MBA Grad From Delhi Grows Button Mushrooms In Three Rooms; Clocks Rs 60 Lakh Revenue Annually

Despite holding an MBA degree, Manish Yadav decided to go against the conventional method of securing a corporate job.

Instead, he became a mushroom farmer. 

“I started my mushroom farming venture on a purely trial basis. But I approached everything with a lot of technique and research. This was when I was 26 years old in 2019. Today, the venture produces almost 40,000 kilograms of button mushrooms annually,” Manish Yadav, founder of Shri Shyam Mushroom Farm, tells Startup Pedia in an exclusive interview.

Founded in 2019 and based in the Kangan Heri village of South West Delhi, Shri Shyam Mushroom Farm is a farming venture producing 3,000 kilograms of button mushrooms monthly. It clocks an average revenue of Rs 5 lakh every month. 

HOW IT ALL BEGAN

Manish Yadav (now 32 years old) comes from the city of Delhi in India. His family background is that of agriculture, especially wheat and vegetable cultivation.

“From my grandfather to my father, everyone has been involved in some kind of farming. But they also gave education a lot of importance, and I was sent to pursue my graduation in BBA from Haryana,” Manish Yadav says.

Later, he earned his MBA degree from Shubh Bharti University in Meerut.

Manish decided not to go for a corporate job, despite having an MBA degree on his resume. 

According to him, he didn't want to spend years gaining experience in the corporate corridors and then finally securing an attractive salary package.

One day, a friend suggested he try venturing into mushroom farming. He told Manish that mushrooms were gaining popularity in the vegetable market and demand was rising.

“I became interested and decided to see the market condition for myself. I spent the next 1.5 years conducting research, learning farming techniques, and understanding the intricacies of the crop,” Manish claims.

From 2017 to 2019, Manish took mushroom farming training from institutes in Sonipat and New Delhi, especially the Delhi Krishi Vigyan Kendra in Ujwa. 

Finally, in 2019, Manish Yadav decided to launch his experiment in mushroom farming.

In his old house in Delhi, he had a big room that he turned into a mushroom unit.

“I installed an air conditioner, set up racks, and purchased 50 kilograms of button mushroom spawns from a seller in Sonipat. It cost me Rs 90 per kilogram,” mushroom entrepreneur Manish Yadav tells Startup Pedia.

Next, he bought 5,000 kilograms of compost for Rs 8 per kilogram. Manish, along with the help of his wife, brother, and brother’s wife, prepared 500 bags, each containing 100 grams of mushroom spawns mixed with at least 10 kilograms of compost.

“Since this was our first experiment, we didn’t hire any labour. We did everything on our own. And the output was successful. We produced about 1,200 kilograms of mushrooms from the first batch and sold them for Rs 160 per kilogram. Our revenue was Rs 1,92,000. Everything we had invested in the setup had been recovered,” the mushroom farmer says.

This was the beginning of Manish Yadav’s Shri Shyam Mushroom Farm.

Also Read: Inside Kunal Shah’s CRED: A $6.4 Billion Fintech Startup For India’s Top 1% Credit Users

THE MUSHROOM FARMING JOURNEY

For the entirety of 2019, Shri Shyam Mushroom Farm operated in a single room.

As Manish and his family started preparing for the next batch of mushrooms, he decided to utilize his MBA knowledge and build a customer base.

“Initially, I thought we would sell primarily in the Azadpur mandi. But when I went out and started building awareness about our mushroom farming venture, we immediately started getting a lot of customers—from vegetable stall owners and caterers to restaurant cooks and individual households,” Manish Yadav explains.

Eventually, only a small percentage of the mushrooms had to be sent to Azadpur. The majority of the output would be absorbed by direct customers of the Shri Shyam Mushroom Farm.

During the summer of 2020, Manish Yadav decided to expand the mushroom farming venture and set up two new mushroom units. 

“We already had rooms and spaces in our farm as well as our ancestral home. That’s why expanding was easier for us,” the mushroom entrepreneur shares.

Also Read: Projecting 1 million users in the next 2 years, this Ahmedabad-based AI startup lets you hire AI agents just like we hire freelancers.

SHRI SHYAM MUSHROOM FARM

Today, Shri Shyam Mushroom Farm operates in a total of 3 rooms that have been tactfully converted into mushroom farming units.

Each room can equip 1,200 to 1,500 bags containing mushroom spawns and compost.

The monthly output from one room is 3,000 kilograms of button mushrooms.

“During one month, only one room is operational. So if we assume an average rate of Rs 150 per kilogram, our monthly revenue fluctuates between Rs 4,50,000 and Rs 5,00,000. We currently operate on a 50% profit margin,” Manish shares.

The mushroom farming venture’s annual output is around 36,000 to 40,000 kilograms of mushrooms. The yearly revenue, therefore, comes to Rs 60 lakh.

“However, it is important to note that the mushroom market has its ups and downs. For instance, prices per kilogram can go as low as Rs 100,” Manish says.

Apart from selling mushrooms, Manish Yadav also offers end-to-end mushroom farming training to budding agripreneurs and individuals. The training packages are customised according to each person’s specific needs and go up to a price of Rs 11,000.

Also Read: Ashwini Vaishnaw Announces Sarvam AI To Develop India's First GenAI Platform; CEO Says Will Be Ready In 6 Months

LOOKING AHEAD

In the near future, Shri Shyam Mushroom Farm is aiming to set up six new mushroom farming units in the Yadav family’s farmland.

Manish and his brother are also looking to make their own compost unit with the intention of having better control in terms of quality.

“Mushroom farming is a great business idea. But at the same time, it is not exactly a bed of roses. I always encourage people who have their own space to start mushroom farming. But taking a piece of land or a room on rent and then running your business can be detrimental in the long run. That’s because the market fluctuates at least once or twice a year, and you’ll just be under extra stress. As for me, I am glad I started this at the right time,” Manish Yadav concludes.