Industry

Paper Boat maker to spend Rs.67 crore on plant, R&D

Neeraj Kakkar of Hector Beverages Pvt Ltd which makes `paper boat' brand of cool drinks

Neeraj Kakkar of Hector Beverages Pvt Ltd which makes `paper boat' brand of cool drinks   | Photo Credit: Bijoy Ghosh

Sequoia Capital-backed Hector Beverages, the makers of traditional Indian beverages under Paper Boat brand, will invest Rs.67 crore in expanding its operations in Karnataka, a top official said.

The company will invest Rs.60 crore to set up a fourth line at its manufacturing facility in Mysuru to increase the production of milk-based beverages.

A new research and development lab will come up at Whitefield in Bengaluru at a cost of Rs.7 crore.

Talking to The Hindu, Neeraj Kakkar, Co-Founder and CEO, Hector Beverages, said: “Currently, our plants are working at 80 per cent of production capacity. To meet the increasing demand for Indian ethnic drinks, we will add one more production line at our Mysuru facility.

“This is the second facility after Manesar (near Gurgaon, which can produce 80 units per minute). The new line will take the total the production capacity from 380 units per minute to 780 units per minute.”

Mr. Kakkar said in addition to the eight acres land they have in Mysuru, an additional five acres were acquired recently. The work on setting up the fourth line would start by June/July and the R&D facility by May. The company also plans to produce almond milk and coconut water from the Mysuru plant. “Last year, we raised Rs.240 crore. Part of the funds will be utilised for our expansion plans. This money will keep us going for one more year,” he said.

Hector now has 10 drinks in its kitty including Aamras, Jaljeera, Jamun Kala Khatta, Aam Panna, Kokum, Golgappe ka Paani and ice tea in two flavours.

"Our R&D team is working on developing 35 to 40 products," Mr. Kakkar said. The company has been selling eight million units per month with the top seven cities accounting for 80 per cent of sales. Paper Boat is currently sold through one lakh retail points and the company aims to double it in a year’s time.

On Wednesday, Mr. Kakkar announced the roll out of neer more and limited edition Panakam for the forthcoming Ramanavmi festival. It will be available in Bengaluru, Chennai and Hyderabad till April 20.

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Printable version | Aug 12, 2020 5:15:54 PM | https://www.thehindu.com/business/Industry/Paper-Boat-maker-to-spend-Rs.67-crore-on-plant-RampD/article14224462.ece

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