Healthy snacking company expands its nutrition portfolio with bakery products and prepares a greenfield facility near Noida for operations by next Diwali
Healthy snacking and dry fruits brand Farmley is expanding its portfolio with a dedicated better-for-you bakery range, expected to enter the market within the next one-and-a-half months. The new range will include products such as fudge, cookies and other bakery items, broadening the company’s presence beyond its core dry fruits and healthy snacks portfolio. The expansion comes as Farmley scales up manufacturing capacity and expects double-digit growth in FY27.
The bakery category follows Farmley’s recent expansion into healthier snacking through Makha Shaka, its better-for-you munching brand. The company is extending its portfolio across food categories by developing products positioned as healthier alternatives to conventional snacks and bakery offerings.
“We are making products across different categories as healthier alternatives to existing offerings,” said Akash Sharma, Co-founder, Farmley.
Sharma said Farmley’s transition from a B2B business to a consumer brand was supported by the supply chain and manufacturing capabilities established during its early years. The company spent nearly four years building sourcing and processing infrastructure before entering the consumer market, allowing it to develop new products while leveraging an established procurement network.
“We spent nearly four years building the supply chain and manufacturing capabilities before entering B2C. Those capabilities continue to support our consumer business and allow us to innovate across categories,” Sharma said.
Farmley is constructing a greenfield manufacturing facility at Gajraula, near Noida, which is expected to become operational by the next Diwali season. The company expects the plant to add production capacity of more than 1,500 metric tonne, supplementing its existing network of five manufacturing facilities. The company raised a Series C funding round led by L Catterton in 2025, with the capital being deployed towards manufacturing expansion and brand-building initiatives.
According to Sharma, metro cities account for nearly 60 per cent to 70 per cent of Farmley’s business, although the company is also witnessing increasing demand from tier 2 and 3 markets, adding that the company’s focus remains on expanding its domestic footprint while continuing to build its premium healthy snacking portfolio.
Changing Snacking Habits
Farmley’s portfolio expansion comes amid changing consumption patterns in India’s packaged food market. According to the Farmley Healthy Snacking Report 2026, 86 per cent of respondents consider protein an important factor while choosing snacks. Nearly one in three consumers said they were willing to pay a premium for protein-rich products.
The report also found that 61 per cent of respondents preferred snacks sweetened with natural ingredients such as dates and jaggery instead of refined sugar. Around 62 per cent identified ingredient transparency as the most important consideration while selecting a snack brand, indicating greater consumer focus on sourcing, nutritional information and cleaner ingredient labels.
More than half of the women surveyed expressed interest in snacks formulated to support nutritional needs during different stages of the menstrual cycle. Nearly 60 per cent of parents also said they were willing to pay more for healthier snacks for their children, highlighting growing demand for specialised nutrition products across consumer segments.
“The future of snacking in India is being shaped by consumers who are making far more intentional choices than ever before. They are seeking snacks that offer functionality, transparency and convenience, while also catering to the evolving taste profiles,” Sharma said.
Farmley reported revenue of around Rs 600 crore in the previous financial year and expects to maintain double-digit growth during FY27. The company’s business remains predominantly domestic, with exports contributing between 2 – 4 per cent of total revenue, primarily from the United States.
Supply Costs Stay Volatile
Farmley continues to face volatility in raw material prices, particularly for imported ingredients such as dates and speciality seasonings. While products such as makhana are sourced domestically, imported inputs have increased pressure on production costs and margins.
The company has responded by selectively increasing prices across parts of its portfolio and building additional inventories of raw materials susceptible to supply disruptions ahead of the festive season. Sharma said the price revisions initially affected volumes, although demand subsequently stabilised as consumers adjusted to the higher prices.
“Price increases do impact volumes initially, but consumers gradually adjust, particularly because we operate in the premium category,” Sharma said.
The company’s consumer survey also pointed to changing retail behaviour. Around 31 per cent of respondents preferred purchasing snacks through Blinkit, followed by Zepto (16 per cent) and Instamart (15 per cent). Offline retail continues to remain relevant, with 35 per cent of respondents saying product visibility on store shelves influences purchase decisions the most, while nearly 30 per cent preferred resealable packaging and 25 per cent favoured environmentally friendly packaging.
Founded in 2017 by Akash Sharma and Abhishek Agarwal, Farmley began as a business-to-business supplier of dry fruits and nuts before transitioning to a consumer-focused brand in 2020. The company now sources produce from more than 5,000 farmers and operates five farm-gate processing units near sourcing regions to reduce handling time and improve procurement efficiency.
