India Hemp and Co.
Initial Ask – Rs. 50 lacs for 4% equity at a valuation of Rs. 12.5 Cr.
About the Company
A company of nutritious hemp products has been launched to make people believe in the high nutritious content of hemp – normally called ‘bhang’, about which there are hundreds of misconceptions. The company has around 12 SKUs which cater to humans, cats as well as dogs. These products have no tendencies of intoxication, instead they have a high protein content and a full amino acid profile to cure diseases.
They’ve recently started with Google advertisements, after the ease of restrictions in this area. Apart from that, the company records 80% of its sales through its own website, now will play the Amazon card as well.
Past performance of the Company
Because of its small scale and strict regulations, they recorded a sales of Rs. 20 lacs in the previous financial year. Till November 2021, they made sales worth Rs. 13 lacs, which are projected to grow to Rs. 27 lacs. Of these sales figure, they made Rs. 2.7 lacs in the month of October. Their revenue mainly comes from 2 products, Hemp Hearts (35%) and Protein Powder (32%).
Industry Overview
Hemp comes under the marijuana segment, and this makes it a myth in our country: it is an intoxicant. However, there are 2 divisions in this segment, and hemp belongs to the other category. This is the reason that FSSAI has declared hemp as ‘Food’, which makes it legal.
Initially, restrictions in this field used to limit companies to exhaust their full self for their business, an example of which is advertisement restrictions in Google. The government ban on hemp cultivation, absence of regulations, and lack of awareness about the herb among urban Indians have hindered market growth thus far. However, these declarations by FSSAI has opened up opportunities to bring forward the health quota of Hemp. Companies like Indian Hemp Co. has been dealing in this segment for a long time and is a tough competitor for the said company.
Offers made, and the one accepted:
Namita Thapar was the only one to offer Rs. 20 lacs for 10% equity of the company, along with Rs. 30 lacs as debt at 12% interest. This was countered by asking for Rs. 50 lacs as debt, which was rejected by Namita.