Hector Beverages, which is backed by Sequoia Capital, plans to invest $10m to expand its facility in Mysore, India, a move that comes as it sets to launch milk-based beverages under its core brand Paper Boat by early next year.
The company intends to launch beverages such as Thandai, Badam Milk, and Chhas until its flagship banner by the end of March 2016.
In July, Hector Beverages raised $30m from its existing investor Sequoia Capital and new firms such as Sofina Capital and Hillhouse Capital Management. This has raised the firm's valuation to $100m, reported Live Mint.
The additional capacity will help increase production. By next October, it intends to double the total capacity.
With the investment, Hector Beverages will be able to add two lines with a capacity of 80 bottles per minute now and another line of 220 bottles per minute by next year.
At present, the Mysore plant produces 220 bottles of beverage per minute.
With the launch of the milk-based beverages, Hector Beverages will be able to widen its line of indigenous drinks. Its products include Aamras, Jaljeera, Tulsi Tea, Chilled Rasam. The capacity expansion will help meet the rising demand for these products, reported the publication.
The Indian beverage market is believed to be worth $5.18bn annually, and this segment is dominated by soft drink companies such as Coca Cola and Pepsi.
Image: Hector Beverages to add more milk-based products. Photo Courtesy of Theeradech Sanin / FreeDigitalPhotos.net.
