Pathik Patel, an 800-crore businessman, failed to secure a deal on Shark Tank due to false claims about his product, leaving our sharks disheartened.
Friday, March 15, 2024, Episode 40: Shark Tank India Season 3 has been a roller coaster of ideas and pitches. In this season’s Episode 40, our talented Sharks, including Anupam Mittal, Namita Thapar, Vineeta Singh, Aman Gupta, and Deepinder Goyal, were presented with three unique ideas. However, it was the man with a business worth 800 crore who caught the judges’ attention in a controversial way.
Hailing from Gujarat, Pathik Patel introduced his product: Oats-based breakfast cereals and snacks named Fit & Flex. Running a business alongside his cotton and chemicals ventures, which generate an annual revenue of 800 Crore, he ventured into breakfast products manufacturing in 2019.
Patel claims his products are both healthy and tasty, made from oats with a variety of flavors, making him one of India’s unique manufacturers. He boasts of a state-of-the-art manufacturing unit producing 35 types of breakfast products, all with comparatively low sugar content.
Patel initially captured the Sharks’ hearts with his gesture of “Pahle kuch khilata hu fir dhandhe ki baat karta hu” (first let me give you something to eat then I’ll talk business). His pitch offered 1 Crore for 3% equity with a valuation of 33.33 Crore, claiming to have the least added sugar products in this category and unique machinery equipped with European technology.
While being questioned by Aman “Healthy snacks have become a fashion, aap us bheed me kaise navigate karenge?” Asking about the uniqueness of the product and it’s ability to sustain in this mushrooming market. Patel revealed about his unique machinery which gives snacks a long crunchy life.
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Taking the questions a little further, Anupam inquired about the machinery, suggesting that if it’s so effective and still not popular in the market, it must have some glitch either in cost or usability. Prithik then disclosed its hefty price tag of 15 crore and its distinctive European build.
While explaining his healthy product, Patel mentioned being a marathon runner, which excited Shark Aman, who claimed to have a marathon PB of 2.5. However, Vineeta mocked him, saying “Phek rha hai” (just making it up), which disheartened Aman.
Patel’s downfall in this pitch began when he explained his involvement in three huge companies: Niva Nutrifoods, a private labeling venture with three partners; the intellectual property he acquired for Fit & Flex; and his massive 800 crore cotton and chemicals industry. This division of attention among three companies raised doubts among the Sharks regarding future prospects.
Shark Aman was the first to give his decision, stating, “Iske 3 business ho jayenge, me isse out ho jaunga” (he’ll have three business , and I’m out). “Me ye teeno chize khata rahunga ( indicating his oats products) aap theeno chize chalate rahange, ‘Bye, Bye” and our shark gave his clear decision he declined investment due to Patel’s divided focus.
Vineeta agreed with Aman, stating, “Ye to ho hi nahi sakta” (this business is not going to work), and firmly declined to invest.
During the show, Anupam and Deepinder appeared disheartened and made a backdoor decision, later revealed to be related to health claims regarding Fit & Flex products. Deepinder commented, “Jo marzi becho par sach bolke becho” (sell whatever you want but sell truthfully), emphasising the importance of honesty in product claims. Both judges agreed, “Better for you and healthy me bohot fark hota hai” (it makes a big difference to be truthful).
Deepinder concluded, “It is not healthy,” and He gave his decision, saying, “Ye Jo market claim hai ye uneducated customers ko misleading karne wala market claim hai” (these market claims mislead uneducated customers), and withdrew from the deal.
Anupam, expressing his personal discomfort with exaggerated health claims, followed suit, stating, “Sab karte h to me bhi kar sakta hu” (if everyone is doing it, then I can do it too). “Personally, I have a problem when such claims are made, and for that reason, I’m out,” as he opted out of the deal.
However, not all Sharks were deterred. Namita Thapar showed interest, stating, “I want to take a punt“. She offered 25 lakhs for 2.5 percent equity at a valuation of 10 Crore and an additional 75 lakhs as debt at 10 percent interest, payable over three years. She proposed moving the machinery to a new company as a separate entity, a condition Patel couldn’t fulfil, and thus the deal was not finalised.
In the end, Prithik Patel’s visionary dream of elevating Fit & Flex into a separate company through a partnership with the Sharks remained unfulfilled. Despite his hopes of managing his two other businesses concurrently and profiting from all three, he faltered in pitching the deal.
