Once you get your hands on a pack of Tengin coconut chips, it’s hard to stop eating the stuff. They strike just the right balance of sweetness and crunch. Before you know it, you find yourself sheepishly holding an empty foil packet, having polished off its contents.
Tengin is a village-centric venture started by Madhu Kargund that largely focuses on harnessing the goodness of coconut. Many of its products as well as the name itself (Tengin is Kannada for coconut) are derived from this versatile fruit.
I had interacted with Madhu through Whatsapp several times in the past when he would share a Tengin product list along with a Google order form every time he was in Bangalore. This time around, we worked out a time to connect on Zoom.
The idea for the venture, Madhu says, grew out of the issues that he noticed in his eponymous native village of Kargunda in Arsikere within Karnataka’s Hassan district. His family owned farmland there and Madhu had spent many childhood summers running around in its fields and bylanes.
Like many farming families, Madhu’s parents wanted a different kind of life for their son. They made sure he had the chance to attend college and get an engineering degree. Following graduation, he began a career in IT, with his longest stint of eight years at a financial services company.
During trips back home, he observed that there was a larger crisis playing out across the agricultural landscape – in Kargunda and beyond. Not only were many young people like himself migrating to cities in search of better paying jobs, but those who were left behind struggled to find ways to boost yield and income.
Madhu said: “I saw the challenges that farmers faced and it left a deep impression on me. I began to wonder how I could contribute to solving these issues. Those of us working in cities have upskilling opportunities in areas like AI and machine learning. But where can farmers go for upskilling? They continue to rely on traditional farming methods passed down over generations.”
He began doing some reading to learn more about sustainable farming practices such as the Zero Budget Natural Farming (ZBNF) approach developed by agriculturist Subhash Palekar. At the heart of the approach were low cost and sustainable practices that could be implemented in smallholder rural farms as long as people were open to it. In his own village, however, Madhu realized that there were hardly any young farmers left who might be willing to overhaul traditional growing techniques.
“It was troubling to see this trend. I asked myself: if this continues, then who will cultivate the food we need in the future?”
It was then that he was struck by another idea. What if they could take locally abundant produce and create desirable end products higher up on the value chain? With the supply end of the process secured, there was greater scope for innovation and value addition.
“For this to work, you need raw materials that are prominent to your place. For example, if I needed red chilis to make certain food products, I would look at a place like Byadgi where it grows in large numbers.”
What Kargunda had in abundance was coconuts. There was a reason it was called ‘Kalpataru Nadu’, Madhu said.
To start with, Madhu felt that virgin coconut oil was a product that could be easily made and marketed. Coconut oil was seeing increasing demand as a key ingredient across cosmetic and health applications. Through his own research, he learned about its potential benefits for ailments ranging from Alzheimer’s to thyroid issues.
Madhu arranged for samples—50 to 100 ml bottles—to be produced at a small mill in the village. He then brought these samples back to his colleagues in the office to try out and provide feedback. The results from these informal market surveys gave him the confidence to proceed. After a year of peddling the oil at work, he felt he had enough validation to make the reverse move back to farming via his small scale venture.
It was at this stage that he also connected with mentors at IIM-Bangalore to help him flesh out the mission and full potential of Tengin.
“The main mission was to create employment in the rural sector. But we were also thinking about ways to have transparency in our production process. Most of us buy based on celebrity endorsements or because of attractive packaging. Rarely do we consider whether it’s ethically produced or sourced.”
Madhu decided against setting up a large plant in order to minimize both upfront investment and mechanization for his low footprint venture. A decentralized approach – one that involved farmers and their families in producing smaller batches of handmade products – felt more in line with the Tengin ethos and was likely to pave the way for a cooperative model in the long run.
He was motivated to make the whole enterprise as circular as possible. One of the byproducts of coconut oil manufacturing is a dry powder-like residue that still retains flavour and nutritional value. Through some trial and error, they were able to incorporate it in Tengin’s handmade soaps as well as in their chocolates.
Since Madhu began making oil samples six years ago, the Tengin product line has expanded to include handmade chocolates, coconut chips, coconut sugar and several home products fashioned from coconut coir and shells. These include bottle brushes, bowls, coconut scented candles, coffee mugs, and soap dishes.
Products with more than coconut have also made their way into the list, such as the flavour-filled ragi huri huttu – a mildly spiced ragi and coconut powder mix that can be used to make nourishing breakfast blends and drinks. Organic seasonal produce such as mangoes are also available through the platform.
Tengin currently collaborates with clusters located in various parts of the country. In addition to Kargunda, they have a coconut sugar production unit in Goa, and groups in Kerala and Tamil Nadu involved in making other products.
In Kargunda, Madhu gives people tours of the facility and surrounding area under an initiative that he calls ‘coco-tourism’. The experience offers participants a glimpse into village life, with its inherent rewards and challenges.
“When people come in to visit our farm, they can see how the oil is made. They can also work alongside farmers to make it – we call it sweat donation. Visitors leave with more insight into the lives of farmers”.
Tengin has largely been a bootstrapped venture up to this point, with Madhu operating as a solo-preneur in every sense of the term. He manages most aspects of the business himself, occasionally assisted by interns. Marketing and orders are handled through platforms such as Instagram and WhatsApp, but there are plans to establish an e-commerce website soon.
Following a grant award from Startup Karnataka’s Elevate program earlier this year, Madhu is looking to expand the Tengin product line. In addition to food products, he is exploring the feasibility of manufacturing bio-resins with broad applications in packaging and construction.
Scaling up research and operations requires support from impact investors who share a belief in Tengin’s mission. In the long term, Madhu also hopes to establish an NGO dedicated to training and educational initiatives in the villages where Tengin operates.
In a crowded market, Madhu knows that there are many other brands selling products such as virgin coconut oil. What Tengin has, however, is something that larger brands may be hard pressed to demonstrate: a genuine concern for rural farming communities.
“People support us today because we really want to make a difference to the rural sector. Our goal is to grow, to add more products that can be marketed and to take our proceeds and reinvest them in rural development activities.”
Madhu Kargund (wearing a hat) with farmer members of Tengin
For orders, collaborations or other enquiries, whatsapp Madhu at +91 9740330316 or reach out via Instagram @tengin_coconut_oil
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