An interview with Tengin founder Madhu on turning coconuts into a business built around farmers, villages and communities.
Updated
June 1, 2026 1:46 PM
Workers of Tengin. PHOTO: TENGIN
In Southern India, coconuts are part of daily life. They are used in food, rituals, farming and home remedies. For Tengin, a social startup whose name means “coconut” in Kannada—a South Indian language—the crop also offers a way to build a rural business with deeper local impact.
Founded by Madhu Kargunda in 2017, Tengin works with farmers, artisans and women’s collectives in Karnataka to make products from almost every part of the coconut. Its range includes virgin coconut oil, desiccated coconut powder, shell-based handicrafts, candles, home décor items and other coconut-based goods.
The larger idea is simple. Farmers should play a bigger role in the value created from the crops they grow. Tengin is trying to help rural communities move beyond supplying raw produce and take part in processing, branding, packaging and sales.
Madhu grew up in an agricultural family. Over the years, he saw many young people move away from farming to look for stable jobs in cities. To him, the problem was not farming itself. The bigger issue was that farmers often missed out on the value created after crops left the farm.
A coconut might be grown in a village, but much of the income comes later through processing, branding and retail. That gap stayed with him, eventually leading him to leave his eight-year career in IT and return to agriculture full-time.
Started with just making virgin coconut oil, Tengin has grown into a wider coconut products business. The startup is now working with around 15 to 20 farmers and artisan groups across Karnataka. It is also building production capacity for larger retail and B2B partnerships.
Today, Tengin generates annual revenue of roughly ₹50-60 lakh, or around US$52,000 to US$62,000. It has also started testing international demand, including a recent export of around 200 kilograms of desiccated coconut powder to Texas.
As Tengin expanded, the team began looking more closely at parts of the coconut that were usually treated as waste or low-value byproducts, such as coconut shells and coir. At first, Tengin treated them that way too.
“When we started, we used to burn some of the shells”, Madhu said. “Later, we realized it was an economic opportunity”.
That changed the company’s product strategy. Local artisans working with Tengin now are turning coconut shells into bowls, incense holders, candles, coffee mugs, mobile stands and handcrafted décor items.
This gives Tengin a place in the circular economy, where waste materials are reused instead of thrown away. For Madhu, though, sustainability has to do more than reduce waste. It should also create income in the community.
“We wanted to minimize waste and maximize wealth locally”, he said.
Tengin does not depend only on one central factory. Instead, it works with smaller village-level production groups that connect to a larger business network. This helps farmers stay close to their land while also taking part in processing and manufacturing. It also creates local jobs, which can reduce the pressure to migrate to cities.
Yet, the model is not always easy. In the early days, Tengin had to convince some farmers to move from chemical farming to natural farming. Moreover, the weather has also become harder to predict. Irregular rainfall and changing harvest cycles can affect coconut prices and production consistency.
Still, Madhu sees the village-based model as central to Tengin’s identity. For him, villages are living systems built on shared work, local knowledge and interdependence.
“The definition of a village is inclusiveness”, he said.
That belief also shaped Tengin’s “coco tourism” initiative. Through the program, visitors meet farmers, learn about farming practices and see how coconut products are made.
During one visit by MBA students from Indiana State University, an unexpected spell of rain gave the group a closer look at village life. Farmers gathered and began singing traditional folk songs to express gratitude to nature. For the students, it became a lesson in culture as much as business.
Madhu sees these moments as part of what rural entrepreneurship can protect.
“If villages become empty, we lose language, traditions and local knowledge too”, he said.
Tengin’s model is not difficult to copy on paper. Madhu is open about that.
“Anyone can do it”, he said, “but what matters is how you work with people”.
For him, the harder part is building long-term trust with farming communities. Tengin works through relationships more than rigid contracts. This encourages farmers and local groups to participate in the system in a more collaborative way.
That trust has become one of the startup’s strongest assets. It shapes how Tengin works with producers and how it presents its products to customers.
For Madhu, it is not enough to call a product sustainable. Customers should be able to understand where it came from, who made it and how their purchase supports the people behind it.
That matters even more in a market where terms like “eco-friendly” and “organic” have become buzzwords. Madhu knows that these words can feel empty when brands do not show what they actually mean.
“Anyone can use these words today,” he said. “What matters is whether consumers can actually see what you are doing”.
This is why Tengin focuses on transparency and storytelling. The startup wants customers to see the full journey of each coconut product, from the farm to the finished item. It also wants them to understand whose livelihood is connected to that journey.
Madhu also believes small brands cannot depend on products alone. Products can be copied, but a clear story, a trusted community and a visible impact are harder to replicate.
“Don’t try to sell only the product,” he said. “When you try to sell the product, you are being sold once”.
Each Tengin product includes details about the people behind it and how profits are shared. In that way, the company connects its coconut products to the farmers, artisans and village systems that make them possible.
For Madhu, entrepreneurship starts with the problem. Founders, he believes, should understand the problem deeply before thinking about scale and revenue.
“An entrepreneur is someone trying to solve an existing problem”, he said. “Sometimes it may be a small problem, sometimes a niche one. It could be in technology, energy, farming or any other sector—but first understand what problem you are trying to solve”.
Farming has also taught him patience. He gives the example of coffee.
“When you plant coffee, you know it may take five years before you see results”, he said, “but you still [have to] water it every day”.
He sees entrepreneurship the same way. Building systems, communities and trust takes time. Growth may be slow at first, but daily work matters.
Adaptability is another lesson he returns to often. Farming conditions change constantly, and so do markets. In both cases, people have to keep learning, unlearning and adjusting.
“Entrepreneurship is about constantly learning new things because the world is changing all the time”, he said. “You need to stay relevant, understand what connects with [your customers] and adapt accordingly”.
