Lahori Zeera Eyes Bisleri-Style Expansion to Compete with Coke and Pepsi
Motilal Oswal-backed ethnic soda brand Lahori Zeera is taking bold steps to capture India’s booming non-alcoholic drinks market by following Bisleri’s successful co-bottling strategy.
Rising Demand for Non-Alcoholic Beverages in India
The non-alcoholic ready-to-drink (NARTD) segment in India is witnessing an unprecedented surge in demand. With increasing disposable incomes in both rural and urban regions, Indian consumers are embracing traditional-flavoured beverages as daily refreshments. This shift has opened a massive opportunity for emerging players like Lahori Zeera, who are betting on ethnic, healthier, and locally inspired alternatives to carbonated drinks.
Lahori Zeera’s Revenue Jump and Ambitious Growth Plans
Founded in 2017, Lahori Zeera has rapidly carved out a strong presence in the Indian beverage market. The brand reported impressive revenues of ₹535 crore in FY25 and has now set a target to cross ₹800 crore in FY26, according to co-founder and COO Nikhil Doda.
“We are confident about achieving our revenue targets. The market potential is vast, and our differentiated product and distribution strategy will fuel the next phase of growth,” said Doda.
Inspired by Bisleri’s Distribution Strategy
To scale operations without heavy capital expenditure, Lahori Zeera is adopting an asset-light co-bottling model, similar to that used by bottled water giant Bisleri.
What is the Bisleri Model?
Bisleri’s success stemmed from its hyper-local presence, with manufacturing units every 200 kilometers across the country. This allowed Bisleri to be available in every kind of retail outlet, leading to it becoming a generic term for bottled water in India.
Lahori Zeera plans to replicate this by establishing co-bottling agreements nationwide.
“We’ve already signed four co-bottlers, and aim to partner with 20 over the next two years,” Doda revealed.
Ethnic Flavours Gaining Traction in Beverage Market
While global beverage giants like Coca-Cola, PepsiCo, and Parle Agro dominate with carbonated drinks, a new wave of Indian consumers is shifting preference toward ethnic flavours like zeera, aam panna, and shikanji. Lahori Zeera, with its traditional flavor profile, is ideally positioned to leverage this shift.
Competing in a Saturated Market
Pepsi and Coke dominate with lemon, cola, and orange flavors.
New-age Indian brands focus on sugar-free, herbal, and natural drinks.
Lahori Zeera is emerging as a key player in the ethnic soda segment.
Stronghold in North India with Focus on In-Home Consumption
Lahori Zeera currently relies on general trade distribution channels, with the North Indian market being its strongest base. The brand has observed consistent, repeat buying behavior, especially for in-home consumption.
“Our consumers often purchase in bulk for families or guests. It’s not an impulse drink—it’s part of their routine,” Doda shared.
This trend offers a strong foundation for predictable demand and brand loyalty—two pillars essential for long-term growth.
Strategic Move Toward Outsourced Manufacturing
Setting up manufacturing plants requires significant capital investment. To avoid this, Lahori Zeera has chosen the outsourced manufacturing route. This not only reduces the cost burden but also enhances flexibility and allows rapid scaling across states.
Competition and Margin Game in Indian Beverage Industry
As the competition intensifies, established players are luring retailers with higher margins to secure shelf space.
Comparative Retailer Margins:
Reliance’s Campa Cola: Offers 6-8% margin
Coca-Cola and PepsiCo: Offer 3.5-5%
Lahori Zeera: Maintains a stable margin model
Despite competitors offering higher incentives, Lahori Zeera remains consistent with its margin structure, choosing to focus on sustainable relationships with its retail partners.
“Yes, others are offering more, but we’re playing the long game. Our model is consistent and designed to be profitable for all stakeholders,” said Doda.
India’s Untapped Beverage Potential
India’s per capita soft drink consumption still remains significantly lower than that of other countries, leaving ample room for expansion.
Market Highlights:
India’s NARTD segment is projected to grow at CAGR of 10-12% over the next five years.
Rural consumption is catching up with urban markets.
Traditional drinks are becoming mainstream.
“The market is massive and largely underrated. There’s room for everyone,” Doda added.
Lahori Zeera’s Growth Strategy at a Glance
Key Points:
Founded in 2017 with a focus on ethnic sodas.
FY25 revenue: ₹535 crore; aiming for ₹800 crore in FY26.
Adopting Bisleri-style co-bottling model for rapid scale.
Four co-bottlers signed; plans to onboard 20 in 2 years.
Strong presence in North India with emphasis on in-home buyers.
Stable margin strategy for retailers amidst growing competition.
Competing with global giants like Coke, Pepsi, and Campa Cola.
Conclusion: A Bold Bet on Traditional India
As Lahori Zeera gears up for national expansion, it is placing its bet on India’s evolving beverage preferences and proven distribution tactics. With an innovative blend of traditional flavours, asset-light manufacturing, and steady retail strategy, Lahori Zeera is well-positioned to become a dominant homegrown player in the non-alcoholic beverage space.
