Rasna to foray into ready to drink segment, says chairman Piruz Khambatta

Early summer onset, quick commerce and e-commerce to drive growth

Rasna International, the market leader in powdered drinks, will bank on the mass market and the early onset of summer for a 30-40 per cent growth rate in FY26, even as it plans to foray into the ready-to-drink segment with a low-calorie beverage for the Indian market in the coming months.

 

“We have set up a plant with an investment of ₹40-50 crore in Patna. It makes 2 million cases. Twelve plants manufacture our products and we’re looking at expansion abroad,” said Piruz Khambatta, chairman.

 

“We’re also planning to launch a ready-to-drink variant in the wellness category, which will help us become a more relevant player across the 12-month duration (like fruit drinks) instead of just the summer months,” he told Business Standard.

 

While it will be its first non-powdered drink, it will also be a play in the health drinks market, which has seen substantial growth over the last few years. The new ready-to-drink foray will help the company balance its product portfolio to ensure year-round sales, especially in winter months.

 

The move will help it gain a larger share, up to 5 per cent, of the ₹20,000 crore fruit drink market, up from its current share of less than 1 per cent.

 

He added the ongoing cola wars would benefit Rasna because it would raise the pitch for marketing fruit drinks and stoke consumer interest in non-sugar and non-cola alternatives as they opt for healthier drinks.

 

He noted sugar-free drink powders made up 50 per cent of its exports. In its wellness portfolio, introduced during the pandemic, the brand offers options of soups and honey, besides vitamin-enriched beverages.

 

Rasna intends to take the global fruit concentrate market, which was valued at $2.46 billion in 2023, to $7.27 billion by 2031, growing at a compound annual rate of 14.50 per cent. In India, the concentrated fruit drink market is expected to be more than $500 million by 2030 on the back of demand for nutritious beverages.

 

Quick commerce and regular e-commerce were seeing growth of 30-40 per cent, the fastest among all channels, which was adding to overall sales.

 

“We expect sales from quick commerce to double,” he added. At present the categories make up 7-8 per cent of sales.

 

On Friday, Rasna launched a thicker variant of its powder-based mango drink called Rasna Rich, which is fortified with vitamins. This, Khambatta said, was getting a large number of orders.

 

“With an early summer we are expecting demand to rise. We’re trying to align logistics to ensure steady supply,” he added.

 

On the insolvency case filed against the company at the National Company Law Tribunal (NCLT), Khambatta said the company would fight the case and set it a precedent so that trivial commercial matters were not taken to the insolvency forum.

 

“We’re completely solvent,” he noted.

 

Rasna Private Ltd was taken to the NCLT by Bharat Road Carrier Private Ltd for allegedly not paying over ₹71 lakh in September 2023. While the tribunal admitted the plea and appointed a resolution professional, the Delhi High Court put a stay on the proceedings.