Most of us remember panakam , the jaggery-sweet drink with the zing of ginger, that quenched our summer thirst. Popular in south Indian homes, it is one of the many childhood memories slowly fading away.

Not so for Paper Boat, a beverage brand that has made traditional drinks a preserve of its own. Panakam will be on the shop shelves for the next couple of weeks in Tamil Nadu, and will be back next summer about this time during the Rama Navami pooja season.

Novel approach

This is part of a novel approach by Bengaluru-based Hector Beverages, which sells the Paper Boat brand of drinks, to offer seasonal region-specific drinks.

For three weeks last month, the company sold thandai, an almond-flavoured milk drink in Delhi during Holi. Soon it will be the turn of sherbet during Ramzan and Kachi Lassi for Baisakhi.

Neeraj Kakkar, CEO of Hector Beverages, told BusinessLine that the idea is an extension of its niche play in traditional beverages. Paper Boat had started out with aamras,jaljeera and kokum , which are available through the year. So the company decided to go local without worrying about market size. But the challenge is huge for a segment where big volumes are critical.

Logistics challenge

For Paper Boat, the challenge of logistics is “nightmarish”, says Kakkar. Getting the packaging ready on time, perfecting the recipe to get it as close as possible to “what mother makes at home” and getting it to the shop shelves on time for a few weeks can be daunting.

Selling thandai during the festival season taught them what they were up against, says Kakkar.

Paper Boat now offers 12 drinks, including the new ones. The plan is to offer at least 20, including eight that are available all-year around and 12 during specific times.

The company, which is growing 100 per cent year-on-year, raised ₹240 crore through private equity and is planning additional capital expenditure — about ₹50 crore at its Mysuru plant. It has one more facility in Manesar.

The next major product launch will feature coconut water. “We need to be excellent,” Kakkar says. The company is planning to invest an additional ₹60 crore for this project.

Paper Boat’s products are typically sold for ₹30-40 for a pack of 250 ml.

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