Rasna now forays into snack segment to retain customers

Rasna has now forayed into the Rs 5,000 crore snack segment, launching its Vito, choco-strawberry flavoured products, priced at Rs 10. Seeing a “space in the healthy snack” category, he said it is highest growing among all food categories. Rasna expects 5 per cent share or Rs 250 crore in three years’ time. It has plans to introduce other price points in this product later, he added. 

“We are the only pure-play Make in India brand as our own technology is at work. Also, the raw materials sourced are from the country unlike MNCs which lead in all other categories,” says Rasna’s CMD Piruz Khambatta, launching the new version of Rasna Fruit Plus here on Wednesday. 

Even the decision to rebrand was based on research, he said, noting that customers want novelty and variety. On the choice of the neighbouring state for its new plant, Khambatta said the availability of mango was the basis. The Chittoor plant would enhance its overall annual capacity by 20 per cent, Khambatta said, adding Rasna has a capacity of five billion glasses per year.

Claiming to sell more than all the competition put together, Khambatta said over decades, Rasna has grown with a strong brand quotient. It is considered as world’s largest manufacturers of fruit-based concentrate. 

Rather than simply focusing on functional satisfaction and brand differentiation, it has a higher order emotional connection.  From pester power in the first phase of its growth to extending it to family in the second phase and rural penetration in the third phase, Rasna is now looking to extend the brand beyond the generations, he added.

Khambatta said Rs 30 crore had been earmarked for brand spend with Rasna keen to use the digital medium to drive sales. The targeting of consumers is more specific as the modern trade format is evolving. Rasna would also use liquid sampling to reach out to its customers, he added.

While Eastern part of the country and the J&K region proved to be growth focus areas, he said Gujarat, Tamil Nadu, Maharashtra, Karnataka and Andhra Pradesh accounted for 50 per cent of the company’s turnover. Incidentally, the popularity of oranges in TN was a prime reason for the flavour doing well in this part of the country. 

Small sachets contributed a major chunk of its business with 30 per cent of rural growth coming from this segment. Pricing too had worked in its favour. “We have not raised our MRP in the last 10 years,” Khambatta pointed out, adding it was totally committed to provide healthy fruit drink at an affordable price to its consumers. 

Rasna Insta is “also the most fortified beverage” with 21 vitamins and minerals, which not a single soft drink in India can stake that claim. Exports constitute 30 per cent of its revenues, Khambatta said, adding Rasna is eyeing an entry into Latin American market soon.