Tushar and Ravi Mundada, founders of Aquapeya, recently revealed their unique business strategy by pitching their business idea on Season 4 of Shark Tank.
The duo, which has been operating within the FMCG industry since 2007, has built its strategy based on an unusual but easy philosophy: “The consumer is not the king. The channel partner is king.”
The two strengthened their relationships with dealers and retailers somewhat than following consumer preferences by ensuring that the individuals who passed on their product were motivated, engaged and profitable.
“Shark Tank India wasn’t just about funding. It was an entrepreneurship education that provided knowledge beyond financial support,” Tushar said, talking concerning the brand’s visibility on national television.
With the support of the platform, Aquapeya is now poised to extend its production capability by 50% at its existing facility by 2025. The aim is to scale up operations and achieve a revenue goal of Rs 20 crore.
“We are talking about market trends,” he said, defending his strategy in investor debates. With products consisting of 75% water, 13% Jeera carbonated drink, 7% mango juice and just 2% carbonated beverage, Tushar’s clear focus on consumer preferences has increased profitability from day one. The company closed FY24 at Rs 9 crore and with an EBITDA of 16%, the brand is targeting to achieve Rs 12 crore in FY25.
The founders told the judges that bottles sell for Rs 20 and the dealer price is Rs 6.50, leaving a 20% margin and an operating profit of Rs 1.25 per unit. However, the brand’s approach has sparked intense debate.
Piyush criticized the pitchers, saying, “You are a copy of the brand,” arguing that the business can’t be profitable.
“The company’s pan-India distribution expertise needs to be copied and pasted,” argued Namita Thapar, highlighting the strength of Aquapeya’s model. Thapar also emphasized that the packaging of their products is very just like the packaging of products previously available available in the market. “Aapka toh pura ka pura copy kiya hai, itna kyu copy kiya?”
One of the founders explained that they didn’t see themselves as such. “We follow customer trends,” he said, discussing color-coding strategies.
The company began with a modest Rs 30 lakh monthly revenue and a network of 25 dealers. Today, it generates monthly revenues of Rs 1 crore, supported by 90 dealers and around 10,000 stores. Despite setbacks comparable to the COVID-19 pandemic that cost the corporate significant sales during summer seasons, Aquapeya is reported to have maintained an annual growth rate of 20-25% by way of volume.
Tushar attributes his success to his focus on constructing long-term relationships with trading partners. “Our growth is a direct results of the trust now we have built with our partners. They stood by us in difficult times and we focused on ensuring sustainable development,” he said.