Gurgaon-based Hector Beverages Pvt Ltd, which manufactures soft drinks and beverages under the Paper Boat brand, has recently raised Rs 183 crore ($29 million) in Series C round led by Belgium-based investment company Sofina and China’s Hillhouse Capital.
Existing investors Sequoia Capital and Infosys co-founder N R Narayana Murthy’s private investment arm Catamaran Investments Pvt Ltd also participated in the round,according to the company’s statement.
The company is now valued around $100 million.The company is planning to use the latest round of funds on scaling its presence across the country, to introduce new flavours, setting up a new manufacturing facility and extending ongoing marketing initiatives.
“In the last couple of quarters, we have witnessed a significant buy-in for our products and with this fund raise we have a competitive advantage and are ideally positioned to leverage this momentum,” Neeraj Kakkar, CEO and founder of Hector Beverages said.
The company currently operates through two manufacturing units located in Manesar, near Delhi and a recently launched (March 2015) plant in Mysuru, Karnataka. With these two units, the company has the capacity to produce 10 million single-serving packs a day.
This third unit in line is well in sync with company’s aggressive growth plans. “We need to extend our retail reach as fast as possible but logically. From about 15,000 retail touch points, we are aiming to cover about 50,000 by the end of the year,” Kakkar added.
Apart from these, the brand is also looking at allocating a sizeable amount of funds and time in hiring the best FMCG talent in India, the company said.
Hector Beverages, which entered the beverages market with energy drink under the brand Tzinga, launched Paper Boat in 2013 which is available in nine variants, including Aamras, Jaljeera, Jamun Kala Khatta, Aam Panna, Kokum, Golgappe Ka Pani, Chilled Rasam, Ice Tea in two flavours: Ginger Lemon and Tulsi. It essentially positions itself as an ethnic soft beverages brand.