The FMCG sector, the larger segment which includes CPG sector, has a very strong potential in India. The segment’s market value is estimated at about 50 Billion USD and growing strongly at about 7-10%. The country, with its young population, growing income levels and increased spending, presents a unique opportunity for CPG start-ups. Much like the Health & Wellness that has seen many successful start-ups without a single-brand consolidation, the rest of the CPG space also offers chances for businesses to flourish.
Munching on the sector, Haldiram’s one of the fastest growing brand in India and internationally has invested in integrated incubator Venture Catalysts. With this partnership, Venture Catalysts aims to boost its overall understanding and facilitation of start-ups in this sector. The Consumer Packaged Goods sector, comprising goods consumed every day by the average consumer, has shown significant growth potential in the Indian market, and the current association aims to utilize this opportunity.
Venture Catalysts aims to leverage Haldiram’s expertise to intricately evaluate its investments in the CPG sector and achieve – a much stronger foothold in evaluation, industry relevant mentoring, identifying market opportunities, and developing better consumer understanding in the CPG space.
Haldiram’s began its journey in 1937, when starting a business was not a ‘trend’ but an extremely difficult, highly uncertain step. Today, it has become one of India’s most recognized and loved brand whose success is a benchmark for other businesses. The core responsibility of Venture Catalysts continues to be the development of start-up eco-system in India, which will be further empowered by Haldiram’s experience of building strong brands.
While Haldiram’s investment amount in VCats is confidential, but the funds have already been strategically allocated to strengthen the team, processes and presence of VCats to ensure the creation of an ecosystem built to suit the needs of the CPG industry.
“The collaborative model is highly customized and will vary from start-up to start-up depending on what the requirement is for all the teams involved. There can be various companies wherein Haldiram’s could even be interested in taking a lead investment in the start-up and hence a far deeper engagement and association with the founders to guide them through the journey as well, resulting in a win-win situation for all the stakeholders involved,” shared the statement.
“Over a course of more than eight decades with over 400 products, Haldiram’s has established its position as a leader, risk-taker and quality seeker in the industry. We have always strived to focus on identifying market opportunities and make the best use of them through product diversification and listening to the consumer intently. We want to share the knowledge acquired over the years and contribute to the burgeoning start-up ecosystem in the country,” shared one of the spokesperson at Haldiram’s.
Commenting on the association, Anuj Golecha, Co-Founder, Venture Catalysts said, “The association with Haldiram’s gives start-ups in our CPG portfolio an immense boost. The success and reputation of the brand in the sector is known to everyone and its business principles and product quality serve as a benchmark for potential entrepreneurs in the sector.”
VCats is already one of the largest early stage Incubators across Asia and is now planning to step this up with a stronger global foot print, having recently entered the UK market as well. Post this collaboration, it plans to invest in 10-15 relevant CPG start-ups in the next 12-24 months and build strong start-up stories such as men’s grooming brand Beardo, female hygiene start-up PeeSafe and India’s first herbal energy shot drink FYRE.
“The alliance with Haldiram’s sets a benchmark for other enterprises to enter into active collaborations that look to empower the start-up ecosystem. The Haldiram’s growth story and the way in which they have built an empire from the ground-up, and this is the ideal example that we want to set for the enterprises that are a part of the VCats set-up right now,” added Dr. Apoorv Ranjan Sharma, Founder, Venture Catalysts.