Beverage, ice-cream companies warm up early with capacity expansion

Companies prepare for summer demand after last year's weather disruption

Home-grown beverage and ice-cream makers have begun preparations for the upcoming summer season, adding capacity and drawing up plans to enter new geographies.

 

Punjab-based Archian Foods, which manufactures and markets Lahori Zeera, has decided to venture into contract manufacturing to support supply from its three manufacturing facilities. 

“We have launched a new ad campaign and have also been able to build momentum through our association with the new season of Shark Tank. With four new contract manufacturing facilities starting supply from April 1, we will be able to produce 10 million bottles a day,” said Saurabh Munjal, cofounder and chief executive officer of Archian Foods. 

With production now diversified beyond North India to regions such as Bhopal, Ahmedabad, and Bengaluru, the maker of the ₹10 processed cumin-flavoured drink is looking to deepen and widen its presence. 

“There is a lot of competition, and everyone has an eye on the ethnic Indian beverage space, so we need to consolidate our position as leaders,” Munjal said. He added that the brand will launch in Telangana, Karnataka, and Andhra Pradesh this year while strengthening distribution in Odisha and Assam.

 

The company, which raised over ₹400 crore last year, is targeting net sales of over ₹1,200 crore by 2026-27 (FY27), driven by new flavours such as Lahori Chatpata Aam Ras and stevia-sweetened variants of existing products.

 

“The idea is to give people a taste of nostalgia with our flavours. We have piloted the new Aam Ras flavour in select markets ahead of the season and expect it to become a ₹100 crore product on its own over the next couple of years,” Munjal added.

 

After last season was washed out by an early and extended monsoon, players are hopeful the weather will be more favourable this year, setting the stage for a strong summer.

 

Ahmedabad-headquartered ice cream maker Hocco, whose Aamchi-flavoured ice cream gained traction last year, is aiming to reach ₹900 crore in revenue by FY27, up from an expected ₹500 crore-plus in net sales in the current financial year (2025-26). “In our third season, we are increasing capacity to 270,000 litres a day from 120,000 litres currently, with two new plants coming up in Ahmedabad and Haryana, which will be commissioned in March,” said Ankit Chona, managing director of Hocco.

 

While strengthening its presence in markets such as Uttar Pradesh, Madhya Pradesh, Rajasthan, and Chhattisgarh, the company is also planning to enter Telangana and Goa.

 

“We are optimistic about the coming summer and are building infrastructure such as deep freezers and ensuring distributors have adequate cold storage. We are hopeful of another strong season as customers look for differentiated products in a crowded market,” Chona added.

 

Meanwhile, Mumbai-origin Naturals Ice Cream is expecting growth of 20–25 per cent this summer, taking revenue to around ₹200 crore. “Early onset of heat, improving consumer sentiment, and higher penetration of delivery and quick commerce are positive drivers. Mango will remain the key growth pillar, while premium and limited-edition flavours are seeing higher traction, especially in urban markets,” said Siddhant Kamath, director at Naturals Ice Cream.

 

A new manufacturing facility in Ambernath, expected to become operational in March and add 50 tonnes a day of capacity, will support expansion into Tier-II and Tier-III markets, along with a more structured push into Chennai. “We are also preparing to enter Lucknow and expand more meaningfully across Uttar Pradesh, which we see as a high-potential market over the medium term,” Kamath said.

 

To drive growth further, the company will roll out quick commerce operations in Mumbai, Pune, and other key cities after successful pilots in Bengaluru, Hyderabad, and Delhi-National Capital Region. “Based on our learnings, we will focus on curated assortments, instant-consumption packs, and strong cold-chain execution,” he added. 

No summertime blues

 

• Lahori Zeera ups capacity to 10 million bottles a day, aiming over ₹1,200 cr in revenue by FY27
• Hocco ice cream will add two new plants, eyeing ₹900 cr in revenue
• It hopes to expand operations to Telangana & Goa
• Naturals Ice Cream aims for ₹200 cr in revenue, with plans to launch qcomm operations in Mumbai, Pune