In ten years, Veeba has become one of the leading condiments and sauce brands in the country, with 300-plus SKUs and a distribution network spanning 700 cities. In this interview, founder & MD Viraj Bahl tells Akanksha Nagar how the firm is working to become a house of brands. Excerpts:
Veeba is expected to cross the Rs 1,000-crore revenue mark in FY24. What is the secret sauce behind its marketing success?
When we entered the market, there were already several global and local players. However, the category was nascent and penetration was low. The responsibility of driving category growth fell on us. We needed to educate consumers about our range of sauces and condiments and their usage. Veeba also identified a gap in the market — despite a wide choice, there were few high-quality products available at an affordable price. Our core strength is product development and innovation. We focused on delivering a better-for-you offering — products with authentic ingredients and great taste. Then to ensure widespread availability across the country, we built a network of over 150,000 sales points. In FY23, Veeba’s revenue touched Rs 811 crore and now the firm is set to hit the Rs 1,000-crore milestone in FY24.
Any special plans for the special occasion?
To mark the occasion of completing a decade in the market, Veeba has revealed new packaging. The idea is to transition from a sauces and condiments company to the country’s fastest-growing holistic consumer firm. We started with three SKUs and now have five brands servicing consumers with 300-plus products. The company has also ventured into the export market including Australia, Singapore, China, and USA.
You have also said the firm plans to become a house of brands…
Currently, in addition to the flagship brand, we offer products under Earthmade, BeneTibi and Tasty Pixel. Beyond the two manufacturing facilities encompassing over 500,000 square feet in Rajasthan, the company is also planning to invest over Rs 120 crore to acquire a new plant in South India. Over the years, we have introduced many product innovations like no-preservatives-added or no-sugar-added ketchup, dressings, and sauces with less fat preservation, among others. We are dominating the non-ketchup categories and our volume drivers include a range of mayonnaise. Veeba’s next spurt of growth will come from ketchup.
The biggest challenge and opportunity lies in the fact that consumers are demanding manufacturers to give them bang for every buck. The goal is to enter one new category every year over the next four years. By 2028, we will have four more brands and a presence across seven categories.
How successful has your B2B play been?
B2B contributes to over 8% of our revenue, and our major customers include Domino’s, Burger King, Pizza Hut, and KFC. The company is putting emphasis on R&D with a team of over 80 food technologists, more than 30 chefs, and over six food scientists.
Coming up with new products is one thing; tackling the intensifying competition in the marketplace is quite another…
Our path to achieving a major market share is rooted in innovation, quality and consumer-centricity while offering value-for-money products. Introducing new products that resonate with the tastes of consumers, strategic partnerships and an efficient distribution network have helped the company extend its reach to a wide spectrum of consumers. At present, our revenue is skewed towards offline sales channels, with general and modern trade contributing over 90% of the retail business, whereas e-commerce is a growing channel. The brand’s reach extends to over 700-plus cities.
This year, Veeba is the title sponsor for MasterChef. Our strategy revolves around maintaining a well-balanced media mix with a strong digital presence. We want our customers to view us as a dependable partner.