Archian Foods, the company behind the popular Lahori Zeera soft drink, is changing how it runs its business. It is moving to an asset-light model, relying on partners to bottle its drinks instead of investing in factories of its own. With that shift in place, the Verlinvest-backed firm is now looking for what could be its next big product.
Cofounder Nikhil Doda explained that the company has already made the transition, he said, and the plan is to grow alongside co-bottling partners. Because this approach needs little capital for now, Archian has no plans to raise fresh funds at present.
The company has not been short of investor backing so far. Motilal Oswal Wealth led a round of around $23.6 million last year, picking up a stake of about 7.14%. Before that, Verlinvest invested $15 million in 2021.
Looking ahead, Doda said the company wants a “second hero product” that can repeat the success of Lahori Zeera. Archian will stay within beverages. It has already expanded its range with flavours and variants such as nimbu and masala cola, and has recently added sugar-free options.
Lahori Zeera, along with Reliance’s Campa, has been taking on the long-standing dominance of Coca-Cola and PepsiCo in India’s roughly Rs 60,000-crore soft drinks market. Both have leaned on sharp pricing and flavours rooted in Indian tastes to win over consumers.
Price remains a sensitive subject. Doda pointed out that the whole industry now sells at an entry-level Rs 10 price point, a level Archian chose from its very first day. Established players, he noted, have since matched it to protect their market share, even as costs keep climbing.
Those costs are rising on several fronts, packaging among them. Archian is choosing to absorb the pressure rather than pass it on to shoppers. “We are taking a hit on margins but holding on to consumer prices,” Doda said, adding that the company expects these costs to ease because they are simply unsustainable at current levels.
The bigger picture looks encouraging. A Redseer report estimates that India’s ready-to-drink beverage market will double from $20 billion in 2025 to $40 billion by 2030. The growth is expected to come from consumers moving towards healthier and functional drinks, such as sugar-free and supplement-based options.
There is also plenty of room to grow. India’s per capita consumption of ready-to-drink beverages is just 15 to 20 litres a year. That compares with 100 to 120 litres in the US, 70 to 80 litres in China and 60 to 70 litres in the UK.
For Archian, the road ahead is about growing lean, protecting its Rs 10 pricing and finding the next drink that catches the country’s imagination.