Rasna Success Story: A Tale of how India Drinks

On an excruciatingly hot day when the sun's rays feel like daggers on our body and mind, a chilled drink feels heavenly. I still remember coming home after playing outside with friends and asking my mom to make me Rasna. The sweet orange-flavoured drink with ice cubes floating made me giddy and successfully quenched my summer thirst. With the launch of a variety of DIY drinks in the market, Rasna is one brand that every 80s-90s kid remembers fondly.

But did you know that your favourite drink has an interesting backstory and an impressive presence in the global market? Yes, the delight of tasting the delicious Rasna is available in more than 50 countries worldwide. Rasna is the dominant soft drink concentrate market player, with around 80-90% market share in 2004-2021.

So, how exactly did a simple family business become the beverage industry's game-changer? Who is the mastermind behind making Rasna a home brand and a global presence within a few decades? Let's uncover the blend behind Rasna Group's success and peek into their plans for the future as part of a special summer edition.

The Birth of Rasna

Rasna is the family heritage of the Khambattas. 1976 was the year when the ready-to-serve soft drink concentrate was introduced in the Indian market. Launched initially with the name “Jaffe”, Pioma Industries, owned by the Khambatta family, brought a flavourful drink to the state of Gujarat. The birth story and rise of the drink we know as Rasna today is coincidentally juicy and inspiring at the same time.

The philosophy of “doing the right thing at the right time” was proven correct by the Khambatta family, which led to their extreme success. Today, the official company, Rasna Private Limited, is the largest concentrate manufacturer in the world, their words, not ours. 🙌

So, how did they do it? How did Rasna Pvt. Ltd., a small beverage company with distributors in just Gujarat, become a company available in 53 countries? Let’s take you to where it all began. The India of the 1970s!

India in the 1970s was a vibrant nation with many firsts, a rise of the young generation and a place with many social movements. It was also a nation where foreign beverage companies found stable grounds. “Coca Cola” arrival, its dominance, its banishment as well as its return is a story we have elaborated on before. The whole fiasco, especially the dominance and the banishment bits of the story, occurred during the 1970s. The market was already buzzing with the fight between then Parle's product, Thums Up and Coca-Cola.

Both the beverages targeted youngsters as their core audience and marketed the product based on what a young individual would lean towards. There was no market for children because these drinks were not too suitable, both in terms of health and taste, for little kids. This was the part on which the Khambattas bet while launching their prime drink.

Among the fighting giants, a small beverage company came out with a product bound to win the hearts of people from all age groups alike. Jaffe was introduced, and it started making its presence known in the streets of Gujarat fluently. The sweet yet refreshing taste of orange-flavoured drink soothed the parched souls of everyone. When it comes to the orange-flavoured products in Rasna Group, Maharashtrian Nagpur Oranges are utilised for most of the stock. This unique sweetness became the key for Jaffe to be relaunched as "Rasna" in 1979, and the company entered the national market.

Now, the question arises who made all this possible in the first place? So, the man behind the grand success of the Rasna Group and its foundation was Areez Pirozshaw Khambatta. He passed away on 19th November 2021. The business as a whole was started by Areez's father, Phiroja Khambatta and Areez during the 1970s. Areez Khambatta was a renowned industrialist and social worker, as well as the chairman of the Areez Khambatta Benevolent Trust and World Alliance of Parsi Irani Zarthostis (WAPIZ). After him, his son Piruz Khambatta became the Managing Director and Chairman of the company in 1998.

What Made Rasna Renowned Around The World?

Entrepreneurs often wonder about the best idea to give their business a kick start and a fantastic glide in becoming number one in the market. After all, an effective idea or a unique concept helps set a brand or a business apart.

There are many ways to find that one spark that would take your business to the heights of success. It could be an alluring marketing strategy, a catchy catchphrase, or activities to entice consumers. Brands often use one or two of these options to promote their business. But, our dear Rasna Group was one step forward as it utilised all three of these tricks to make its products stand at the top of the popularity chart.

It’s a popular saying that real learning starts at home. Similarly, before dominating the soft drink concentrate market in the world with an astounding 80% market share, Rasna began spreading its goodness in its homeland. To give you an insight into their winning spree, I am bringing a crisp list of the spectacular strategies the drink concentrate company used.

