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Aqua Peya at Shark Tank India

1/21/2025

Aqua Peya at Shark Tank: A Journey from Distribution to Beverage Manufacturing

Introduction

Aqua Peya, founded by brothers Ravi Rajesh Mundada and Tushar Rajesh Mundada, is a rising name in the packaged beverage industry. The duo left a settled distribution business of 15 years to establish Aqua Peya in 2018. With a strong foothold in the mineral water market, they have diversified into ready-to-drink beverages, operating from their state-of-the-art 40,000 sq. ft. manufacturing facility in Kavalapur, Maharashtra.

Key Highlights

  • Retail Presence: 9,700 outlets.
  • Channel Partners: 90+.
  • Daily Customers Served: 50,000.
  • Website: www.aquapeya.com.

Product Portfolio

  1. Mineral Water Bottles (75% of sales).
  2. Jeera Soda (13% of sales).
  3. Mango Drinks (7% of sales).
  4. Other Beverages (5% of sales).

Price Breakdown for Water Bottles:

  • Retail Price: ₹20.
  • Price to Dealer: ₹6.5.
  • Operating Profit per Bottle: ₹1.25.

Financial Overview

  • CapEx for Manufacturing Unit: ₹3 Cr (partially financed by a ₹1.5 Cr loan against property).
  • Annual Sales:
    • FY23-24: ₹9 Cr.
    • FY24-25 (till Sep): ₹4.5 Cr.
    • FY24-25 (Projected): ₹12 Cr.
  • EBITDA Margins:
    • FY22-23: 7.8%.
    • FY23-24: 16%.
    • FY24-25 (Projected): 18%.
  • Profit Before Tax (PBT): 5%.

Shark Tank Pitch

Ask: ₹70 Lakhs for 2% equity (₹35 Cr valuation).

Challenges Raised by Sharks:

  1. Anupam Mittal: Highlighted that the water business is a commodity-driven market.
  2. Peyush Bansal: Pointed out the need to focus on branding.
  3. Namita Thapar: Questioned scalability but appreciated the founders' margins.
  4. Aman Gupta: Concerned about the long-term potential of the business.

Offers from the Sharks

  1. Namita Thapar: ₹70 Lakh for 3% equity + 2% royalty until ₹70 Lakh is recouped.
  2. Ritesh Agarwal: ₹70 Lakh for 3% equity with a vision for co-branding Aqua Peya with OYO.
  3. Final Deal:
    • Sharks: Namita Thapar and Ritesh Agarwal.
    • Equity: 3%.
    • Royalty: 1% until ₹70 Lakh is recouped.
    • Investment: ₹70 Lakh.

Shark Insights

  • Namita Thapar: Praised the strong margins and scalability potential but stressed the need for a national brand strategy.
  • Ritesh Agarwal: Suggested co-branding opportunities with OYO, leveraging Aqua Peya's products in OYO hotels.
  • Anupam Mittal: Criticized the current model as regional and tactic-driven, unsuitable for national scaling.
  • Peyush Bansal: Emphasized that the business must become brand-first.
  • Aman Gupta: Opted out due to concerns about long-term business viability.

Conclusion

Aqua Peya's journey reflects the determination and entrepreneurial spirit of the Mundada brothers. From serving 50,000 bottles daily to gaining a deal on Shark Tank, the company is poised to expand its reach. With Namita Thapar and Ritesh Agarwal as partners, Aqua Peya aims to become a national brand while retaining its local charm and operational excellence.

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