Green Protein
Initial Ask – Rs. 60 lacs for 2% equity at a valuation of Rs. 30 Cr.
About the Company
The company manufactures a 100% plant based protein, in 6 fruits and 3 smoothie flavor.
The single serve sachet is being sold at Rs.79, which allows the user to try the product. This protein is completely tasting like Juices instead of protein shakes.
The company uses sucrelose, which is not deemed to be good for health, in order to justify the pallete from the organic substances.
The product does not require any shaker or blender to mix, and can be mixed very normally.
The formula rights are being held with the company.
Past performance of the Company
From the beginning of CY 2021, the company has earned Rs. 50 lacs in revenue, of which October accounted for Rs. 12 lacs. Margin is 40% in modern trade, and in small stores, it is 25%.
Industry Overview
The protein powder industry is more focused towards the physically sound market, basically people involved in sports and gyms. However, the wider market is not recently addressed. Therefore, this is a wide opening in the market.
The distribution strategy needs a lot of modifications, and can turn out to be very expensive. In an ideal environment, the distribution strategy would play a major role in the success of any business in this arena.
Moreover, the juices industry is also being tapped by this company. The juice industry today is run by local players and the packaged juice industry is run by players like Real and B-Natural. Therefore it is difficult to tap that market.
Previous Equity Split/Investments
There are 3 partners, in a venture structure, without an equal partnership.
Offers made, and the one accepted:
1. Aman, Vineeta and Ghazal jointly offered Rs. 60 lacs for 20% equity.
2. Anupam then offered Rs. 60 lacs for 15%.
Both these offers were countered at 5%.
3. Aman, Vineeta and Ghazal came down to 15% and Anupam undercut them at 13%. But none of the offers were accepted!