Akhsaya Oscm

IMB 745
THE AKSHAYA NIDHI FOUNDATION

in Aid of Akshaya Patra
ANSHUMAN TRIPATHY AND AKSHAT RAJ
Anshuman Tripathy, Professor of Production and Operations Management, and MBA student Akshat Raj, prepared this case for
class discussion, with inputs from The Akshaya Patra Foundation. This case is not intended to serve as an endorsement, source of
primary data, or to show effective or inefficient handling of decision or business processes.
Copyright © 2019 by the Indian Institute of Management Bangalore. No part of the publication may be reproduced or
transmitted in any form or by any means – electronic, mechanical, photocopying, recording, or otherwise (including internet) –
without the permission of Indian Institute of Management Bangalore.
This document is authorized for educator review use only by Yuliani Lestari, Other (University not listed) until Jan 2021. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
The Akshaya Nidhi Foundation – in Aid of Akshaya
When a person responds to the joys and sorrows of others as if they were his own, he has
attained the highest state of spiritual union.
- Bhagavad Gita, 6.32
It was a calm and pleasant Saturday evening in October, 2017 for most residents of Bengaluru, a major
metropolitan in the southern state of Karnataka in India. But not for Vinay N. Kumar, the Director –
Operations of The Akshaya Patra Foundation (TAPF) and Chief Executive Officer (CEO) of The
Akshaya Nidhi Foundation (TANF). He was preoccupied with pressing business. Akshaya Nidhi’s
biggest contract with Bengaluru Municipal Corporation was soon coming to an end. This was a cause of
concern as its orders accounted for nearly half the revenue of the organization.
Kumar’s single biggest desire was to turn Akshaya Patra into an economically self-sustained organization.
After experimenting with various ideas, it had been decided to support Akshaya Patra by setting up a
separate for-profit organization, Akshaya Nidhi. Akshaya Nidhi’s disposable surplus profitsi would be
used to support Akshaya Patra’s operations. Over the last 3 years, the growth of Akshaya Nidhi had truly
been extraordinary (FY 2016-17 Revenue of Rs. 150 million (Mn) at a CAGR 2014-17 of 214%). 1
Various opportunities such as starting a kitchen in Mumbai, setting up mobile kitchens, and
diversification into new products were now knocking on the door. “What should be Akshaya Nidhi’s
strategy and vision for the future? Should we expand or to diversify? Should we change anything at all?”
Kumar wondered. Kumar was lost in his thoughts when he realized it was 8 pm already and it was time
for him to pick up his son from guitar lessons. His thoughts and decisions would have to wait until the
next day.
THE AKSHAYA PATRA FOUNDATION
The Akshaya Patra Foundation was the world’s largest NGO-run mid-day meal program ,2 having earned
this distinction when it served its one-billionth meal to a child in 2012. 3 The organization was born from
the vision of his divine grace A.C. Bhaktivedanta Swami Prabhupada, founder of International Society for
Krishna Consciousness – ISKCON. His divine grace, on witnessing poor children fight with street dogs
over scraps of food in Mayapur, a village near Calcutta, declared that “no one within a ten-mile radius of
this (ISKCON) center should go hungry”.ii 4 Consequently in 2000, a pilot project was started by
ISKCON in Bengaluru that catered to 1,500 students in five government schools. This was later
incorporated as a charitable trust called The Akshaya Patra Foundation (Akshaya Patra in Sanskrit means
“an inexhaustible vessel”). Akshaya Patra was led by Madhu Pandit Dasa, a graduate of Indian Institute
of Technology Bombay and an ISKCON member. Dasa devoted himself single-mindedly to the ambitious
vision of the trust to ensure that “no child in India shall be deprived of education because of hunger”.
Within a few years, Akshaya Patra saw considerable success and recognition.
i
Disposable surplus profits were defined as profits available in cash after setting aside money for taxes, investments and working capital.
(Disposable Surplus = Net Profits – CapEx – Change in Working Capital).
ii
Global Hunger Index (GHI) is a tool designed by The International Food Policy Research Institute (IFRI) that is meant for quantifying and
tracking hunger at global, regional and national levels. Child mortality, inadequate food supply and child under-nutrition are the three dimensions
of the index calculation. While in 2000, India was categorized having “alarming” severity under the GHI, by 2017, India ranked 100 th among a
total of 119 countries falling behind even Sri Lanka, Bangladesh, and North Korea.
Page 2 of
On November 28, 2001, the Supreme Court of India passed an order directing states to implement Mid-
Day Meal Scheme (MDMS) (Exhibit 1).5 Under MDMS, children studying in primary and upper primary
classes in government or government-aided schools were to be provided free cooked meals. To
implement the MDMS, the state governments provided subsidies to schools and entities like Akshaya
Patra. With the help of subsidy provided by the government along with private donations, by 2017,
Akshaya Patra was able to provide mid-day meals every day to 1.7 million children in 34 locations across
11 states (Exhibit 2). The government support was not without reason – the initiative clearly had visible
positive effects on the health of students. The schools witnessed increased enrollment, steady attendance
and better student concentration during class hours, apart from an overall improvement in student health.
The organization had its eyes set on the ambitious mission of reaching 5 million children by 2020
(Mission 2020). This would be a step forward in India achieving the two critical Sustainable
Development Goals (SDGs): Zero Hunger,6 and Access to quality education.7
OPERATING MODEL OF AKSHAYA PATRA
Akshaya Patra’s kitchens were core to its operations. These kitchens were highly mechanized and
scalable. Akshaya Patra was present in various states across the nation and so were its kitchens. The
kitchens were designed to cook meals suited to the taste palate of different regions: North Indian – dal,
roti and rice – and South Indian – sambhar, rice, and curd. To ensure a healthy diet and maintain
children’s interest in the meals, the kitchens prepared different varieties of dal and sambhar and provided
milk, fruits, and sweets on a couple of days in a week.
Most of the kitchens were located in urban and semi-urban centers, and fed between 50,000 to 150,000
children per day. These kitchens were huge and akin to a factory with a capacity to cook thousands of
meals in a few hours. Akshaya Patra employed professional staff to operate these “mega-kitchens” iii along
with an ISKCON missionary who managed the kitchen. The kitchen was designed in a way that it had
various levels and utilized gravity for material flow. The raw materials were fed at the top and would
travel through pipes to a level below where they were cleaned and mixed in appropriate amounts and then
transferred to respective cauldrons. Here, in these steam heated cauldrons, dal, sambhar, and rice were
cooked.
