Cheese lovers in India can finally rejoice as Cremeitalia, a Mumbai-based company, is revolutionizing the cheese industry with its natural and tasty products. The company, founded by Rajesh Dhote, offers fresh cheese made from fresh milk, without any added flavors or colorings, making it a healthier and more satisfying option for consumers.
Rajesh Dhote, who had previously worked in London for ten years, decided to venture into the cheese industry after being inspired by a friend of a friend. He wanted to bring something new and different to the Indian market, which is why he founded Cremeitalia. Their products, including Jalapeno sour cream, Burrata, Scamorza, and more, are available in 220 stores across 18 cities in India.
Burrata, a type of Italian cheese made from mozzarella and cream, is the company's highest-selling product. The shareholding pattern of the company reveals that Rajesh and his co-founder each hold 31.15%, stakeholders hold 15%, and others hold 11.2%. Cremeitalia has raised funds twice, once for 1.3 crore rupees at a pre-money valuation of 7 crore rupees, and the second time for 4.5 crore rupees at a pre-money valuation of 22 crore rupees. The company is now setting up a larger plant to maximize its production and plans to launch cheese dips in the near future.
The company's monthly sales currently stand at 62 lakhs rupees per month, with a return to vendor value of 7%. The net profit is 9 lakhs out of a sales value of 65 lakhs. The fresh cheese market in India is worth 120 crore rupees, with gross margins of 30-35% for the HoReCa industry and 50% for retail. The net margin stands at 21%.
Cremeitalia recently pitched their business on the Indian version of the popular show Shark Tank, hoping to secure a deal with one of the sharks. The owners asked for 90 lakhs in exchange for 1.5% equity. However, none of the sharks were interested in investing in the company. They cited various reasons, including the lack of clarity on financial numbers and the team's ability to execute the plan.
While the founders of Cremeitalia were unable to secure a deal on Shark Tank, they remain optimistic about the future of their company. With a strong focus on producing natural and healthy cheese products, Cremeitalia has the potential to capture a significant portion of the fresh cheese market in India.
The company's commitment to using fresh milk and avoiding added flavors and colorings is a major differentiator in the market. As more consumers become health-conscious and seek out natural and organic products, Cremeitalia's products are likely to gain popularity. Additionally, the company's plans to launch cheese dips in the near future will help them expand their product offerings and capture a larger market share.
Overall, Cremeitalia's appearance on Shark Tank India showcased the company's innovative approach to the cheese industry. While they were unable to secure a deal, their commitment to producing natural and tasty products is likely to resonate with consumers, making them a strong contender in the fresh cheese market in India. As the company continues to grow and expand its product offerings, it will be exciting to see how they fare in the competitive world of cheese production.
Here are some key learnings that Cremeitalia and other businesses can take away from this Shark Tank pitch:
- Be prepared: One of the main reasons that the sharks were not interested in investing in Cremeitalia was that the pitcher was unable to provide clear financial numbers. This highlights the importance of being well-prepared before making a pitch to potential investors. Business owners should have a solid understanding of their finances and be able to communicate this effectively to investors.
- Know your market: Cremeitalia has identified a gap in the market for fresh, natural cheese in India. Understanding the needs and preferences of your target market is essential for any business looking to succeed. Conducting market research can help businesses to identify gaps in the market and develop products or services that meet customer demand.
- Emphasize product quality: Cremeitalia's focus on producing fresh, natural cheese is a key differentiator for their business. Emphasizing the quality of your products or services can help to set your business apart from competitors and build a loyal customer base.
- Explore partnerships: While Cremeitalia did not secure a deal with the sharks, they have already established partnerships with over 220 stores and are looking to expand further. Building partnerships with other businesses can help to increase brand awareness and reach new customers.
- Be open to feedback: Although the Cremeitalia pitch did not result in a deal, the feedback provided by the sharks can be valuable for the business. Business owners should be open to constructive criticism and use it to identify areas for improvement and growth.
By incorporating these learnings into their business strategy, Cremeitalia and other businesses can position themselves for success and growth in their respective markets.