Paperboat Case

In August 2013, the functional beverage company Hector Beverages Pvt. Ltd. Launched a line for the ethnic Indian drink, Paperboat and eversince they are flying offshelfs. Six months ago they were selling a million packs a month, now they sell close to two million. Paperboat is sold in twenty thousand retail outlets including local airlines Indigo and Jet Airways. Most recently Paperboat drinks found in a brands new online shop.

With growing demand the company is having a hard time keeping up. This factory in Manesar, Haryana makes 80 bottles per minute. And despite running 24X7 it still can’t meet the demand fast enough. As a result the company has opened a new facility in Mysore in March 2015. The new factory has a capacity to produce 220 bottles per minute.

Neeraj Kakkar, one of the co-founders of the company, says the challenges are scaling up exponentially for the huge demand.

Procuring raw materials is one of the most unique scaling up struggles for the company.

Functional beverage sector is one of the fastest growing industries in the world with a growth rate of 30%. And Hector Beverages is backed by Sequoia Capital and other big venture funds plans to guzzle a big chunk of India’s 800 crore beverage market.

Paperboat is brand with simple promise, bringing back childhood memories, with the authentic taste of tradition Indian drinks. Paperboat drinks are made with natural ingredients – without preservatives, added colors or artificial flavours.

Its authentic taste makes every sip a walked out memory lane, this is what guided us in the social media too by taking people back to their childhood. We brought back to life, games long forgotten, silly pranks that got us into trouble and everything in between. And thus our product gained momentum. The fan base grew rapidly. Consumer generated engagement was arguably among the highest beverage pages worldwide.

Independent reviewers took time to give us feedbacks and recommended the drinks as well. But campaigns turns users who has not tasted paperboats into avid fans. Now isn’t that a thought worth cherishing!!!

Introduction: Paperboat is a brand with a simple promise, bringing back childhood memories, with the authentic taste of traditional Indian drinks. Paperboat drinks are made with natural ingredients – without preservatives, with no added colors or artificial flavours.

Product intro: So far the paperboat roaster consist of aam ras, aam panna, Jal jeera, Kokum, jamun kala khatta, imli ka amlana and golgappe ka pani. Sattu and rasam are the latest to be added in the list. A while ago, Hector beverages also launched tulsi and ginger lemon ice.

Wal: Now we will see how the product paperboat made miles away from the shop, shipped around the world, stored in a warehouse, then moves on to the shelves of the stores.

Raw material: (Voice over for 45 seconds) Raw materials are procured from various parts of India. Mangoes are collected from belgaum and chittur markets. Kokums are procure from Maharashtra.

Hector Beverages procures the raw materials like different kind of fruit pulps from ISO 22000 certified vendors only spread across the country. The vendors generally acquire high grade fruits with A++ grade from places namely azadpur, belgaum, chittor and tea from Karnatak.