Once prepared, the food was transferred to the ground level through pipes and chutes for packing and
quality check (Exhibit 3). This type of a kitchen was called a centralized kitchen. It provided economies
of scale and control over the process. Akshaya Patra also had decentralized kitchens in villages which
were operated by SHGs (Self-Help Groups). These SHGs comprised parents of the children studying in
schools where Akshaya Patra kitchens supplied. Akshaya Patra provided them with utensils, recipes and
raw materials. These kitchens were able to serve two purposes – provide nutritious mid-day meals to
children and generate employment. However, Akshaya Patra lost out on the economies of scale and
control with such an arrangement.
iii
Akshaya Patra appeared on National Geographic’s show “Mega-Kitchens”
Page 3 of
Hygiene was of paramount importance to Akshaya Patra. Since, the food was for children, a slip-up in
hygiene had the potential to cause severe problems. Past incidents of food poisoning in the country
leading to deaths of children due to contaminated mid-day meals had caused huge uproars.8 If such an
incident were to occur in an Akshaya Patra kitchen, serving thousands of children a day, it could destroy
the entire organization. To prevent something like this from happening, Akshaya Patra had implemented
ISO 22000:2005 (Food Safety Management System) in 12 of its kitchens, and was in the process of
receiving certification for the others.9 To ensure that quality, hygiene and safety standards were met,
regular internal audits were also conducted.
Food safety & quality are the most important facets in Akshaya Patra’s operations; in fact
this comes even higher than the taste of food itself in terms of deliverables.
- Vinay N. Kumar
Food that passed the quality check was packed into vessels, and loaded onto a small truck. The delivery
vehicle left Akshaya Patra’s premises at around 8~9 am and reached the school between 10 am and 12
pm. It was necessary to ensure that the time between loading and delivery was less than 3 hours so as to
ensure that the food was fresh when consumed. To achieve this, real time route optimization was
employed that utilized the data available from GPS trackers attached to all the vehicles. Additionally, no
vehicle was allotted more than 30 schools, to limit the maximum delivery time. Most of these vehicles
were donated by companies (as part of their corporate social responsibility (CSR) activities) and carried
the respective donor’s branding.
Akshaya Patra was making a positive impact both on the lives of children and Indians at large. The
organization had also supplied food during Chennai floods of 2015 as a part of its disaster relief efforts. It
had indigenously created a “kitchen on wheels” quite like any other. This “kitchen on wheels” supplied
130,000 meals during Gorakhpur floods of 2017 in its 10 days of operation.
QUEST FOR SELF-SUSTAINABILITY
In the financial year 2016-2017, Akshaya Patra had revenue and expenditure of Rs. 3.49 billion (Bn) and
Rs. 3.35 Bn, respectively. A capital expenditure of approximately Rs. 200 Mn was required to set up a
centralized kitchen and the cost of providing meals per child was Rs. 1,950 per year (2017). Generally,
government subsidies covered 50-60% cost of meal for a child. Therefore, to achieve Mission 2020, that
is, reaching 5 million children daily, Akshaya Patra would have to spend approximately Rs. 5 Bn in
setting up new kitchens and incur an additional operational expenditure of approximately Rs. 7 Bn every
year. This was an ambitious target considering the challenges it was facing in fund raising, receivables
management, and cost control.
In the years following the financial crisis of 2008-2009, donations to Akshaya Patra had started drying up.
On many occasions, the organization found itself in a hand-to-mouth situation. Due to this, the income
suffered downward pressure, and Akshaya Patra experienced losses in financial years 2012-2013 and
2013-
Page 4 of
2014. For the first time, the corpusiv had to be used, to fund this shortfall. Fortunately, TATA and Infosys
donated funds equivalent to 6 months of working capital to replenish the corpus. This helped Akshaya
Patra continue supplying meals to children across the nation. This incident served as a wake-up call. Even
with a team of 100 fund raisers and 4-6% of expenditure going to funding-related activities, donations
could not be relied upon solely as a secure means of funds.10
Akshaya Patra’s leadership had started evaluating various options to identify a sustainable revenue
stream, along with ways to reduce its capital and operating expenditure requirements. One of the
possibilities was to increase the range of centralized kitchens. A hub-and-spoke model was suggested in
which an existing industrial kitchen would serve as the hub, and smaller kitchens, closer to new schools,
would be built as spokes. Another idea was to operate leased out kitchens which ensured an asset light
model. Uttar Pradesh state government had expressed interest in this first of its kind model, wherein the
state government would own all the assets and Akshaya Patra would operate and produce meals out of
this facility. This would eliminate the need for Akshaya Patra to secure funds for building new kitchens.
Switch to hub-and-spoke model or leasing out the kitchens were ideas that tackled only half the problem
and did little to decrease the operating expense. They did not aid the quest for financial sustainability.
Instead of focusing solely on decreasing costs, the management team at Akshaya Patra therefore, thought
of focusing on developing an alternate revenue stream. This led to the birth of – The Akshaya Nidhi
Foundation.
THE AKSHAYA NIDHI FOUNDATION
Incorporated in 2014, Akshaya Nidhi was conceptualized to sustain Akshaya Patra. This was to be
accomplished by utilizing the free capacity of Akshaya Patra’s kitchens. It would lead to increased asset
utilization (also referred to as “sweating the assets”) and create value through its expertise in “mass
manufacture of cooked food in industrial kitchens and its large-scale distribution, that is, knowledge of
food value chain management. Akshaya Nidhi would practice the same focus on maintaining flawless
quality as does Akshaya Patra. The disposable surplus profits generated through activities of Akshaya
Nidhi were to be used for sustaining Akshaya Patra. In a scenario where Akshaya Patra became self-
sustainable, it had been decided the surplus profit would be donated to other NGOs.
The presence of Akshaya Nidhi would bring increased stability to revenues of Akshaya Patra. Akshaya
Patra’s donations could be focused on setting up new kitchens and upgrading the existing ones, while
Akshaya Nidhi would be able to support a major portion of the operational expenses. This would support
Akshaya Patra’s quest of feeding 5 million children daily.
iv
Corpus refers to the assets placed in the trust and available for use in case of crisis.
Page 5 of
INCEPTION
In 2014, Akshaya Nidhi had a humble beginning as a small chaat (“fast food”) counter in Bengaluru.
Even though it utilized Akshaya Patra’s facility, the additional revenue generated was too little to be
