Arun Kumar is the CEO of SpectraA Technology Solutions Pvt Ltd, an Indian company manufacturing and supplying a comprehensive range of technology solutions involving breweries, spirit blending plants, tanks, site construction, skids and flow panels (including piping). The company also offers services like drafting and engineering services, integration and utility piping services and project management services. Kumar, who was recently in Kathmandu on a business trip, spoke to Akhilesh Tripathi of New Business Age. Excerpts:
What brings you to Nepal?
We have business in Nepal. We have been supplying brewery equipment to Nepal. We have started our business with United Spirits Nepal, run by the UB Group. The BB group is back to Nepal to revamp the project. We have also set up a new brewery called Sherpa Brewery with an American Partner which is in Chainpur, Chitwan. We are making American beer in Nepal. This time, I am here to discuss with and help some of my Nepali friends to start a micro-brewery project. Microbrewery could be a good concept for Nepal; a microbrewery can produce 4,000 to 5,000 draught beer per month from ingredients like rice, herbs etc. You get special beer from microbreweries. Nepal and India only have only either mild beer or strong beer. We see a lot of opportunity in Nepal.
Tell us something about your company, SpectraA Technology Solutions?
We started SpectraA Technology six years ago. We have been trading in beer-making equipment. We have executed our projects in India, Nepal and Sri Lanka and have over 90 prominent clients.
We are also supplying our equipment to multinational companies. Similarly, we make equipment for the production of whisky, vodka, rum etc. We have also set up a rasgulla (an Indian sweet) plant for MTR Foods in Banglore apart from beverage.
Nepal has around half a dozen beer factories and nearly 20 distilleries. That means there is good scope here for a company like yours.
I agree. We can provide world-class technology and equipment to beer manufacturers and distilleries here.
We believe we can do a lot in the Nepali market.
You started your Nepal business journey three years ago. How has been this journey so far?
The journey has been good so far.
We have sold equipment worth IRs 50 million so far to Nepal. We hope better days are ahead.
How is your company doing in India?
In terms of market share, we are ranked number three in India.
Beside breweries and distilleries, what Kind of other companies can get your services?
We also work in the areas of food and beverage. We are also working with Coco-Cola in India. Dairies and Ice-cream plants can also use our equipment and seek our services. As I said earlier, we can also set up rasgulla plants. We are also getting involved in hydro projects.
Who are your clients in Nepal?
In Nepal there are; United Breweries, Himalayan Brewery, UB Nepal, Chaudhary Group, Sherpa Group, Mount Everest Brewery etc.
Do you have any plan to set up your own plant here?
Of course, we are thinking of it. If we can establish a plant here, our transportation cost will be minimized. We believe in right technology at right price.
You have a range of products. Which of them are high in demand in Nepal?
The demand for brewery equipment is more among our products. But I think microbrewery has a good scope in Nepal. Nepal has better beer per capita than India. People in Nepal drink more beer than the people in India. The range in India is limited. As Nepal also receives a good flow of tourists, micro brewery has a huge scope here because most tourists want fresh beer which the microbreweries can supply. We can help Nepali businessmen to set up microbrewery plants.
In Nepal, there is no micro brewery. Government is still working on a policy for the microbrewery business. What are your suggestions for that?
Nepal government should allow microbreweries as soon as possible because that will generate more revenue to the government. As liquor is made in villages also, we can produce cheaper liquor too using local ingredients. Also, there are lots of herbs in Nepal which you don’t find in other parts of the world. Establishment of microbreweries will help both tourism and agriculture which will be beneficial for the country. This will also increase employment opportunities.