[music playing]
- Wow. - I'm a Gujarati.
Let me feed you something first and then talk business.
- Oh! - [laughing]
In Ahmedabad, it's called 'Jalsa'.
'Jalsa.'
Let's start with Aman.
Let's say that Aman wants to eat something fun and sweet.
It's very tasty.
That's what Indians want.
Sharks, I'm a marathon runner.
I know how important healthy snacking is,
but taste matters too.
I brought taste and health together
and created Fit & Flex.
Fit & Flex is a brand
India's most favourite snacking and cereal brand.
So, we're asking for
It's good.
It's yummy.
It tastes like Chivda.
You just had oat-based savoury. It's our most unique product.
So, Pathik, welcome to Shark Tank.
And Pathik, do you know what's the biggest good news?
That you are actually quite fit and a marathon runner.
I recently participated in the Berlin marathon.
Wow!
Congratulations! What was the timing?
- 3:50. - Amazing! You're fast.
And this is my worst timing.
Oh, so what's your PB or personal best?
My PB is 3:34.
- Amazing. - Well done.
- Mine is 2:50. - Very good!
He's bluffing.
So, when did you start running?
I developed high blood pressure at 34-35 years of age.
So, since I started running,
it's perfectly fine.
I changed my eating patterns.
And that's how Fit & Flex came into existence.
What were you doing before that?
I have a business in cotton industry and chemicals.
Trading or manufacturing?
Cotton. I have a factory.
- You have a factory? - Yes.
- What's the turnover? - Rs 700-800 crores.
So, did you start this as a part of that company
or on the sides?
It's a different company altogether.
So, you used the profits from there
- to create this company. - Yes.
- Do you run both? - Yes.
If you have a business worth Rs 700-800 crores,
then there will be a question of conflict of interest.
So, pool in your money and build it. Why are you here?
Money is not the only important factor.
We need mentorship also.
- Healthy snacking has become a fashion. - Yes.
How will you navigate in that crowd?
Our infrastructure and technology
is something that our competitors don't have.
What's the technology?
Only Fit & Flex has this line in India.
What kind of line?
It's a baking technology.
But what does it do? What's the benefit?
The USP of this product is
that the crunch remains until you finish your bowl.
You're constantly talking about this machine.
Or line as you call it. Someone must be making it.
This line is capital-intensive. It's very expensive.
How expensive is it?
When we got it, it was Rs 15 crores for one line.
How many products do you have?
The total SKU is 35.
- What's your hero product? - Granola.
And the mango-coconut flavour is the best.
I launched this brand
two months before Covid.
In December 2019,
As soon as we entered, the lockdown happened.
that you've kept the pricing affordable. This is for Rs 250.
is average. There are too many fonts.
It's too cluttered.
Who will manage this?
This is just a draft packaging.
Our final packaging in the market
is of Granola, Muesli,
Mixture, and Mini Bites.
Okay, but who does it?
- Do you do it? - No, we have an agency.
- So, you have outsourced it. - Yes, outsourced the packaging.
How much did you burn last month?
We are not a burning company.
- What's the profit? - Then what's the profit?
7 to 8 per cent.
How much equity?
Only Granola.
Then we realised that this product is not enough.
So, we will need a basket.
Seven months ago, we launched these products.
For the last 7-8 months,
our distribution has started in UAE.
we will make Rs 55-60 lakhs per month from Dubai.
No, we make it.
We have two verticals. Private label and branding.
I've got three partners.
I don't understand.
Let's go slow. Hold on.
Firstly, you have a company.
Niva Nutrifoods.
This company
has two businesses.
- Including private label. - No.
Then share the total.
I want to know the total.
Private label is 15 per cent more.
Yes.
How will it work?
You were telling us about three partners.
They are not a part of the brand.
Brand is a part of Niva Nutri or is it separate?
It's a part of Niva Nutrifoods.
You will take investment from us
and your IP,
you will take that
and create a separate entity.
We will hold shares in it and grow that.
- Exactly. - But along with that,
your share will continue in the private label business.
Because you have existing partnerships there.
And your business worth Rs 700 crores will go on. Right?
Exactly.