meaningful for Akshaya Patra. During the same time, Akshaya Nidhi was in discussions with the
Government of Karnataka to run a pilot project for feeding the financially weaker sections of the society.
The Government of Karnataka would provide financial support to the project by supplying rice at a
subsidized rate of Rs. 5.65/kg. Akshaya Nidhi would then utilize a network of NGOs employing street
hawkers to sell the food at a price of Rs. 10 (price was regulated by government). However, due to the
circumstances then, the project never saw the light of day.
EAT FOR A CAUSE
Akshaya Patra had strong relations with some of the biggest corporate houses and companies in India.
They were a steady source of donations (specially, since the Government of India (GoI) in Companies
Act, 2013 required certain firms to mandatorily spend greater than 2% of their last 3 years of average
profit on CSR activities).11 Akshaya Nidhi started by utilizing relationships built by Akshaya Patra’s
fundraising team. Cisco, Genpact, Century Link, Cargill and Nutanix Technologies, among others,
participated in this “Eat for a Cause” program started by Akshaya Nidhi.
In early 2015, Akshaya Patra came across an interesting request. The donors liked Akshaya Patra’s work
and wanted Akshaya Patra to supply meals to their offices and canteens. This led to the birth of “Eat for a
cause”. Akshaya Nidhi was used as a vehicle to fulfill these requests. There were opportunities to do
event catering and to penetrate the corporates for continuous orders. However, since Akshaya Nidhi and
Akshaya Patra only prepared Sattvic food (Exhibit 4), they feared that people might get tired of eating
the limited variety of vegetarian food which they would prepare (without garlic and onion). It was
proposed that Akshaya Nidhi supply the food only once or twice a month. The meals were sold at a
premium to the companies. Akshaya Nidhi regularly denied requests for full time catering contracts as the
kitchens were designed to produce bulk orders.
Over time, “Eat for a Cause” expanded its offerings. In 2016, Akshaya Nidhi sold more than 5,000 boxes
of sweets on Diwali to Cisco. However, it only acted as a middle man in this instance. This raised another
possible opportunity to start acting as an aggregator (similar to Uber) for connecting smaller food outlets
with bigger corporate clients. By 2017, the foundation had diversified into various products. By January,
2018 was producing 400 kg/day of idli batter for Reliance. In 2018, it had also managed to win an order
to manufacture ready-to-eat chapattis for a major packaged food brand (iD Fresh Food – ready-to-eat food
products company in India). Akshaya Nidhi predominantly used the phrase “in aid of Akshaya Patra” to
brand its meals and products (Exhibit 5).
TASTING SUCCESS – BBMP
The Municipal Corporation of Bengaluru called the Bruhat Bengaluru Mahanagara Palike (BBMP) was
Page 6 of
responsible for providing necessary community services like health care, educational institution, housing
and transport in the city of Bengaluru. In 2016, the then mayor of Bengaluru – G. Padmavati, wanted to
implement Akshaya Patra’s model of centralized meal preparation and delivery for feeding the 33,000
Safai Karamcharis (Garbage Handlers). The Municipal Corporation of Bengaluru approached Akshaya
Patra. Akshaya Patra agreed to implement the same via Akshaya Nidhi. By October, approval for
implementing the model was obtained and the concept finalized. Consequently, on November 8, the
program was launched. This contract nearly doubled the revenues of Akshaya Nidhi. BBMP therefore
represented a big chunk of Akshaya Nidhi’s sales growth in 2016.
Akshaya Nidhi utilized its expertise in large scale production of meals from its kitchens. Hence, making
33,000 meals a day was hardly a challenge when, until now, a typical kitchen produced nearly 10 Mn
mealsv daily (Exhibit 6). Akshaya Nidhi utilized the kitchen in the early morning hours (i.e. 3-5 am) for
preparing the BBMP order. After the meals were prepared, they were packed in steel vessels and
transferred to the respective order locations.
Safai Karamcharis were scattered across Bengaluru and delivery of meals, therefore, required an effective
and efficient logistics system to be put in place. Herein, Akshaya Nidhi utilized Akshaya Patra’s expertise
in logistics management. The delivery was outsourced to two logistics companies as Akshaya Patra’s
vehicles were earmarked for use towards charitable purposes only. Use of two companies instead of one
helped de-risk the supply chain. The vehicles unlike those of Akshaya Patra did not carry any branding,
except a small pass on the windscreen required for entering into certain societies.
The contract with BBMP, which was set to end on March 31, 2017, was extended until November 2017,
and further to March 2018. Akshaya Nidhi hoped that the same would be extended further. BBMP
accounted for approximately Rs. 18 Mn per month of sales revenue, that is, for more than half the total
revenue of Akshaya Nidhi. The organization was therefore, continuously looking out for opportunities to
decrease its reliance on one single customer. One such opportunity came in the form of Indira Canteens.
Indira Canteens were to be a chain of fast-food joints in Bengaluru started, subsidized and run by
BBMP.12 The canteens were to serve the economically weaker section by providing food at a low price. A
tender for the same was floated in 2017. However, as Akshaya Nidhi only prepared Sattvic food, it did
not qualify for the tender. This was a major set-back as the canteens were to be established all over
Bengaluru and represented a huge potential market.
OUTSOURCING KITCHENS – MANESAR
Manesar was a fast growing industrial town in Gurgaon district of state of Haryana in India, and was a
part of the National Capital Region (NCR) of Delhi. The growth was a boon for the construction
companies, who were active in the region. Akshaya Nidhi sought it as an opportunity to target industrial
workers. In 2015, it secured contracts with L&T (a major Engineering and Construction conglomerate in
India) to supply breakfast and lunch for its workers at its construction sites in the region. This was
backed by the
v
Child MDM – 2-3 items; roughly about 500 g; BBMP Meal – 4 items; roughly about 750 g
Page 7 of
success of Akshaya Nidhi’s pilot project in the region. The contract with L&T was significant by normal
standards but small when compared to those served by Akshaya Patra. By 2017, Akshaya Nidhi was
supplying 8,800 meals per month (breakfast and lunch counted separately) at L&T sites.
Since Akshaya Patra did not have any presence in Haryana, Akshaya Nidhi had to rent a third-party
kitchen for its operations. This was a change in approach as, until now, the aim was to utilize the unused
capacity of Akshaya Patra’s kitchens to increase asset utilization. As Akshaya Nidhi saw an opportunity
in the industrial workers segment in Manesar, it decided to expand. The organization paid a rent of Rs.
375,000 per month to Epicurean Hospitalities Pvt. Ltd. The kitchen operated like any other mega-kitchen,
and no compromises were made on hygiene, quality, or speed.
