How two friends built a Rs 70 lakh turnover vermicompost business on just 1.5 acres

When Tikamchand Jogchand and Amit Kumawat studied together in their school in Ratlam, Madhya Pradesh, they had no idea the course their lives would take. However, they were certain they wanted to start a business, rather than just work a 9-to-5 job.

Today, they run one of Ratlam district’s largest vermicompost units, producing nearly 900 tonnes annually and clocking a turnover of Rs 70 lakh.

Their journey shows how a low-investment enterprise can scale into a profitable agribusiness with market understanding and farmer connections.

After completing school together in Ratlam, teachers encouraged both friends to consider agriculture as a career. “We appeared for the MP Pre-Agriculture Test. I then pursued BSc Agriculture in Jabalpur, while Amit opted for BSc in PCM,” Tikamchand tells 30Stades.

Also Read: Five farmers who became organic manure millionaires

He cracked campus placement and joined VNR Seeds in 2017, gaining exposure to organised agriculture. He completed his degree in 2018 but continued working until 2020. “By then, we both were clear that we wanted to build something of our own,” says Amit.

“We were looking for a business with very low investment and quick returns. Vermicomposting stood out because raw materials (cow dung and earthworms) were easily available, and demand for organic inputs was rising,” Tikamchand says.

Starting with six beds and borrowed land

In March 2018, the duo launched their first vermicompost unit using a 20×30-ft plot borrowed from Amit’s father. They started with three trolleys of cow dung, converted into six beds, each measuring 19 ft in length and 3.5 ft in width.

“We procured 35 kg of earthworms from the KVK in Dhar at Rs 300 per kg, spending around Rs 10,000 on worms and another Rs 12,000 on cow dung. We decided sell vermicompost to home gardeners,” says Amit.

After about three months, the compost was ready. By June 2018, the six beds yielded around 36 quintals. Packed in 1-kg and 2-kg plastic bags, the compost was sold at Rs 40 per kg.

Also Read: Nurse quits high-paying govt. job to make vermicompost; clocks Rs24 lakh annual turnover

To find buyers, the friends travelled 14 km from their village to Ratlam town, visiting colony after colony. “We would put two chairs outside the colony gates and talk to residents directly,” Amit says. While the response was encouraging, the volumes were low because home gardeners have small compost requirements.

The right market insight

Selling to gardeners brought good per-kg prices but low volumes. The real market, they realised, was in selling to farmers, who bought in bulk.

“That was a turning point. Gardeners buy two or five kilos. Farmers buy in quintals,” Amit says.

By 2021, demand had grown enough for them to expand from six beds to 50 beds, still on the same land. They began paying rent to Amit’s father and increased procurement to 25 trolleys of cow dung per cycle. Production jumped sharply to 275 to 280 quintals in just 2.5 to 3 months.

Even as the business grew, Tikamchand continued working with VNR in Varanasi. He quit his job in 2021, as frequent travel between his work in Varanasi and Ratlam became unsustainable.

Also Read: Custard apple farmer starts vermicomposting; clocks Rs30 lakh annual turnover

“I then began working with an NGO promoting organic farming in Ratlam. This role strengthened our business. Working closely with farmers made it easier to demonstrate the benefits of vermicompost and build trust. Farmers began buying directly from us,” Tikamchand says.

From selling compost to empowering farmers

By 2024, the founders took a strategic decision. Instead of only selling compost, they began encouraging farmers to make their own vermicompost.

“Our focus shifted to sustainability. Farmers should know what goes into their soil. So we began encouraging them to make their own compost,” the agripreneur says.

They started supplying earthworms of the Eisina Fetida variety at Rs 3,000 to Rs 4,000, and trained farmers in low-cost methods using materials already available on their farms, like cow dung and crop residues like parali, maize leaves, wheat straw, and jute bags.

The two friends take night classes on vermicomposting for farmers who don’t have time during the day. They also train school and college students about vermicomposting as a business and income-generating activity.

Low costs and high profit margins

Today, their vermicomposting unit spans 1.5 acres with 400 beds, each measuring 30 ft × 4 ft. “We line plastic sheets at the base to prevent soil contact after selecting land without waterlogging. We use about 2-month-old cow dung as fresh dung retains too much moisture,” Tikamchand explains.

Crop residues are layered on cow dung, and the beds are watered on alternate days to make the temperature cool enough for earthworms to multiply.

“Earthworms are released after eight to nine days, once the heat subsides. They feed on cow dung, and the compost is ready in 2 to 2.5 months,” he adds.

The unit now produces 850 to 900 tonnes annually, and the vermicompost is sold only offline. The organic manure retails at Rs 10 per kg while the wholesale price is Rs 8 per kg. They also sell earthworms.

“We procure cow dung from dairy farmers at Rs 5,000 per trolley. The production cost works out to around Rs 4 per kg, delivering profit margins close to 50 percent when compost and earthworm sales are combined,” Tikamchand adds.

Annual turnover stands at about 70 lakh, making vermicomposting a full-scale agribusiness rather than a side activity. “Anyone with patience and basic training can do this. You don’t need big land or big money,” Tikamchand says.

(Riya Singh is a Ranchi-based journalist who writes on environment, farming, sustainability, startups, & women empowerment)

Also Read: From Rs500 investment to Rs7 lakh monthly turnover, how this Assam woman built a vermicomposting business

Look up our YouTube Channel