Jain Shikanji
Initial Ask – Rs. 40 lacs for 8% equity at a valuation of Rs. 5 Cr.
About the Company
The company started in Modinagar, where an old age stall served shikanji. Now this is very popular in North India. Eventually, they created a Pre-Mix for Shikanji and then expanded into several products like Chaat Masala etc. Now the company is taking it to PAN India distribution. It is totally family operated business, which is down with 3 months.
The company is opening stalls, like 10×10 stalls, therefore there is no objection from other parties to the family business as their is no conflict.
The main problem is that this name is being copied a number of other restaurants confusing the consumers of the originality of the same. The production capacity with the firm is 3-4Cr in an year, post which an expansion will be needed.
The sharks feel that kiosks shall not be setup due to continuous copying of products. Instead the premises shall be used for digital sales.
Past performance of the Company
Previous year’s sales were around Rs. 25 lacs, as most of the highways and traffic areas were closed.
Industry Overview
The entire industry is filled with local players. There are a number of pre-mixes as well. The premixes have similar tastes and therefore, it is difficult to build a brand in the area. Companies like Glucon-D and Tang have their own shikanji flavors and these are the existing national players in this.
The industry is way too clustered and the margins might get clustered. Plus the distribution has be sorted out in a way that it is available for every household, whenever needed.
Offers made, and the one accepted:
Vineeta, Ashneer, Anupam and Aman offered Rs. 40 lacs for 30% equity of the company. The deal was sealed at this offer only!