Oct 20, 2020
Raw Pressery, known for its premium cold-pressed juices, is planning to either divesting stake or getting on board a strategic investor for its juices division. And now it is in talks with multiple packaged consumer goods firms, including ITC and the Paper Boat brand. The sale is being valued anywhere between Rs. 150 and Rs. 200 crores.
Raw Pressery had raised over Rs. 200 crore in equity and debt from a clutch of funds including Alteria Capital, Sequoia Capital, Saama Capital, and DSG Consumer Partners two years ago. But it is now facing glitches as consumers in key urban markets down trade and opts for cheaper juices.
The premium, healthy beverages start-up, which started selling high-end packaged juices and smoothies in 2013 had planned to diversify to other newer categories including fresh foods, but hasn’t been able to achieve scale in the new businesses.
The juice company could scale operations and share can be gained if it makes big in the in-home consumption basket. So far, it hasn’t been able to crack that space and has remained a niche premium player.
For ITC, India’s third-largest listed packaged foods company which crossed Rs. 10,000 crore in sales in 2019-20, a premium juices brand fits into its stated objective to build a diversified FMCG portfolio, reducing dependence on its flagship cigarettes business. ITC’s juice brand B Natural operates in the mass-premium segment and competes with Dabur’s Real and PepsiCo’s Tropicana. And a potential buyout will give ITC a footprint in the premium, healthy juices space, which it can leverage through its hotels business.
Hector Beverages, which makes Paper Boat juices, and which has banked on ethnic fruit-based drinks is another contender for the business.