Rasna faces delivery challenges despite rising demand in India

India is experiencing soaring temperatures, leading to higher demand for instant beverages. Rasna International, a well-known soft drink brand, is seeing increased sales but faces challenges with product deliveries. Chairman Piruz Khambatta noted that while summer has arrived early, creating more demand, logistics issues are making it difficult to supply stores quickly. Urban areas are seeing a rise in beverage consumption, but rural demand has not met expectations. Khambatta explained that while there is a potential for higher sales, many rural consumers lack the purchasing power to make more purchases. The anticipated growth in these areas is still not evident. To address these challenges, Rasna is expanding its retail footprint, aiming for 100,000 outlets by 2026. The company is also investing in a new manufacturing plant in Patna, which will produce litchi concentrates. This new facility will have a yearly capacity of 2 million cases. The global fruit concentrate market is growing rapidly. Its value was $2.46 billion in 2023 and is expected to reach $7.27 billion by 2031. Rasna is confident about its competitive pricing, mainly because of its large-scale production. Khambatta stated that their volume allows them to offer lower prices while maintaining quality. With the addition of the new plant and an emphasis on exports, Rasna is positioning itself well in the international market, even amidst rising tariff issues. The company’s strong domestic sourcing strategy, using local raw materials, gives it an advantage in pricing. According to Khambatta, Rasna products are among the cheapest in the global powder drink segment, thanks to their efficient operations and local supply chains.