By enhancing its position in the mass markets, Piruz Khambatta states that the company is expecting a 30 per cent growth this season
As the economy, at large, experienced a certain degree of urban consumption slowdown, the demand seemed to have taken a hit. Since the summer season has come early this time around, businesses are expecting a surge in demand. The stocks are expected to be put under pressure due to a likely surge in demand.
Highlighting that the company has not faced an urban slowdown, Piruz Khambatta, the Chairman of the instant drink manufacturer, Rasna International highlighted that they were ‘caught off-guard’ due to summer arriving early. However, the chairman told BW Businessworld that the company is prepared to match the demand and supply.
“We were, a little, caught off guard because of the early onset of the summer season, but now we are fully geared and we have enough stocks in all our depots. Luckily there is no urban slowdown for us and we are growing in urban areas,” Khambatta added.
Eyeing 30 Per Cent Growth
By strengthening its position in the mass markets by enhancing its presence with small pack sizes and products, Khambatta stated that the company is expecting a 30 per cent growth this season. The Chairman highlighted that the company also wants to cater to modern trade, ecommerce and standalone stores with premium products.
Through the leveraging of its distribution network of 1.8 million outlets across India, Khambatta stated that the company is investing in network expansion and production innovation, to capture a larger share of the industry.
“Rasna has a multifaceted strategy for growth, at one end we are looking at consolidating our position in the mass market by increasing our presence with small pack sizes and products specially made for masses like Shikanji, Aampanna, and at the other end we also want to cater the modern trade, ecommerce, standalone stores with premium products. When you put together all these activities, coupled with our focus on exports, we expect a 30 per cent growth,” Khambatta told BW Businessworld.
Expansion In Africa, South America
As Rasna is currently sold in more than 60 countries, the Chairman added that as far as the global expansion is concerned, the company is working towards newer franchisees, licensing offices in various parts of the world.
“Expansion is increasing in many countries, especially in Africa and South America and we are pursuing newer and newer franchisees/licensing offices in various countries, the Chairman added. Highlighting the ‘Made in India’ beverage aspect, Khambatta stated, “All our products are completely made in India, packed in India and almost all products are sourced in India e.g. we promote Nagpur Orange, Alfanso Mango, not only that we also ensure that the fruits we buy are from Indian farmers and not imported concentrate.”
Tapping Fruit Drink Market
In an effort to capture India’s Rs 20,000 crore fruit drink market, the company recently introduced a new fruit drink powder concentrate, Rasna Rich. With this, the company aims to appeal to a wider consumer base as well as target the bottom of the pyramid in the market by offering affordability and premium taste.
Commenting on the same, Khambatta stated, “According to a research, the concentrated fruit drink market in India is expected to reach USD 537.13 million by 2030, growing at a compounded annual growth rate of around 7.7 per cent, and with rising consumer demand for convenient and nutritious beverages, we see immense potential for expansion.”
Evolving Consumer Preferences
As the industry has witnessed a significant shift over the decades, consumer preferences have also evolved. With more and more choices now being made available to consumers, the tilt towards health-oriented products has also made a mark, especially due to the Covid pandemic.
Consumers are very different in the last three years only, forget the decade, and with our very well-established R&D and innovation capacities we have been always delivering customer expectations with newer and newer products. In Covid times, we introduced protein vita products with 14 gram of protein… We have also introduced millet-based soups tenting with our Prime Minister’s vision of increasing consumption of millets,” Khambatta highlighted.
In line with its aggressive product innovation strategy, Rasna’s market research has identified the thick mango-flavoured drink market as one of the highest-demand segments in the country. The company intends to strengthen its pan-India presence by adding new distributors to its network by the end of the next year while expanding its retail reach to one lakh outlets.
