Proost: Transforming the Indian Beer Market

Proost is a startup founded by Vijay P. Sharma and Tarun Bharava, who hail from Delhi, India. Sharma is a diploma engineer who has worked in various companies abroad, including UAE and Indonesia, and was a working CEO when he left his previous company. At the age of 55, he left his job to become an entrepreneur and co-founded Proost with Bharava.

Proost is an affordable beer brand that offers premium quality, low bitterness, high affordability, and high drinkability. With a market worth of 65000 crore rupees in India, the majority of which is strong beer, there are few market players in the strong beer sector. To address this issue, Proost was founded.

Apart from strong beer, Proost also offers two other varieties: light beer and wheat-crafted beer. All of the ingredients used in the beer are made in India. The company has sold 70 lakhs units of beer till date, and their beers are available at over 1800 retail stores.

Proost operates on a lease model, and they have factories in Punjab and Haryana. They recently acquired licenses for the states of Delhi, Haryana, Punjab, Uttar Pradesh, and Kerala. The company started in the year 2018-19 and has since been steadily growing.

With the addition of a new factory in Telangana, Proost is poised for even more growth in the coming years. This startup is a prime example of how entrepreneurship and boldness can lead to great success, as they work to fill a gap in the Indian beer market and offer high-quality, affordable beer to customers across the country.

Product Line up

The startup offers a diverse range of beer variants that cater to different taste preferences. As of now, the company has three variants of beer that are available in Delhi, Haryana, Uttar Pradesh, and Punjab.

The first beer on offer is the Proost White Ale, which is a Belgian wheat beer that has hints of coriander and orange. This beer is perfect for those who prefer a light and refreshing taste with a unique flavor profile.

Next is the Proost Lager, which is a mild lager beer that is thin and crisp on the palate. This beer is a great pairing for spicy Indian food and is suitable for those who enjoy a classic and straightforward beer taste.

Proost Strong is a specially curated beer that is perfect for the Indian palate. This beer is the ideal choice for those who enjoy an extra kick without the extreme bitterness. It is a crowd favorite and has gained popularity since its launch in 2019.

The latest addition to the Proost repertoire is the Domestic Strong Beer, which was launched in July 2021. The beer is manufactured domestically in Punjab and offers a strong and flavorful taste that is sure to satisfy beer enthusiasts.

Proost's beer prices range from Rs 95 to Rs 140 across various markets due to different excise policies across different states. The company spreads the word about its brand through social media platforms such as Instagram and Facebook, where they have a strong presence with the handle @?proost69. The company is also involved in hosting house party events to enable organic outreach for its beers through word of mouth, which results in more sales at retail vends.

Proost offers a unique and diverse range of beer options that cater to different tastes and preferences. The company's commitment to quality and innovation has helped it gain a strong foothold in the beer market and continue to grow in popularity.

Aim of the company

Proost aims to become a major player in the Indian beer market by providing consumers with access to high-quality, affordable beer options. They have already made strides towards this goal and are continuing to expand their reach throughout the country. The company prides itself on maintaining superior quality in every step of beer production, from choosing raw materials to packaging the product. The founders recognized that up until recently, Indian consumers only had access to sub-standard products when it came to beer. Thus, they wanted to introduce quality brews to the market.

Proost operates on a contract manufacturing model, with each variant of beer being produced in a different location. For example, Proost White Ale comes from Menen in Belgium, Proost Lager from Valencia in Spain, and Proost Strong is made in Punjab, India. The company offers three types of beer - strong, light, and wheat-crafted, with the ingredients being sourced from India.

The company has already made significant progress, with over 70 lakh units sold to date and availability in over 1800 retail stores. They operate on a lease model and have factories in Punjab and Haryana, with plans for a new factory in Telangana. Proost has acquired licenses to sell beer in several states including Delhi, Haryana, Punjab, Uttar Pradesh, and Kerala.

Sales and revenue

In the financial year 18-19, their sales were 77 lakhs rupees. However, in the following year, their sales increased dramatically to 3.21 crore rupees. This growth continued into 20-21, with sales reaching 4.2 crore rupees. In the most recent financial year, 21-22, their sales reached an impressive 7.5 crore rupees. As of now, their sales for the current year have already surpassed 12 crore rupees.

It's worth noting that the MRP (Maximum Retail Price) of their products varies between different states due to differences in excise duty. For example, in Delhi, the MRP of a can is 100 rupees, of which 45 rupees is excise duty, 33 rupees is the cost of goods sold (COGS), and 22 rupees is gross profit.

Despite their impressive sales growth, Proost is still a loss-making company due to many fixed costs. They will only begin to make a profit once they increase their production. However, they have already raised 2.7 crore rupees at a post-money valuation of 16.66 crore rupees in December 2021. Additionally, they plan to have another fundraising round of 16 crores at a valuation of 133 crores.

Journey on Shark Tanks India

Startup that aimed to revolutionize the beverage industry with their innovative products, recently sought funding to grow their business. The owner requested a significant investment of 1 crore rupees in exchange for a mere 0.75% equity in the company.

Despite their ambitious goals, none of the investors on the show showed interest in the deal. They felt that the equity stake being offered was too low for the amount of money being requested, and they also noted that the company already had two funders.

As a result, no deal was finalized with any of the sharks. While this may be disappointing for the Proost team, it's important to remember that funding isn't the only way to achieve success in the business world. With hard work and perseverance, the Proost team can continue to grow their business and innovate in the beverage industry. They can also continue to seek out other potential investors who may be more interested in their product and business model.