Economic ways for grounwater through ancient wisdom in India

As we all are aware, the Rishi-Culture was well established in India ( rather the "indus" valley ). This small writes about a very profound study of groundwater by a Rishi "Varh-Mihir". Let me first summarise the work he has done regarding Groundwater :-

He has identified Trees,Species & Soil, which can tell us where the source stream will be which leads to an aquifer. His research is backed up by many experiemnets ( obviously ). In 1980, The GOI alongwith ISRO, funded a research in the Chittoor part of Andhra. Some 150 borewells were dug, and every borewell got water. 

There must be many books available, however, I have read a book in Marathi, autored by Prof Rajani Jashi & published by Sakal Prakashan, called "जमिनीखालील पाण्याच्या शोधाचे प्राचीन शास्त्र". Many experiments were conducted near Barshi, Maharahtra & it can safely concluded that the Rishi's methods can be well implemented in India, at least where urbanisation has not spoilt the environment. From where the references were taken.

Who was Varah-Mihir ?

He was born on 20th March in 6th Century, 505, And lived long till 587. He lived in Ujjain, near Indore & served lord Vikramaditya. Out of many books he wrote, the "Brihat-Samhita" relates to the water enthusiasts. Moreover, the "Dakargal" ( दकार्गल ) chapter from the same. "Dak" meaning udak... Water & "Argala" meaning the signs of finding water. 

          

Aquapeya gets funded through Shark-Tank India

Aqua Peya Beverages: From Local Distributor to 12 Crore Turnover Empire

Humble Beginnings, Ambitious Growth

Aqua Peya Beverages, a company born from the vision of local distributors in Sangli, Maharashtra, has made a remarkable journey. With a 40,000 sq ft factory, a network spanning 9,700 retail outlets, and 90+ channel partners, they've reached 50,000 consumers. Their pitch on Shark Tank India, seeking 70 Lakh for 2% equity, revealed a story of resilience and strategic growth.

The Genesis: From Local Distribution to Manufacturing

• 2003: The journey began as a local FMCG distributor in Sangli, Maharashtra.
• 2008-09: They became C&F agents for Manpasand Beverages, gaining valuable industry experience.
• 2017: A pivotal moment arrived when the elder brother suggested establishing a small water plant, marking their entry into manufacturing.

Taking the Plunge: Overcoming Initial Hurdles

To understand the industry, the owners visited Bisleri Manufacturing facility in Pune and machinery manufacturers. They quickly realized that a small plant was not viable. Instead, they took a bold step:

• Initiated a 3 Crore plant, securing a 1.5 Crore loan against their property.
• Faced objections from shark tank panelists like Namita regarding potential brand duplication, which they countered by emphasizing that water, like milk, is a service industry, not just a commodity. Hence just "Brand" doesn't matter much.

Expanding Horizons: Entering the Carbonated Beverage Market

While not their primary focus, Aqua Peya ventured into carbonated beverages, driven by the concept of "basket selling." This strategic move aimed to broaden their product offerings and cater to diverse consumer preferences.

Financial Performance: A Story of Profitability

• Sales for FY 2023-24 reached 9 Crore, with the company claiming profitability from day one.
• FY 2024-25 projections: 4.5 Crore by September 2024, and an expected 12 Crore by March.
• EBITDA: Increased from 7.8% to 16% in the last year, and 18% in the current year.
• DSO (Days Sales Outstanding): Maintained at a maximum of 15 days.
• 1 Ltr Bottle: Operating level profit of 1.25 Rs on a 6.5 Rs sale price.
• PBT(Profit Before Tax) : 5% of 9CR sale, which is 45 Lakhs.

Key Financial Insights:

• The operating level profit, including expenses, demonstrates efficient management.
• The PBT, at 5%, is a crucial metric, considering their loan obligations and machinery investments.
• Their margins are approximately 20% on the 1 Ltr bottle.
• They sell to distrubutors at 6.5 Rs, and to retailers at 8 Rs. Bisleri sells to distributors at 12 Rs and to retailers at 13 Rs.

Shark Tank Offers: Two Investors combine

• Namita Thapar (Emcure) & Ritesh Agarwal (Oyo): 
  • Valued the company at 24 Crore (2 times the projected 12 Crore sales).
  • Offered 70 Lakh for 3% equity.
  • Proposed a 2% royalty until investment is recovered.
  • Emphasized the potential of each retailer selling one box at 100 Rs.
  • Offered mentorship, and guidance.
  • Proposed Co-branding with 10,000 OYO Branded Hotels. This was the major "Flip".
  • Referenced the Paperboat story, and their distribution through Indigo.

