Manpasand Beverages

Ltd
Shivendra Madhukar Kadam – PGP10049
 ABOUT THE COMPANY

• Manpasand, a mango juice based drink marketer running since 20 years

• Turnover of about INR 700 crores in March 2017
• Large part of its sales came from its flagship 20 year old brand named Mango Sip
• Fourth largest packaged mango juice based drink manufacturer in India.
• Packaged fruit based drink market was estimated to be around INR 15,000 –
20,000 crores in 2017
• Mango drinks accounted for about INR 7,000 crores of sales
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 TIME LINE
• 1993- Dhirendra Singh real estate
• 1995- Failed due to stock crisis
• 1995-Started Tetrapack based drink out of Mumbai and sales to Varanasi
• 1999-Possible failure and 30-40 lakhs by friends
• 1999-2001- Annual Growth and 1.5 Crore average sales
• 2003- Loan from bank for 5000 package capacity
• 2003- Sales increased upto 65 crores w/o capital infusion
• 2011- SAIF private equity invested 45-50 crores
• 2011-Second plant was commissioned in Vadodara which enhanced capacity to 170,000 cases per day
• 2013-14-Manpasand’s sales turnover increased from under INR 100 crores in 2011 to about INR 350 crore
• 2015-An additional fund infusion through an IPO6 (Initial Public Offering) fetched INR 400 crores
• 2015-Step up capacity across the country with plants in Ambala, Dehradun and 10 other locations around the country.

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EXPANDING PRODUCT PORTFOLIO
• A new brand of packaged beverages under the Fruits Up brand was
introduced
• It came in three flavours – grape, orange and lemon and the final product
was meant to taste like the original soft drinks made with natural ingredients
• The Fruits Up brand was about INR 150 crores in 2016
• The company planned to foray into packaged fruit-vegetable cocktail
beverages for the upmarket segment under the brand name of Siznal

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 Founders Perspective
• Initial success to the following things that he had learnt in the trade: “1) Keep to honest
transactions and trust your partners and
2) expect nominal returns initially and control the greed for abnormal profits even if there is a dint
of such a possibility.”
• In terms of dealing with the trade he considers the following very important and
practices them:
1) Announce your trade schemes up front and make the commitment
2) 2) No rehash of trade schemes after the sales – in effect, no change in your commitment,
irrespective of the sales performance.

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 Facts
• EXPANDING BOTTLING CAPACITY

• in 2015, the management at Manpasand decided to invest in a third plant in Vadodara, along with expanding its bottling capacity in Varanasi
• small facility in Dehradun and invested in another at Ambala, Haryana to cater to the markets in Punjab, Jammu and Kashmir and Haryana
• The Manpasand sales team, in early 2017, comprised about 200 sales officers managed by a hierarchy of senior executives/managers
• In early 2017, there were 300 stockists across the country, who handled the INR 700 crore sales revenue of the company
• Year 2015 onwards and with an increased market presence, some efforts were made to create a brand identity for Mango Sip by signing up a male film celebrity
• Dhirubhai remained the focal person who took decisions on all matters, until he inducted his elder son, Abhishek (a Food Science graduate) in 2013. In four years, Abhishek took over
the role of the operational leader of the company. In early 2017, the younger son, Harshvardhan (pursuing chartered accountancy) also interned at the company
• Mango Sip, the flagship brand of the company, remained the significant revenue earner (over INR 450 crores). As of early 2017, it was available in over four lakh outlets across 20 states
of India,
• plans to grow the business to INR 1,200-1,500 crores in the next year and to about INR 5,000 crores by the year 2020.
• growth plans that Abhishek was describing, there was no doubt that established brands such as Frooti , Maaza and Slice could no longer afford to ignore their presence in the market
• Forbes magazine had also identified his company as one of the only three in their “200 Asia’s Best Under A Billion Companies” in 2017
• garage-to-great-champion“ in their list. That was all great news

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Thank you