Bengaluru-based Uravu Labs produces sustainable water using their exclusive technology, which operates on absolute renewable energy. This innovative process extracts moisture from the air and transforms it into water. Consequently, their bottles can serve as an endless water source, offering a sustainable solution in the hospitality landscape of India. Swapnil Shrivastav, Cofounder, Uravu Labs, explains how his technology gained a solid recognition across various Hotels and Beverage companies in conversation with Tejaswini Paranjape.
Please tell us more about your business strategies for the hospitality and beverage industry.
Uravu achieved rapid scalability, progressing from 5 LPD to 3000 LPD, with successful pilot projects involving renowned beverage companies such as AB InBev, Radico Khaitan, and an international Japanese investor. Upon reaching the milestone of 1000 LPD, a strategic pivot towards the premium water market in the hospitality sector occurred, leading to the onboarding of our inaugural client, Roxie, in December ’22. Since then, our clientele has expanded to include over 25 establishments in Bangalore. Uravu extends comprehensive services to these hospitality clients, encompassing water production, packaging, labeling, filling, and logistics. Notably, our packaged renewable water distinguishes itself by completely eschewing plastic usage, utilizing glass bottles for packaging, screen printed labels, and metal caps. Furthermore, we actively participate in a sustainable cycle by repurchasing empty bottles from our clients for subsequent reuse.
Please throw some light on your break-even, turnover, and profit as of now.
Uravu started generating revenue consistently from Jan ‘22 and currently has an Annual Recurring Revenue (ARR) of USD 200,000. In 2024, we expect to reach an ARR of USD 1 M and break even in 2025.
How challenging was it to implement the technology in terms of business? Tell us more about the investors’ interest in your projects during your journey.
Commencing with pilot initiatives alongside beverage giants such as AB InBev and Radico Khaitan, Uravu initially aspired to scale its operations. However, the pivotal consideration of CAPEX(Capital Expenditure) prompted a reassessment of our business model, especially during the ongoing R&D phase. Recognizing the substantial CAPEX associated with Uravu’s technology, a thorough examination led us to pivot from selling the technology to directly offering the product – thehigh quality water. Our strategic shift found resonance in the hospitality sector, where we identified a compelling product market fit. Subsequently, we have successfully catered to the needs of over 25+ clients in Bangalore, solidifying our presence in the market.
Would you like to know about your plans when it comes to building a sustainable model suitable for the hospitality industry?
Uravu is serving over 25+ hospitality clients across Bangalore which include 4 and 5 star hotels like The Leela, Royal Orchid, Hyatt Centric and ITC Fortune who are pioneering implementation of sustainable solutions and also many premium fine dining establishments. Uravu provides end-to end services from production of water from air (for every liter of water From Air we are saving 3 liters of groundwater), labeling, filling and logistics. We also do reverse logistics where we collect the empty bottles from the clients and reuse the bottles. We are working on implementing electric vehicles (EVs) for all of our logistics and integrating carbon credits into our products as well.
How relevant and essential is this design in hospitality considering factors like the environment and society?
All the 4 and 5 star hotels are already working in some way to implement sustainable solutions and achieve their ESG( Environmental Social Governance) goals. Sustainability is a trend which restaurants are picking up and
Uravu’s solution is ideal, as water is a crucial component for the hospitality industry. It is also very easy to integrate Uravu’s solution into their business and see a positive impact on the environment and society – reducing groundwater usage, less carbon emissions, zero plastic usage, and reuse of glass bottles. For every liter of Uravu’s FromAir water used we save 3 liters of groundwater. As of Jan ‘24, Uravu has saved 3,45,214 liters of groundwater and approx 3400 tons of single use plastic with the help of 20+ clients. By using glass bottles we have also reduced the amount of carbon emissions produced in manufacturing plastic bottles.