- So, you will have 3 businesses. - Yes.
And for this reason, I will be out of it.
Me too. I mean, the category is exciting,
- you're a fit marathoner... - But, I'm not running the factory.
- But it can't work out. - Why?
Because he's running three businesses.
[music playing]
You have written here 'Eat healthy.'
So, you're not directly saying it
but it's an implicit claim that it's healthy for you.
Do you truly believe it to be healthy?
They're 'better for you' products.
There's a lot of difference between better for you and healthy.
- Okay. - This is not healthy.
What is oligofructose?
It's biologically derived from cane sugar.
What sugar does to your body,
oligofructose does the same.
And that's your second most ingredient.
If they need sugar, give it. But don't call it healthy.
Sell what you want.
- But speak the truth. - You're right.
Write healthier and I'm with you.
Don't call it healthy.
So, just for that reason, I'm out.
You've added 4.5 per cent sugar.
Add that to the 10 per cent oligofructose
and then you will have the total added sugar,
like sugar, which is 15 per cent.
Sir, people add oligofructose even in no added sugar products.
And then they're claiming no added sugar.
Okay, you're saying that
everyone does it, so can I.
Personally, I have a problem
when such claims are made.
For that reason, I'm out.
- I want to take a punt on you. - Whoa!
Right? Because
this market
- is going to grow big. - Yes.
Because people want different options for breakfast.
I won't say that you're the healthiest.
It's relative. You're healthier.
But your last year's sales are Rs 4.6 crores.
I would like to offer you
Rs 25 lakhs for 2.5 per cent equity
at a valuation of Rs 10 crores.
Uh, which is two times last year's sales.
And Rs 75 lakhs debt at 10 per cent interest.
Hang on! You'll move assets to this company too.
because I saw a USP.
Because of the special machine,
the taste is extremely crunchy and nice.
Without that machine in the company,
I don't have a USP.
If the machine is with someone else,
I have zero control over capacity utilisation
and quality end-to-end.
Then you will be outsourcing.
My ask was only for the brand.
- The factory valuation is... - My point is
if you shift the machine,
- Okay, thank you. - All five Sharks are out.
Do one thing.
Stop lying when it comes to health.
- Thank you. - Thank you. All the best.
Thank you.
[theme music playing]
[theme music concludes]
When I came to Mumbai from Delhi in 2000,
I made a good friend.
His name was Nikhil.
Nikhil and I got along well. We were close friends.
One of the reasons was that we had a common connection.
We smoked cigarettes together.
One day, I found out that Nikhil got lung cancer from smoking.
Within four months of that, we lost Nikhil.
It impacted me hugely,
because I witnessed the impact
on Nikhil's family after he was gone.
I did not want that to happen to my family or me.
I, too, used to smoke 40 cigarettes a day at the time.
My God!
It was a wake-up call for me.
I had to quit smoking by any means.
I began my research on how to quit smoking.
That's how Smotect was born.
Smotect is the world's first
100% natural and nicotine-free tablet.
medical researchers and scientists from across the globe
but a campaign to save families and lives.
To take this mission forward, our ask to you
in this mission to save 80 lakh lives a year?
- Gurseet, welcome to Shark Tank. - Thank you.
When did the incident with your friend take place?
It happened in 2012.
When did you quit smoking?
I completely gave up smoking in 2018-19.
The loss you experienced was so huge.
Despite that, it took you 7 to 8 years to quit.
I have failed to quit smoking 30 times.
The addiction is such.
Smoking is not just a biological addiction to nicotine.
It is a psychological addiction too.
When you smoke,
you do it while having tea, with friends...
Some people even need it to move their bowels in the morning.
It being biological and psychological,
it is very difficult to quit.
Gurseet, I have a problem with this.
Cigarette packets have graphic and disturbing images on them.
- Right? - Yes.
They have tried to print warnings in bold letters
like 'smoking is injurious to health'.
It isn't that people don't know.
Despite that, if you try to tell smokers...
They laugh!
"We know but we will still smoke."
This is such an addiction
that no matter how much you warn smokers,
it isn't easy to quit at all.
It's not like you can tell people to take this and quit smoking.
