Yogic deck v1.0

Yogic deck v1.0
Creating a lifestyle nutrition Indian FMCG brand October 2017 CONFIDENTIAL AND PROPRIETARY Any use of this material without specific permission of Helico Foodlabs Pvt Ltd is strictly prohibited
Indian market has limited nutrition fortified lifestyle F&B brands Traditional FMCG Ready to eat & ready to drink products Supplements: Powder, capsule, tablets Nutritional positioning Products only focus on taste & Price Products only focus on nutrition Balance between nutrition & taste Lifestyle positioning + = Fortified Food & BeverageDietary supplements Quick and convenient nutrition Protein bars, chips & shakes, Vitamin drinks No established lifestyle brands with nutritional positioning
Point of inflection for rising health consciousness is near and it would pay off to be an early mover Individual Health insurance CAGR 22% Health FMCG increasing shelf space CAGR 18% All-‐time high growth rate Deficiency of vitamins like D, B12 due to busy lifestyle 80% Urban people Rise in lifestyle diseases 30% Urban people Gym & Fitness centers CAGR 24% 50 Million health app downloads
YOGIC brings quick and effective nutrition through lifestyle options Functional Ingredients Fortification Honey, Milk, Fruit pulps, Dry Fruits, Chia seeds Proteins, Vitamins, Minerals, Dietary Fibers, Omega 3
We are targeting Nutraceutical segment in FMCG which is a $ 4 Billion opportunity in India and growing at a healthy rate of 20% Nutraceutical Dietary supplements Vitamins & Minerals Herbal extracts Ayurvedic/Plant extracts (Cinnamon/Tulsi/Spirulina) Protein Supplements Functional Food and beverage Functional Food Omega Fatty acid, probiotic fortified food Functional Beverage Energy Drink/ Fortified drinks/ Probiotic drink Our focus Niche, Underserved & rapidly growing $ 4 Billion $ 1 Billion $ 3 Billion $ 2.7 Billion $ 300 Million Indian Beverage market is highly underserved. Growing at a CAGR of 20% Source: PwC-‐FICCI report Winds of change: the wellness consumer
Global market of functional beverage and functional food is almost equal, indicating that functional beverage market in India is highly underserved Source: Frost and Sullivan -‐ Functional beverage industry: Trends, challenges and developments 33% 36% 31% Nutraceutical market share (Global) -‐ $ 190 Billion Functional Food Functional Beverages Dietary supplements Functional Beverages 67% 8% 25% Nutraceutical market share (India) -‐ $ 4 Billion Functional Food Functional Beverages Dietary supplements Huge room of growth in functional beverage market in India
Key brands in Nutraceutical segment Malt based powders Herbal brands Yoghurt brands Nutrition bars Cereal brands Energy drinks Dairy based drinks Fruit juices There are very few established brands in functional beverage segment, particularly dairy based Cadbury Horlicks Complan Boost Dabur Patanjali Yakult Nestle Danone Rite Bite Yoga Bar Kellogs General Mills Gatorade Red Bull Real Tropicana Milo ZaGo Our starting pointRecently launched RAW Epigamia
Decoding nutritional aspects of our initial product: Nutrition Milkshakes Milk Honey & Stevia Flavor profiling Secret Ingredients Natural fibers Fortification • No refined sugar • No Artificial sweetener • Slim milk. ~ 0% FAT • 21 Vitamins & Minerals • 20 gm protein • Natural cocoa & fruit pulp • No Artificial flavors and colors • Natural fibers to aid digestion • No preservatives Multiple trials have been taken through experienced food technologists with various brands & variants for all major ingredients to come up with optimum profile for taste, texture (mouthfeel), product stability & aroma MRP: INR 100 MRP: INR 60 Shelf Life: 3 Months Ambient product
Structured changes in point of sale are solving problem of accessibility of mass premium FMCG products Primary channels Modern Retail E-‐commerce Amazon, BigBasket, Grofers Organized pharmacies Convenience stores Secondary channels Corporate cafeteria Hotels, Airports, Airlines Leisure Cafes Gym and fitness centers • By 2020, Modern Trade would command 18% of $700 Bn grocery market • By 2020, e-‐grocery market would be $10 Bn • Existing mom & pop upgrading themselves • Increased investments in organized stores like J-‐mart, easy day, Safal Channels for inducing trials and customer acquisition