Looking ahead, Tengin plans to grow its farmer network, strengthen production capacity and expand its export business. Madhu is also looking to collaborate with more platforms, storytellers and communities that can help amplify the voices behind the products.
The startup is also involved in rural community initiatives, including support for government schools and menstrual health awareness programs.
For Madhu, giving back is part of how he defines success. With more resources, he would invest further in farmer education, village-level production systems and community development.
By building a business around coconuts, Tengin is also making a larger case for rural entrepreneurship. Its work shows that a modern consumer brand can grow without losing its connection to the farmers, traditions and village ecosystems that make that growth possible. For Madhu, that is the real measure of progress: creating value that stays rooted in the community.
Keep Reading
Because running a café takes more than just a good roast
Updated
April 13, 2026 3:18 PM
A cup of espresso being brewed. PHOTO: UNSPLASH
Coffee has grown beyond being just a drink—it’s part of culture, connection and even a daily productivity hack. Think about it: friends catch up over cappuccinos, professionals start the day with a quick espresso and students practically live on iced lattes during exams. It’s woven into routines, with two-thirds of American adults consuming coffee on a daily basis and averaging around three cups per day. That is much higher than other beverages like tea, juice and bottled water. It is therefore no surprise that the global coffee shop industry is projected to reach about US$123.43 billion by 2030. For entrepreneurs, that makes coffee shops more than cozy corners with good aesthetics. They’re a real business opportunity. But before you open a coffee shop, here are five things you should know.
Like any small business, the success of your coffee shop often hinges on where it is. Coffee may have broad appeal, but daytime foot traffic and visibility can still make the difference between a busy café and one that struggles to stay afloat. Opening near universities, office parks, co-working hubs or residential neighbourhoods with young professionals can instantly give you a strong stream of potential customers.
That said, choosing a coffee shop location is not just about picking a busy area. You also need to know your target market. For example, opening a third-wave specialty coffee shop in a low-income neighbourhood may not work if your prices are beyond what local residents want to pay. The same café might perform much better in a more affluent or fast-changing district.
Competition matters a lot in the equation too. Walk around the area and see what other coffee shops are doing. The goal is not always to avoid competition but to find a gap in the market. If nearby cafés focus on quick grab-and-go drinks, there may be room for a slower, more community-driven coffee shop built around hand-poured brews and a relaxed atmosphere. Simply put, your shop’s exact street address could make or break your business.
It’s important to understand this early on: running a coffee shop is not just about serving coffee. Customers today have endless options, from making coffee at home to buying from major chains like Starbucks. What brings them through your doors is often the overall experience.
According to a report by Salesforce, 91% of customers say they’re more likely to make another purchase after a great service experience. That means your café needs to give people a reason to stay, come back and recommend it to others. Maybe it is the interior design, the playlist that feels just right, the reliable Wi-Fi, the convenient charging points or simply the way the space feels. Remember, good coffee gets people in once, but a strong customer experience gives them a reason to return.
Opening a modest-sized sit-down café in the U.S. can cost anywhere between US$100,000 and US$350,000. The final number depends on your location, your coffee shop concept, your equipment and how much you spend on the fit-out and interior design. Beyond those startup costs, your monthly expenses—like rent, utilities, staff salaries and coffee bean purchases—will play a huge role in whether your business survives the first year.
Profit margins in coffee retail are thinner than new owners expect. On average, small to medium-sized coffee shops make a 3-10% profit margin, which means efficiency is key. Selling higher-margin items like snacks, light bites and pastries can help lift revenue. A US$2 slice of banana bread, for example, may cost cents to make but can still raise the average spend per customer.
You also need to factor in seasonality when planning your coffee shop revenue. For instance, in warmer months, there is usually higher demand for iced and cold beverages. Many cafés respond by introducing cold brew, iced teas, smoothies or limited seasonal drinks to their menus. That helps keep sales steady and protects the average ticket size throughout the year. At the end of the day, running a café is just as much about managing the numbers as it is about serving great coffee.
A barista isn’t just someone pulling espresso shots; they’re often the face of your coffee shop. A warm smile, remembering a regular’s order or sharing a fun fact about the beans can create the kind of connection that keeps customers coming back.
As specialty coffee culture boomed in the early 2010s, baristas became more than brewers—they are now guides and storytellers. By talking about coffee origin, processing methods, bean varieties and roast profiles, they help customers understand what they are buying and why it matters. That mix of knowledge and personality can have a real impact on customer loyalty.
That’s why hiring and retaining great baristas is one of the smartest investments a café owner can make. Beyond competitive pay, creating a workplace where people feel valued also matters. Training, room for creativity and a sense of pride in the craft can go a long way in helping staff stay engaged.
Opening a coffee shop is exciting, but opening the doors and hoping people walk in is not enough. Good coffee shop marketing today is less about spending big and more about telling a story people want to follow. Well before you launch, start building hype and share behind-the-scenes snippets on Instagram, whether that is taste-tests, design decisions or even the messy parts of setting up the space. That kind of content feels real and helps build anticipation.
Once your café is open, think beyond basic promotion. Loyalty programs, collaborations with local businesses or even hosting events like poetry nights, art exhibits or coffee cupping sessions can all help bring people in. Social media is useful here too; it is not only a place to post latte art but also where you show what your brand stands for. Do you focus on sustainability? Do you source coffee ethically? Do you support local artists? Those details humanize your brand and make your café more than just a pitstop for caffeine.
Overall, opening a coffee shop blends passion, community and entrepreneurship. It also requires clear thinking and strong business decisions. From choosing the right location and creating a memorable customer experience to managing costs and building a great team, success takes more than just brewing good coffee. If you treat your coffee shop as both a craft and a business, you give it a much better chance of becoming a local favourite.