Creating a Niche with Eekh
When Abhijeet Roy and Simran Singh, the Founders of Madhushala Beverages (P) Ltd., decided to enter the alcoholic beverages space as a start-up venture, the focus was clear. They wanted to lift rum out of its typical low-priced image in India to the premium category with the value-addition of quality. Easily said than done, the effort gave them the experience of a lifetime with investors shying away from something so experimental and state governments taking them on a merry-go-round red tape chase. Finally, using a bootstrap approach, they not only launched Eekh rum but also managed to bring it to the notice of discerning consumers.
Redefining the rum category in India would be a challenge that even deeply established alcoholic beverage manufacturers would think many times about. And yet, that is precisely what Abhijeet Roy and Simran Singh did when they launched their start-up in this space. Of course, it wasn’t a blind shot. They knew what they were getting into. “Eekh rum’s mission is clear – to offer consumers a quality and honest product, and making it widely available in multiple territories. We aim to redefine the perception of rum in the Indian market, moving away from its historical association with being a low priced category product,” Abhijeet explains.
Challenging but Rewarding
Venturing into the alcoholic or associated beverages sector can be a challenging yet rewarding endeavour. In the case of Madhushala Beverages, the journey began when Abhijeet and Simran, with their extensive experience in the hospitality industry, decided to enter the alcoholic beverages market and launched an agricultural rum brand about two years ago. This transition faced various challenges inherent to the industry.
“Some of the key obstacles encountered include financial challenges, consultancy issues, regulatory hurdles and risk management. On the other hand, when it comes to competition, I guess we have healthy competition. So far, people from the industry have supported us and we are grateful for that,” Simran elaborates.
The biggest motivation for them was rooted in the Founders’ technical knowledge, dedication, and passion for the product, along with a cohesive team. As India has always been a high rum consumer market, the goal was to elevate Eekh rum to the premium shelf alongside single malts and tequilas; addressing a gap that they have identified in the market. “Our decision to focus on the rum category with Eekh was deeply influenced by personal experiences and a fondness for cane spirit and cachaca. Recognising the evolving preferences of today’s adventurous and well- travelled consumers, we aimed to create Eekh rum, that resonates with their appreciation for quality beverages,” Abhijeet states.
Garnering Funds
While observing the rising trends in gin and tequila consumption further reinforced the Founders’ belief that Indian consumers are open to exploring unique and premium alcoholic beverages. Eekh rum is positioned to cater to this discerning audience, offering a distinct and high- quality option in the market. But to be able to find that niche, the primary requirement was to find the requisite funds and technical expertise. “Our start-up’s funding primarily comes from bootstrapping through the support of friends, family, and personal savings at this stage. Being technically adept in product development allowed us to find the right expertise for assistance,” Simran informs.
Meanwhile, securing interest from banks or venture capitalists proved challenging and scepticism and complex meetings became the norm in the initial stages. “My advice is to bootstrap until a small batch is physically launched, gaining clarity through the journey, thereby making investor meetings more straightforward. Unlike the technology or IT sector, the alcoholic beverage sector faces unique challenges in attracting investors solely based on initial ideas, without a tangible product,” Abhijeet reasons.
