From extraction to serving, CaneBOT, the robot, does it all! It is Canectar Foods’ robotic sugarcane juice machine. Founders Milind and Kirti Datar discuss its development and impact with EFY’s Nitisha Dubey.
Q. Could you describe the journey that led to the creation of CaneBOT?
A. We began with a semi-automatic kiosk model that operated like a typical juice or coffee shop, occupying around 9.29 square metres (100 square feet). The kiosk featured a tabletop sugarcane crushing machine, which was semi-automatic and required human operation. An operator manually fed sugarcane sticks into the machine and then crushed them to dispense juice. We offered multiple flavour options, allowing customers to customise their drinks. This semi-automatic model was operational until the onset of COVID-19. Over 18 months, from 2018 to 2020, we sold around 1 million glasses of sugarcane juice, proving the market demand for hygienic sugarcane juice. However, we encountered challenges with the kiosk model, including the need for substantial space and the requirement of three staff members across two shifts. While this model worked well in corporate food courts and cafeterias in companies like Infosys, Wipro, and TCS in Pune, where rental costs were minimal, it was not scalable to retail environments due to high rental costs. This realisation led us to explore automation, and the idea of CaneBOT emerged.
Q. How does your machine differ from traditional vending machines?
A. Traditional vending machines dispense pre-packaged food or beverages based on customer selection, with no processing involved. In contrast, our machine is a robotic smart machine that not only dispenses but also processes the items before serving. This advanced functionality is called a ‘robotic smart machine.’ The entire operation is controlled by sophisticated algorithms that respond to sensor feedback, determining when and how much to crush and when to stop filling the glass. These algorithms ensure precise operation, making our machine far more advanced than conventional vending machines, offering a unique, automated processing experience before dispensing the final product.
Q. How does your machine maintain high hygiene standards during operation?
A. Our machine has been developed to be CE-compliant, meaning we use high-quality, food-grade stainless steel. A vital feature of the machine is its self-cleaning mechanism. After a set number of glasses or operating hours, whichever comes first, a scheduler activates the cleaning process. We have equipped the machine with high-pressure jet nozzles in the areas where the juice is crushed and dispensed. At the scheduled intervals, these jets automatically spray high-pressure water, thoroughly cleaning all areas that come into contact with the juice. This ensures the machine maintains optimal hygiene standards.
Q. What makes your machine capable of ensuring fresh and chilled juice through its innovative design and technology?
A. Our machine is entirely operated and managed through software and electronics, seamlessly integrating hardware, software, and IoT (Internet of Things). Unlike traditional machines with physical buttons, ours is controlled via a touchscreen interface. Customers use it just like an ATM: they select their options and make payments using UPI—only digital payments are accepted, no cash—and the machine activates once the payment is confirmed. The machine features internal storage, similar to an ATM’s cash compartment. An operator loads fresh sugarcane sticks into the refrigerated machine daily, ensuring the cane remains fresh and chilled. Juice is extracted only when ordered, guaranteeing it is freshly made and naturally chilled due to the pre-cooled sugarcane.
Q. How does in-house development enhance the uniqueness of your vending machine?
A. Our entire machine has been designed and developed indigenously, and we have applied for seven patents, two of which have already been granted. These patents cover both the hardware and software aspects of our technology. The first patent, granted within six months—remarkably fast by industry standards—covers the entire sugarcane juice vending machine. This innovation is groundbreaking, as globally there are few companies who are working on such robotic vending machines.
Q. Is CaneBOT manufactured in-house or outsourced to a specialised partner?
A. We have partnered with an OEM because we recognise the complexity of this machine, which demands precision engineering. While our OEM partner handles the manufacturing, we own the ideation and intellectual property. This is a contract manufacturing arrangement, where the machines are exclusively produced for us based on our designs and specifications.
Q. What percentage of your machine’s components are sourced locally versus imported internationally?
A. Our machine has two main components. The first consists of purchased parts, such as gearboxes, motors, and actuators, which we source directly from the market rather than manufacturing in-house. While we procure some external elements, particularly actuators, the majority are sourced from within India. Only 10 to 15% of the components are imported, with the rest being made in India. The imported parts, primarily electronic components, are typically sourced from Taiwan through Indian dealers or distributors.
Q. What are your sources of revenue?
A. Our revenue comes primarily from juice sales when we own and operate the machines. With the franchise model, we will generate one-time revenue from franchise fees and recurring revenue from royalties and platform charges. Additionally, we monetise the bagasse—the sugarcane waste left after juice extraction—by selling it for conversion into green biofuel, supporting our commitment to a circular economy and environmental sustainability.
