‘Bovonto’ owner chalks out plan for Rs.1,000 cr revenue

Kali Aerated Water Works, a century-old Tamil Nadu-based private firm that owns soft drink brands such as Kalimark and Bovonto, has chalked out a six-year plan to clock a turnover of Rs.1,000 crore by 2020, according to a top company official.

The plan includes setting up a greenfield manufacturing unit, inducting new strategic investors, introduction of soft drinks in different flavours and a global foray.

The Rs.160-crore company is establishing a new production unit at Sri City near Chennai at an investment of Rs.150 crore, said K.P.R. Dhanushkodi, Managing Director.

The plant, which will be the key hub for its domestic-cum-global expansion, will start operating by April 2017.

“The new unit will help us meet the growing demand as well as support our expansion into other states,” Mr.Dhanushkodi said. It is also roping in strategic PE investors who will bring about Rs.80 crore as equity to part-fund the company’s proposed expansion plan.

“We need advisors and strategists not just financial investors alone,”,” said J. Ramesh, Director-Finance.

With its proposed expansion, the company seeks to graduate into a south Indian brand from being a Tamil Nadu-centric player.

The company has introduced a new brand, Vibro (‘paneer’ soda), a carbonated soft drink with rose flavour targeting youth and family segments. This will replace its existing Kalimark soda. It is also working on a new health drink which may be unveiled next year.

Kali will foray into fountain drinks segment from April and will start installing fountain machines that will dispense its carbonated soft drinks. It is targeting hotels, clubs, IT companies and theatres for this business.The company’s flagship brand is Bovonto which garners about 95 per cent of the revenue.