Get ready for a refreshing episode of Shark Tank India as we dive into the world of Malaki, a homegrown beverage brand that's taking the market by storm. The founders of Malaki, Mohit Bhatia and Ashish Bhatia, two brothers with a passion for food and beverage. Hailing from Mumbai, they come from a family with a rich background in the industry, giving them a natural flair for creating unique and delicious drinks.
But what sets Malaki apart from other beverage brands? It's simple: their use of local ingredients and natural resources. With a range of products, including Tonics, Ginger Ale, sparkling water, and coffee tonic, Malaki caters to all tastes. They even have a secret recipe for a homegrown Spice Ginger Ale that's been in their family for 60 years!
Founded in 2018, Malaki has already made a splash in the market, with their products available in over 500 Hotels, Restaurants, Catering, marketplaces, and e-commerce websites like Swiggy and Zomato. The Indian market for sparkling water alone is worth ₹150 crores, and Malaki has big plans to become a leader in this category.
But how does Malaki's sales and revenue stack up? One can of sparkling water costs ₹60, and last month, Malaki made sales of ₹42 lakhs. Their Ginger Ale range accounts for 40% of their total sales, while the tonic range and sparkling water each account for 30%. Interestingly, 90% to 95% of their sales come from Mumbai alone. In FY 20-21, Malaki's sales were ₹1.5 crores, and in FY 21-22, they rose to ₹2.7 crores. The projected sales for FY 22-23 are a staggering ₹9 crores.
Malaki's secret to success comes down to their pricing and margins. A product sold for ₹35 has a making cost and tax of ₹11, leaving a price of ₹25 for the retailer. With a gross margin of 56%, 25% of which is spent on marketing, the net margin is a healthy 13%.
With such promising figures, it's no wonder the sharks are circling. Anupam kicks off the offers with an offer of ₹50 lakhs for 5% equity, while Peyush and Aman make a combined offer of ₹50 lakhs for 3% equity. But the owners aren't easily swayed and make a counteroffer of ₹50 lakhs for 2.5% equity. After much deliberation, the final deal is closed with Peyush and Aman at ₹50 lakhs for 3% equity of the company. It's a sweet victory for Malaki, who can now look forward to expanding their reach and making a bigger splash in the beverage industry.
In conclusion, Malaki is a prime example of how passion, local ingredients, and a sound business strategy can lead to success. With a market worth millions, the future looks bright for this homegrown brand. So, the next time you're looking for a refreshing drink, why not give Malaki a try? Who knows, it might just be your new favorite beverage.
Here are some key learnings that businesses can take from Malaki's success:
- Use local resources and ingredients: Malaki's use of local ingredients and resources is a major factor in their success. It not only helps to differentiate their products from competitors but also appeals to consumers who are increasingly conscious of where their food and drinks come from. Businesses can also benefit from utilizing local resources and ingredients to create unique and sustainable products.
- Focus on quality: Malaki's commitment to quality is evident in their use of natural ingredients and their secret recipe for Spice Ginger Ale. By focusing on quality, businesses can build a loyal customer base and increase their brand value.
- Have a sound business strategy: Malaki's success is not only due to their passion for food and beverage but also their sound business strategy. They have a clear understanding of their target market, pricing strategy, and margins. Businesses should have a solid business plan and strategy in place to ensure they can sustain and grow their operations.
- Be open to investment: While Malaki's founders were initially hesitant to give up more equity, they eventually made a deal with Peyush and Aman. Being open to investment can provide businesses with the necessary capital to expand their operations and reach new markets.
- Focus on marketing: Malaki spends 25% of their gross margin on marketing, which has helped them to build their brand and increase sales. Businesses should invest in marketing to raise brand awareness, reach new customers, and ultimately increase sales.