashew machinery manufacturing industry.
How has the cashew industry changed over the years? What challenges did you face in introducing technology?
Traditionally, the cashew processing work has been manual, from peeling the wrappers to packing products, it must be done by hand. It was completely labour-oriented but if the processing cost is high, there will be no profits. India is number two in cashew processing and exports. We were number one but Vietnam overtook. But India is the number one consumer. To set up a factory, we faced struggles while obtaining approvals. There are financial challenges but we managed to set it up, and it benefits local farmers and vendors.
Over the years, how did you upskill yourselves?
Barathy travelled to 27 countries including ones in East Africa, West China, China, Europe, Asia, and Italy to learn more about machines. He visited exhibitions and learned how to adopt machinery in cashew processing, and a variety of machines dealing with food processing to see how we can improve.
How was the pandemic period?
The pandemic was a big struggle. We faced losses but our reserve money was allotted for our staff’s salaries. We are thankful for our employees.
How do you look back on your journey?
We are very happy. We didn’t know we could reach these heights, and our vision is to help the needy. Our goals are to create employment and at the same time, cashews should be consumed by everyone. So, we are trying to build the best price compared to the market. Today, cashews are an expensive product, and people buy small packets at `10, `50 with dry fruits. We struggled and till our last moments, we want to help others with employment. In the city, there are 500 people to help out but this is a question mark in rural areas. There are not as many opportunities, many workers are unskilled, and we take certain measures to help them.
Plans of growth
In the second phase of the factory plan, 250 people will be employed next year. We are going to enter the global market with a company called, Gayathri Consumer Products and a brand Apna Nuts. We are starting our packaging and manufacturing by January 1, 2024, and entering the spices market and FMCG products, dealing with a variety of spiced cashews. The company aims to expand into Sri Lanka by June next year too as we want to uplift our neighbouring country which is experiencing losses.