If you want anyone to quit a vice, no matter what it is,
they ought to have the intention to quit it.
As per GATS, a survey by the government,
70% of smokers wish to quit
but they are not able to.
Have you heard of the joke?
'Quitting smoking is so easy, I do it every day.'
- No, I've done it multiple times. - I've done it...
Actually, Gurseet.
I'd like to mention one statistic that not many people know,
- 13 minutes. - 13 minutes.
What's this 95% success rate?
95% success rate means
that our clinical trial
which is a double-blinded randomised
either quit or reduced significantly.
When did you start this?
that helped you achieve a 95% result?
- Are these mentioned on the bottle? - Yes.
- Could we take a look? - Sure.
So, your product is only for moderate smokers
and not for heavy smokers.
No, ma'am. I'm sorry if I haven't given you the other box.
This is for moderate smokers.
There is one for heavy and light smokers as well.
Okay, so they're different.
The product is the same. Only the course duration varies.
The duration varies but the ingredients are the same.
It's the same. The tablets are the same too.
- You mentioned anxiety! - Yes.
If your medications are effective
and you believe in their potential,
Is this your GTM and expand it
to include the non-smoking market in the future?
If you consume that medicine
and smoke
- then your health will deteriorate. - Yes.
There is no better solution
in the world to quit smoking.
Because it won't let you smoke a cigarette.
Other than that, anything that makes such claims...
Yours is not the only medicine.
There are more options in the market
that claim to make you feel better.
It will address your anxiety and so on.
They have all eventually failed,
except for that medication. Why is that?
Anupam, would you be willing to take the medicine
even if you end up vomiting after smoking?
If they want to quit.
If a person has decided to quit smoking at all cost
and fails to do so,
they will resort to taking this medication.
And those who want to pretend to quit,
- they will keep delaying it. - Right!
They will reduce the number of cigarettes.
That is not quitting, right?
- I agree. - The one who doesn't want to quit
will not quit with this medicine.
There are social triggers. If I have tea.
If I am served tea the next day,
won't I feel like smoking with it?
We can learn and unlearn a habit.
- Right? - We've come up with techniques with psychologists
You can find recorded exercises on our website and chatbots.
Is that what the QR code is for? The QR code is for that.
Yes! You are right. There is a QR code.
- You have to put in the effort and time. - Yes.
- It is an effort! - You have to put in the effort.
- Right? It is as good as going to rehab. - Correct.
If someone wants to go to rehab and quit, they will do that.
Deepinder, most importantly,
- he has prescribed four tablets per day. - Yes.
This box is for Rs. 3,000.
Pricing doesn't matter if it works.
- If this works, people will pay. - I think it does matter.
It doesn't matter.
Namita, we have helped
around 20,000 people quit smoking.
That is what I was getting at.
How are you sure that you helped 20,000 people quit smoking?
You said...
How many customers do you have in total as of now?
As of now,
we have about 32,000 users on our website
- who purchased medication from our website. - And?
We gave around 8,000 to 10,000 people free medicines.
- On top of it? - Yes!
That's 40,000.
- Your total customer base was 40,000 people. - Yes.
We spoke to them and...
How many people did you speak with?
We call everyone.
Is it based on a sample set or is it exhaustive?
Whoever buys our product,
we call them continuously and follow up with them for 3 months.
- 32,000 people directly bought your product from your website. - Yes.
Out of them, who took guidance from your psychologist?
- Guidance. - How many of them took the guidance session?
Around 70% to 80% of people take our exercises.
How many new customers are you getting per month?
We are selling
to around 3,500 to 4,000 people every month.
- So, your 20,000 customers know around 1 lakh smokers. - Yes.
- They socialise with them every day, correct? - Yes.
- 20,000 people have quit. - Yes.
No! Not even 4,000.
- There might be expenses. - True.
If your number is accurate,
- then this would have gone viral. - Yes!
It claims 95% success rate.
- But the data says 50%. - 50%.
But in reality, it isn't even 5%.
It will come down to around 4% success rate,
according to what I understand right now.
20,000 people who have quit,
they used it for how many months on average and quit?
What is the average duration?