Lovable Marketing Catchphrase

The recipe to turn a mildly successful business into a well-known brand contains one key ingredient, marketing. With the addition of ingredients like a crisp catchphrase, an alluring storyline, wonderful characters, and the right context, the dish-named “advertising” will lead a company to the skies. The same happened with the new beverage in town, Rasna.

Rasna came out with the marketing campaign “I Love You, Rasna” in the 1980s by running advertisements on the national channel Doordarshan. The advertisements contained a child actor named Ankitha Jhaveri, who then became popular for being the “Rasna Girl.” The advertisement showcased a small girl enjoying Rasna with her family and delivering the catchphrase, “I Love You, Rasna!”

This simple line was nothing out of the ordinary, but its tone and delivery gave it a pleasing aura, making it a classic advertisement for all times. The innocence of the Rasna Girl and the big glass of Rasna drink in small palms increased the endearing level for all. Rasna company played wonderfully well by making an advertisement that most citizens could relate to. So, a large part of the credit for the success of Rasna as a home drink goes to this ad.

A Product Prepared For All

Every company has a USP, i.e. a Unique Selling Point, that their product's marketing, packaging, and even distribution depends upon. The packaging for baby products and their target audience differs from car accessories companies. Only a few products are available that target people of all ages simultaneously. Rasna Pvt. Ltd. is one of those products.

Being a food company, their products, from ready-to-make drink concentrates to mix-and-make powders, are prepared to make them perfect for all. From little kids craving something sweet and refreshing to young adults wishing to recall their childhood with fruity goodness, Rasna targets all. This strategy was unique in the time when only carbonated drinks were dominating the drink market. Other soft drinks were present in the market, like Limca, but the price, ingredients, and a few other aspects made them unreachable for many. This is where Rasna put more focus on launching and enhancing its distribution channels.

By introducing its 32-glasses pack, Rasna introduced a budget-friendly drink option for the nation. Rasna started with ₹5 sachets fit for a quick mix and make. This DIY strategy of making a cool and yummy drink accessible for people from all financial conditions worked in their favour. With just ₹5, kids, adults, and even the elderly could instantly enjoy a chilled and sweet beverage to soothe their parched throats. Preparing this drink doesn't even take much time. Just add the powder to cold water, put in sugar if you want, and swirl..swirl..🍥 Yumminess and freshness are guaranteed!

Keeping Pace With Trends

We often hear that zamane ke sath badalna zaruri hai! Rasna took this approach to heart and tried its best to keep in touch with the changing market trends. When there was a flood of flavours in the beverage department, Rasna also joined the race in 2000 and brought forward a variety of flavours. Kala Khatta, Mango, Shikanji Nimbu Pani, Aampanna, and many more varieties of flavours joined their signature Orange flavour.

Due to the different flavours, people who didn’t enjoy the orange flavour could enjoy the delight that is Rasna by trying on other options. This brought them the position of being the soft drink concentrate brand with the most presence in the market. At one time, Rasna dominated the soft drink concentrates market with a staggering 85%.

Apart from this, Rasna Pvt. Ltd. also engaged in public interactions by holding events throughout the country. They hold gaming events, hire popular actors and actresses in advertisements, and even make world records.

• World’s Largest Glass

Rasna made an entry in the Guinness Book of World Records for manufacturing the world's largest glass of beverage. The glass was 10 ft tall x 6ft feet wide in size and was unveiled on 28th May 2009 at the DLF Mall, Saket, Delhi. This glass defeated the prior record of a Florida company's 8.5x5 feet glass. This record was set to open a four-day carnival by Rasna Group for the citizens of Delhi.

• Cashback Collaboration with Paytm

What's the best offer you could think of? For me, it would be 100% OFF, for sure! Rasna Group understood consumers' desires and thus came out with a program to deliver a 100% cashback offer. By tying up with the payments platform Paytm, Rasna ran a campaign to give 100% cashback to consumers. All one needed to do was buy the product from the brand and scan the code through the Paytm app. It also featured Rasna's new ambassador Chhota Bheem. Here as well, Rasna focused on their audience from the kids’ section.

