Vahdam India, the renowned homegrown tea brand, has opened its first experience store in Delhi. Covering an area of 500 square feet, this tea room offers a diverse range of teas, as well as a selection of drinkware, accessories, gift items, and assortments, as highlighted by Bala Sarda, the Founder and CEO of Vahdam India.
The store’s initial CAPEX amounted to INR 30-40 lakh, and it is anticipated to achieve EBITDA positivity within the next 3 months. Projections indicate that the brand will be able to recoup its return on investments within a span of 10-12 months.
“Being a digitally native brand, this strategic move aligns with our omnichannel strategy and global expansion plans and capitalizes on the rising demand for premium tea and wellness products in India,” he said.
Going ahead, the brand will expand its footprint by opening experience centers in metropolitan and Tier I cities, strategically choosing locations in both malls and high streets. These upcoming stores will have an average size of 800 square feet.
Talking about expanding the offline presence further, Sarda said, “We have not put in any target as such. After tasting the success of our first experience stores, we will be replicating this in India as well as globally.”
The brand is known for its distinctive approach to sourcing premium teas and spices directly from India’s finest gardens, bypassing middlemen and obtaining them directly from the source.
Recently, Vahdam also made a significant entry into the spices category, presenting a selection of 25 single-origin spices designed specifically to cater to the US market.
“This fiscal, we expect spices to contribute 10-15 per cent of our revenue,” he stated.
The brand boasts an extensive presence, with its products available in over 6,000 retail outlets throughout the United States. These include renowned names such as CVS, Wegmans Market, Sprouts Farmers Market, Gelson’s Market, and Erewhon Markets. Additionally, Vahdam’s offerings can be found in more than 250 retail stores across Canada, which includes popular destinations like Healthy Planet and Nature’s Source. Moreover, the brand has penetrated over 500 stores in the United Kingdom.
“At present, 95 per cent of the revenue of the brand is contributed by the global markets and the remaining 5 per ent comes from India,” he said.
The brand, which concluded the previous fiscal year with revenue exceeding INR 200 crore, anticipates closing the current fiscal year with revenues ranging between INR 260 crore to INR 280 crore.
“Our key goal going ahead is to achieve high level of EBITDA profitability. We were net profitable till recently, however, due to supply chain challenges due to war, increasing fuel prices and recession in the globals markets, our profits got impacted,” he said.
The tea brand has set its sights on achieving a revenue milestone of INR 500 crore within the next three years.