Sixth Sense Ventures Infuses ₹100 Crore in Spices Brand Pushp
- ByStartupStory | December 28, 2023
Sixth Sense Ventures has injected ₹100 crore into Indore-based Pushp Brand (India), marking a pivotal moment for the spice company’s expansion plans. The investment was made through the fund SSIO-III and aligns with the recent trend of increased mergers and acquisitions in the spices sector.
Founded by Mahendra and Surendra Surana, Pushp has emerged as the foremost spices brand in Central India and has successfully extended its market presence to states including Maharashtra, Rajasthan, Uttar Pradesh, Bihar, and Gujarat. With an impressive 25% Compound Annual Growth Rate (CAGR) over the last five years, Pushp is poised to elevate its status to a significant national brand.
Nikhil Vora, the Founder of Sixth Sense Ventures, shared insights on this strategic investment in a LinkedIn post. He emphasized the attractiveness of the spices segment, citing it as a large, rapidly growing category with a favorable margin profile and distribution advantages. Vora highlighted Pushp’s strategic position to capitalize on the increasing consumer shift from loose, unbranded spices to packaged, branded alternatives.
Vora’s post outlined Pushp’s strengths, including a seasoned management team, efficient procurement practices, state-of-the-art manufacturing capabilities, and a robust distribution network. He noted the company’s transition from a regional heavyweight to a national player, foreseeing significant value unlocking in this evolution.
While the overall size of the spices category in India is estimated at ₹90,000 crore, the organized and branded spices segment is anticipated to reach ₹50,000 crore by 2025, growing at a remarkable 16% CAGR, according to Avendus Capital. The blended spices segment, characterized by higher margins, is experiencing a rapid 25% CAGR, driven by the rising demand for convenience in modern cooking.
Vora underlined the superior margin profiles and cash-flow generation potential of regional leaders in the spices market. He emphasized the large expansion opportunities for regional brands to establish a national presence, with minimal competition from multinational corporations.
In his LinkedIn post, Vora highlighted the evolutionary journey of spices, from loose to packaged to blended, resulting in a sixfold pricing premium. Pushp, with its diverse range of CTC, straight spices, blended spices, and value-added products, actively participates across the entire spices value chain.
Mahendra Surana, Co-founder of Pushp, expressed excitement about the future growth trajectory. He stated, “The Indian consumer is focused on taste, quality, and reliability, and our sharp focus on these factors has helped us build deep trust with customers to become one of the top brands in the spices category. We are thrilled about the next phase of growth as we build Pushp into a leading spices brand in the country.”
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