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FMCG start-up Nilgai Foods is looking to raise about ₹50 crore to ramp up the distribution of its packaged coconut-water brand Cocofly and sauces brand PICO. The Mumbai-based firm led by Abhay Jaiswal and Arjun Gadkari is hoping to more than double its turnover to about ₹8 crore by this fiscal year.
The company introduced Cocofly this April on the retail shelves in Delhi-NCR. It had been doing trials since November 2015 by selling through institutional sales channels such as hotels and airlines. It sold its one millionth pack in August. The hot sauces and chutney brand PICO was launched in Mumbai earlier this year.
Jaiswal, co-founder and CEO, said: “Having proven the success of Cocofly in Delhi-NCR this year, our aim is to now make the product available nationally. We intend to make the product available in about 50,000-60,000 stores across the top 20 cities in the country. We have already started working on this and want to be in a strong position before the advent of the next summer.”
The company will use the same distribution network for PICO sauces as both these brands are aimed at a similar customer base. The company has already started ramping up distribution in Delhi, Mumbai, Kolkata and Pune.
“The capital we raise is primarily to create brand awareness at a national level through mass advertising so that we maximise the yield from this distribution set up,” Jaiswal added.
Coastal marketWith a few companies now trying their hands at packaged coconut water, experts believe selling it could be tricky in the Southern region considering the big coastal belt.
Jaiswal said as the company is expanding pan-India, it is working on new variants, especially keeping in mind the Southern region. “Also, it is our belief that even in coastal areas, there are quite a few consumption opportunities that can only be met using the packaged form.”
The company will also be using the funds to introduce a range of packs and SKUs (stock keeping units) in various sizes as it expands distribution, especially focussing on bigger packs. “More sizes and more price points are an integral part of our strategy,” he said.
The firm is also exploring opportunities for exports, especially for PICO.
“We are already seeing demand in Europe, Australia and Africa for PICO. Some exciting consumer contact plans are being put in place in the UK to support product availability. We are still learning and understanding more about the opportunities for Cocofly because packaged coconut water is a big hit internationally.”
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