Q. How does CaneBOT’s approach support environmental sustainability and transition to a digital economy?
A.We aim to be a carbon-negative company, and as part of our upcoming expansion, we plan to follow a decentralised supply chain model. Instead of transporting sugarcane, we plan to source it locally. For example, in Delhi-NCR, we will procure sugarcane from Uttar Pradesh, while in Bengaluru, we will source it from nearby place called Mandya. This approach benefits local farmers and reduces our carbon footprint by avoiding long-distance transportation. Additionally, our model transitions the traditionally cash-based, unorganised sugarcane juice sector into the digital economy. Our machines accept only digital payments, ensuring that every sale is accounted for, and taxes are paid, contributing to the nation’s economic development. Overall, CaneBOT has a broad impact on society by supporting local agriculture, reducing environmental impact, and promoting market transparency and accountability.
Q. How does your brand manage the relationship between location partnerships and franchise ownership?
A. There are three key aspects to this process. First is the location, such as a mall. We focus on securing partnerships with locations while retaining ownership of the technology and manufacturing the machines. For example, discussions are on for installing our machines in their multiplexes with PVR. We will launch the franchise programme once the approval from PVR is received, which operates 1000+ multiplexes across India. This programme will target specific locations in cities like Mumbai or Noida. Interested individuals can then acquire the franchise for that location, effectively becoming the owners of the machine. However, the location partnership is secured by us as the brand.
Q. What will be the sources of revenue for your IoT-enabled franchise model?
A. We will generate both one-time and recurring revenue. The one-time revenue will come from selling the franchise and the machine to the franchisee. Additionally, there will be recurring revenue as franchisees benefit from a fully IoT-enabled, cloud-connected machine. They can track sales, manage inventory, and oversee operations remotely, eliminating the need to be physically present at the machine. This setup will allow us to earn recurring income through platform fees, tech support charges, and royalties on the raw materials used.
Q. How does your franchise model create new opportunities for farmers and aspiring micro-entrepreneurs?
A. The primary beneficiaries of our initiative are farmers. This opens up a substantial new revenue stream for farmers, directly connecting their products to consumers in high-traffic areas. By making fresh sugarcane juice accessible and affordable, we offer consumers a better alternative to existing options. Many people in our country aspire to start their businesses but lack the knowledge, resources, or time to do so. Our franchise model enables thousands of micro-entrepreneurs to own and operate these machines. Because the machines are fully autonomous and require minimal manual intervention—such as daily stock replenishment—these entrepreneurs can easily manage their business, remotely overseeing sales and inventory while also having time to pursue other interests or employment. We aim to empower thousands of individuals to achieve business ownership and financial independence.
Q. How did Software Technology Parks of India’s (STPI) programme benefit your startup?
A. We participated in one of STPI’s initiatives to support startups in deep tech and electronics (ESDM). As part of the first ‘Leap Ahead’ initiative, the experience was highly beneficial. First, we received valuable guidance from experienced mentors. Second, being part of a cohort of startups in similar fields allowed us to exchange ideas and learn from each other. Additionally, we were selected as an Indian delegate for a Silicon Valley investor meetup. These and other initiatives within the programme have been instrumental in our growth and development.
Q. Is the ‘Leap Ahead’ initiative beneficial for startups in connecting with new investors?
A. STPI has played a crucial role in connecting us with various investor platforms, with some connections proving successful and others still in progress. They also offer co-working spaces at discounted rates for startups. However, we have not utilised this option since our team is often dispersed between our office, the factory, and machine installation sites. Nonetheless, it is a valuable resource for those who need it.
Q. What aspects set STPI apart from other incubators in supporting startups?
A. The way STPI conducted their sessions was notably different and more beneficial compared to other incubators we have been part of. What set STPI apart was the involvement of successful startup founders who have been through the ups and downs of building a business. For example, they brought in the co-founder of Inshorts and a co-founder from a gaming company. These founders shared their experiences—where they faltered, failed, and eventually succeeded. This approach gave us valuable insights and confidence, as they could answer our real-time questions instead of just presenting generic case studies, often irrelevant to startups. The sessions were highly curated, directly applicable to our businesses, and 100% beneficial.
Q. How did the Silicon Valley Investor Connect programme facilitated by STPI benefit your startup?
A. During this programme, we met with numerous investors interested in funding us. However, a challenge with US investors is their expectation that we relocate our company and intellectual property (IP) to the U.S. We are hesitant to pursue this path, as we have received significant support from Startup India and other local initiatives. We are committed to keeping our base and IP in India, so we are not currently exploring those options.
Q. What are your future expansion plans and international opportunities for your products?
A. Looking ahead, our long-term vision involves expanding beyond sugarcane juice to include a variety of juices, smoothies, and other beverages. Initially, we focus on expanding into tier-one and tier-two cities across India. However, we also receive numerous inquiries from the Middle East and Singapore. While our primary focus remains on the Indian market, we are open to exploring opportunities in these regions due to their advanced vending machine markets. Specifically, we are considering expanding into the UAE. We aim to export the machines and our sugarcane, thereby providing farmers with higher returns for their produce.
