Basan Patil: Nurturing a Sustainable Future with Alt Co’s Oat Milk

In the fast-evolving world of plant-based alternatives, Basan Patil, a 28-year-old entrepreneur and co-founder of Alt Co, discovered a valuable lesson that entrepreneurs can learn from plants—patience. Patil’s journey with Alt Co, a bootstrapped venture based in Bengaluru, began last year when he co-founded the oat milk brand. His vision was to offer guilt-free and healthy options for substituting dairy products, embracing the trifecta of taste, health, and sustainability.

Oat milk, an unconventional yet rapidly growing segment in the alternative milk industry, was Patil’s choice to make a mark in the Indian market. Patil acknowledges that the Indian market is still at a nascent stage when it comes to plant-based milk, and he emphasizes that Alt Co is looking ahead five to ten years to weave its success story. Despite the initial hurdles and skepticism, Patil is convinced that patience is the key to achieving the desired scale and recognition. The soft launch of Alt Co’s oat milk last year introduced Patil to questions he had expected—questions like, “Aren’t oats a breakfast cereal? How can you get milk out of oats?” To overcome these misconceptions, Patil dedicated hours to educating potential users in modern trade outlets in Bengaluru. Oat milk, he explains, is created by soaking oats in water, grinding them into a flour-like consistency, and straining the mixture. The result is a creamy, nutty-tasting beverage that is an ideal choice for individuals with dairy or soy allergies.

Basan Patil’s journey towards Alt Co was shaped by his educational background and global exposure. With a graduation from Pennsylvania State University in the US and a diploma in international relations from Geneva, Patil, a third-generation entrepreneur from a family of educationists, developed a strong inclination to focus on a business that could positively impact the planet. In the US, plant-based milk holds approximately 14 percent of the milk consumption market. To achieve a similar scale in India, a product must offer both nutritional and environmental benefits. Oat milk, according to Patil, checks all the boxes—it is cholesterol-free, lactose-free, low in saturated fat, and environmentally sustainable.

Despite the positive attributes of oat milk, awareness about plant-based milk in India remains low. Patil observes that it is primarily those who have traveled abroad who are familiar with such products. Nevertheless, the general awareness about oats as a healthy breakfast cereal helped pave the way for Alt Co’s expansion. Starting in Bengaluru, the company has expanded its footprint to Mumbai, Pune, Surat, Hyderabad, Mysore, Kolkata, Noida, Manipal, and Nashik, with a presence in modern trade and cafes. Alt Co’s products are also available on various e-commerce platforms.

Food and beverage experts foresee a gradual shift towards plant-based alternatives in the post-Covid world. A confluence of factors, such as growing concern for the environment, the conscious consumption of healthier foods, and the awareness of the need for health supplements, is driving the trend of plant-based products replacing animal-origin ones worldwide. In India, the transition away from milk and dairy products, known for their high levels of saturated fatty acids, toward plant-based beverages, is expected to gain momentum. The growth pattern in the US market serves as a promising sign for Indian players. In 2019, retail sales of oat milk in the US stood at $29 million, a figure that skyrocketed to $213 million in 2020.

Notably, the success of Swedish giant Oatly, the world’s largest oat milk company, serves as an inspiring example. Oatly’s revenue climbed from $118 million in 2018 to $421 million in 2020. In the third quarter of 2021, the company’s last twelve months (LTM) revenue reached $584 million.

However, the growth trajectory in India may not mirror the global pattern. KS Narayanan, a food and beverage expert, highlights the bottlenecks hindering mass adoption. The Indian market has a strong preference for fresh milk with minimal processing, particularly for hot beverages. Tetra-pack milk products have been available in India for over two decades, yet they remain niche categories, often sold at a significant premium. Narayanan explains that India is a value-conscious market, and the median price of oat-based beverages, at around Rs 250 per liter, significantly exceeds that of dairy milk, which is approximately Rs 60 per liter. As a result, plant-based milk may remain a niche product for vegans, with mass adoption potentially elusive.

Patil is well aware of the challenges and the patience required for a significant shift in consumer behavior. Starting early offers the advantage of being well-positioned to harness any upcoming market inflection points. Patil firmly believes that plant-based milk is not a passing trend; it’s here to stay. His journey with Alt Co embodies the patience, resilience, and optimism that any entrepreneur can learn from, in a world where sustainable and innovative solutions hold the key to the future.