Conclusion: A Promising Future

Aqua Peya Beverages' journey from a local distributor to a growing beverage manufacturer is a testament to their entrepreneurial spirit. The offers from Namita Thapar and Ritesh Agarwal highlight the company's potential. Whether they choose strategic investment or expansive distribution, Aqua Peya is poised for continued growth in the competitive beverage market.

The Original Video

Project Report is for "Me"

This title has a context, which I would disclose without any further delay

I meet several entrepreneurs, to help them ( mentoriing ) remove obstacles and achive better results in their businesses. Some recent cases :-

1. A lady entrepreneur, began her business with govt schemes, struggling today with no-orders at hand. Last several months, her business is non-operational. It's operational just on paper, as she's paying her EMIs to the bank. 
2. Another entrepreneur whose unit is partially operational. Daily he opens it up, maintains the tidyness etc. However, he too has been struggling to get orders.

Both these cases do take all the efforts in the world to not-to-become NPA. They very well know that their CIBIL score will get affected and hence making all the efforts in the world to protect the same. They know, if they need any loan kinda support in future; their CIBIL has to be perfect.Looks good.

However, it doesn't look so good when I suggest them with detailed calulations as to how marketing is important to them (selling on their own) and they don't take any serious effort in this at all. They prefer to take all efforts to raise the EMI money but are not ready to buld this basic skill within themselves. 

They are expecting someone else to come forward & ponder them with "orders". One of them has already employed sales staff & the other one ( whose unit is non-operational ) is almost getting ready to hire.

When I check their financials ....

I often go back to their Project Reports & see their projections. They do not seem to match what is he situation today. The aggressive projections. Instead, had they planned in a subtle way, with a step-by-step approach, things would have been much better today.

The stage when an entrepreneur thinks of establishing his own unit, and wants to raise finance, he/she approaches a CA, and that's the stage where he/she himself/herself should intervene & get every detail clearly covered to the last detail. 

Business is built for profits. The project report is a "Profit Report".

Many upcoming entrepreneurs keep asking for "Project Report". I would like to very humbly request them to learn to build their costing sheets & check their 5-yearly profits.

Is installing own Bottling Plant a viable option ?

Recently I read a news that Cybage, an IT company installed its own Bottling plant at its Pune Unit. I was first curious, and then quite surprised to see the same. It wasn't clearly mentioned in the news ( for which it was meant 😀). I could find out from some pics :-

Instagram Story 👇

Looks like a Glass Bottle 👇

Yes, it must be a glass bottle 👇

The Capping Method is ROPP Capping, used for glass bottles with Aluminium Caps like those medicinal bottles, mostly. Had it been Plastic, the mechanism is different.

Why is the company doing it ?

They say : 

Also :- 

It's done as a step towards the ESG initiatives. Well, what is this ? 👇

My opinion about having own bottling plant :-

1. Technically, it's like installing a swimming pool for own family. You will do that if you truly afford that, OR if you are getting certain advantage, like cybage is doing for. They are doing it towards the ESG , indirectly contributing to the 17 SDGs. Intention : Investors & Tax.
2. 80,000 Bottles a year ( looks like a 500ml Bottle ) is not a huge consumption for which it stands a wise decision, in any sense, besides the ESG thing. It becomes 7000 bottles a month, 250 bottles a day of 500 ml. Nothing. They could have easily outsourced that.
3. To maintain a full-scale bottling plant for such a small consumption looks not correct. They haven't specified the water source. If it's RO Plant + The filling Machine.... It needs technicians too.
4. However, It is also possible that they have outsourced the full operations without buying anything. It might make some sense in this decision. Caring the plastic waste is truly a good intention.
5. There was a still better option, if they could implement Water ATMs. Water ATMs not just cut Plastic, but also omits the usage of Bottles. The Glass Bottle Manufacturing also carries a huge Carbon Footprint. Buying Glass Bottles, consuming them is also indirectly contributing to disrupting the environment.

For Machinery Suppliers 

• This can be another business model. Approach High-Profit companies, suggest them this idea, talk more on ESG : They will understand immediately, it's a buzz-word.
• You can also take contract for running a plant at a cost per bottle model in addition
• Can install a number of Water ATMs in premises of big companies & maintain them at cost. This can also attract good CSR business.