• Branding by Popular Celebrities

Rasna has had a strong marketing presence since the "I Love You, Rasna" campaign in Doordarshan. They have won multiple awards for their advertisements, including the Indian Telly Adz Awards for 2021 for being the "Most Iconic TV Campaigns of All Time". They have advertised their products with stars like Akshay Kumar, Kareena Kapoor, Genelia D'Souza, and Hrithik Roshan, along with sportspersons like Saina Nehwal, Virendra Sehwag, and even kid's favourite characters Chhota Bheem.

Impressed with the success story of Rasna? Then, delve into similar examples of impressive success approaches that made the best brands in India today. 

Let’s Talk Financials!

We remember Rasna as our favourite DIY drink from childhood. Even today, kids like drinking colourful fruity beverages of various flavours. We can easily find children asking their parents to make Rasna for them. It is pretty similar to the presence Maggi has in the snack industry. This privilege of a brand where people recognise a dish by the product's name doesn't come easily.

So, you were introduced to what represents Rasna as a product. But how much do you know about Rasna as a company? Let's dive deeper into what Rasna Pvt. Ltd. is and its financials.

So, Rasna Private Limited, aka Pioma Industries, is an unlisted company. It was incorporated on 13th March 1992. Before that, as per many sources, the company which produced and sold Rasna (then Jaffe) was called Pioma Industries, which is still an official name incorporated with the Rasna Group. Jaffe came to the market in 1976 and has seen many changes since then.

Currently, Rasna Pvt. Ltd. has an authorised capital of ₹1,00,00,000 and a paid-up capital of ₹15,00,200. With an operating revenue ranging between the amount of ₹1 crore to ₹100 crore, Rasna Group is a major player in the soft drink concentrate market globally. They are present in around 53 countries, including countries from different corners of the world like the United States of America, Kuwait, Canada, Australia, New Zealand, etc.

Regarding India, Rasna Group has around 1.8 million retail outlets in the country, including cities like Ranchi, Bengaluru, Patna, Mumbai, Raipur, and many more. At the same time, the head offices of Rasna in India are in New Delhi, Ahmedabad, Mumbai, Kolkata, Hyderabad, and Chennai.

Rasna’s Fight With Market Setters

After launching the famous "I Love You, Rasna" campaign, Rasna slowly became a household name in the nation. From keeping in touch with the trend going around the country to maintaining the reputation of being an affordable option in the beverage industry, Rasna was reaching cloud heights. But, not every day is rainbow and sunshine as soon the competitors grasped what Rasna Group was giving to the consumers and launched their own products. The competitors like Tang from Mondelez International entered the Indian market when Rasna dominated it with a whopping 85%-90% market share.

So, what exactly did Tang have in its arsenal that made it a worthy competitor for the nation's favourite mix and drink product?

The approach with which Tang led its marketing strategy in India allowed it to steal market share from Rasna. From providing affordable products with a wide variety of flavours to maintaining its premium standing amidst competitors was the push it needed. Tang became the kind of product that was cool to drink and yet not too expensive to indulge in. Plus, with strong distribution channels, Tang was easily available in nearby stores.

Another hurdle that led to Rasna slowly losing its dominance in the non-aerated drinks market was the abundance of carbonated beverages in the nation. The old competitors Coca-Cola and Pepsi decided to make their products affordable. The beverage giants were globally popular and had a massive advantage over Rasna Group. They had large advertising budgets as compared to the marketing king Rasna. These aerated drinks brands took complete benefit of this fact and advertised their beverages in the most creative way possible.

Hence, the consumers were enthralled with the ads and were finding it better to try sparkling drinks often. Despite this, Rasna still has a good presence in the market, as is evident from its annual revenue of $71 million in 2021, with an average market share of 75%.

The Bottom Line

To give a more compliant touch to the brand, Rasna Group revamped its decades-old catchphrase "I Love You, Rasna" to "We Love You, Rasna!" They also brought forward a variety of products other than DIY drink packets like Kool Drink Range with Indie Cola, Wellness Range with Honey, DIY Soup, Protein Drinks, and many more. They even have their own Choco Spread. Yeah! I didn't know either!
So, how many of these products have you tried yet? For me, a home brand making it big nationally and internationally is a proud event. No matter what, the resilience of Rasna to stay at the top since its beginning is something to be proud of!

Read more such interesting stories here.