Alpino Health Foods
Initial Ask – Rs. 1.5 Cr. for 2% equity at a valuation of Rs. 75 Cr.
About the Company
Trying to bring about a revolution in the health food segment, this company manufactures natural peanut butter, without any additives. Their product portfolio consists of muesli, apple cider vinegar, green tea as well as peanut butter powder, which has been seen for the first time. They sell on more than 15 online platforms, out of which Amazon and Flipkart ranks the list. Apart from that, they even have 3000+ offline stores, where their products are available. Sourcing their peanuts directly from the farms of Junagarh, Gujarat, they bring out peanut butter in 4 various flavours.
Being among top 3 sellers on Amazon and Flipkart, they have achieved a decent rating of 4.3-4.5 on these platforms. They spend their proceeds on heavy marketing, because of which they are currently operating on marginal losses.
Past performance of the Company
They are 35 Cr.+ revenue business in just 3 years of operations. They earned around Rs. 15 Cr. in the last financial year and were standing at Rs. 13 Cr. till November in 2021, projecting to touch Rs. 22 cr. by the end of the year. They record a gross profit margin of 38%, however, operate under marginal losses.
Industry Overview
Peanut butter market in India is huge, but at the same time ignorant. 95% of our peanut butter is exported. However, this market is expected to witness a CAGR of 14% till the year 2025. There are a number of factors behind this decent growth rate: people have become more conscious towards their health, focus has shifted towards fitness-oriented lifestyle. The community of such people has increased since the onset of the pandemic, especially in the developed states and parts of India.
Major restraint that is expected to hinder the growth of the Indian peanut butter market is the availability of peanuts at moderately aggressive prices, along with fluctuating production of peanuts in different parts of this nation.
Offers made, and the one accepted:
1. Namita Thapar and Vineeta Singh offered to invest Rs. 1.5 Cr. together, for 10% equity of the company.
2. To this, Peyush Bansal and Anupam Mittal came together to offer the same amount for 9% equity of the company. After this, Namita and Vineeta revised their offer to 8.5% equity of the company.
This was countered by asking for the same investments, but at 3% equity of the company.
3. Post this, all the 4 sharks mentioned above offered to join hands by giving same amount at 8% equity of the company.
This was again countered to bring down the equity to 5%. This was rejected by the sharks.