Projected Q-‐o-‐Q unit economics for first 2 years and at steady state Operating margin = MRP – Distribution – COGS Contribution margin = Operating margin – Marketing & Sales Distribution = Distributor margin + Retailer margin + Logistics + Warehousing + Returns COGS = Cost of raw materials + processing + packaging + wastage Marketing = Sales agents + promoters + Branding + Design + digital ads + communications 40% 40% 38% 38% 35% 35% 34% 33% 87% 77% 64% 62% 55% 53% 48% 45% 86% 63% 46% 39% 33% 28% 26% 24% -‐27% -‐17% -‐2% 0% 10% 12% 18% 22% -‐113% -‐80% -‐48% -‐39% -‐23% -‐16% -‐8% -‐2% -‐120% -‐100% -‐80% -‐60% -‐40% -‐20% 0% 20% 40% 0% 50% 100% 150% 200% 250% Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q-‐o-‐Q Unit margins (as % of MRP) COGS Distribution Marketing & Sales Operating margin Contribution margin Operational breakeven at the end of 1st year 28% 35% 15% At steady state Lower COGS due to technology upgradation and economies of scale 22% contribution margin Considering industry standards for distributor and retailer margins and marketing spent
Appropriation of seed fund and target revenue Total GMV ~ 2.9 Cr Trade margin ~ 0.9 Cr Total Revenue ~ 2 Cr Total Expenses ~ 4.7 Cr Net burn ~ 3.1 Cr Fund required (with 10% buffer) ~ 3.4 Cr ($0.5 Million) Monthly revenue rate (after the end of 24 months) ~ 21 Lakhs 10 15 8 42 99 56 86 114 59 14 0 20 40 60 80 100 120 Packaging innovation Supermarket listing fee Legal & statutory Working capital COGS Distribution, Logistics & returns Marketing & sales Admin & HR Product Development Taxes Utilization of seed fund over 2 years (in INR Lakhs) Looking to raise $500,000 for 2 years to achieve a monthly revenue rate of 21 Lakhs
Inorganic growth boosters in future with higher volumes Technology Upgradation R&D tie-‐ups Digital branding Aseptic technology will significantly bring down the packaging and processing cost; Also improving the product quality Feasible only at very high volumes Strategic tie-‐ups with non-‐ competing pharma companies for detail R&D and higher credibility Focus on building digital brand to get better customer insights & consumption behavior
Future product roadmap: Ready to Eat/Drink Multiple flavor development in existing product line Ayurveda & Herbal variants in existing product line New product lines • Fortified Yoghurt Smoothies • Fortified Green Tea • Fortified Fruit Juices Launching women and kids specific products / brand
Team Vaishnav Gupta Naman Lahoty IIT Bombay 2012 IIT Bombay 2012 Previous: Marketing and growth head at DoorMint Previous: Co-‐founder and COO at DoorMint Marketing, Branding, Sales Supply chain, Product development CEO COO Know each other from past 13 years
Thank You Coordinates: Vaishnav Gupta +91 91676 37049 vaishnav@helicofoods.com Naman Lahoty +91 97692 53205 naman@helicofoods.com
Appendix Data from credible reports substantiating functional beverage as a good market opportunity
Functional Beverages (particularly Dairy) driving the Nutraceutical market growth Dairy as a major growth area; particularly in India
Major reasons for rise in functional beverage category
Categorization of nutraceutical market Reason why fortified Milkshake is a good starting point
Consumer categorization in health and wellness space
Health life stage Implications for brands Health and Wellness brands needs to target each category of consumers differently
40% 19% 29% 12% Dietary supplement % Share 2015 Vitamins & Minerals Herbal Protein & Dietic Chyawanprash 15% 20% 55% 10% Functional beverages % SHARE 2015 Sports Energy Enhanced Others Product share in functional beverages and dietary supplements in India

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