The secret of a successful business is a smart business model. It must incorporate several factors, one of them being the price of the products, keeping in mind the purchasing power of the customers. Coimbatore based Prabhu Gandhikumar and his wife Brindha run a startup that specially caters to the marginal community. By selling snacks and beverages priced at ₹5 and ₹10 on large scale, the couple is achieving two goals. Firstly, they are earning annual profits in crores and secondly, they are helping the rural community buy aerated drinks and snacks at highly affordable prices.
The Couple Sells Snacks At ₹5 And Drinks At ₹10
Prabhu Gandhikumar who had opened his business, TABP Snacks and Beverages in 2016, had earned an annual revenue worth ₹35.5 crores last year. In 2016, the company had started with two flavours of aerated drinks, apple juice and mango, under the name ‘Plunge’. Later, other flavours like cola, orange, lemon and jeera were also introduced. The drinks are priced at ₹10. After that, the company also started Snacks91 and launched snacks like Choco Flakes, Magic Masala, Fryums Pasta and Tangy Tomato priced at ₹5.
Now, they have a wide array of products that are sold in local shops, supermarkets and more across Tamil Nadu, Karnataka, Kerala, Andhra Pradesh and Telangana. The products are also entering Odisha and will be soon launched in Goa and Maharashtra as well.
How Did They Come Across The Business Idea?
Prabhu had bumped into a child in a rural area of Coimbatore and saw him buying a soft drink and sharing it with his friends. Speaking to The Better India, Prabhu said, “I saw how he held the bottle like it was a status symbol. I realised that people from marginal communities, who earn a daily wage up to ₹100, cannot afford soft drinks that cost ₹30 or more. However, there is an aspirational demand.”
Later, he and his wife carried out a research and realised that the daily wagers from the rural areas like to have sodas and aerated drinks, even more during the sweltering summer months. The only thing that restricted them from buying the drinks was their price. Finally, Prabhu came up with the right business idea to cater to their wants. And that’s definitely one of the ideal ways of growth and development.