01 Jun 2026

The meat retail equation: What Licious and Nandu’s reveal about the future of India’s organized protein business

India's protein consumption has been steadily rising, driven by urbanization, changing lifestyles, growing disposable incomes and increasing awareness of food safety.

A. Ashraf Ali

SAVE IN THE LIBRARY PDF FILE

A few years ago, an investor visiting a poultry processing facility asked a simple question: if consumer demand for branded meat is growing so rapidly, why aren’t more companies making money?

The plant manager smiled before responding: “Because chickens don’t behave like software.”

The answer drew laughter, but behind the humor was a truth that many entrepreneurs, investors and industry observers continue to discover. In the technology world, growth often comes first and profitability later.

In the poultry business, reality tends to work differently. Birds consume feed every day, processing plants operate whether demand is strong or weak, refrigerated trucks cannot simply be switched off, and unsold inventory has a limited shelf life. Every operational inefficiency eventually appears on the balance sheet.

This reality is increasingly shaping the conversation around India’s organized meat retail sector, where Licious and Nandu’s Foods have emerged as examples of two distinct approaches to building a business.

The opportunity everyone saw

India’s protein consumption has been steadily rising, driven by urbanization, changing lifestyles, growing disposable incomes and increasing awareness of food safety. Consumers increasingly demand convenience, consistency and trust when purchasing meat products.

Continue after advertising.

Licious recognized this opportunity early and built a brand around premium quality, convenience and digital ordering. Nandu’s approached the same market from a different direction, leveraging decades of expertise in poultry production, sourcing, feed management and processing before expanding its retail footprint.

The numbers behind the narrative

Licious reported revenue of approximately ₹795 crore (USD 84 million) in FY25, up from approximately ₹685 crore (USD 72 million) in FY24. The company has built one of India’s most recognizable organized meat brands. However, significant investments in customer acquisition, technology platforms, cold-chain infrastructure and market expansion have weighed on profitability.

Nandu’s increased revenue from approximately ₹121 crore (USD 13 million) in FY24 to ₹143 crore (USD 15 million) in FY25, while EBITDA reached approximately ₹2.07 crore (USD 0.2 million). Supported by decades of poultry experience and greater control over sourcing and processing, the company has prioritized operational efficiency and margin discipline over aggressive expansion.

Industry reports indicate that Licious has crossed approximately ₹1,100 crore (USD 116 million) in annual revenue, while Nandu’s is targeting a revenue run-rate of approximately ₹165 crore (USD 17 million).

Why poultry executives view the debate differently

Startup discussions often focus on customer acquisition, revenue growth and market share. Poultry professionals tend to focus on feed conversion efficiency, processing yield, cold-chain utilization, inventory losses and operational discipline.

Building from the consumer versus building from the supply chain

Licious approached the market from the consumer end of the value chain. Nandu’s entered from the supply-chain end. One company started with the customer and worked backwards; the other started with the bird and worked forwards.

Neither company has solved the industry’s ultimate challenge. Licious continues to demonstrate the power of scale, branding and consumer engagement, but still faces the task of converting growth into consistently profitable operations. Nandu’s has shown that profitability is achievable through operational discipline and supply-chain integration, yet must prove that its model can be replicated successfully beyond its core markets.

Why scale alone is not enough

Fresh meat businesses must contend with physical products, biological realities and complex logistics. Expansion requires investment in processing, refrigeration, transportation and quality assurance systems. Growth creates opportunities, but it can also magnify inefficiencies.

The next battlefield: Value-added protein

Ready-to-cook and ready-to-eat products are becoming increasingly important because they provide consumers with convenience while offering companies opportunities for differentiation and margin expansion.

Beyond the debate

Reducing the discussion to Licious versus Nandu’s risks missing the larger story. The real issue is not which company wins. The real issue is what the industry learns.

Licious has demonstrated the power of branding, technology and consumer engagement. Nandu’s has highlighted the value of integration, operational control and disciplined growth. Both approaches have strengths. Both face challenges.

The future of India’s organized protein industry may not belong entirely to either model. The most successful businesses could be those that combine the consumer appeal and market reach of branded retail with the operational discipline and supply-chain control traditionally associated with integrated poultry companies.

Consumers may buy a brand. Investors may fund a vision. But in the end, profitability is earned through execution. In a business where every product is perishable and every percentage point matters, the companies that master the economics behind the label will be the ones that endure.