“Entrepreneurs nowadays are drawn to the startup ecosystem because of its perceived glamour and the buzz surrounding it. However, it’s important to understand that entrepreneurship is far from being just a “cool” choice—it’s a challenging and demanding journey.”
There has been immense growth in the Indian alco-bev industry in recent years, possibly reaching $64 billion by 2030 as per the International Spirits & Wine Association of India (ISWAI). As a result of the opportunities shooting up, the focus has shifted from producing drinks in India to producing for the Indian market based on their preferences and tastes.
Recognising the increasing scope in the market and to learn more about the trends in the sector, Entrepreneurs Today reached out to Tarun Bhargava, the CEO and Co-Founder of Grano69 Beverages Private Limited, established in 2017 with Vijay P. Sharma.
Founded in October 2017 and headquartered in Gurugram, the company began its commercial operations in September 2018. According to Tarun,
“The company’s vision is to disrupt the Indian beer market as it combines premium quality with affordability and offers beers known for low bitterness, high drinkability, and excellent taste.”
The Gap in the Market
A graduate with a degree in finance from the University of Delhi, Tarun previously worked at Aon and IBM before co-founding Faagio.com, a hyper-local discovery and ordering platform in 2015. The time he spent in these organisations laid the groundwork for starting Grano69 Beverages, well-known for Proost Beer.
The need for the product was realised when Tarun saw a lack of good quality and budget-friendly options. As Tarun reveals in our freewheeling chat,
“We believe that great taste and living life to the fullest should never involve compromise. There was a gap in the Indian market for a truly refreshing beer at affordable prices, so we set out to brew beer that would fill that void and redefine the beer experience for the mass consumer audience.”
Alcohol Trade in India & Proost’s Journey
While there have been drastic changes in policies over the years, the journey for Tarun has not been easy due to the fact that it is still a restricted trade in India.
If we delve into history, we see that the restriction on alcohol trade in India is longstanding. Since the Mauryan era, the government had a monopoly on the production and sale of alcohol throughout the year, except for four days for celebrations when anyone could obtain a license from the government, and produce, and sell alcohol in exchange for paying a 5 percent tax to the government. During this time, sellers without a permit were subject to severe penalties. Alcohol was not allowed to be transported, and people were only allowed to consume it at taverns.
Entrepreneurs wanting to venture into this space often face challenges due to the high-risk factor of the trade.
Interviewer: What regulatory challenges do entrepreneurs should be wary of in the alco-bev sector?
Tarun: “The trade comes with some of the most stringent laws and regulations. Our country does not have a unified Liquor policy as the Liquor is a state subject matter which essentially means that every state shall have its own excise policy which is where things get tricky. This poses a strong entry barrier for a lot of newcomers and can be overcome with time by following step-by-step processes.”
Freshness in Every Sip
No one likes to spend a dime on beer that’s bland. Unfortunately, the market is saturated with the same, and Proost wanted to do things differently to gain a foothold in a competitive market. Proost Beers are different in the sense that there is freshness and a very delectable taste with every sip.
Interviewer: What do you believe helped Proost become a mass favourite despite the competition?
Tarun: “Proost’s exceptional freshness, superior quality, high drinkability, low bitterness and distinctive taste sets it apart. While we like to track the competition, we don’t really like to benchmark our journey with anyone else’s. I believe every journey is unique in its own way. Not from the competition point of view but if there is something that has worked for us until now is to stick to the basics of the industry and be frugal.”
Achievements
There is nothing one cannot achieve if one sets their mind to it, and Tarun is a case in point for that. Despite the turmoil Proost faced in the sector, Proost has experienced remarkable growth, increasing their annual revenue from ₹77 lakhs in FY 2017-18 to a current monthly recurring revenue of ₹10+ crore.
A feat that calls for achievement is that they are set to close the year with a top-line revenue surpassing ₹100 crore. Starting with 4,000 cases sold in its first year, it now sells 2,500 cases daily, reflecting rapid growth and strong market demand
A Bright Future Ahead
The brand is currently active in six key markets such as Delhi, Punjab, Uttar Pradesh, Karnataka, Jharkhand, and Kerala, and plans to deepen its reach in these regions while entering three new markets within the next year.
With India’s per capita beer consumption at just 2 litres, far below the global average of 35 litres, the growth potential is substantial. Factors driving this expansion include rising disposable incomes, a younger population, changing cultural norms, a willingness among consumers to explore new products, and declining interest in larger established brands. These dynamics position “Proost” to capitalise on the shifting market landscape.
Words of Wisdom
One of the key takeaways from Tarun’s journey has been that while the grass always seems greener on the other side, the reality is far from it. While reflecting on his journey, he expresses,
“Being a startup entrepreneur requires immense resilience and a willingness to embrace uncertainty. It’s not just about innovative ideas or business strategies; it’s also about enduring late-night anxieties, navigating hard times, making tough decisions, enduring sleepless nights, and sometimes feeling isolated from friends and family.”
As he signs off, he implores entrepreneurs to understand that perseverance is the cornerstone of entrepreneurial success.
No matter where you are or go, there will be challenges at every step that will put you to the test. The key to overcoming these challenges is to stay committed, push forward and remain steadfast in your belief. In his words, as he says,
“If there’s one trait you should nurture above all else, let it be perseverance.”
