Ecconomics Times : Ahmedabad : May 30th, 2008DRINK AND DRIVEAn
all-India energy drink has taken Red Bull by its horns. Nayan Shah’s
Current flows across the country and also in Dubai, London and Africa |
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NAYAN SHAHis all charged up. And he has good reason to. After all, at 27, his 'Current' brand of energy drink is doing the rounds internationally. The Ahmedabadbased Shah vends his drink from Dubai to Delhi, London to Lucknow. In March 2006, Shah established his energy brand with production facilities in Malaysia for the sake of "superior carbonation". Today, it has logged in sales of more than 75,000 cans a month and is slated to double next month. Barely two years after the launch of Current, Shah is already looking at doubling revenues from Rs 3.5 crore (2007) to Rs 7 crore by next year. "By 2011, we will be a Rs 50-crore firm." However, the road will not be smooth since he has to reckon with the might of Red Bull, the global energy drink giant which gets maximum eyeballs from the motorsports circuit. But Shah insists he has the guts to take on Red Bull by its horns. When he started out, he launched in Ahmedabad at Rs 60 a pop against the Rs 75 Red Bull can. Today, Current seems to find a place in department stores across metros. He has already tied-up with Reliance Retail, Spencer's, Go Air, Indiabulls Retail, Food World, Pride Hotels, besides others. "The opportunities for energy drinks in India is huge," he says, adding that by 2011, he eyes a turnover of Rs 50 crore. Shah claims that Current scores over Red Bull in ethnicity and pricing. "Flavour and an Indianised taste at lesser price," Shah says confidently. He remains unfazed about major players like Pepsi and Coke. With 17% market share in the Rs 100-crore energy drink segment, his strategy aims to up the ante to 40% in the next couple of years. The market for energy drinks has been growing at a significant rate with the youth taking to it, increased spending power among professionals and changing global trends. "The young generation increasingly likes our product and this enhances our brand value," says Shah, who has tasted most of the beverages in the world and knows the ins and outs of the beverage business. Before going in for production, Shah researched his product for a year-and-a-half in major cities like Bangalore, Mumbai, Delhi and Ahmedabad. "The response was so favorable that I took no time to go for production," Shah adds. Hailing from a business family, Shah learnt his business basics from his father who owns a cable and wire business in Ahmedabad. Even Shah tried his hands for couple of months in his father's business. Also, after his management degree, he worked as marketing manager with an engineering firm in Ahmedabad. But that did not quench his thirst. So who does he think could do brand endorsement? "Don't you think I can be a perfect model for the brand?," he asks. Shah wasn't talking in the air. He has indeed done modelling assignments for a few products in Australia. Shah is quick to learn from his mistakes too. After collecting nearly Rs 5 crore with his family support, he hired a team of sales personnel and a major consultancy, just to achieve immediate visibility. All that jazz though never clicked. Then he streamlined the sales team from 62 to just 14 members and took up branding on his own. "Your people are the biggest asset to the company," Shah points out. Most of his team-members are in the 25-35 age group. Shah is looking at future businesses from hotels and supermarkets in India. He is also set to enter the juice market to cater to children as well as elders at a price between Rs 30-40. In short, Shah wants to spread the shock value of his Current across age groups.
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