Lahori Zeera has cemented its position as a formidable player in India’s competitive beverage market. The company crossed the ₹300 crore revenue milestone in FY24 and witnessed its profits grow 3X year-on-year. This phenomenal growth highlights the brand’s ability to capture a significant market share and maintain a strong foothold despite stiff competition from international giants like Coca-Cola and Pepsi.
The Beginning: How Lahori Zeera Started
The journey of Lahori Zeera began in 2017 when three cousins — Saurabh Munjal, Saurabh Bhutna, and Nikhil Doda — decided to turn a home recipe into a commercial success. Nikhil experimented with a cumin-based beverage whose taste was appreciated by his cousins. This inspired the trio to launch Archian Foods Pvt. Ltd. in Fatehgarh, Punjab.
The flagship product, Lahori Zeera, hit the market and immediately struck a chord with Indian consumers. Known for its traditional Indian flavors like cumin (jeera), black salt, and lemon, Lahori Zeera positioned itself as a refreshing, natural, and affordable alternative to mainstream carbonated drinks.
Lahori Zeera’s Phenomenal Growth: A Look at the Numbers
Lahori Zeera’s growth trajectory has been impressive, with consistent year-on-year growth and massive profit surges.
Key Financial Highlights for FY24:
- Revenue Surge: Operating revenue grew by 47.2%, reaching ₹312 crore in FY24 compared to ₹212 crore in FY23.
- Expense Rise: Total expenses increased by 36.9%, rising from ₹203 crore in FY23 to ₹278 crore in FY24.
- Profit Spike: Profits skyrocketed by 196.1%, jumping to ₹22.5 crore from just ₹7.6 crore in the previous year.
Revenue Breakdown: How Lahori Zeera Makes Money
Lahori Zeera primarily generates revenue through the sale of its beverages, including:
- Lahori Zeera – The flagship product known for its tangy cumin flavor.
- Lahori Nimboo – A refreshing lemon-based drink.
- Lahori Shikanji – A traditional Indian spiced lemonade.
- Lahori Kacha Aam – Raw mango-flavored drink.
The company also earns a small portion of its revenue from scrap sales and non-operating income such as gains from investment sales.
What Led to This Success?
1. Strong Distribution Network
Lahori Zeera expanded its reach beyond Punjab, capturing key markets in Delhi, Haryana, Uttar Pradesh, and Rajasthan. The brand’s availability in roadside stalls, small shops, and retail chains contributed to its visibility and increased sales.
2. Effective Advertising and Branding
The company’s brilliant advertising campaigns and word-of-mouth marketing helped Lahori Zeera become a household name. The brand’s quirky and relatable messaging resonated well with Indian consumers.
3. Affordable Price Point
At ₹10 per bottle, Lahori Zeera offers a budget-friendly, tasty alternative to expensive soft drinks. This price strategy has enabled it to capture a large share of the mass market.
4. Focus on Authentic Indian Flavors
Lahori Zeera’s commitment to authentic Indian flavors sets it apart from carbonated beverages. With natural ingredients like cumin, ginger, and black salt, the brand resonates with consumers seeking healthier options.
Challenges on the Horizon
1. Crossing the ₹500 Crore Mark
Punjab-based brands often face scalability challenges once they cross the ₹500 crore mark. Lahori Zeera will need to maintain operational efficiency and expand strategically to avoid stagnation.
2. Investor Pressure and Brand Identity
With discussions about raising ₹400-450 crore from Motilal Oswal, maintaining the brand’s essence while meeting investor expectations could be challenging. Overemphasis on growth may dilute brand authenticity.
Lahori Zeera’s Future: What’s Next?
CEO Saurabh Munjal’s Ambitious Target
Saurabh Munjal, the CEO of Lahori Zeera, aims to surpass the ₹500 crore revenue milestone by FY25. He envisions expanding the brand beyond India and entering global markets, introducing traditional Indian flavors to an international audience.
Upcoming Product Launches
The company is planning to launch new products in the coming year. According to Munjal, these new offerings will be “game changers” and further strengthen Lahori Zeera’s market presence.
Lahori Zeera’s Tech Edge: Partnership with Uneecops and SAP
To sustain its growth and streamline operations, Lahori Zeera partnered with Uneecops, a leading SAP Platinum Partner. By implementing SAP ERP systems, the company automated its payment processes, improved financial management, and empowered its workforce with data-driven insights.
This technological upgrade has significantly enhanced operational efficiency and decision-making capabilities, positioning Lahori Zeera for future success.
What’s Your View?
Do you think Lahori Zeera can surpass the ₹500 crore target in FY25 and sustain its growth? Will the brand maintain its identity as it scales up? Share your views in the comments below!