Hector Beverages, a
two and a half year old start-up company, which operates in the
functional beverages market with its brand Tzinga, is setting up its
second manufacturing plant in Hosur, located between Karnataka and Tamil
Nadu.
According to Neeraj Kakkar, CEO of Hector Beverages, "Our second plant will have a manufacturing capacity that is 300 times that of our existing plant in Manesar. The investment required will be around Rs 7 to Rs 8 crore, which we would raise as part of a third round of funding from our existing investors."
Hector Beverages was among few start-ups in the food and beverage space to receive early stage funding from N R Narayana Murthy-promoted Catamaran Ventures and Bangalore-based venture capital firm, Footprint Ventures, besides funding from four angel-investors.
In 2010, Hector Beverages raised Rs 6 crore as part of its first round of funding to set-up its manufacturing plant in Manesar. In 2011, the company raised Rs 8 crore in a second round of funding from its investors. "The third round of funding will happen before our new manufacturing facility becomes operational," added Kakkar. The Hosur plant is expected to be operational in March next year.
Kakkar refused to divulge any details on the company's current production numbers or revenues but said, "we our either in the number one or two position in volume terms in the markets that we operate in."
Tzinga, the company's energy drink operates in the functional drinks category, which comprises of sports drinks, energy drinks and enhanced water and juices, a sector that has been clocking growth rates of 40% to 50% in the last five years and has a market value of Rs 600 crore. However, the sector is still miniscule in comparison to the aerated beverages market in India, which has a market value of Rs 15,000 crore.
Tzinga is pitched up against bigwigs such as Red Bull, which is priced at Rs 85 for a 250 ml can. On the other hand Tzinga retails for Rs20 for a 200ml pack. The other major brands operating in the functional beverage segment include Gatorade, Burn (from Coca-Cola), SoBe, and Cloud 9.
"Our goal was to create an affordable product, which we have been able to achieve after 14 months of research, six months of which was done in Europe," said Neeraj.
According to Neeraj Kakkar, CEO of Hector Beverages, "Our second plant will have a manufacturing capacity that is 300 times that of our existing plant in Manesar. The investment required will be around Rs 7 to Rs 8 crore, which we would raise as part of a third round of funding from our existing investors."
Hector Beverages was among few start-ups in the food and beverage space to receive early stage funding from N R Narayana Murthy-promoted Catamaran Ventures and Bangalore-based venture capital firm, Footprint Ventures, besides funding from four angel-investors.
In 2010, Hector Beverages raised Rs 6 crore as part of its first round of funding to set-up its manufacturing plant in Manesar. In 2011, the company raised Rs 8 crore in a second round of funding from its investors. "The third round of funding will happen before our new manufacturing facility becomes operational," added Kakkar. The Hosur plant is expected to be operational in March next year.
Kakkar refused to divulge any details on the company's current production numbers or revenues but said, "we our either in the number one or two position in volume terms in the markets that we operate in."
Tzinga, the company's energy drink operates in the functional drinks category, which comprises of sports drinks, energy drinks and enhanced water and juices, a sector that has been clocking growth rates of 40% to 50% in the last five years and has a market value of Rs 600 crore. However, the sector is still miniscule in comparison to the aerated beverages market in India, which has a market value of Rs 15,000 crore.
Tzinga is pitched up against bigwigs such as Red Bull, which is priced at Rs 85 for a 250 ml can. On the other hand Tzinga retails for Rs20 for a 200ml pack. The other major brands operating in the functional beverage segment include Gatorade, Burn (from Coca-Cola), SoBe, and Cloud 9.
"Our goal was to create an affordable product, which we have been able to achieve after 14 months of research, six months of which was done in Europe," said Neeraj.
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