Nabhi Sutra: A Shark Tank Pitch Analysis

Nabhi Sutra, a brand founded by Vaibhav Shah & Swati Vakharia, was recently featured on Shark Tank India Season 3, aiming to secure investment for their business of producing 100% pure Ayurvedic Oils. This analysis delves into the details of Nabhi Sutra, encompassing its establishment, ownership structure, business model, products, and the Sharks' decisions regarding their pitch.

Company Details

Nabhi Sutra, is a brand registered with the company name, ADHYAY Wellness Pvt. Ltd. with the incorporation date on May 8, 2023. This company is registered in Vadodara, Gujarat, India. They currently have 9 types of 100% pure Ayurvedic Oils.

Ownership

Nabhi Sutra is owned by Vaibhav Shah & Swati Vakharia. Vaibhav Shah is the sister-in-law's husband of Swati Vakharia. Swati, when became a new mother, faced many problems. She trusted Ayurveda more than synthetic medicines and from there she got to know about belly oiling. Her cousin is an MD in Ayurveda and from him, she used to consult the effectiveness of Ayurveda. She tried Ayurvedic products on her daughter and also sampled other family members.

Business Model

Nabhi Sutra produces Ayurvedic oils that are 100% pure and have no side effects. Nabhi Sutra’s Oils are approved by the Ministry of AYUSH & FDA, making them authentic, safe, and reliable for use. The products are even consulted by doctors. The oils are applied to the Belly Button. The Belly Button is the thinnest layer of skin with the highest penetration level. The linea alba is a thin band of connective tissue that runs from the chest bone to the whole body down. So, when the oil is applied, this connective tissue increases the spreading level throughout the body and since the oils are made 100% Ayurvedic, they can be used to cure digestion, hair care, skin care, and several other benefits.

Products and Services

Nabhi Sutra currently offers 9 types of Ayurvedic Belly Button Oils which are 100% pure with no side effects. Detailed information about their products is available at: https://nabhisutra.com/collections/frontpage

Shark Tank Pitch and Decisions

Nabhi Sutra presented their pitch in Shark Tank India seeking an investment of 60 lacs for 3% equity (Valuation 20 Cr).

• Vineeta Singh: Vineeta asked the founders the reason behind spending 54% of their sales revenue on their marketing. She marked that their products are overpriced in comparison to other similar brands. According to Vineeta, their current expenditures on marketing are for “performance marketing” and it is a conversion technique to make it a brand. Vineeta mentioned that the prices should be made affordable and the current timing for investing is not apt. Hence, she was not convinced to invest.
• Anupam Mittal: Anupam was keen to know the science behind the penetration of oil through the belly button since it is sealed. He further asked the reason behind the launch of cream by the founders because as the name “Nabhi Sutra” suggests it focuses on the Nabhi i.e. the belly button. He suggested the founders to work in the niche segment only because the cosmetics market is very competitive. The current product structure couldn’t let Anupam see any return and exit, and hence, he didn’t extend any deal.
• Aman Gupta: Aman made an opinion on the name of the brand. The brand name restricts them on the belly button only providing them with less opportunity to expand in other segments. This name increases their reliability on the “Nabhi”. Aman asked the reason for flat growth. He appreciated the pleasing personality of the founders but since the market is small, he didn’t offer any deal.
• Peyush Bansal: Peyush mentioned that the sales in the cosmetic industry depend heavily on the marketing employed. He appreciated their optimistic attitude and called them a charming team. He advised the founders to first make their business of current products big and then expand to other categories of products because the cosmetics industry is rigorously competitive and the competition from other big players might crash them. Hence, he didn’t invest.
• Namita Thapar: Namita is a firm believer in Ayurveda and Homeopathy but due to a credibility gap and trust, Ayurveda & Homeopathy couldn’t take off in the market. Namita asked various questions about the expertise of the founders in the products, why their products should be trusted, and reasons for flattish growth in FY23-24. Later on, she asked about the contribution of cream to their sales. After analyzing the sales contribution and the revenue generated, she marked that adding cream to their product segment is a dangerous situation. Namita was not sure if the brand will be a national brand in the future. As a result, she didn’t offer any deal.

Analysis of Shark's Decisions

The Sharks' decisions reflect several key considerations for Nabhi Sutra:

• Niche market: Nabhi Sutra has 9 types of Ayurveda Belly Button Oils which help in hair care, skin care, digestion, etc. but evaluation by Sharks shows that the market segment for such products is small and thus Nabhi Sutra is operating in a niche market segment.
• Product categorization: Apart from the 9 Ayurvedic Oils, Nabhi Sutra also manufactures cream but according to Sharks, Nabhi Sutra should currently remain focused on their oil segment because their cream segment is a dangerous situation for the oil segment. The reason behind this is the declining sales of the Oils ever since they introduced the cream. The Sharks advised them to currently focus on their Oils only.
• Big players: Even though Nabhi Sutra is operating in a niche market segment, there is always the danger of big fish eating the small fish. Nabhi Sutra may be exposed to face competition with big players in the cosmetic industry because of their cream.
• Heavy marketing: Sales in the cosmetic industry are directly related to the expenses incurred in marketing the brand. Nabhi Sutra’s 54% of the revenue is also incurred solely in marketing their brand which Vineeta coined as “performance marketing”.

Some key strengths and weaknesses of Intervue:

Strengths:

• Authentic Ayurvedic: Nabhi Sutra produces 9 types of Belly Button Oil which are 100% Ayurvedic. They are best suited for hair care, skin care, and digestion problems. Their oils have zero side effects and are approved by doctors.
• Registered with the Ministry of AYUSH: Nabhi Sutra’s oils are approved by the Ministry of AYUSH and FDA (Food and Drug Administration).

Weaknesses:

• Big players: Nabhi Sutra’s product line of cream makes it exposed to the cosmetic industry which has rigorous competition and has many big players.
• Inappropriate brand name: The brand name makes the founders restricted to the products for Belly Button and thus reducing the opportunities for growth in other areas.
• Wrong product line: Nabhi Sutra started making creams which led to a decline in the sales of their star product i.e. Ayurvedic oils.

Future of Nabhi Sutra

Nabhi Sutra is not sure to become a national brand because the Indian Cosmetic Industry is competitive. Also, the market segment in which they are operating is niche but if they properly target their star products i.e. Ayurvedic Oils and then increase their area of operations to other products, then, maybe Nabhi Sutra can grow and create a competitive edge in the market.

Conclusion

Nabhi Sutra’s appearance in Shark Tank India Season 3 showcased the use of Ayurvedic plants as a business opportunity. The analysis shows that one wrong step in the production line can take away the lead of the star product. Nabhi Sutra may or may not become a national brand but the positive attitude of the founders was praised by the Sharks.

Quick Summary: