Catering especially to Indian taste buds, Hector Beverages and its Paper Boat brand has been one of the new FMCG favourites in the country. Tapping into nostalgic flavours, Paper Boat is not only popular in the metros but also in Tier 2 and Tier 3 regions. With this growing acceptance, Paper Boat has announced a 62% hike in its revenue for the financial year 2018-2019, ending March 2019.
According to a news report based on numbers from business intelligence platform Tofler, Hector Beverages generated INR 189.56 Cr in revenue in FY19, compared to INR 116.94 Cr in FY18. Additionally, the company has also managed to marginally cut down on losses by 1.92% to INR 59.88 Cr, from the previously recorded INR 61.03 Cr.
Hector Beverages was launched in 2010 by ex-Coca Cola executives Neeraj Kakkar and Niraj Biyani with the energy drink Tzinga. Gradually, the company shifted to fruit-based drinks with a range of classic Indian flavours. The company has successfully recreated the popular versions of traditional Indian beverages such as aam panna (raw mango), jaljeera (spicy, tangy lemonade), and other flavours.
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The company has raised INR 300 Cr ($46.6 Mn) from investors like Sequoia Capital, Catamaran, Hillhouse, Sophina and more. As of March 2019, Paper Boat was valued at INR 876 Cr ($130.2 Mn) in the last funding round.
According to media reports, Tata Group was in talks to buy out Hector Beverages. But Kakkar denied stating that Paper Boat is “strongly committed to building a long-term, sustainable – and most importantly – an independent business.”
Many other FMCG companies such as ITC, Nestle and others have released alternatives to Paper Boat drinks, but among the new-age brands, Raw Pressery is a big competitor for Paper Boat and focusses on premium fruit beverages. Raw Pressery has raised $27.13 Mn till now, and expanded its business by over 120% in FY18. For FY19, the company hoped to cross its revenue by about 112% in FY19, but its financials are not out yet.
As per ‘Beverages: Indian Scenario’ report, India’s health beverages market currently stands at $300 Mn annually and is the fastest-growing market among beverages. Another report by Technopak states that the Indian packaged juice market is valued at $200 Mn (INR 1,100 Cr) and is projected to grow at a CAGR of 15% over the next three years.