Startup finds a sweet spot with halwa

Think Global, Act Local is a phrase young entrepreneurs often hear from mentors and consultants. Usually, such advice elicits a few nods and even applause, but only a handful manages to put it into action.

A young team behind the Kerala startup Fulva seems to have embraced the message, albeit with a twist: Eat Local, Think Global.

Growing up in the northern Kerala city of Kozhikode (also known as Calicut), Shabas Ahammed, Irfan Safar, Thasreef Ali, and Sanu Muhammed developed a taste for halwa, the famous sweet of their hometown. This delicacy, typically made with flour, sugar, clarified butter, and nuts, traces its origins to the 16th-century Middle East and enjoys popularity across India.

For afficionados, Calicut halwa – or Kozhikodan halwa – has always been a favourite, with the city’s makers elevating the art of halwa creation to a new level. Even today, it is common to ask anyone heading to the city to bring back some halwa.

It was one such request that sparked the idea of establishing Fulva in late 2023. This group of youngsters, who are all in their early 20s, now clock a revenue of over 1 crore (10 million) rupees, mainly through online sales.

Stuck in the Past

“Someone had asked me to bring some halwa from Calicut, and I realised we didn’t even have presentable packaging to gift it. It was usually wrapped in paper that would quickly get oil stains and turn messy,” says Shabas Ahammed, one of the cofounders and a commerce graduate.

This was despite the widespread popularity of the sweet and a flourishing local market. While local manufacturers competed with one another and introduced innovations, there was little effort to build a broader market or think big.

The founders of Fulva, who had successfully run a Ramadan campaign in 2023 to promote local talents, began to toy with the idea of transforming the traditional halwa trade into a modern business and started exploring the market.

“The methods in use were often crude, hygiene standards at some production centres were questionable, and attractive packaging was almost non-existent. Moreover, as most manufacturers operated on a small scale, making significant changes that required substantial investments was nearly impossible.”

“They simply didn’t have the capacity to scale up,” says Sanu Mohammed, a graduate of the Cochin University of Science and Technology (Cusat) and the only engineer among the cofounders.

They found nobody was dreaming of developing this as a global product. This kind of ambition is what sets this startup apart from traditional halwa makers. The founders of Fulva dreamt big and were prepared to tackle the entrenched challenges in the system.

But unlike the “move fast, break things” approach popularised by some Western models, they worked patiently with local expertise to modernise their business.

Modern Methods

After an intense search, they found a local manufacturer who aligned with their vision for modernisation and market expansion. The founders took charge of the production facility, re-equipping it with modern utensils and implementing new hygiene standards.

The process was challenging, as workers accustomed to old methods often forgot to follow standard procedures like wearing caps and gloves. “There were some complaints too, as some traditionally trained workers believed using bare hands was better for feeling the texture of the flour. We had to constantly remind them about the new procedures,” says Thasreef, a commerce graduate. (The fourth cofounder, Irfan, is a multimedia graduate.)

One of the key innovations introduced by the startup was modern packaging. They designed attractive boxes and set up a dedicated packaging division within the factory. They also launched a website to sell their variety of halwas online.

The results were immediate and encouraging. The modern packaging quickly elevated the product’s appeal, making it a popular addition to gift hampers.

“Our box, which contained 24 halwa pieces in different flavours, became a common gift item, even at weddings. Soon, companies began including it in their festival hampers for clients,” says Sanu. They also made boxes for companies with their logos to be distributed as festival gifts.

Expanding Sales

Fulva then diversified their packaging into smaller boxes to broaden their appeal beyond being just a gifting option. This move has helped expand their market outside Kerala, with boxes containing six pieces of a single flavour now enjoying brisk sales.

“We don’t have scientific data to back it up, but feedback suggests these boxes are mainly bought by first-time customers,” says Sanu.

These young entrepreneurs believe that the market for Kozhikode halwa is limited only by imagination and the lack of modernisation. They cite the chocolate industry as a prime example of how traditional products can be transformed into global sensations.

The chocolate industry has leveraged technological advancements to become a worldwide favourite. In contrast, halwa, which has been around for centuries, has yet to establish a truly global market.

Imaginative Mix

The founders of Fulva believe their focus on hygiene at the production facility and innovative modern packaging demonstrates how the market for this centuries-old delicacy can be significantly expanded.

Their bootstrapped operation has cost the founders about 12 lakh (1.2 million) rupees so far, but they report a turnover of 1.2 crore (10.2 million) rupees. Their sales was through internet till recently and now have started supplying selected shops also.

This success has given the Fulva founders the confidence to knead more ideas into their product experimentation. From introducing new flavours like the local dessert palada pradhaman to researching innovations such as chocolate-covered halwas and halwa candies, Fulva aims to create new markets for the sweet. They believe halwa is a versatile product that can take on many forms, such as ice cream garnishes.

By using plant-based sugar substitutes with a lower glycaemic index, the founders say halwa could even be transformed into high-protein bars, appealing to health-conscious youngsters.

Recipe for others

Fulva is now planning to establish a facility capable of scaling up to meet what they anticipate will be an increased global demand. Looking ahead, the founders welcome more entrants into the field, believing that greater competition will boost the product’s visibility and expand its reach.

The Fulva founders believe their model can be replicated as  the Indian sweet sector remains largely unorganised. Only a few big players have adopted modern methods, they point out.

In fact, their motto “Eat Local, Think Global” can benefit India – and Kerala in particular – in many sectors, starting with staples like tapioca, diverse banana varieties, and tender coconuts.

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