94 year old brand comes back to life
In just three years Keventers has opened 150+ outlets in India. It stopped existing in 1970. Then owner’s grandson revived it.
In just three years Keventers has opened 150+ outlets in India. It stopped existing in 1970. Then owner’s grandson revived it.
Brief:
Keventers started as a dairy farm in Aligarh: It is a 93 year old brand. A Swedish businessman founded it in 1925. It spread to Calcutta, Delhi, Shimla, Lahore and Punjab. It was a booming business, selling milk products such as butter, milk and shakes.
Dalmia Group bought it in 1940s: R K Dalmiya ( founder of Dalmia Group) expanded business to business offering, supplying milk to Army. In 1970 Indian government forced the brand to shut down and dissolve. However, few establishments kept selling shakes using the brand name ( Keventers in CP, next to Wengers).
Brand was dormant for 45 years: Agastya, Grandson of R K Dalmia revived the brandagain. He had set up a shop in Pitampura. It failed. He reimagined the brand. It went back to the legacy of the brand. It appealed to people.
Insight:
Its outlets are growing at a fast rate. Most of its outlets are franchises. It claimed to have opened 16 in July, 2016, and 77 outlets in February, 2017. By September, 2017 it had more than 150 outlets. It means a growth of 100% in seven months. It aims to open 300 outletsby February, 2018.
Its growth is slowing. It claimed a revenue of INR 4 crores in FY15. In FY 16 it had a revenue if INR 28 crore, a growth of 700% (yoy). In FY 18 it claimed that it will cross INR 60 crore, a growth of 100% (yoy).
Running franchise kiosks may not be a long term option. Rentals in high foot fall malls and markets is 1/3rd of the costs. So is F&B. Franchises also pay a one time of INR 5lakhs and a monthly pay out of INR 40,000 as royalty. It takes up to 18 months to break even.
One product companies are suitable as FMCG brands. If it does not innovate, and get more products on board, customers may not find it attractive forever. It operates as a quick service restaurant with just one product. Unless it adds more offerings, it will be difficult to raise the revenue in the long term.