Integrated incubator Venture Catalysts on Tuesday said it has partnered with one of India’s biggest sweets & snacks manufacturer and CPG brand Haldiram’s, to boost its overall understanding and facilitation of startups in this sector.

According to a statement the Consumer Packaged Goods(CPG) sector, comprising goods consumed every day by the average consumer, has shown significant growth potential in the Indian market, and the current association aims to utilize this opportunity.

The FMCG sector, the larger segment which includes CPG sector, has a very strong potential in India. The segment’s market value is estimated at about $ 50 billion and growing strongly at about 7-10%. The country, with its young population, growing income levels and increased spending, presents a unique opportunity for CPG startups.

Venture Catalysts says it aims to leverage Haldiram’s expertise to intricately evaluate its investments in the CPG sector and achieve a much stronger foothold in evaluation, industry relevant mentoring, identifying market opportunities, and developing better consumer understanding in the CPG space.

Haldiram’s began its journey in 1937, when starting a business was not a ‘trend’ but an extremely difficult, highly uncertain step. The core responsibility of Venture Catalysts continues to be the development of start-up eco-system in India, which will be further empowered by Haldiram’s experience of building strong brands. While Haldiram’s investment amount in VCats is confidential, but the funds have already been strategically allocated to strengthen the team, processes and presence of VCats to ensure the creation of an ecosystem built to suit the needs of the CPG industry.

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“Over a course of more than eight decades with over 400 products, Haldiram’s has established its position as a leader, risk-taker and quality seeker in the industry. VCats has constantly been at the forefront of empowering India’s startups with a strong investor network and world-class infrastructural opportunities. Furthermore, it has encouraged the growth of startup culture in tier-II and III cities, a vision which Haldiram’s identifies with wholeheartedly. The current generation of Haldiram’s looks forward to this alliance and is very upbeat about encouraging more such collaborations in the future,” said Haldiram’s spokesperson for the family business said in a statement.

The collaborative model is highly customized and will vary from start-up to start-up depending on what the requirement is for all the teams involved. There can be various companies wherein Haldiram’s could even be interested in taking a lead investment in the startup and hence a far deeper engagement and association with the founders to guide them through the journey as well, resulting in a win-win situation for all the stakeholders involved.

Commenting on the association, Anuj Golecha, Co-Founder, Venture Catalysts said, “The association with Haldiram’s gives startups in our CPG portfolio an immense boost. The success and reputation of the brand in the sector is known to everyone and its business principles and product quality serve as a benchmark for potential entrepreneurs in the sector. However, the expertise gained through this collaboration with Haldiram’s is also expected to benefit our existing portfolio of consumer brands.”

Post this collaboration, it plans to invest in 10-15 relevant CPG startups in the next 12-24 months and build strong start-up stories such as men’s grooming brand Beardo, female hygiene startup PeeSafe and India’s first herbal energy shot drink FYRE.

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Venture Catalysts founder, Apoorv Ranjan Sharma, said, “The alliance with Haldiram’s sets a benchmark for other enterprises to enter into active collaborations that look to empower the start-up ecosystem. The Haldiram’s growth story and the way in which they have built an empire from the ground-up, and this is the ideal example that we want to set for the enterprises that are a part of the VCats set-up right now.”





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