Rasna expects 30% export growth despite tariff threats

Rasna, a popular drink brand in India, is preparing to deal with potential tariff challenges from the United States. The company's chairman, Piruz Khambatta, believes Rasna is better positioned than larger global competitors. He claims that Rasna can offer the most cost-effective options in the powdered drink market. Khambatta explained that Rasna's high production volumes allow it to maintain lower prices while still providing quality products. He pointed out that while Chinese products are often seen as the cheapest, Rasna's scale helps it compete effectively on price without sacrificing quality. President Donald Trump has announced that India will face new tariffs starting April 2, in response to what he describes as unfair duties on American goods. The US has highlighted the differences in tariffs, with India’s average rate significantly higher than that of the US. However, the Indian government has clarified that no country-specific tariffs have been imposed. Despite these economic challenges, Rasna is optimistic about its growth. The company expects a 30 percent increase in exports this year, having already doubled its export volume since the pandemic. Rasna now sells products to over 60 countries worldwide. Domestically, Rasna is focusing on new powder concentrates aimed at driving growth in urban areas. The company is also seeing demand for smaller price packs in rural markets. To support this growth, Rasna plans to invest around Rs 45-50 crore in a new manufacturing plant in Patna for litchi concentrates. Looking to the future, Rasna aims to capture a larger share of the fruit drink market in India. New product lines, including thicker fruit drink powder, will be introduced in both local and international markets. This powder will be sold in bottles and tins, expanding Rasna's reach beyond the pouch packaging popular in India.