Paper Boat’s Sales Jump 36% To INR 330 Cr In FY22, Loss Narrows To INR 53 Cr

Hector Beverages, the parent company of refreshing drinks maker Paper Boat, saw a 35% increase in its total revenue in the financial year ending March 31, 2022. The GIC-backed startup’s total revenue jumped 1.3X to INR 331 Cr in FY22 from INR 244.9 Cr in FY21. 

Total sales rose 36% to INR 329.9 Cr in FY22 from INR 243.2 Cr in FY21. The rise in sales could be attributed to the startup increasing its distribution network post the two years of COVID-19. Hector Beverages has also started rolling out online-only product launches. Besides, the startup has also been adding new products like dry fruits to its portfolio. 

Meanwhile, it earned INR 1 Cr from interest on its investments in FY22. 

On the other hand, Paper Boat’s expenses jumped 1.3X to INR 384.1 Cr from INR 284.5 Cr in FY21. While purchase of stock-in-trade rose to INR 149.4 Cr in FY22 from INR 95 Cr in FY21, cost of material consumed climbed to INR 93.6 Cr from INR 75.1 Cr in FY21. 

Employee benefit expenses rose 28% to INR 41.9 Cr from INR 32.7 Cr in FY21. Employee benefit expenses comprise employee salaries, PF contribution, gratuity, among others. As per its Linkedin page, Hector Beverages currently has over 500 employees. 

Hector Beverages, which is known to market its product around childhood nostalgia, spent INR 15 Cr for advertising and sales promotion in FY22, a jump of 84% from INR 8 Cr in FY21. 

Net loss narrowed to INR 53 Cr from INR 63.7 Cr in FY21, while the startup’s EBITDA margin improved to -13.14% in FY22 from -22.2% in FY21. 

Founded in 2010 by former Coca-Cola executives Neeraj Kakkar and Niraj Biyani, Hector Beverages runs food and beverage brand Paper Boat that sells fruit-based drinks in Indian flavours such as aam panna (raw mango) and jaljeera (spicy, tangy lemonade). Besides, it also sells dry fruits and healthy snacks, including chikki and aam papad. 

The startup, which is said to be gearing up for a public listing, raised $50 Mn from Singapore sovereign fund GIC in August this year. The investment helped GIC secure a 25% stake in Hector Beverages. 

Hector Beverages competes against stalwarts such as Dabur, ITC, Pepsico, and new-age startups such as Beyond Water, and Coolberg. 

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