From a teenage entrepreneur to a trailblazer in Chennai’s organic food scene, Dinesh Kumar’s journey exemplifies the transformative power of passion and perseverance. At just 16, Dinesh left behind the familiar comfort of school to carve out his own path, eventually redefining what it means to shop for healthy, premium food in his hometown.
By founding Brown Tree in 2009, Dinesh not only embraced a personal passion for organic food but also reshaped the grocery landscape in Chennai. His story is a testament to the idea that following one’s true calling can lead to remarkable success and innovation in unexpected places.
Dinesh Kumar, the founder of Brown Tree, a well-known health and organic food store chain based in Chennai, has a remarkable story of entrepreneurship. His journey began at the age of 16 in 1996, when he made a bold decision to leave school and dive into the business world.
Dinesh’s first venture took him into the manufacturing sector. He started producing steel items like plates, tumblers, and saucers, which he exported to countries such as Sri Lanka, Malaysia, and the UAE. For nearly three years, he immersed himself in this industry, learning the ropes and navigating the complexities of international trade. Despite the experience and knowledge he gained, Dinesh felt a growing dissatisfaction with the steel business.
It was during this period of reflection that Dinesh decided to make a significant shift in his career. He left behind the steel industry and transitioned into the retail sector, where he found a new passion and direction. This pivotal change marked the beginning of his journey into the health and organic food industry, eventually leading to the creation of Brown Tree and his continued success in a field that aligned more closely with his interests and values.
Journey from Conventional Grocery to Organic Leader
However, Dinesh’s journey into the food retail industry began in an unexpected way, thanks to a connection through his father. A family friend, who managed a retail store nearing the end of its lease period, saw potential in Dinesh’s enthusiasm and entrepreneurial spirit. This chance encounter led to a significant opportunity: in 1999, Dinesh and his father’s friend decided to join forces and open their first retail store together.
Their initial store operated like a typical grocery, with simple shelf-picking and standard offerings. However, Dinesh was quick to adapt and evolve the store’s layout based on customer preferences and shopping habits.
One of the early challenges then was sourcing premium and imported products. For example, even premium and well-established retailers found it difficult to ensure regular availability of Ferrero Rocher chocolates, a popular item at the time. Despite the difficulty, Dinesh made sure that these chocolates were always in stock and prominently displayed, a practice that extended to other products to ensure ease of access for their customers.
Over the next decade, Dinesh played a crucial role in transforming their conventional grocery store into a premium food destination. From 1999 to 2009, he was deeply involved in every aspect of the business, from purchasing and product development to expanding their footprint. During this period, they successfully opened about 20 stores under their brand.
However, the journey wasn’t without its bumps. In 2009, a misunderstanding with his business partner led Dinesh to make a pivotal decision. He chose to venture out on his own, marking a new chapter in his entrepreneurial journey. This decision set the stage for Dinesh to forge his own path and eventually found Brown Tree, where he continued to build on his passion for health and organic food.
How Brown Tree Bloomed in Record Time
After parting ways with his previous business partner, Dinesh, armed with a decade of experience in grocery retail, set out to build something new. Between April and July 2009, Dinesh assiduously prepared for the launch of his own retail venture. The culmination of his efforts came on July 12th, when he opened the doors to the first Brown Tree store, an 800 square feet shop in Chennai’s Ashok Nagar.
The launch of his first store was just the beginning. In a move that caught many by surprise, Dinesh followed up with the opening of a second store just four days later on July 16th. This new location, spanning 400 square feet, was situated in R.K. Salai. “With a well-established team and extensive experience, setting up the second store within such a short time was manageable for me,” Dinesh reflects on the swift expansion.
From that moment on, Dinesh’s journey was marked by rapid growth. Within less than a year, Brown Tree had opened its first four stores. These outlets quickly became known for their focus on organic and premium products.
“When we started, the market for organic products was just beginning to take shape,” Dinesh explains. Brown Tree initially stocked premium items and gradually expanded to include a range of organic products such as organic sugar, dal, rice, honey, spices, and seeds. Over time, they added cookies, millets, and other items to their inventory
Dinesh envisioned Brown Tree as a chain dedicated to healthy food, offering a comprehensive selection of nutritious products. “We specialized in a variety of healthy products, including dry fruits, seeds, and different types of millets. Our store became known for its organic chocolate selection, featuring dark chocolates and imported brands like Hershey’s, Toblerone, and Lindt,” he adds.
This focus on health and quality defined Brown Tree from the start and set the foundation for its continued success.
Impressive First-Year Success
Once Dinesh launched Brown Tree, he knew that building a strong brand presence was crucial. Alongside opening his new stores, he rolled out ambitious branding and promotional campaigns to highlight his commitment to organic and high-quality products. “I focused intently on brand building,” Dinesh recalls.