The organization’s presence in Manesar, expanded with time. Shiksha, Humana and Caparo, sponsored
Mid-Day Meals (MDM) in schools in Haryana. They could now, instead, pay Akshaya Nidhi for the
preparation and delivery of the meals. These companies could now spend their CSR budgets without
worrying about misutilization of the funds.vi
CONSULTING OPPORTUNITIES
The operations of Akshaya Patra were achieving renown across the world. An international construction
firm invited Akshaya Patra to design and operate kitchens for its 30,000 workers (i.e. 90,000 meals in a
day) in Muscat, the capital of Oman. The senior team at Akshaya Patra took this consulting assignment
and debated if, in future, this could add on to the activities that Akshaya Nidhi could pursue.
RELIANCE ON AKSHAYA PATRA
Akshaya Patra utilized its kitchens only for preparing mid-day meals. It was believed that the centralized
kitchens were being grossly underutilized. Akshaya Nidhi’s demand was a way to increase the utilization
of its assets. Apart from the cooking infrastructure, the utilities (DG sets, boiler, and RO system)
witnessed an increase in utilization. Hence, Akshaya Nidhi’s conceptualization as an “asset-light”
business model helped Akshaya Patra spread its fixed costs. Akshaya Nidhi paid rent for utilizing
Akshaya Patra’s facilities. In 2017, Rs. 18 Mn was paid in rent to Akshaya Patra. As Akshaya Patra was
not allowed to use its employees, materials and logistics for profit-making purposes according to its trust
deed, Akshaya Nidhi had to hire its own workforce, buy its own raw materials at market prices, and
outsource logistics (Exhibit 7). Akshaya Nidhi was led by Vinay Kumar, the Director - Operations of
Akshaya Patra. He had the support of other senior leaders of Akshaya Patra who volunteered to support
Akshaya Nidhi. However, on the whole, the organization was lean and ran just like a startup, everyone
seemed to be involved in everything (Exhibit 8).
Ssome of Akshaya Patra’s contributors were not comfortable with the fact that Akshaya Nidhi – a for-
profit venture – operated inside the premises of a non-for-profit. Akshaya Patra’s vision was to serve
free mid-
vi
According to Companies Act, 2017, companies having a Net worth, Revenue or Net Profit greater than a certain amount were mandated to
spend at least 2% of their profits towards CSR (Corporate Social Responsibility) activities.
Page 8 of
day meals to children and its charter prohibited pursuing for-profit activities. Hence, some of the
contributors were apprehensive that their money could be funneled for other activities through Akshaya
Nidhi. This problem was even more acute in the instance of government subsidies which were ear-marked
for very specific purposes. This had raised eye-brows on the exact relationship between Akshaya Nidhi
and Akshaya Patra.
To mitigate this concern, Akshaya Nidhi utilized its own market procured raw materials, which were kept
in separate silos, used separate utensils for cooking and hired independent staff. The use of non-Akshaya
Patra facility in Manesar helped, but it led to higher costs. This raised the question if Akshaya Nidhi
should function as an extension or create its separate brand.
AKSHAYA NIDHI’S MEGA-KITCHEN IN MUMBAI
In 2017, Akshaya Nidhi received a proposed funding of 5 Mn USD (i.e. approximately Rs. 330 Mn) from
a large donor. The funds were to be used to build a kitchen in Mumbai and cover the operational expenses
until the kitchen achieved breakeven. The kitchen was to be dedicated for sole operation by Akshaya
Nidhi. It was proposed to have the capacity for producing 25,000 meals per day and 25,000 units of
various products per month. It was thought that the venture would be profitable and therefore operating
expenses would be met from its operational revenue and any additional disposable surplus profit be
plowed back to Akshaya Patra.
Mumbai, the financial capital of India, was highly congested. Akshaya Nidhi’s kitchen which would be in
the outskirts of the city will not be able to deliver meals across the city on time and maintain quality.
Therefore, a move to different kind of products was important. Products essentially comprised ready-to-
eat/cook food such as idli batter, dosa batter, sauces, jams, pickles, chapattis and masalas (spices). These
products would generally have a shelf life of more than a week to a few months. This also meant that
unlike meals, the products could be produced around the clock.
Akshaya Nidhi only produced Sattvic food (vegetarian food without onion and garlic) stemming from its
belief that Tamasic and Rajasic foods were not good for the human mind and body, as mentioned in the
Hindu texts. One of the major hurdles was the procurement of machines that could prepare such products
as Indian cuisine was quite different from the western cuisine. Herein, Akshaya Nidhi utilized Akshaya
Patra’s relationships with equipment suppliers and its design team. The team had been able to design and
procure a machine that could produce more than 50,000 chapattis per hour (no small feat, as chapatti
making was considered to be difficult to automate) (Exhibit 9).
Akshaya Nidhi with its own dedicated mega-kitchen at Mumbai could now expand its operations
manifold. Entry into products gave it access to international markets and it was supported by the fact that
Mumbai was a port city. However, this also meant that going forward, Akshaya Nidhi’s operational ties
with Akshaya Patra would weaken, and it would majorly act as a financial sponsor.
Page 9 of
THE PATH FORWARD
Akshaya Nidhi’s rapid growth and success were both a cause of delight and worry for Kumar who had
taken the reigns as the CEO. With an order from iD Fresh Food, leasing out a kitchen in Manesar and a
proposal for an independent kitchen in Mumbai, Akshaya Nidhi’s operations seemed to be diversifying
more than expected. He wondered what opportunities to pursue and what organization design would be
best suited for such a fast growing manufacturing organization. He also wondered if Akshaya Nidhi
should start its own brand of ready-to-eat/cook food products.
Page 10 of
Exhibit 1
Mid-Day Meal Scheme
A Mid-Day Meal is a wholesome freshly-cooked lunch served to school children in India. It traces its
origins from the mid-day meal program introduced in Madras Corporation by the British Administration
in the pre-independence era.13 There were various small initiatives to provide mid-day meals to students
over the years. However, it was Tamil Nadu government that has been a pioneer in introducing mid-day
meal program in India. K. Ramaraj, the third Chief Minister of Tamil Nadu (1954-1963), introduced this
program first in Chennai and then expanded it to various cities, towns and villages.14 His aim in
implementing the scheme was to promote education, especially in poor villages. For his efforts and
accomplishments, he was awarded the Bharat Ratna, posthumously in 1976. 15 Since then, various states
had their own mid-day meal schemes (12 states by 1990-91). 16 Looking at the success of such schemes
and identifying a need for the same the Supreme Court of India on November 28, 2001, passed an order
stating:
We direct the State Governments/Union Territories to implement the Mid-Day Meal

