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Jain Shikanji is a startup that was established over 64 years ago in Modinagar, Uttar Pradesh. The company's owner, Anubhab Jain, comes from a small place in Modinagar, and has continued the legacy of his family's business. Jain Shikanji is known for its unique masala made of black pepper, clove, pomegranate, and some secret spices, which make their masala different from other Shikanji drinks.
Over the years, Jain Shikanji has gained immense popularity all over north India, and has become a monopoly in the Shikanji business. Their products are available on Amazon, and the company has introduced pre-mix Shikanji powder known as Instant Jain Shikanji, as well as other products like chaat masala, chai masala, thandai masala, pickles, etc.
The aim of the startup Jain Shikanji is to become a leading brand in the Shikanji business in India. The company has been in existence for over 64 years, and during this time, it has gained immense popularity all over north India. By offering a unique blend of masala made of black pepper, clove, pomegranate, and some secret spices, Jain Shikanji has set itself apart from other Shikanji drinks in the market.
In addition to its traditional Shikanji drink, Jain Shikanji has also introduced pre-mix Shikanji powder and other products such as chaat masala, chai masala, thandai masala, pickles, etc. This diversification of product range suggests that the company aims to cater to a wide range of customer preferences and tastes.
Furthermore, Jain Shikanji has made its products available on Amazon, indicating an aim to tap into the online market and expand its customer base beyond north India. With a commitment to maintaining the brand's authenticity and legacy, Jain Shikanji aims to offer high-quality and unique products that satisfy its customers' tastes and preferences.
The Unique Selling Proposition (USP) of Jain Shikanji is its unique masala blend that sets it apart from other Shikanji drinks in the market. The masala used in Jain Shikanji comprises black pepper, clove, pomegranate, and some secret spices that create a unique taste and aroma. This special blend has become synonymous with the Jain Shikanji brand and has helped the company to establish itself as a monopoly in the Shikanji business.
Another USP of Jain Shikanji is its commitment to authenticity and legacy. The company has not changed its name since its establishment in 1957, and its masala recipe has remained the same throughout the years. This unwavering dedication to maintaining the brand's heritage and authenticity has helped to build trust and loyalty among its customers.
The business model of Jain Shikanji seems to be a product-based model with a focus on diversification, innovation, and maintaining the brand's authenticity.
Jain Shikanji's primary product is its traditional Shikanji drink, which is known for its unique masala blend made of black pepper, clove, pomegranate, and secret spices. The company has been able to create a strong brand identity based on the popularity of its Shikanji drink, which has helped to establish it as a monopoly in the market.
The startup has also diversified its product range to include pre-mix Shikanji powder, chaat masala, chai masala, thandai masala, pickles, and other products. This diversification of product range indicates an aim to cater to a wide range of customer preferences and tastes.
Jain Shikanji has also expanded its market reach by making its products available on Amazon. This move to tap into the online market has enabled the company to reach a wider audience and increase its visibility.
In terms of revenue, Jain Shikanji likely earns through the sale of its products, both offline and online. The startup may also have partnerships with distributors, retailers, or other businesses to sell its products.
Jain Shikanji generated a revenue of 25 lakhs rupees in the fiscal year 2020-2021. However, their goal was to generate a revenue of 40 to 50 lakhs rupees. It is worth noting that the COVID-19 pandemic and lockdowns have impacted the business, as their main customers are tourists who pass by their shops.
Additionally, Jain Shikanji has faced issues related to the originality of their products, as there are other shops that sell under the same name. To address this issue, the company has adopted a unique approach by inviting customers to taste their Shikanji to verify its authenticity.
The startup's valuation is 5 crore rupees, and the equity is shared between Anubhab Jain's father and elder brother, with the father holding a 50% stake, and Anubhab Jain and his brother owning the remaining 50% equity jointly.
Furthermore, the future goal of Jain Shikanji is to introduce canned Shikanji products. The company has the capacity to manufacture products that cost 3 to 4 crore rupees. This indicates that Jain Shikanji is planning to invest in new products and expansion to increase its revenue in the future.
Jain Shikanji participated in Shark Tanks India and pitched for an investment of 40 lakhs rupees for 8% equity in the company.
After hearing the pitch, Peyush and Namita were out of the deal, while Ghazal declined to invest, citing concerns about possible disputes among the equity holders.
However, Vineeta, Ashneer, Anupam, and Aman jointly made a counter offer of 40 lakhs rupees in exchange for 30% equity in Jain Shikanji. After negotiation, the deal was finalized with Aman Gupta, Vineeta, Ashneer and Anupam Mittal at a valuation of 1.33 crore rupees.
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