“My goal was to make Brown Tree a well-recognized name in Chennai. To do this, I committed to offering only top-notch products that met customer expectations and aligned with market demands.”
Choosing the right name for his brand was another important decision. After exploring various options, Dinesh realized that the name needed to reflect his core focus: natural products. “Most of our offerings are sourced from natural origins, particularly trees. The name ‘Brown Tree’ was inspired by this concept. The color brown, associated with trees, signifies naturalness, and perfectly captured our dedication to natural products.”
Dinesh also placed significant importance on store locations. “I always aim to open Brown Tree stores in prime locations. Location is key to us. Once I find a good spot, I make sure to secure it. Even if it takes time, I’m committed to setting up in the best areas.”
The first year of Brown Tree’s operations was remarkable. Despite starting in July and missing out on sales for the initial three and a half months of the year, the brand achieved impressive results. Sales soared to nearly Rs. 3 crore in just eight and a half months. “Considering we only operated for part of the year, I was extremely pleased with our achievements,” Dinesh reflects.
This successful start set a strong foundation for Brown Tree, proving that thoughtful branding, strategic location choices, and a focus on quality could drive substantial growth.
Premium Products, Quality Standards, and Extended Hours
As Brown Tree established itself in Chennai, it quickly drew the attentionof high-end customers who frequently traveled and were pleased to find their preferred premium products readily available. The positive feedback was overwhelming, leading to increased demand.
“The response was excellent,” Dinesh notes. “The public’s positive reception played a significant role in our decision to expand.” Dinesh emphasizes that three key factors set Brown Tree apart. “First, we offer a diverse range of products, with over 2,000 SKUs,” he explains. “Second, we maintain strict quality standards across all our offerings to ensure consistency. Our customers appreciate the quality and are likely to return because of it. Third, we introduced our own bakery in 2014, which is Chennai’s first 100% eggless bakery. We produce cakes, muffins, and breads entirely without eggs.”
The Brown Tree Bakery is a cornerstone of the brand, located on the ground floor of their Chennai head office. This dedicated production facility crafts a wide array of bakery items —from breads and buns to cookies and cakes. These fresh products are essential to Brown Tree’s private label and are delivered daily to all their stores.
Brown Tree’s market positioning and customer proposition revolve around convenience and specialization in health products. “We align with the current trend toward healthy living,” Dinesh says. “Our stores feature items like brown bread, ready-to-eat cereals, dried foods, and other premium products. This focus helps us stand out in the market.”
Adding to its unique appeal, Brown Tree operates with extended hours, setting itself apart from other grocery stores. “Our stores are open from 8:00 AM to midnight. No other grocery store in the city matches our timing,” Dinesh points out. “We give high importance to the store’s look and feel. Ours is typically an 800 to 1200 sq.ft. size located in good localities, with good walk-ins, frontage, parking and easy access to the customer. Customers value the convenience of easy parking, a prime location, and high-quality service. Our dedication to these aspects helps us create a shopping environment that is both convenient and comfortable, ensuring customer loyalty.”
This thoughtful approach to product variety, quality, and customer convenience has established Brown Tree as a leader in the premium health food market in Chennai.
Adapting to Evolving Consumer Trends
As the retail landscape evolves, Dinesh keeps keenly observing shifting customer preferences at Brown Tree. “One notable trend we’re seeing is a growing appetite for instant foods,” he shares. Alongside this trend, there has been a marked increase in the demand for millet-based products and seeds. “These categories are gaining significant traction in the market today. While the popularity of vegan products has seen some ups and downs, the demand for organic foods is on a strong upward trajectory.”
Although Brown Tree does not carry fresh fruits and vegetables, it offers a wide array of organic products. “We stock everything from snacks and rice to spices and various groceries,” Dinesh explains. “Our diverse selection of organic items is something our customers are eager to purchase. The market for organic goods is substantial, and there’s a notable gap in supply. This includes everything from organic chocolates to teas. Consumers are keen to buy any organic options available, and we’re committed to filling that gap.”
Dinesh is particularly proud of one innovative concept that has set Brown Tree apart: Its bakery unit. “Our bakery has significantly enhanced the store’s appeal by offering a 100% vegetarian product range,” he says. This initiative has addressed concerns from customers who are cautious about whether products contain eggs.
By eliminating these concerns, Brown Tree caters to a broader audience that prefers or requires vegetarian options. “We offer a variety of cakes and breads, which are everyday essentials. Our commitment to quality has led to high customer satisfaction. All our private label bakery products are guaranteed to be completely vegetarian — none contain eggs. This assurance has strengthened customer trust and loyalty. For those who strictly avoid egg-based products, our private label bakery items provide a reliable and convenient choice.”
