As temperatures rise nationwide, so does the demand for refreshing beverages and snacks. Beverage companies anticipate a lucrative season ahead, as consumers crave icy lemonades, fizzy sodas, and fruit smoothies to beat the heat. Coimbatore-based TABP Snacks and Beverages is ready to seize this opportunity amid escalating competition.

The brand’s unique selling proposition lies in its snacks and beverages priced at INR 5 and INR 10. And its commitment to catering to the needs of the “bottom of the pyramid” segment, a philosophy deeply ingrained in the company’s ethos.

Prabhu Gandhikumar, affectionately known as Prabhu, the visionary behind the company, shared insights into the innovative strategies propelling his company’s success in this fiercely competitive market.

Prabhu highlighted the significant surge in demand, attributing it to the booming snacking business and the favorable response to TABP’s innovative beverage offerings. “So last six months have been very exciting. The extended summer season in the southern part of the country, due to reduced rainfall, contributed to robust sales,” he said.

Known for affordable pricing, last year, TABP launched lemon salt beverage for just INR 10 has been clocking great results. “This unique product has garnered excellent feedback and high rates of repeat purchases nationwide. Initially launched in Kerala last year, its success prompted expansion into Tamil Nadu, Andhra Pradesh, and Karnataka, where it continues to receive positive reception,” he said.

In addition to the lemon salt beverage, another TABP offering gaining traction is an energy drink priced at INR 10. Particularly popular among individuals needing a caffeine boost in hot weather such as rickshaw drivers, cab drivers, and service industry workers, it offers a convenient alternative to tea or coffee. Moreover, TABP’s entry into the water segment has also been successful, filling a crucial gap in the market with its competitively priced offerings.

“Overall, the past several months have seen exciting product debuts and expansions, driven by a keen understanding of customer demands and a commitment to provide affordable, high-quality beverages. And because our distribution is designed to deliver liquid-heavy products, we’ve been able to efficiently penetrate this market,” he said.

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Further to their commitment to affordable snacks, Prabhu highlighted their success story on the snacks front, especially TABP’s veg biryani. “It’s performing exceptionally well. Currently, nearly 40% of our sales are attributed to our vegetarian biryani, a unique flavor that sets us apart from other MNCs and competitors,” he said.

Even during the off-season, TABP remains committed to R&D for affordable quality snacks. Their upcoming projects include INR 5 ‘Podi Idly’, ready-to-eat noodles, and packaged bhel, offering convenience and flavor.

“Our focus in snacks lies in replicating the emotion of staple foods like bhel, podi idlis, and biryanis, which are beloved by people at the bottom of the socioeconomic pyramid. Through extensive R&D, we aim to transform these traditionally unpackaged and labor-intensive dishes into affordable, packaged snacks priced at INR 5 and INR 10,” he explained.

Prabhu delved into the rationale behind TABP’s product portfolio, emphasizing the focus on affordability and accessibility. Despite stiff competition from industry giants, he outlined TABP’s unique selling proposition, highlighting the magic price point of 10 rupees that resonates with price-sensitive consumers. By prioritizing retailer margins and incentivizing product push, TABP has successfully carved out a niche for itself, challenging established players and gaining traction in untapped markets.

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“Yes, Coke and Pepsi indeed have a significantly larger distribution network. They’ve heavily invested in in-store presence, with bustling coolers, prominent boards, and extensive activations. However, our strength lies in our magic price point of INR 10. While Pepsi offers an energy drink at INR 20 for 250 ml, we provide a 160 ml energy drink for INR 10,” he said.

“While the price points may appear similar, affordability is paramount. For someone who earns roughly INR 300 per day, spending even INR 20 can be a significant expense. Packaged beverages have always been aspirational for them, and if they are available at INR 10, they will gladly buy them. Furthermore, we provide merchants higher margins than Coca-Cola or Pepsi, which motivates them to promote our goods and drive growth,” he added.

He also highlighted the successful establishment of a plant in Odisha, made possible by government subsidies, enabling TABP to penetrate and thrive in the eastern market while creating employment opportunities for local communities.

“Since the establishment of our facility in Orissa, we have grown significantly, which is largely made possible by the 5 crore subsidy from the central government. With this support, we were able to enter a significant market, send truckloads of products, and generate jobs locally, which reduced migration. We are seeing significant growth in Orissa, a market with enormous potential.”

Building on Orissa plant success, they are now expanding in Gujarat, West Bengal, a third-party unit in Assam, and a plant in Guwahati expected to commence operations by the end of this month. Looking ahead, Prabhu outlined TABP’s ambitious growth targets, aiming to surpass the 500 Cr sales mark in the next 2 years. With a focus on deepening its presence in southern markets and expanding into underserved regions like Madhya Pradesh, Bihar, and Jharkhand, TABP is poised for exponential growth fueled by relentless innovation and customer-centricity.

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