Scheme by providing every child in every Government and Government assisted Primary
School with a prepared mid-day meal.17
The rationale behind introducing the Mid-Day Scheme was to centrally address malnutrition, increase
attendance, and enrollment in schools.
Page 11 of
Exhibit 2
List of Akshaya Patra kitchens
State/ Location Year Started Type of Kitchen
Andhra Pradesh
Visakhapatnam October 2008 Centralised Kitchen
Kakinada December 2015 Centralised Kitchen
Vijayawada 2015 Centralised Kitchen
Nellore 2017 Centralised Kitchen
Assam
Guwahati February 2010 Centralised Kitchen (ISO 22000:2005)
Chhattisgarh
Bhilai January 2009 Centralised Kitchen (ISO 22000:2005)
Gujarat
Ahmedabad August 2014 Centralised Kitchen (ISO 22000:2005)
Bhavnagar June 2017 Centralised Kitchen
Surat June 2012 Centralised Kitchen (ISO 22000:2005)
Vadodara November 2009 Centralised Kitchen (ISO 22000:2005)
Karnataka
Bengaluru- HK Hill June 2000 Centralised Kitchen (ISO 22000:2005)
Bengaluru-Vasanthapura July 2006 Centralised Kitchen (ISO 22000:2005)
Ballari July 2004 Centralised Kitchen (ISO 22000:2005, ISO 14001, OHSAS 18001)
Hubballi December 2004 Centralised Kitchen (ISO 22000:2005, ISO 14001, OHSAS 18001)
Mangaluru August 2004 Centralised Kitchen
Mysuru July 2007 Centralised Kitchen
Jigani November 2017 Centralised Kitchen
Odisha
Cuttack July 2014 Centralised Kitchen
Nayagarh March 2007 Decentralised Kitchen
Puri June 2006 Centralised Kitchen
Rourkela November 2013 Centralised Kitchen (ISO 22000:2005)
Rajasthan
Baran April 2005 Decentralised Kitchen
Jaipur February 2004 Centralised Kitchen (ISO 22000:2005)
Jodhpur August 2013 Centralised Kitchen
Nathdwara June 2006 Centralised Kitchen (ISO 22000:2005)
Ajmer Centralised Kitchen (ISO 22000:2005)
Maharashtra
Nagpur Centralised Kitchen
Thane August 2017 Centralised Kitchen
Tamil Nadu
Chennai July 2011 Centralised Kitchen
Telangana
Hyderabad October 2008 Centralised Kitchen
Narsingi August 2017 Centralised Kitchen
Tripura
Kashirampara April 2017 Centralised Kitchen
Uttar Pradesh
Lucknow March 2015 Centralised Kitchen (ISO 22000:2005)
Vrindavan August 2004 Centralised Kitchen (ISO 22000:2005)
Source: https://www.akshayapatra.org/list-of-kitchens. Retrieved on February 4, 2018
Page 12 of
Exhibit 2 (Contd.)
Map of Akshaya Patra’s Kitchens

