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.
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