Rasna — the 49-year-old powdered drink mix synonymous with summer holidays, birthday parties and after-school refreshment — is hoping physical expansion and a flavour boost will push the needle and keep it relevant in a market dominated by ready-to-drink pops, colas and juices.
To start with, Rasna Group will improve its production capacity with a new manufacturing facility in Patna and push for deeper penetration in eastern India, a region it sees as key to its growth. “Eastern India is growing in all FMCG categories. I believe that as food companies, we need to be where the consumers are,” says Piruz Khambatta, chairman of Rasna. “Food processing can do for rural India what IT did for urban India,” he adds.
Currently, 60% of Rasna’s sales come from urban India, with the remaining 40% from rural areas. The company aims to strengthen its rural foothold, targeting a retail network of 1,00,000 outlets by 2026. The Patna facility is expected to play a pivotal role by localising production and significantly cutting down on freight costs.
The plant will initially manufacture traditional Indian flavours like Jaljeera, Nimbu Pani, and Shikanji, with plans to introduce region-specific products such as lychee. This focus on local tastes and regional access is aimed at building relevance in smaller markets, where affordability and familiarity remain strong purchase drivers.
Then there is the bigger task to bust the perception that it is a light “kiddie” drink. The company has launched a new, thicker variant called Rasna Rich, aimed at countering the popular view that powdered drinks are “thin” and “artificial”. A new flavour, Alphonso Mango, will lead the charge.
Mango, after all, is big business. Of the `20,000 crore Indian fruit drinks market, `13,500 crore comes from mango-based beverages. Rasna’s current share in the fruit drinks segment is under 1%, but the company is eyeing a larger slice with its new formula designed to be as close as possible to real mango juice.
Rasna is also exploring a broader product mix that includes wellness-oriented drinks that can be consumed around the year.
Khambatta acknowledges the challenges ahead. “Our biggest hurdle is getting people to add powder to water. Everyone wants something quick,” he says. To overcome this, the company is investing in fortified options and functional drinks, positioning Rasna as a healthier, nutrient-rich alternative.
Then there is competition. While the brand holds around 80% share of the flavoured powdered drink market (valued at `3,500 crore in 2024, according to a RedSeer report), it faces stiff competition not just from rival powdered mixes like Tang (which offers fewer SKUs compared to Rasna’s 60), but also from the convenience of ready-to-serve beverages.
Rasna is banking on affordability to stay afloat in a price-sensitive market. The product comes in multiple sizes, starting at `5 for one glass, `10 for three, and `170 for 22 glasses and more.
Experts say the brand needs more. “Rasna’s identity in the ‘80s and ‘90s was that of a cute, middle-class Indian soft drink. That doesn’t resonate with young adults today, who are more aspirational. It needs a complete makeover,” says Samit Sinha, managing partner at Alchemist Brand Consulting.
Agrees Yasin Hamidani, director at Media Care Brand Solutions: “Adapting to rapidly changing consumer tastes—especially the shift towards fresher, ready-to-drink options—is a real challenge,” he says.