In telephonic conversation with Restaurant India, Neeraj Kakkar, Founder & CEO, Hector Beverages talks about their growth projections.
Paperboat is a pioneer in ethic drink in Indian market. Investing a total amount of around $45 million till date, it is looking at expanding manufacturing capacity to 5x, which was 3x last year. Paperboat is also targeting 5000 outlets in next 2 months as it continues to grow with Subway as major restaurant partner.
Sailing the boat
It’s been very exciting. Today, Indian people have opened up so much. When we were starting, there were all sorts of doubt. But, since we have launched the brand, it has never stopped growing. Every single moment of this journey has been better than the previous one. It has always delivered more for what we have desired and I think we are continuously growing in right direction.
There are two major challenges in food business. One is the backend challenge or the supply chain challenge because fruits are not done on commercial scale. We are working closely with farmers so that the right crop grows at the right time. The other challenge is distribution challenge, which is actually a challenge for any of the start-up because there are larger companies in this area.
There are six major cities that we cover namely Mumbai, Pune, Delhi-NCR, Hyderabad, Chennai and Bengaluru. We have our own sales men going into the market and selling products. Then, for rest of the country we have tied up with the German major Nissin foods as the distribution partner.
For us, major channel remains the Mom & Pop store. General trade is the major contributor at 50 per cent, followed by Modern Trade and other retail formats at 45 per cent and 15 per cent respectively.
It’s a way of looking. We look at the business from a technology point of view, experimenting and finding right product. We are into a business which is sustainable and long term. We want to grow in India as well as internationally in markets like Dubai and Singapore which is close to India.
Healthy food business
Healthy food is a global trend. India is not new to follow this trend. Though it is very early stage for India, but it will grow. Globally, India is the most happening market today. . The market is not fully penetrated, but its growing. We were the only players almost 6 months back. The un-organised sector was always big, but the growth is shifting to hygienic from unhygienic.