Why Rayudu Bio Organics is a Growing Business Opportunity

India has been in Ayurveda for 3,000 years. This ancient knowledge is gaining popularity because of its huge benefits. One of its major benefits is that it promotes good health rather than fighting illnesses.

Herbal products, if used daily, helps improve health. They create a balance for the body and the mind. During these COVID times, people are increasingly looking for alternatives that improve health continuously. Herbal products are safe to use and effective. They do not have any side effects since they are prepared from plant extracts. This is how it is gaining importance today.

Ayurveda Industry as a Business Opportunity

The Ayurveda market in India was a 300 billion industry in 2018 and is expected to grow up to 710.87 billion industry by 2024. The expected CAGR is 16.06 % each year is quite huge. Currently, there are very few brands in the manufacturing and distribution of herbal products. With such large growth opportunities and almost nil competition, there is a great chance that investing in the brand of herbal products is a good growth opportunity.

Rayudu Bio Organics is a herbal product brand that has manufactured about 30-40 products of its own. All its products are licensed by the AYUSH department. Presently, the brand manufactures and distributes herbal products across Hyderabad. It is now looking for expansion throughout India.

What is Rayudu Bio Organics?

Rayudu Bio Organics was established by the second generation of the 35-year-old Rayudu group. It is a partnership firm run by a team of experienced professionals. It manufactures different herbal products essential for daily living. Its motto is ‘Be natural- Be herbal- Be healthy’.

The firm introduced herbal drinking water “Yali” in 2018, which is AYUSH-approved herbal drinking water.  The firm believes in giving the best quality to the customer and to do so, it has maintained a lab to check the quality of its products. It has invested in a good R&D system.

Rayudu Bio Organics has all the certifications required for its products like FSSAI, ISO, and WHO-GMP. The different products it offers are Happy Feet, Ortho Gel, Sunnidra, Fruit and Vegetable wash powder, Red alert anti-mosquito mats, Herbal tea powders, Sanitizers, herbal Honey, and so on.

The sanitizers contain herbal essential oils and a percentage of alcohol as prescribed by the WHO. These sanitizers made a huge business during the Covid times.

Herbal products are effective if they are used continuously over a period of time. The customer understands the product once it is effective. The effective product itself is the USP of the firm.

RBO is now looking forward to expanding pan India for all its different products mainly the herbal water Yali. It is looking out for super stockists, distributors, and retailers. It has different schemes for customers and retailers.

Investor Profile

RBO is looking for partners from various cities across India.  It is looking for wholesalers, distributors, and super stockists. There are different requirements of partners for different regions depending on the business in the area and the partners. The firm is keen on spreading its products in the south in Telangana and Tamil Nadu.

The wholesalers will require a land area of about 300-350 sq ft and the distributors will need 500-600 sq ft.  The percentage of margin will be more for distributors than wholesalers.

The price margin for the partners is varying depending on the type of partner. The wholesalers have a price margin of 25%, distributors 33%, and the super stockiest have a margin of 40%.

The consignment price differs from Rs 4-12 lakhs where all the products would be delivered to the distributor on a consignment basis. There is a minimum amount required as security.

The investors who are from FMCG or are looking for investing in FMCG are preferred. Also, existing distributors or stockiest would be an advantage because of their existing network. They can push the brand across its network.

RBO is also open to partner with any bottling plants where it can supply its herbal water extract for the production of Yali, herbal drinking water.

Rayudu Bio Organics believes that the partners would see the profitability in the venture only after a partnership of 4 to 5 years.

Edited By: Vaishnavi Gupta