Despite this focus on vegetarian products, Dinesh clarifies that Brown Tree also sells products containing eggs as part of its regular inventory. However, this does not apply to our private label products, which are all 100% vegetarian,” he explains. This dual approach allows Brown Tree to cater to a wide range of customer preferences while maintaining a strong commitment to those seeking vegetarian options.
Through these thoughtful and customer-centric strategies, Dinesh Kumar has managed to steer Brown Tree towards becoming a leader in offering high-quality, organic, and vegetarian products, all while adapting to the evolving market demands.
Ensuring Premium Quality through Diverse Sourcing
Brown Tree’s commitment to high-quality products extends beyond its own operations, reaching into the fields and orchards where its ingredients are grown. The company maintains a diverse network of farmers located not only in Tamil Nadu but also across various regions of India. “Our farmers are spread out across different areas,” Dinesh Kumar explains. “We source from Tamil Nadu, Kashmir, and Andhra
Pradesh, depending on the specific needs of each product.”
For premium items like pistachios, almonds, macadamia nuts, cashew nuts, and pecans, Brown Tree takes a meticulous approach. “We work closely with established importers who understand our exacting standards and source these high-quality nuts directly,” Dinesh notes. This collaboration ensures that only the best products make their way to Brown Tree’s shelves.
A significant portion of Brown Tree’s offerings includes imported foods. This includes a range of nuts such as almonds, walnuts, cashews, and pistachios, which are prominently featured in the retailer’s private label assortment. “We offer both imported and Indian varieties of these products,” Dinesh says. “In fact, imported goods make up more than half of our inventory—approximately 65% to 70% — and a substantial portion of these are sold under our private labels.”
This strategic mix of imported and local products allows Brown Tree to cater to a broad range of customer preferences while maintaining high standards of quality. By integrating both domestic and international sources, Brown Tree ensures a rich variety of premium products, reflecting its dedication to excellence in every aspect of its business.
Approach to Staff Training and Customer-Centric Service
At Brown Tree, attentive customer service is another hallmark of their retailing excellence. Each store, even the average-sized ones, employs a dedicated team of five staff members, recruited from both local areas and beyond Tamil Nadu. “Our team is quite diverse,” Dinesh Kumar explains.
“We have staff from Bihar, locals from Tamil Nadu, and people from Odisha and Andhra Pradesh. What’s important to me is not where they come from, but their ability to meet our customers’ needs and handle their responsibilities effectively.”
Training is a crucial part of integrating new employees into the Brown Tree team. Dinesh describes the process: “After hiring, new recruits go through a two-day training session. This includes videos, presentations, and a Q&A segment to ensure they understand our standards and procedures.” Following this initial training, recruits receive hands-on experience at a designated store. Once they demonstrate their readiness and are approved by the store manager, they are assigned to their specific locations
The staff at Brown Tree includes both men and women, with a current ratio of about 60:40. Dinesh values the mix of perspectives and backgrounds, believing it enriches the customer service experience. “Our focus is always on finding capable individuals who can deliver exceptional service, regardless of their state of origin and gender,” he adds
This careful attention to hiring and training ensures that every Brown Tree store provides a high level of customer service, reflecting the brand’s commitment to quality and customer satisfaction.
Catering to All Age Groups and Corporate Clients
As a retailer, Brown Tree stands out as a versatile provider, serving a broad spectrum of customers across various segments of the population. Dinesh describes the store chain’s inclusive approach: “We cater to almost all segments of society. Our product range spans from chocolates and health foods for middle-aged individuals to organic offerings for seniors. We also attract a significant number of bureaucrats, politicians, and corporate professionals. Our diverse clientele includes everyone from health-conscious adults to children who delight in our bakery items like cakes, Swiss rolls, and chocolates. Essentially, we serve all age groups and corporate clients alike.”
With a growing network of 19 stores across Chennai, Brown Tree’s influence extends far beyond Tamil Nadu. “Our private label products are not only available in our stores but also reach corporate and retail customers across India,” Dinesh explains. Major companies like Amazon, Citibank, and Tata Realty frequently order products from Brown Tree for seasonal gifting occasions such as Diwali, Christmas, and New Year. Automotive giants like Hyundai and Maruti Suzuki also rely on Brown Tree for their corporate gifting needs. “We manage these orders on a nationwide scale, fulfilling the requirements of large organizations efficiently,” he adds.
To handle the logistics of their growing business, Brown Tree partners with third-party logistics providers. “We’ve contracts with multiple logistics vendors based on location,” Dinesh notes. “The availability of these vendors has greatly improved, making logistics much smoother compared to the challenges we faced before and during the pandemic.”
Through these logistics improvements, Brown Tree continues to enhance its reach and service, catering to a diverse customer base and ensuring timely delivery of high-quality products.
