Jeera boom fuels Lahori’s growth, eyes Rs 2,000-cr revenue in 3 years

In three years, the Mohali, Punjab-headquartered firm hopes to achieve a turnover of Rs 2,000 crore for which it has put a blueprint in place, Munjal says. For one, the company is eyeing a bottling push nationwide, with plans to expand its contract manufacturers from five now to about 25-30 in the next few years, he says.

Facilities, he explains, will be located within a 500-700-kilometre radius from key markets to reduce freight costs and improve replenishment cycles. Current combined production capacity including at its three in-house bottling units in Punjab, Uttar Pradesh and Gujarat and that of its five third-party manufacturers stands at around one crore bottles per day from roughly 50 lakh bottles a year ago. But this is not enough as demand outstrips supply, he adds.

“Every year’s revenue has effectively been a function of what we could produce rather than what we could sell. We want to alter this,” Munjal says.

Archian Foods bets on general trade distribution

Unlike many new-age companies, who rely on direct-to-consumer or online channels for distribution, Archian Foods has counted on general trade distribution, which contributes to 90% of its sales. Lahori Zeera is present in 21 states, works with more than 3,000 distributors and is available in over 15 lakh retail outlets. This number will steadily increase as the company continues to expand its retail reach.

Alternate channels, including quick commerce and e-commerce, contribute about 10% in terms of sales, which Munjal says will grow, but not as significantly as offline sales, since the company remains selective about its online partnerships owing to concerns around listing fees, marketing spends and unit economics.

“Quick commerce will increasingly become important for beverage brands because it caters to impulse consumption. Having said that, we have placed strong emphasis on kirana stores and traditional retail rather than relying on modern trade or quick commerce. This has helped in driving scale since general trade remains the backbone of FMCG,” he adds.

The company’s growth comes amid intensifying competition in the jeera-drink category. Large beverage companies, including Dabur, Bisleri, Coca-Cola India, PepsiCo India and Parle Agro, have either launched or expanded products targeting the jeera-drink segment as consumer interest in traditional Indian flavours rise.

At the same time, Archian Foods like most other FMCG firms is navigating margin pressures linked to higher PET packaging costs. Packaging accounts for nearly 60% of manufacturing expenses, and recent increases in PET prices have squeezed profitability, Munjal says. Rather than sharply increasing retail prices, the company has sought to absorb part of the impact through supply-chain efficiencies and selective pricing adjustments.

Archian Foods has also raised around Rs 375 crore from investors, including Verlinvest and Motilal Oswal. While Munjal did not rule out a future public listing, he said the company’s immediate focus remains on scaling manufacturing, expanding distribution and building a national beverage brand.