BUSINESS
Interview with Founder of Veeba Foods Services
KFC, Burger King, Dunkin Donuts, Krispy Kreme, Domino’s, Pizza Hut –Veeba Foods Services is probably the only company which enjoys the legacy of working with competing clients. Founder Viraj Bahl, whose family had started Fun Foods and later sold it to German company Dr Oetkar, in an interview with Meenal Arora, talks about Veeba’s growth so far, future plans, among other things. The company counts DSG Consumer Partners, Saama Capital and Verlinvest among its investors.
Veeba was incorporated in 2013. I was very clear about the fact that Veeba will be a B2C (business to consumer) player. It takes time to establish a brand, a national distribution network. Before we reached that stage, we wanted volumes/scale. So we decided to go the B2B (business-to-business) route. It is still an essential part of our business. We are the leading supplier of sauces to Domino’s, Pizza Hut, KFC, Burger King, Dunkin Donuts, Starbucks, Cafe Coffee Day. In fact, we are one of the largest sauce (non-tomato ketch-up) manufacturers in the country. In 2016, we launched our retail brand.We are continuing to focus heavily on B2B but we are also acquiring new talent to focus on retail. In the next few years, high focus will be on B2B but future growth will come from B2C. That’s why you see large ad campaigns in print.
We have to be frugal with the ad spends. Our target group is reached by the magazine section. We cover about top ten cities but we are covering them via print.
That business is very important. For example, the mayonnaise that we make for Dunkin Donuts differs from the one we make for Zinger (KFC) or for Burger King Whopper. We cannot put that in the market so there is no point advertising it. For example, we work with KFC and Burger King, Dunkin Donuts and Krispy Kreme, Domino’s and Pizza Hut. We are probably the only company which enjoys the legacy of working with two competing clients.
No official study has been done for this segment. This market can be anywhere Rs 5,000-7,000 crore; it’s a rough estimate.
We don’t have a CAGR because we are not growing in percentages, but in multiples. In year-on-year terms, it’s late double digits or early triple digits.
In B2B we are doing very well. I think we are one of the largest players in India. In retail, we do not have any competition, we are about 3,4,5 steps above the other brands; our price points are higher as our philosophy is to give the best products possible, and if the product becomes slightly expensive in doing so, then be it. I strongly believe that ‘Indian consumer doesn’t want to pay money’ means that the consumers are value conscious, not stingy. They are happy paying a higher price for better quality & product. The success of our retail range kind of validates my position.
This is not formally tabulated. But we must have around high double-digit share, which is a lot considering there are 5-6 good players in India. So, we make it to top two or three definitely.
We don’t have any fund-raising plans for the future. We are well-funded and have got three of the best PE/VC funds. They—DSG Consumer Partners, Saama Capital and Verlinvest—are not only our investors but also our partners. Even if we require funding, I do not see myself going outside of what I call a family; probably stay within the family and talk to the same guys. But there is no immediate need. We have raised funds in mid-double digits.
Cultural Shock? Desi singing loudly inside bus in Germany divides opinion, watch viral video
Meet man who worked as waiter, earned Rs 3,000 per month, cracked UPSC exam with AIR...
Noida Master Plan-2041: NCR to get new city, UP government approves 'New Noida', to be readied in…
Understanding Fault Lines: Deep dive into India-Canada diplomatic standoff
Aditya Birla Group's big movement, set to invest Rs 75 crore in THIS Virat Kohli backed brand
Air Pollution: Delhi-NCR air quality turns 'severe', AQI reaches...
70 Bomb Threats In 6 Days: What is the reason behind this surge in hoax warnings?
'I'm sorry...': Throwback to when Ratan Tata fact-checked journalist for a quote attributed to him
Salman Khan gets emotional at Bigg Boss 18 amid death threats: ‘What all I am going through…’
'Grave mistake': Netanyahu warns Iran, Hezbollah after 'assassination' attempt
Mukesh Ambani's next BIG step, Jio Cinema likely to shut down due to...
Meet man, who used to be mechanic, cleared UPSC exam on first attempt, secured AIR 32 to become....
RRB NTPC 2024: Registration window ends today, check easy steps to apply at rrbapply.gov.in
Watch: Little girl lifts huge snake in viral video, parents face backlash for dangerous stunt
Happy Karwa Chauth 2024: WhatsApp wishes, messages and quotes for your loved ones
Zerodha's Nikhil Kamath, known for favouring renting, buys his 1st house; here's why
Meet Ratan Tata’s favourite chef, who began his career in a garage, now he is...
Rajinikanth to compensate producer's loss for Vettaiyan failure? Here's what we know
Meet woman behind the voice of Apple's iPhone 'Siri', never paid for it due to...
Who is IPS Anurag Gupta, acting Jharkhand DGP removed by EC ahead of Assembly polls?
Meet Vijaya Kishore Rahatkar, the newly appointed chairperson of NCW
Watch: Rishabh Pant's monstrous 107m six against Tim Southee leaves New Zealand players stunned
Mukesh Ambani's driver earns Rs 2400000, he is fully trained for...
Why do air hostesses wear high heels?
Mukesh Ambani brings iconic London brand to Indian market, opens its first outlet in...
Delhi pollution: Tips to protect your lungs as AQI levels rise
Donald Trump receives support from THESE WWE legends, trio mock Kamala Harris, watch viral video
'Kaunsa chahiye, bol?': Rohit Sharma's witty response to fan's query on changing IPL team goes viral
Karwa Chauth 2024: Trending mehendi designs idea to elevate your festive look
Jharkhand elections 2024: Hemant Soren's JMM, Congress to contest 70 of 81 seats
Meet man who runs India's largest bank worth Rs 1283000 crore, not from IIT, IIM, his salary is...
IND vs NZ: Rishabh Pant goes past MS Dhoni, becomes fastest Indian wicketkeeper to....
Karva Chauth festival set to generate Rs 7000 crore more revenue than last year, it will be...
Karwa Chauth 2024: 5 fasting tips for women with diabetes
Elon Musk vs Jeff Bezos: Which billionaire will lead the space race?
This actor who lived in chawl for 33 years, would have owned half of Andheri if...
Lawrence Bishnoi gang member arrested for ‘plotting to kill’ Salman Khan
‘We faced a…’: Ratan Tata on his parents' divorce, grandmother's support and breakup
Baba Siddique killed ‘because of’ Salman Khan? Salim Khan breaks his silence
Drone from Lebanon targets Israeli PM Benjamin Netanyahu's home days after Hamas chief's killing