Archian Foods, the company behind the fast-growing Lahori range of traditional Indian beverages, is eyeing a pan-India expansion within the next two years, as confirmed by Saurabh Munjal, Co-founder and CEO, during his session at the News18 Rising Bharat Summit on April 8.

Known for products like Lahori Zeera, Lahori Nimboo, and Lahori Shikanji, the brand has carved a niche in the value-priced non-alcoholic beverage market by offering traditional Indian flavours at an affordable price point of Rs 10. Munjal emphasized that pricing plays a pivotal role in India’s consumer landscape, and the affordability of Lahori beverages has been key to its success.

Welcoming Competition from Big Players

Interestingly, Munjal sees the entry of legacy players like Coca-Cola, PepsiCo, Parle Agro, and even Bisleri into the Indian-flavoured beverage space as a positive sign. According to him, competition from big brands validates the segment's growth potential and can help expand the category further.

“We were the first movers in this category, and now everyone wants a slice of it. That’s a good thing. When more players enter, the category grows, and that’s good for business,” Munjal said.

This reflects a shift in India’s beverage market, which traditionally revolved around cola, lemon, and orange-based carbonated drinks, but is now witnessing a surge in demand for regional flavours, natural ingredients, and low-sugar alternatives.

Strong Financial Growth and Funding Plans

Archian Foods has been profitable since FY22, showing strong financial health and market traction:

• FY22 profit: Rs 3 crore

• FY23 profit: Rs 7.6 crore

• FY24 profit: Rs 23 crore

This impressive financial trajectory has caught the eye of investors. As per sources, the company is in advanced talks to raise Rs 400-450 crore in a new funding round, led by Motilal Oswal’s private equity arm and a group of other investors.

Previously, Archian Foods raised around Rs 170 crore (approx. $20 million) from Belgium-based investment firm Verlinvest, as per data from Tracxn. The fresh funding will likely support their distribution expansion, brand building, and product innovation efforts as they scale nationally.

Rising Popularity of Traditional Indian Drinks

The push for Lahori’s expansion aligns with a larger trend of consumer preference shifting towards desi, natural, and functional beverages. Traditional drinks like Jeera soda, lemon masala, and shikanji offer not just nostalgia, but also digestive and health benefits, which resonate with the health-conscious, urban, and rural consumers alike.

The Non-Alcoholic Ready-To-Drink (NARTD) segment in India has seen tremendous growth, with sales hitting Rs 73,617 crore for the 12 months ending December 2024, registering a 10.2% YoY growth, according to Nielsen.

This surge is driven by:

• Increased health awareness

• Growing rural and semi-urban consumption

• E-commerce penetration and D2C models

• Changing taste preferences, especially among millennials and Gen Z

Affordable Pricing: Lahori's Winning Formula

One of the biggest reasons behind Lahori’s growing popularity is its affordability. Munjal reiterated the brand’s strategy of launching beverages at Rs 10, which made it accessible to price-sensitive consumers across Tier 2, Tier 3, and rural India.

“In India, value for money is critical. If the pricing is right, half the battle is won,” he noted.

Value-priced products, especially in the FMCG space, tend to see higher adoption across demographics, making it easier for brands like Lahori to scale rapidly.

Positive Market Sentiment and Category Creation

Rather than being intimidated by competition, Lahori’s CEO sees it as category-building. The more big players invest in Indian-flavoured drinks, the more consumers will be introduced to it—a win-win for all stakeholders.

This also points to a maturing of India’s beverage industry, where indigenous brands are now strong enough to compete with global multinationals on the basis of innovation, taste, and value.

Strategic Investment and Brand Evolution

The funding from Motilal Oswal and other PE players could give Lahori the boost it needs to develop infrastructure, enhance supply chains, and possibly enter new product segments such as:

• Functional health drinks

• Sugar-free or low-calorie variants

• Traditional herbal blends (like tulsi or amla drinks)

It also opens the door for global expansion, particularly in regions with a large Indian diaspora who are familiar with and fond of traditional Indian flavours.

Conclusion

Archian Foods and its Lahori range of beverages are well-positioned to reshape the Indian beverage landscape. With the right mix of value pricing, cultural relevance, flavour innovation, and strategic capital infusion, the company is gearing up for nationwide presence and possibly a global footprint in the coming years.

As the NARTD segment continues to boom, and with increasing consumer awareness about health, heritage, and affordability, Lahori’s timing couldn’t be better. The next two years could very well see Lahori emerge as a major player, not just within India but potentially in international ethnic beverage markets too.

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