Soft drinks concentrate major Rasna plans to enter the energy drinks market by November 2010. The company will introduces a host of variants in the powdered drinks category.
With this move, Rasna will gear up to battle it out with the well established Glucon-D from Heinz that has around 70% market share of the Rs 500 crore energy drinks market. Dabur?s Glucose is also a major player in the market. Rasna chairman and managing director Piruz Khmabatta is dismissive about competition and is confident about the performance of the company and the brand the firm is launching under the energy drinks category.
?We will be launching our energy drink around Diwali this year. For me, price points are more important than the grammage of the packs. We are introducing the drink at four price points- Rs 3, 5, 10 and 30. Beyond this, it would be unfair to disclose any details,? Khmabatta said.
At present, Rasna holds around 90% share of the Rs 300 crore soft drink concentrate market in India and Tang being its immediate competitor. Currently, the company has three brands- Utsav, 1 ka 2 and Fruitplus, available in pouches and bottles at 1.7 million outlets across the country.
For the financial year 2009-10, Rasna closed its books for the domestic business with net sales of Rs 350 crore, selling almost Rs 450 crore glasses per year.
The company has seen a volume growth of 36% during the year under review. According to Khambatta, the numbers are not as important as the reach of Rasna’s products. Apparently, for the last 10 years the company has not increased prices despite strong brand equity in the powdered drinks category. A key concern that company has faced in the last 2-3 months is the soaring sugar prices, as sugar is the key ingredient for the manufacture of powdered drinks. With the price band ranging from 50 paise to Rs 3, the company says it will be the cheapest drink in the market in its category and that is where it gets its volumes. It sells sachets worth Re 1 that serves two glasses. The ad spends in the current financial year are estimated at Rs 16-17 crore for television.