Proost Beer Set to Conquer New Markets in the South, Reveals CEO Tarun Bhargava

Proost Beer, led by CEO Tarun Bhargava, is gearing up for an extensive foray into new markets. The Indian beer brand is poised to make its mark in the southern regions, specifically Karnataka, Goa, and Pondicherry, within the next 12 months.

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Proost Beer, led by CEO Tarun Bhargava, is gearing up for an extensive foray into new markets. The Indian beer brand is poised to make its mark in the southern regions, specifically Karnataka, Goa, and Pondicherry, within the next 12 months.

The company recently concluded its Pre-Series A funding round, amassing a substantial ₹25 crore capital infusion with a mix of equity and debt. Tarun Bhargava explained, "Most of the amount that we've raised is equity; about ₹18 to ₹19 crore comes from equity, and only about ₹5-6 crore comes from debt. And the idea is to utilize the funds for expansion into new markets."

Currently, Proost Beer has a presence in Delhi, Punjab, Kerala, and Andhra Pradesh, but its aspirations extend further. The brand is aiming to double its production capacity in the coming year from the current 18 lakhs per annum, as it now sells around 60,000 cases on a monthly basis.

Currently, our monthly sales average is over 60,000 cases. We are expanding at a rate of 2.5. We already operate three production sites and generate income from them," Bhargava said. The plan is for the North's brewers to serve the markets in North India. We will be able to reach a wider audience in the southern market—Karnataka and Kerala—thanks to the factory in Telangana."

Regarding earnings and profitability, Bhargava revealed, "Our current monthly revenue run rate is around 2.5 crore. We ended the previous year with around ₹22 crores in sales. Our goal for FY24 is 2.5 times increase. This year, we should generate more than ₹50 crore in income. We are still losing money, and we are still burning. However, we should turn a little profit in the upcoming 12 months and turn a profit in the following 12 months."

When speaking about the intense competition in the Indian beer market and Proost Beer's audacious aim of gaining a 5% market share, Bhargava stressed that the industry isn't a winner-take-all one. In India, most beer consumption is determined by preference rather than allegiance."

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"There is enough headroom, we think, for a brand like us to grow over the course of the next decade or so," he continued. Additionally, 5% of this market share translates into around ₹7,000 crore, or one billion dollars, in sales. So it strikes me as being really aspirational for a fledgling business like ours. Furthermore, we're content even if we can generate around $1 billion in sales by the end of this decade."

Furthermore, Bhargava acknowledged the growing trend of premiumization in the Indian consumer market, especially in metropolitan cities, while recognizing the importance of offering quality products at affordable prices, particularly in non-metro areas. Proost Beer is strategically positioned to cater to these evolving consumer preferences in the beer market.