The Nomad Food Project
Initial Ask – Rs. 40 lacs for 10% equity at a valuation of Rs. 4 Cr.
About the Company
The company is into manufacturing Bacons and Jams and Relishes. They have used the smokiness and saltiness of pork, and by giving it a desi flavour, have made it enjoyable for the masses. The company has 12 products, out of which 5 are unique products and have been the bestsellers for the company. The company also deals in vegetarian products, to expand target audience.
Company has 10-15% vegetarian product sales and the other is non-vegetarian. The products have a shelf life of 1-3 months, which is comparatively low in the industry. The company manufactures in small batches, in order to avoid wastage.
Since the company has all natural preservatives, the probability of increasing the shelf life is very low.
The half of total investment will be used to expand manufacturing. The company incurrs a cost of Rs.60 per jar, out of which they charge Rs.40 from the consumer. The company wants to take this product out of India.
Industry Overview
The Jams and Pickles industry is played well by local flavours. In India, Rajasthan and a few other states have domination over the others in terms of Pickles and Savouries. Generally, the people trust the old age method of making the pickles. The shelf life of savouries made using such methods have a shelf life of around 1 year, and the margins in this arena are pretty genuine, for a business to be built.
National players have entered the HORECA segment in order to increase the consumption of the products and then build the brand.
Past performance of the Company
In 2019, gross sales were 9.5lacs
In the last six months of 2020, sales were 11 lacs
In 2021 they have done 46lacs till date.
The company has a gross margin of 70% on sales.
Offers made, and the one accepted:
Vineeta and Namita have offered Rs.40lacs for 20% in the company.
Aman, Anupam and Peyush have offered Rs.40lacs for 20%.
Ghazal then wants to Vineeta and Namita for the initial offer.
Ashneer then joins the team, therefore, Ashneer, Ghazal, Vineeta and Namita offered Rs.40lacs for 20%. This deal was accepted