Building India's First Banana Chip Brand with Jose Alex

About this episode

Jose Alex, co-founder and CEO of Kappo, joins host Shan A Salam to recount his family's entrepreneurial journey in the snack manufacturing sector in Kerala. Starting with early ventures in ready-mix concrete and plantation businesses, Jose's father envisioned building Kerala's first modern, industrial-scale banana and cassava chip brand. After extensive overseas research and setting up automated processing facilities in Adoor, the company faced harsh early realities: fluctuating raw material costs, low-margin retail packaging, high logistics expenses, and debt accumulation. Following industry disruption during the Maggi controversy, they pivoted into contract manufacturing for national food giants like Kellogg's and Paper Boat. This B2B shift stabilised operations and enabled debt restructuring via formal mechanisms. Jose details how they later restructured to an asset-light model and revived their consumer brand Kappo, leveraging quick commerce platforms like Zepto and Swiggy Instamart, distinctive Kathakali-inspired visual identity, and strategic performance marketing to scale sustainably.

Key takeaways

1. 1When operating in low-margin FMCG categories, fluctuating raw material prices and bulky logistics can cause severe cash bleed if products are sold at low price points.
2. 2Founders should begin preparing for the next round of capital well before existing funds run out, as fundraising from a position of depletion forces reactive compromises.
3. 3Leveraging B2B contract manufacturing for established brands can provide essential volume, process discipline, and steady cash flow to sustain heavy infrastructure during retail downtime.
4. 4Structuring a consumer brand under an asset-light entity can shield marketing and distribution operations from legacy manufacturing debts and liabilities.
5. 5In quick commerce and modern retail, distinctive visual packaging and consistent cultural storytelling help a niche regional snack stand out against massive legacy competitors.
6. 6Engaging professional external performance marketing agencies rather than relying purely on internal trial and error prevents rapid budget exhaustion on digital advertising platforms.

Chapters

1. 0:00Highlights
2. 02:52Introduction
3. 7:33The banana chips idea
4. 11:05Problem with traditional fried chips
5. 16:24Growing up in a business family
6. 17:20The raw material problem
7. 22:28First VC round
8. 23:06Biggest early mistake
9. 28:38TV ad doubles sales
10. 31:27Maggi ban impact
11. 34:15Pivot to B2B manufacturing
12. 35:39Kellogg's and Paper Boat as clients
13. 40:41Kappo relaunched
14. 52:30Current Status of Kappo
15. 55:36Kathakali branding story
16. 1:01:36Unifying under Kappo
17. 1:02:10Three co-founders
18. 1:04:19Quick commerce strategy
19. 1:06:27Performance marketing learnings
20. 1:09:42Power of community
21. 1:14:00Retail is Expensive
22. 1:25:43Learnings from Instamart Delivery Boy
23. 1:27:48Using AI in the business & Closing thoughts