Key: – Centralized Kitchen; – Decentralized Kitchen
Source: https://www.akshayapatra.org/list-of-kitchens. Retrieved on February 4, 2018; Google MyMaps©
Page 13 of
Exhibit 3
Schematic diagram of cooking process at Akshaya Patra’s kitchens
Storage
Vessels with Cereals (Rice/Wheat), Dal

Level 3
(Government/Market) are stored in Silos
Government
subsidized cereals
used for TAPF, and
market procured for
Pre-Processing TANF
Level 2 Dal, rice and vegetables are washed and are cut
into smaller sizes for cooking
Chutes are used to
transport the
material into the
cauldrons through,
Cooking
use of gravity
Huge Cauldrons are used to cook Sambhar,
Level 1
Dal and Rice while, special machines for
making Chapattis and Idlis are also used
Quality Check
(Taste, Temperature
and Hygiene) is done
before packing the
Packaging meals
Ground Prepared food is packed into vessels and is
Level loaded into vehicles
Source: The Akshaya Patra Foundation (Vasanthapura Kitchen)
Page 14 of
Exhibit 4
Sattvic food and diet
In Hinduism, food has been divided into three categories – Tamasic, Rajasic, and Sattvic (or a
combination of them).
Sattvic foods are those that lead to clarity of mind and physical health. These foods are to be consumed
on a regular basis. Sattvic foods are generally those which can be obtained without harming either another
organism or one's self. Only Sattvic foods are acceptable as offerings to the Hindu gods, with rare
exceptions.
Examples include: water, cereal grains, legumes, vegetables, fruits, nuts, unpasteurized and
unhomogenized fresh milk and all fresh milk derivatives (mostly ghee, but also butter, cream, fresh or
cottage cheese, and yogurt), and raw honey.18
Notably, garlic and onion (botanical members of the alliaceous family) are also considered to be harmful
for the mental and physical state. They are part of the Rajasic and Tamasic categories.19 Majority of
Indians do regularly use garlic and onions as flavoring agents or as part of their salad (onion).
Sattvic Diet was commonly known as Yogic or Ayurvedic diet. 20 The diet was based on the guidelines
given in traditional yoga texts like Gheranda Samhitha. The texts discuss the concept of the adequate diet
for individuals. The calories in the diet are rationed based on their source,that is, carbohydrate intake,
protein intake, fat intake and dietary supplements like vitamins and minerals. The text mentions in details
about the various foods that should be had to fulfill this calorie requirement. The food stuff can broadly
be classified into four groups:
1. Milk Group: Milk, cheese, ice-cream, and other milk products.

