Nilgai is planning to breakdown the price wall with Cocofly at Rs 20. It ditched Tetrapak packs for a bottle that allows for more sizes. Health benefits are explained pictorially on the pack. The lower price point, the company claims, has excited many, particularly airlines. Though some marketing consultants believe it needs to lower the price further for Cocofly to become truly mass.
Co-founder and CEO Abhay Jaiswal went to the Indian Railways where he was told Cocofly would only sell in AC First Class. "I was consistently told that if you want to build a huge business, you are creating a cap at Rs 35. And I'm not being uncharitable, I have great respect for Paper Boat, but I have named it the 'Paper Boat Problem'."
Manpasand launched its coconut drink, CocoSip in May 2016, a month after Cocofly. Others in the Rs 100 crore packaged coconut water market in India are Dabur's Real Activ and Cocojal, among other smaller branded and unbranded players.
Jaiswal said, "There are a few labels, I don't even call them brands. For instance, Dabur has launched it as a flavor within Real Activ. Cocojal is a family-owned business. Everybody sells it in bad packaging and in a commoditised way. The branding and customer aspiration created in the West is not present here."
The biggest marketing challenge for Cocofly, however, will be to avoid commoditisation, perhaps by adding other natural flavours, according to Jessie Paul, founder of Paul Writer Strategic Advisory: "This will allow them to distinguish from the competitors and build taste-based loyalty. Without this differentiation any marketing investment undertaken by them will only grow the overall market without creating a lock-in for Cocofly."
Nilgai Foods, a city-based FMCG startup, is tapping the institutional segment to drive sales and is looking to raise about USD 10 million to fuel its expansion across the country, a top company official said.
Abhay Jaiswal, Co-founder and Chief Executive Officer, Nilgai Foods, said, "Currently, institutional sales is about 10 per cent of the revenues but in 3-4 months our plan is that it should start contributing 60 per cent. Over the last one year we have been very focused on developing ultra-large institutional plants."
Cocofly, which started selling on Vistara Airlines, got a good response and the company is in discussion with other airlines and Railways for sales. The fledgling company is aiming for a turnover of Rs 8 crore this fiscal and targeting around Rs 20-30 crore from institutional sales next year, while eyeing total revenue of Rs 50 crore. Focused on the Delhi-NCR market at present, the company is looking to raise around USD 10 million to fuel its expansion.
Jaiswal added, "We have enough capacity with 2 million litres a month for Cocofly to do a pan-India launch. However, to do a multi-city pan-India launch, we will require more capital to expand our distribution team and marketing. We will need to raise USD 8-10 million for it and it will be allocated over 3 years. About 60 per cent of it would go into marketing, while 30 per cent would be utilised for distribution expansion."
Jaiswal added if the pan-India launch for Pico and Cocofly materialises, the company would be able to clock a turnover of Rs 300 crore in four years.
Mumbai based R&A Foods has acquired Nilgai Foods ‘Pico’ Express in an all-stock deal.
The chain which owns QSR chains like Paninaro and Pronto has however did not disclose the financial details of the deal.
“R&A Foods is valued at Rs 30 crore after the transaction. Also, Nilgai Foods, the parent company of Pico Express, has now become a significant stakeholder in R&A Foods,” shared Aditya Parikh, director of R&A Foods.
The company is also capitalising itself on healthy QSR segment as all the Pico outlet will now be rebranded as Paninaroa health food brand in next few months.
"With the addition of the Pico outlets, Paninaroa will now be in a unique position. Our goal is to provide fresh, healthy food to every commercial district within Mumbai and with our combined footprint; we will be able to do just that,” added Parikh.
At present, Pico Express has 11 outlets across Mumbai. Meanwhile Paninarao food is planning to add 22 more outlets in Mumbai by the end of the year, expanding the brand to Pune, Bengaluru, Delhi and Hyderabad.
Post the rebranding, there will be 13 Paninaro outlets in Mumbai along with a food truck under the same brand, added the statement.
"In some areas of our operation, we saw that there was overlap in business and bringing the two brands together would bring in cost efficiencies," said Abhay Jaiswal, CEO, Nilgai Foods. "Moreover, our ethos and customer segment is identical."
Started in 2011, Nilgai Foods is an integrated foods business which manufactures and sells jams, sauces, dips, dressings and baked goods under the brand name of Pico through a network of third-party retailers across Mumbai, Delhi and Bangalore.
"Nilgai will now focus on processed foods and, in a couple of months, expand the retail footprint to more cities," added Jaiswal.
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