Ecconomics Times : Ahmedabad : June 13th, 2006

Red Bull may soon get a black eye

Mansi Bhatt AHMEDABAD

 

 
 

 

few years back when Nayan Shah went to Australia to study management, he had hardly imagined that one day, he would start an enterprise, not the least about producing adrenalin-pumping energy drinks and taking the bull in the business by the horns.
In 2002, after doing his MBA in marketing, Nayan returned to his home-town Ahmedabad, where he joined an engineering firm as a marketing manager. But his quest to start a business of his own, like his father, made him kick his marketing job and launch Energy Beverages Pvt Ltd jointly with his then employer Uday Patel. And now, he is all geared up to give a tough run to the international players like Red Bull. If Red Bull is priced at around Rs 75, EBPL’s Current is priced at Rs 60.
While Shah found his Rs 30-crore family business of cables and wires drab, he saw a lot of potential in the energy drink segment. But the journey is not expected to be easy for Shah who started commercial production of his new drink only in April, as the health drink segment has caught the attention of several national FMCG and pharma players.
Shah, however, has adopted a strategy to counter existing and upcoming competition. While his firm Energy Beverages owns the brand, the product is sourced and packed in cans in Malaysia and then imported. In India, the focus would be on brand building and marketing. Shah says 40% of his investments is kept aside for marketing. He is even toying with the idea of a celebrity endorsement.


Shah has himself modelled for products, especially branded garments, in Mumbai.
He claims his is the first Indian company which is manufacturing an energy drink. Shah, who has so far reached out to the markets of Ahmedabad and Surat, plans to launch his product in Mumbai, Delhi, Bangalore, Goa, Hyderabad, Pune and many other cities by December, 2006. The company aims to attain a turnover of Rs 50 crore in the next three years. At present, EBPL manufactures close to 2,25,000 units a month and has plans to take the production to 12 lakh units by 2006-07. “After a successful launch in the Indian market, we are mulling setting up a plant in India to cut costs,” Shah said.


Energy Beverages is now planning to launch a fibre drink. “Many in India suffer from digestive problems in their 30’s. So we soon plan to come up with a fibre drink,” he said.


CURRENT AFFAIRS Nayan Shah plans roll out of his energy drink which will be priced at Rs 60, Rs 15 lower than Red Bull