2. Meat Group: Meat, fish, poultry, eggs.
3. Vegetables and fruits: Dark green or yellow vegetables, citrus fruits or tomatoes and some uncooked
vegetables.
4. Breads and cereals: Enriched or whole grain breads and cereals.
Meat, eggs, and fish have been prohibited in Sattvic diet due to their high sodium content that can
stimulate and irritate the nervous system. Also, foods which could possibly lead to gas production and
pain in colon is avoided.
Page 15 of
Exhibit 5
Packaging of Idli Dosa Batter supplied to Reliance by Akshaya Nidhi
Source: Akshaya Nidhi Foundation (as of December, 2017)
Exhibit 6
Details of BBMP Feeding Program
S. No. BBMP Zone Meals/Month Average Meals/Day

1 East 217,000 7,000
2 West 201,500 6,500
3 RR Nagar 62,000 2,000
4 Bommanahalli 86,800 2,800
5 Dasarahalli 46,500 1,500
6 Mahadevpura 124,000 4,000
7 South 204,600 6,600
8 Yelahanka 77,500 2,500
Note – Bengaluru is divided into 198 wards which are grouped into 8 zones as shown above. The food is served on all days and there are no
holidays.
The items in the menu can essentially be divided into two categories – served daily (i.e. 5-7 days/week)
vs. served occasionally (i.e. 2 days/week). Rice, Sambhar, Pickle and Buttermilk were served 5-7 days,
while Pulav/Pudina Bath, Raita, Sweet Pongal/Kesari Bath were served only 2 days a week; this was done
to introduce variety. The distribution was outsourced to two logistics companies – LCM Logistics Pvt.
Ltd. And Traseazy Logistics Pvt. Ltd. There are a total of 49 vehicles running in Bengaluru.
Source: Akshaya Nidhi Foundation (as of December 2017)
Page 16 of
Exhibit 7
Relation between The Akshaya Patra Foundation (TAPF) and The Akshaya Nidhi
Foundation (TANF)
Operational Support &

Sharing Agreements
Rent for machines and facility

(Monthly, based on usage)
Information
(Engineering designs, Quality protocols, etc.)
Labor Raw Materials
The Akshaya Patra

Brand & Relationships
(“in support of Akshaya Patra”)
Logistics Packaging
The Akshaya Nidhi
Donations
Financial Support
(Disposable Surplus Profits)
Financial relationship
Non-financial relationship (Information sharing, etc.)
Source: Case writers’ creation from discussions with Vinay Kumar
Page 17 of
Exhibit 8
Organization structure of Akshaya Nidhi (2017)
The Akshaya Nidhi Foundation as of January 2018 had a strength of less than 50 employees (~10 Admin.
Staff and other workers). The following schematic provides a chart of the current organization structure
of Akshaya Nidhi.
CEO
Vinay N. Kumar
HoD Production CMO HoD Finance HoD Quality

Raja Bhaskar Y. Rambabu K Vinay N. Kumar Vinay N. Kumar
HoD Procurement HoD Admin & Human Resources

Vinay N. Kumar Vinay N. Kumar
Exhibit 9
Akshaya Nidhi’s foray into manufacturing products for B2C from Meals for B2B
B2B B2C
Meals X
Products
Page 18 of
Exhibit 10
Financials of The Akshaya Nidhi
Foundation Revenues and Profits of
Year Akshaya Nidhi

Revenue (Rs.) Profits (before taxes) (Rs.)
2014-15 15,538,887 (145,611)
2015-16 87,660,749 1,879,762
2016-17 (Provisional) 148,871,417 12,650,215
2017-18 (Till Aug-17) 135,436134 31,423,790
Source: The Akshaya Nidhi Foundation
Details of rent paid by Akshaya Nidhi (2017)

