Piruz Khambatta, Chairman Rasna Pvt Ltd, is not very concerned about the company’s bottom-line at this point of time. The owner of the iconic fruit juice concentrate maker rather wants to focus on improving penetration and increasing the per capita consumption of Rasna.

Rasna, an innovative concentrate drink created in the mid-seventies, an era dominated by Gold Spot and Limca, continues to improvise the product. From being known as a brand for kids, the company has been able to position itself as a ‘drink for all’.

“We want to ensure that the per capita consumption is increased. We are launching small packs at affordable price points and a range of innovative products next summer. Our competition is not powder drinks anymore, but ready-to-drink brands,” said Khambatta, on the sidelines of a CII event on innovation. The products are likely to take on brands such as Frooti and Mazaa in the ready-to-drink (RTD) segment.

The Rs 5,000-crore fruit-based Indian beverage market is growing at 35-40 per cent annually and is divided into three segments — fruit drinks, nectar and 100 per cent juice. Coca-Cola, PepsiCo, Parle Agro, Dabur and Godrej are among the leading players in this segment, according to industry reports.

According to market research firm Euromonitor International, concentrates are slowly losing their appeal to RTD products owing to increased ease and speed of consumption. Besides, health factors are also driving this trend. The segment is growing faster than others.

Rasna Beverages, a separate subsidiary, will manufacture energy drinks, fortified bottled water and premium fruit juice. The transformation of brands from powder to RTD formats is driven by the company’s aspirations for higher growth rates, achievable in more dynamic categories, said industry experts.

The company, with a distribution network of 35 depots, 2,500 stockists, 18 lakh retail outlets and 700 sales force, might have lost the brand’s popularity among consumers in the metros, but feels there is immense potential in the non-metros which are dominated by neighbourhood or kirana stores.

Rasna still rules the roost at 90 per cent share in the concentrate powder drink market, which is getting competitive with the entry of brands such as Tang, Piyoz, Kissan and other players.

Khambatta further said the company would come out with products that would not only provide refreshing drinks but also keep in mind the health benefits that the consumer seeks.

> Priyanka.pani@thehindu.co.in

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