Rasna looks to boost exports with overseas franchising arrangements
Leading pre-mix drink manufacturer Rasna is exploring franchise partnerships abroad to increase its export footprint. As part of the model, franchisees would invest in local manufacturing plants while Rasna provides technical expertise and a pre-mix supply.
Chairman Piruz Khambatta shared the company already has 3 to 4 such global deals in place and is in talks with more partners. Rising logistics costs and duties have prompted this move to cater for exports more efficiently.
Exports currently account for 30-35% of Rasna’s sales, which it aims to take up to 50% in the coming years. The drink is available across 60 countries. Khambatta hopes to grow 30-35% annual export volume in FY24, though geopolitical issues have disrupted supply chains this year.
Domestically, 20% volume growth is targeted. Rasna has signed actress Tamannah Bhatia as its new brand ambassador. However, rural sales growth slackened recently after a brief uptick post-pandemic.
Due to election-year sops, Khambatta remained optimistic about the rural market’s potential in the year ahead. Around 20-25% of revenues flow from rural India.
Apart from mass targeting, Rasna competes in D2C premium segments and participates in the government’s export promotion scheme. Khambatta states exports could rise 50% in a conducive global environment.