Give us the sales because you asked for a Rs. 100 crore valuati
We are discussing customers
and success rates. In the end, sales provide evidence.
What is your background? Who are you?
I am a sculptor.
I run a company called ARTEFACTS.
It's an art installation company.
Because this is so important to me,
most of my energy and effort goes into Smotect.
Does sculpting make you that much money?
Yes, if you are as good as me.
How much money have you invested in research over the past 8 years?
Rs.5-6 crores.
experimenting with various formulations,
and testing different manufacturers.
You said 'most of my time.'
Are you still running your sculpting company?
Are you running two businesses?
That business is in auto-pilot mode.
There is no such thing as 'auto-pilot.'
who smoke cigarettes.
Because this is my mission in life.
I prefer all-in founders.
Who are completely involved
in what they're doing
and make it successful.
No matter what the obstacle is they get to work and make it successful,
rather than
sailing two boats.
- I am out. - I appreciate it.
Same reason as Aman.
When I asked you, what do you mean by 'most of your time?'
As investors, we become nervous
when you juggle two things together.
- And for that reason, I am out. - Okay.
How much profit did you make this year as of now?
This year,
our turnover is Rs. 4.25 crores.
Our PAT is 12%.
How much is your CAC?
Yes! This is the truth.
There are a lot of things we need to work on.
You have 20,000 customers.
They amount to your success rate, correct?
And your CAC is high.
Your referral rate should have been high.
Which makes me believe that your product doesn't sell.
- Yes. - I could be wrong.
Mr. Deepinder, I would like to tell you...
Let me complete.
I don't care what your valuation is.
I don't even care that you run two businesses.
Because I too had a business, now I've learnt to handle both.
But my underlying issue is
that I think this product doesn't work. So, I am out.
I absolutely agree with Deepinder.
You must be a great marketer.
The effectiveness of this product is questionable. I am out!
Have you heard that if an idea of a product is good,
it will cut through butter like a hot knife?
If your product is worth it,
it does the work on its own. It doesn't need...
But the butter has to be on an open platter.
Whatever it is! It does not need marketing.
This butter is on an open platter.
- It is an open platter. - This butter is on an open platter.
Time out!
- This butter is on an open platter. - It is.
- The world desperately needs it. - Yes!
If people were quitting for this price,
- they would have paid for their friend to quit. - Correct.
Not everyone thinks like you do, Mr. Deepinder.
There are many who do.
- There are people who love their friends and family. - Yes.
Gurseet, don't be agitated.
- The tiger is yet to speak. - Oh!
Okay! Tell me something!
Where did you gain knowledge on Ayurveda?
Did you only focus on
- quitting smoking all these years? - Yes!
- I... - Did you do any research on Ayurveda in general?
I've looked into Ayurveda in general.
And my focus was to quit smoking.
How many people are on your team?
We are a team of 10.
Does it include marketing and all?
Besides that, we also work with agencies.
- Who has equity? - I do.
- How much? - 100%.
You are profitable.
The bet is that
we'll be introducing a wider range of medicines in the Ayurvedic field.
I have a condition.
You claimed that 20,000 people quit smoking.
It might not be 100% true.
But it should be around 80% true.
And I want to be safe.
So, that's my offer to you.
Anupam, I agree with the terms you proposed.
I am okay with Rs. 50 lakhs in debt.
But I want to give you a counteroffer for equity.
Tell me! You have the right.
Right?
Okay! Let's do the deal.
and collaborate with Anupam
to make this company grow.
And how can we instil a new sense of value and belief in people
that quitting smoking is possible if you take one step forward?
You can quit consuming tobacco.
Welcome to Ask The Shark, friends.
Joining us today is principal Shark
and Executive Director of Emcure Pharmaceuticals,
Ms. Namita Thapar.
- Welcome, ma'am. - Thank you.
This question is by Gagandeep Singh from Bengaluru.
There was a time
when people were only focused on the sales and the growth rate
and losses were almost fashionable.
Now, it's exactly the opposite.
Even if you're not making profits right now,
investors want that you show them a path to profitability.
- Okay. - So, profit is king. Profit is queen.
Better focus on that.
Basically, not only is profit important,