Rasna looks to achieve 40% volume growth

Fruit juice concentrates maker Rasna is eyeing a 40% sales growth this year, as it increases its focus on the hinterland to drive business.

"We are looking at 40% growth, excluding exports. Last year, we had a turnover of Rs 350 crore," Rasna Chairman and Managing Director Piruz Khambatta told PTI here.

Rasna's plan to dig deeper into hinterland follows the other fast moving consumer goods marketers who have made it big from going to the bottom of the pyramid in recent years.

"Every FMCG company is focusing on the rural markets now. The reason being rural is not that different from urban today and rural markets relate more with these products now," he explained.

Data shows that FMCGs have been clocking high double-digit growth in rural areas, while it was tepid in urban markets.

"Small towns and rural areas have to be tapped more," Khambatta said, adding that he already sells around 2 crore pouches in rural areas now. "We are expecting of 40% growth, rural sales take in 50-60% of it," he said.

On diversification plans, he said, "We are looking at other categories. The brand Rasna can be expanded into ready-to-drink and confectioneries. But, there is too much untapped potential in fruit juice powder category. Also, we don't want to do anything that is alien to us, plus I want the brand to be generic to the category and not dilute it."

"The pricing is becoming costly. I doubt if people would like to drink a bottled Rasna at Rs 12. I am selling 10 glasses for Rs 12 today," he further said.

Rasna also makes fruit jams, fruit cordials, teas, pickles, chutneys, ready-to-eat curries and snacks, mostly exported to the Middle East, the US and Eastern and Southern Africa, among other countries. However, most sales from domestic market come from ready-to-drink beverage mixes.

Over the weekend, Rasna launched a reformulated Rasna Fruit Plus and roped in cricketer Virender Sehwag as the brand ambassador for a two-year term. Recently, it also appointed Bollywood actor Genelia Deshmukh, to endorse the concentrate product for two years.

Khambatta said Rasna marketing budget this year rose to Rs 50 crore with the new promotions and is also geared up for advertising during Indian Premier League.

Close to 70% of Ransa's sales happen in summer, he added.