The Hindu Business Line : Rasna plans new flavours

RASNA'S summer strategy and its plans to develop regional flavours like aam panna and kokum is expected to further grow the Rs 300-crore soft drink concentrate market.

Mr Rajesh Mehta, Assistant General Manager, Rasna Pvt Ltd, said this summer the company plans to increase the number of its retail distributors from one million to 1.5 million. This would ensure that the soft drink concentrate is available in rural and semi-rural areas.

Besides reach, the other factor that the company has taken into consideration is pricing, as only 20 per cent of Indian consumers could afford a soft drink. The company's aim is to break the price barrier and make the drink more affordable.

The recently introduced Cola Cola at 50 paise a glass sold 150 million glasses in 30 days, and the company hopes to sell one billion by the year-end, he said.

The company has introduced a sachet priced at Re 1 that makes two glasses of Rasna.

It has entered the ready-to-drink market via the franchise of vending machines. These machines are being installed at heavy traffic zones such as railway stations, schools, supermarkets and petrol bunks.

It has introduced Rasna Shake Up, a pre-sweetened milkshake mix powder in a market that is dominated by Bournvita, Horlicks, Nesquik and Boost. Mr Mehta said Rasna's entry has expanded the category, as the product was available not only to socio-economic categories A and B but also to the lower income households because of its competitive pricing and extensive distribution.

The Rs 225-crore company spends around Rs 4 crore on research and development, Mr Mehta said.