Fast-growing packaged sweets brand Lal Sweets is set to invest ₹100 crore in two new manufacturing facilities located near Bengaluru Airport and Greater Noida, as part of its ambitious expansion strategy to scale production and widen its national footprint.
The upcoming facilities — spanning 1.5 lakh sq. ft. in Bengaluru and 1 lakh sq. ft. in Greater Noida — are scheduled to become operational by March 2026, said Prateek Athwani, CEO and Founder of Lal Sweets.
“With the current facilities, we produce around 25 metric tonnes per day. The two new units will add 75 metric tonnes per day to our capacity,” Athwani told the media.
Founded in 2010, Lal Sweets currently operates two plants in Bengaluru, covering a total area of 1 lakh sq. ft. The company raised ₹330 crore in 2024 from Motilal Oswal Financial Services, diluting 25% of its equity to fund manufacturing expansion, distribution growth, and marketing initiatives.
The brand aims to quadruple its distributor network from the existing 140 to about 450 by the end of FY26, with a strong focus on tier II cities. Lal Sweets currently reaches 18,000 general trade outlets and plans to expand to 60,000–70,000 outlets within the next fiscal year.
In retail, the brand has a presence across 24 cities, including modern trade stores like DMart and Reliance, as well as 12 exclusive brand outlets at airports. The company also leverages quick commerce platforms and its direct-to-consumer (D2C) channel to boost reach.
Currently, 65% of revenue comes from offline channels, 30% from quick commerce, and 5% from D2C sales. The company has also diversified into the savouries category, offering a total of 80 SKUs — 50 in sweets and 30 in savouries.
Internationally, Lal Sweets operates in 12 countries, with 8% of its revenue coming from overseas markets.
The brand, which has maintained a 35% CAGR and an EBITDA margin of 20% over the past five years, closed FY25 with ₹187 crore in revenue and is targeting ₹250 crore by the end of the current fiscal year.
With its new production hubs and expanding distribution reach, Lal Sweets is positioning itself as a national leader in India’s rapidly growing packaged mithai market, blending tradition with large-scale modern manufacturing.