Lahori Zeera targets Rs 400 crore growth

Beverage maker Lahori Zeera is targeting net revenue of Rs 1,100-1,200 crore for the financial year 2027. This represents a planned increase from a projected Rs 775 crore in FY26. The company's strategy hinges on portfolio expansion and a long-awaited geographic push into South India.

According to co-founder and CEO Saurabh Munjal, the newly launched Lahori Zeera Diet is central to this growth. The zero-sugar, zero-calorie variant is priced at Rs 20 for a 160-ml bottle. "It's stevia-based, zero sugar, zero calories," Munjal said. The company expects this product to generate between Rs 20 and Rs 50 crore over the next two to three years.

Munjal believes quick commerce platforms will be a key channel for the diet drink. He sees an overlap between immediate consumption occasions and health-conscious shoppers. "We feel that this product is going to have a sizeable share for quick commerce," he asserted.

The diet variant is the sixth stock-keeping unit (SKU) in a portfolio of five flavours. Munjal confirmed the original, sugary Lahori Zeera drink will remain unchanged. "The OG product will continue to be on the shelves. Not touching that because that is who we are," he stated. The company is, however, developing other formulations with reduced sugar content.

Portfolio and Manufacturing Expansion

Lahori Zeera is also preparing to enter the non-carbonated beverage segment. Planned products include Lahori Aamras, Lahori Teekha Guava, and Lahori Zeera Nimbu Pani. The company intends to launch three to four of these flavours together in January 2025.

The launch of the diet variant required no major new capital expenditure. Munjal said existing manufacturing infrastructure and research and development capabilities were sufficient. "Any flavour, anything that I need to produce, my capacities, my bottling plants can accommodate all of those requirements in the existing facilities itself," he explained.

Currently, production happens across eight locations. This includes three company-owned plants in Gujarat, Punjab, and Lucknow, plus five contract manufacturing sites. The company plans to expand its manufacturing footprint to 15 or 16 locations next year.

Current monthly production capacity is approximately 1.2 crore bottles. The capacity is distributed with roughly 40% in Punjab, 25% in Gujarat, and 35% in Lucknow.

Geographic Strategy and Channel Mix

Lahori Zeera's distribution spans 19 states through a network of over 3,000 distributors. The business has undergone a geographic shift. North India now contributes about 40% of revenue, down from a previous 60-65%. The eastern region's share has grown to 30-35%.

"We are north- and east-dominant, with presence in West and Central India. South is something that we haven't yet explored," Munjal said. That is about to change. The company has established a facility in Bengaluru to spearhead its South India entry.

The initial launch in January will target Karnataka, Andhra Pradesh, and Telangana. Munjal expects it will take two to three years for the southern market to scale meaningfully.

The business remains overwhelmingly reliant on offline general trade. More than 95% of sales come from this channel. Online channels, including e-commerce, modern trade, and quick commerce, collectively contribute less than 5% of revenue.

Financial Outlook and Ambitions

The company faces cost pressures from the West Asia conflict and higher expenses for raw materials and packaging. Despite this, leadership maintains its FY27 revenue target of Rs 1,100-1,200 crore. They also expect to sustain a steady-state EBITDA margin between 12% and 15%, which they say is unrelated to the geopolitical situation.

Funding for new product development and capacity expansion will come primarily from internal accruals. Munjal stated the company is well-capitalised and does not currently need to raise external funds. "The business is well capitalised to support its capex requirements," he said.

As Lahori Zeera enters its tenth year, its ambitions are growing. Munjal hopes the next decade will see the brand gain a significant global presence. He aims for the company to represent India on the international beverage stage.