A Snack and Beverage Chain Offering Diverse Menu, Sustainability Efforts, and Ongoing Partnerships seeks Investment.

Posted By - Investment Banker Posted date - 01/12/2023

BUSINESS BRIEF

It is a quick-service snack and beverage chain. It is ISO 22000 certified and has Halal and HACCP accreditation.


Unique Value Proposition (UVP):

  1. Indian Flavors: They serve Indian food with local ingredients, prepared by skilled chefs.
  2. Consistent Ambiance: All their outlets have a similar cultural theme, providing a consistent experience for customers.
  3. Loyalty Program: They have planned a rewards program and a mobile app tailored for Indian preferences.
  4. Diverse Menu: Their menu is extensive, including seasonal items, catering to various Indian tastes and occasions.
  5. Sustainability Efforts: They support local agriculture and follow eco-friendly practices, aligning with India's increasing environmental awareness.
  6. Digital Integration: They use digital platforms to make the customer experience more straightforward.
  7. Community Space: Their stores serve as spaces for community events, blending Indian traditions with a modern vibe.

 

Major Clients and Partnerships:

  • Reliance: A key player in the modern trade segment, Reliance provides a significant platform for the company to reach a wide range of consumers across various regions.
  • Lulu: Its association with Lulu has been pivotal, offering access to a diverse customer base in a retail environment known for quality and variety.
  • Nesto: By partnering with Nesto, it ensures that its snacks are available in a retail chain that is growing and highly frequented by our target demographic.

 

Unique Flavours, Ingredients, and Production Methods:

Unique Flavors:

  • Herb-Infused Delights: Snacks are enhanced with Indian herbs like tulsi and ashwagandha
  • Local Fusion: Its Masala Mango Salsa Chips and Tandoori Pineapple Bites merge global tastes with local Indian palates.
  • Ayurvedic-Inspired: Snacks that align with Ayurvedic principles cater to consumers seeking balance and wellness in their diet.

Premium Ingredients:

  • Superfoods: Integrating superfoods such as quinoa and moringa, it caters to the nutritionally discerning customer.
  • Locally Sourced: Using local ingredients supports community farmers and minimizes carbon footprint

Innovative Production Methods:

  • Slow Baking: This method enhances flavour while preserving nutrients, aligning with its healthcentric values.
  • Air-Frying: Offering healthier, air-fried snack options showcases its innovation in healthier snack alternatives.
  • Cold-Pressing: By employing cold-press techniques, it ensures that snacks retain their full nutritional value.

 

Current Distribution Channels:

  • International Presence: Operating in countries like UAE, Kuwait, Oman, Bahrain, and Saudi Arabia for a strong global footprint.
  • Retail and Wholesale Networks: Over 2,800 retailers, including flagship stores, independent bakeries, and various stores, bringing products closer to consumers.
  • Digital Platforms: Growing online presence on e-commerce and quick-commerce platforms, ensuring accessibility and convenience for customers.

 

Partnerships Highlights:

  • Retail: Collaborations with major supermarkets, hypermarkets, and local grocery stores.
  • Online: Strong presence on Amazon and Flipkart, featuring a broad range of snacks.
  • Distributors: Partnerships with regional and wholesale distributors for an extensive retail network and supply to foodservice establishments.
  • Q-Commerce: Collaborations with food delivery platforms like Zomato, Swiggy, and Potafo for swift delivery options.

 

Use of Funds:

  • CAPEX: Plant and Machinery capacity addition, Opening of New Outlets, etc.- 8 Crores (40%)
  • OPEX: Increased COGS from business growth (Inventory), Upgradation of Business systems, etc.- 5 Crores (25%)
  • Marketing: Investments related to new branding, communication, digital marketing, print advertising, events and expo participations, etc.- 4 Crores (20%)
  • New Hires: Salaries for new team members in other regions- 2 Crores (10%)
  • Product Development: R&D for improving quality, taste and shelf life while reducing costs- 1 Crore (5%)

 

Projections:
Revenue (In INR Crores)
FY 24: 50
FY 25: 100
FY 26: 110

 

Note: The year 2021-22 saw a dip in revenue, which has been influenced by shutting down of 3 franchisee operated outlets due to COVID - 19.

Proposal
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Capital Requirement

INR 20 Cr

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Funding Route

Private Equity

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Extent Of Dilution

Upto 26 %

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Share Holding Pattern

Promoter Group

73%

Non-Promoter Share Holder

27.00%

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Reason For Raising Capital

Organic Growth

Business Operation Information
Financial Information
2020 (in Cr) 2021 (in Cr) 2022 (in Cr) 2023 (in Cr)
Sales
INR 26.06 Cr INR 25.47 Cr INR 17.56 Cr INR 23.7 Cr
EBITDA
PAT
TOTAL DEBT
Business Documents

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