New Patna Plant and Urban Demand to Drive Expansion
Instant drink maker Rasna is eyeing a robust 30% growth in the financial year 2025-26, backed by rising demand in quick commerce, urban markets, exports, and new product innovations, Rasna International Chairman Piruz Khambatta announced on Friday.
The company is investing Rs 45-50 crore in a new manufacturing plant in Patna dedicated to producing litchi concentrates. This move aligns with Rasna’s strategy to expand its presence both domestically and internationally.
“With exports, we are targeting 30% growth this year,” Khambatta said during an interaction. He emphasized that quick commerce and e-commerce are becoming key growth drivers, with both segments showing a promising 30-40% increase.
“Quick commerce is growing rapidly, partly taking share from modern trade,” Khambatta noted, adding that the company expects this segment to double in the upcoming fiscal year.
Urban demand is also projected to witness significant growth, particularly for Rasna’s newly launched “richer, thicker, and tastier” fruit drink powder. The Rs 10 pack format is poised to gain traction, especially in urban markets where demand is expected to surge by 30-40%.
While rural markets are predicted to expand at a slower pace of 7-8%, Rasna believes its new concentrate-based product can tap into this segment effectively. The company’s aggressive export strategy has already shown results, with international sales doubling since the pandemic.
Rasna currently exports to over 60 countries across five continents. The newly launched drink powder will primarily be sold in bottles and tins in global markets, while pouches remain the preferred format for Indian consumers.
In addition to exports, Rasna is strengthening its domestic footprint by expanding its retail reach to 1 lakh outlets and adding new distributors by the end of next year.
While no fresh investment plans are outlined for the upcoming fiscal, the new Patna plant is set to produce around 2 million cases of litchi concentrate annually. This expansion is expected to play a key role in achieving Rasna’s ambitious growth targets.
“We are also planning further international expansion and exploring new product lines,” Khambatta added without revealing specific details.