Enhancing Online Presence and Expanding E-Commerce Reach
In the ever-evolving world of retail, Brown Tree is making significant strides to broaden its online presence. As a retailer with a diverse consumer base spanning various geographies, the move to enhance its digital footprint is a natural progression
Last year marked a pivotal moment for Brown Tree as it ventured into the online space with the launch of its dedicated app. Since then, the platform has been steadily gaining traction, currently handling around 20 orders per store daily. Dinesh Kumar, the founder of Brown Tree, is optimistic about the future, forecasting an increase to over 100orders per day by the end of the year.
“The shift towards online shopping is unmistakable. More customers are opting for the convenience of ordering from home rather than making the trip to a physical store,” Dinesh explains.
In Chennai, where the company’s roots run deep, Brown Tree offers a commendable delivery window of two hours. However, Dinesh’s team is working diligently to shorten this to just one hour. The strategy is to start by establishing pickup stores in major cities across Tamil Nadu and then expand into the broader South Indian market. “We want to carefully gauge the response in these regions before taking our expansion nationwide,” he adds. Furthermore, Brown Tree plans to list its products on prominent e-commerce platforms such as Flipkart, Amazon, Jiomart, Tata 1 MG, aiming to broaden its reach and tap into new customer bases.
The reach of Brown Tree’s online platform isn’t confined to Tamil Nadu alone. The retailer has witnessed a surge in orders from cities like Pune and Bangalore, as well as a growing volume from North India, particularly from the Delhi-NCR region.
“The increase in online orders from these areas has been noticeable. The average basket value online is significantly higher, almost a thousand rupees compared to the 700 rupees for in-store purchases,” reveals Dinesh. This higher basket value highlights the growing appeal of Brown Tree’s premium and organic offerings.
While Brown Tree has traditionally been conservative with promotional activities, the focus is now shifting towards e-commerce-driven deals. “We’re currently offering a 10% discount under our ‘WELCOME 10’ promotion. Additionally, we’re working on developing a robust database to monitor customer retention. If an order is missed, we plan to issue coupons to encourage repeat business,” Dinesh explains.
Promotional activities at Brown Tree are planned around seasonal events and milestones. “With our anniversary coming up, we’ll be launching special promotions, including Founder’s Day discounts. We’re committed to creating engaging promotional activities to attract customers and enhance our online presence,” he adds.
Through these strategic initiatives, Brown Tree is positioning itself for continued growth in the digital age, balancing its traditional retail strengths with a burgeoning online presence. This approach not only caters to the evolving preferences of today’s consumers but also sets the stage for future expansion and success.
Ambitious Vision for Growth
With his visionary approach toward Brown Tree, Dinesh always likes to think ahead. As he looks towards the future, his plans for the company are both ambitious and adaptable. With 19 stores currently operating, Dinesh is setting his sights on doubling this number within the next five years. However, he is keenly aware that such growth must align with market trends and demands.
“The goal is to expand our network to 38 stores over the next five years,” Dinesh reveals. “But we know that predicting market trends with precision is challenging. If we find that opening new physical locations isn’t feasible, we will pivot towards expanding through dark stores instead.” This flexibility in approach highlights Dinesh’s pragmatic strategy. He is prepared to adapt his expansion plans based on real-time market feedback and customer preferences.
A significant part of this expansion involves a substantial investment. This financial commitment reflects the scale of Brown Tree’s ambitions and its dedication to growth.
The strategy for the next five years will be both methodical and dynamic. Dinesh explains that the initial focus will be on strengthening the company’s presence in Chennai and then broadening its reach to key cities in Tamil Nadu — Coimbatore, Salem, Madurai, and Tiruchi. “We aim to address any challenges that arise in these markets before considering further expansion,” he says. This phased approach allows Brown Tree to build a strong foundation before moving on to other regions.
Central to Brown Tree’s future is the expansion of its e-commerce capabilities. “Our primary focus will be on enhancing our online presence,” Dinesh explains. “We plan to leverage the latest technology to streamline our operations and improve the customer experience.” This technological focus will include upgrading their logistics, ensuring fast and reliable delivery, and maintaining high standards in packaging and product quality. “We are particularly attentive to the quality of our products during transit, especially given the temperature variations that can occur,” he adds
Dinesh’s strategy reflects a deep understanding of the evolving retail landscape. By addressing both physical and digital aspects of the business, Brown Tree is positioning itself for comprehensive growth. The company’s commitment to integrating advanced technology with its operational processes underscores its dedication to meeting modern consumer expectations.
To conclude, Brown Tree’s future is shaped by a flexible and forward-thinking approach. With plans to significantly increase its store count, invest heavily in technology, and refine its e-commerce operations, the company is set on a path of substantial growth. By staying adaptable and customer-focused, Brown Tree aims to build on its success and achieve its long-term vision of nationwide expansion.