Location Landlord Rent/Month (Rs.) Remarks
Includes Utilities and Capex
Bengaluru Akshaya Patra 1,078,000
Utilization
Includes Utilities and Capex
Bellary Akshaya Patra 5,500 Utilization
Includes Utilities and
HO Akshaya Patra 6,500
Furniture Utilization
Rs.70000 p.m. for electricity
Epicurean Hospitalities
Manesar 290,000 and Rs 15000 p.m. for water
Pvt. Ltd.
are paid separately
Source: The Akshaya Nidhi Foundation
Page 19 of
REFERENCES
1
Annual Reports 2014-2017, The Akshaya Patra Foundation
2
http://content.time.com/time/world/article/0,8599,2029625,00.html. Retrieved on March 20, 2018
3
Akshaya Patra celebrates its billionth meal with music and hope. (n.d.). Retrieved on March 20, 2018, from
https://www.akshayapatra.org/events/akshaya-patra-celebrates-its-billionth-meal-with-music-and-hope
4
2017 Global Hunger Index Results - Global, Regional, and National Trends. (n.d.). Retrieved on March 20, 2018,
from http://www.globalhungerindex.org/results-2017/
5
Mid-day Meals: Supreme Court Orders. (n.d.). Retrieved on March 20, 2018, from
http://www.righttofoodindia.org/mdm/mdm_scorders.html
6
“Goal 2: Zero Hunger.” UNDP, www.undp.org/content/undp/en/home/sustainable-development-goals/goal-2-zero-
hunger.html. Retrieved on March 20, 2018
7
“Goal 4: Quality Education.” UNDP, www.undp.org/content/undp/en/home/sustainable-development-goals/goal-4-
quality-education.html. Retrieved on March 20, 2018
8
Express Web Desk. “Bihar midday meal tragedy: Everything you need to know about the incident.” The Indian
Express, August 29, 2016, indianexpress.com/article/india/india-news-india/bihar-chhapra-midday-meal-tragedy-
everything-you-need-to-know-about-the-incident-3002203/. Retrieved on March 20,
2018 9 Surat and Ahmedabad kitchens ISO certified. (n.d.). Retrieved on March 20, 2018,
from https://www.akshayapatra.org/milestones/surat-and-ahmedabad-kitchens-iso-
certified
10
Annual Reports 2007-2011, The Akshaya Patra Foundation
11
Bahl, Ekta. “An Overview of CSR Rules under Companies Act, 2013.” Business Standard, 10 Mar. 2014, An
overview of CSR Rules under Companies Act, 2013. Retrieved on March 20, 2018
12
Prabhu, Nagesh. “Work on Indira Canteens Expedited for I-Day Launch.” The Hindu, June 28, 2017,
www.thehindu.com/todays-paper/tp-national/tp-kerala/work-on-indira-canteens-fast-tracked-for-i-day-
launch/article19157908.ece. Retrieved on March 20, 2018
13
“Introduction to Mid Day Meal Scheme.” Mid Day Meal Scheme, Department of School Education & Literacy
Government of India, mdm.nic.in/aboutus.html. Retrieved on March 20, 2018
14
“Mid-Day Meal Programme.” National Institute of Health & Family Welfare,
www.nihfw.org/NationalHealthProgramme/MID_DAYMEAL.html. Retrieved on March 20, 2018
15
“Public Padma Awards Directory (1954-2007).” Padma Awards, Ministry of Home Affairs,
web.archive.org/web/20090304070427/http://mha.nic.in/pdfs/PadmaAwards1954-2007.pdf. Retrieved on March 20,
2018
16
Mid Day Meal. Press Information Bureau Mumbai, pibmumbai.gov.in/English/PDF/E0000_H12.PDF. Retrieved
on March 20, 2018
17
“What Is Mid-Day Meal?” MDM - Mid Day Meal Scheme in India by Akshaya Patra, The Akshaya Patra
Foundation, www.akshayapatra.org/indias-mid-day-meal-scheme. Retrieved on March 20, 2018
18
“What are Tamasic, Rajasic and Sattvic foods?” Non vegetarian - What are Tamasic, Rajasic and Sattvic foods? -
Hinduism Stack Exchange, hinduism.stackexchange.com/questions/2659/what-are-tamasic-rajasic-and-sattvic-
foods. Retrieved on March 20, 2018
19
“Why No Garlic or Onions?” Why No Garlic or Onions? | Krishna.Com, www.krishna.com/why-no-garlic-or-
onions. Retrieved on March 20, 2018
20
Desai, B. (1990). Place of nutrition in yoga. Ancient Science of Life, 9(3), 147-153. Retrieved on March 20, 2018
Page 20 of

Akhsaya Oscm

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Akhsaya Oscm

Uploaded by

Copyright:

Available Formats

IMB 745

THE AKSHAYA NIDHI FOUNDATION

ANSHUMAN TRIPATHY AND AKSHAT RAJ

THE AKSHAYA PATRA FOUNDATION

OPERATING MODEL OF AKSHAYA PATRA

QUEST FOR SELF-SUSTAINABILITY

THE AKSHAYA NIDHI FOUNDATION

EAT FOR A CAUSE

TASTING SUCCESS – BBMP

OUTSOURCING KITCHENS – MANESAR

RELIANCE ON AKSHAYA PATRA

AKSHAYA NIDHI’S MEGA-KITCHEN IN MUMBAI

THE PATH FORWARD

We direct the State Governments/Union Territories to implement the Mid-Day Meal

Source: https://www.akshayapatra.org/list-of-kitchens. Retrieved on February 4, 2018

Map of Akshaya Patra’s Kitchens

Source: https://www.akshayapatra.org/list-of-kitchens. Retrieved on February 4, 2018; Google MyMaps©

Vessels with Cereals (Rice/Wheat), Dal

Source: The Akshaya Patra Foundation (Vasanthapura Kitchen)

1. Milk Group: Milk, cheese, ice-cream, and other milk products.

Source: Akshaya Nidhi Foundation (as of December, 2017)

S. No. BBMP Zone Meals/Month Average Meals/Day

Source: Akshaya Nidhi Foundation (as of December 2017)

Operational Support &

Rent for machines and facility

Labor Raw Materials

The Akshaya Patra

Source: Case writers’ creation from discussions with Vinay Kumar

HoD Production CMO HoD Finance HoD Quality

HoD Procurement HoD Admin & Human Resources

Source: Case writers’ creation from discussions with Vinay Kumar

Source: Case writers’ creation from discussions with Vinay Kumar

Foundation Revenues and Profits of

Year Akshaya Nidhi

Source: The Akshaya Nidhi Foundation

Details of rent paid by Akshaya Nidhi (2017)

Source: The Akshaya Nidhi Foundation

You might also like