Set up in the year 2003 by brothers Amit Kumat and Apoorva Kumat together with their friend Arvind Mehta, Prataap Snacks is currently a Rs 850-crore firm with 4 plants crosswise the nation and a distribution system consisted of 168 super stockists crosswise 24 states and one Union Territory and 2,900 distributors.
During early 2002, Amit met Apoorva and Arvind with the thought to sell snacks in the Indore area.
“I knew I wanted to remain an entrepreneur and was interested in the snacks market since I was familiar with all the big brands. I realised that their reach in cities like Indore was not large and that was the genesis of the idea,” said Amit.
The three originators met a local food processing & manufacturing facility and ordered 20,000 boxes of ring snacks.
“During the initial days, we outsourced the production to local contract manufacturers so that we could concentrate on building a strong distribution network as we had limited equipment or space for manufacturing,” said Amit.
Going after growth
By the year 2006, Prataap Snacks swelled its biz in the city of Mumbai.
The phase between the years 2006 to the year 2010 also witnessed the appearance of brands in the section like Haldiram’s and Balaji Wafers, two of the renowned brands at the moment.
Whilst New Delhi-headquartered Haldiram’s has expanded into a Rs 4,000-crore food and snacks giant, the Rajkot-headed Balaji Wafers possesses an income of Rs 1,500 crore.
Mr Harminder Sahni, CEO of Wazir Advisors, a retail consulting firm, stated, “In the value chain of manufacturing it is always great to create brands and India still has a long way to go to build domestic brands.”
As per Amit, the company has been vigilant to swell into one section at a time in place of eyeing the complete nation altogether.
“As a businessperson, I would tell people entering the business of food brands that it is better to test a market out before going national,” Amit added up.
By the year 2011, the firm had set up the Yellow Diamond brand, had a production facility of its own in addition to a sturdy supply chain. Its income stood at Rs 150 crore.
The firm was followed by all the private equity contestants and Amit had to say ‘no’ to one and all.
Amit’s judgment is that it is better to acquire funds when you feel safe on your firm’s prospect.
“This way you can expand on your terms,” added Amit.