A snapshot of business news this week
Hector Beverages raises over Rs. 180 crore in fresh round of funding
Hector Beverages, the makers of traditional Indian fruit drinks under the brand name “Paper Boat” has raised to the tune of about Rs. 183 crore in funding, led by foreign investors Sofina (Belgium) and Hillhouse Capital (China). Other major investors include Sequoia Capital and Catamaran Ventures. Hector, currently valued at Rs. 400 – 500 crore has raised Rs. 250 crore so far, since its inception in 2010. The funds will be used to increase manufacturing capacity, hiring people, increasing distribution as well as to launch a television campaign for the products. Sofina invested over Rs. 63 crore in Hector, while Hillhouse Capital invested over Rs. 44 crore. Sequoia invested around Rs. 50 crore, while Catamaran, around Rs. 25 crore. Hector currently has two factories, one in Manesar (Haryana) and the other in Mysore, with a combined manufacturing capacity of 10 million units a month. The company’s coming up with another factory in Mysore in the later part of this year, with a capacity of 8 million units a month. A few months back, Hector established a partnership with Indo Nissin in a bid to penetrate the small towns and rural areas of India through over 30,000 retail outlets. The company also exports “Paper Boat” to the US, Malaysia & Dubai, and also has online sales. Although figures are not available for the current financial year, during 2013-14, Hector’s revenue increased by a staggering ~43% to ~Rs. 16 crore. Thus, Hector Beverages looks to be entering the big times in the near future.
Investments in food processing sector for Chhattisgarh
Chhattisgarh is attracting investment in the food processing sector. Investors are interested in setting up food processing units in this tribal state. The state government has given assurance that the food processing units will not be affected by the naxalite movement in the state, which is largely confined to some pockets in the outer districts. The state has a very good financial management system, and is in a position to offer the best incentive packages to investors in the food processing and agricultural sectors. With three mega food parks coming up in the state; ample land being available, which will be leased to the investors; coupled with a power surplus that is planned to be increased to 1 lakh mega-watts, things are looking bright for the state.
CybizCorp plans to raise $ 20 million for scaling-up its burger business
CybizCorp is the exclusive Indian franchisee of Carl’s Jr. burger chain, based in California, USA, which is looking to raise $ 20 million to scale-up its business. It has already raised $ 2 million from private equity investors like NOW Foods, which is based in Delhi. India’s first Carl’s Jr. store is slated to be launched in Delhi within the next couple of months, with plans to expand to approximately 100 stores over a period of 5-7 years. Its exclusive products include hand-breaded chicken, chargrilled burgers, and hand-scooped shakes. Carl’s Jr. burgers will however be more expensive than McDonald’s burgers, since the company is looking to occupy the space between the fine dining and quick service restaurants. Carl’s Jr. is being set up by Cybiz BrightStar Restaurants, which is a subsidiary of CybizCorp.
India to get $ 250 million investment from the US giant, Blumberg Grain
Blumberg Grain, a US-based food storage technology company will be entering the Indian market over the next 5 years with an investment of $ 250 million. Currently visiting India to look for land and marketing opportunities, the company is looking to establish a manufacturing unit for scientific warehouse components. It aims to create modern food storage and warehouse facilities in India, with the help of government and private players. After finalizing the site, the manufacturing plant will be established and will become operational within a year’s time. The unit is likely to create approximately 1000 jobs in the locality.