Rasna expects double-digit growth in volume this summer season

This surge, from the 2018-2019 period, is set to come from semi-urban, rural areas

Rasna, which is known for its beverage concentrate, expects a double-digit growth in volume this summer over 2018-2019, and so, the company’s factories are running at full capacity.

The beverage major is also cashing in on the Ramadan demand.

“All our factories are running at full capacity and the problem I am facing is not being able to produce three-four stock-keeping units. This is due to the high demand,” Piruz Khambatta, chairman of Rasna, told Business Standard.

Khambatta also said that the company is seeing higher value growth than volume.

He added that demand is higher from tier 3 cities and rural demand for its products is also strong.

Due to the high demand for its products, the company is expanding its capacity by another 30-40 per cent with an investment of another Rs 100 crore.

Khambatta added that as demand was hit during the Covid years, it was not able to expand capacities during those years.

The world’s largest soft drinks concentrate maker produces around 4-5 billion glasses every year, Khambatta said. It has also added more African countries to its exports.

Currently, the company sees 30 per cent of its revenues coming from exports to over 60 countries. 

In the domestic market, Rasna sees 80 per cent of its demand from price packs, which are below Rs 100.

The remaining comes from higher price-point packs, which are sold in modern trade and the e-commerce channel. In these channels, the traction is higher for higher-priced products. The contribution of modern trade and e-commerce to its revenues stands at 20 per cent.

“We have a direct reach of over a million outlets across the country and it could go to 1.3 million outlets,” Khambatta said.

Since its products are skewed towards seeing higher demand in summer, it has recently launched another brand in the health and wellness category.

The Rasna Health Day will help the company remain relevant even in the winter months. Rasna Health Day has products such as honey, soups and protein powders.