The Shocking Truth Behind Lahori Jeera | Desi Drink | Case Study | Success Story | Live Hindi

Summary

In 2016, three cousins with distinct backgrounds—Saurabh Munjal, Nikhil Doda, and Saurabh Bhutna—came together to create a unique, homegrown drink that would resonate with the Indian palate. Drawing inspiration from traditional flavors, they introduced 'Lahori Jeera,' a drink made from cumin and rock salt, offering a distinct desi flavor in a market dominated by international brands. Despite starting with minimal investment, no celebrity endorsements, or flashy advertisements, their smart branding and strategic distribution helped the drink gain popularity across India. With a commitment to quality, affordability, and a deep connection to Indian roots, Lahori Jeera has grown into a brand with impressive revenues and a vast market presence.

Takeaways

• 😀 The dominance of Coca-Cola and Pepsi was challenged by a unique Indian brand based on a traditional Indian drink: Lahori Jeera.
• 😀 In 2016, three cousins—Saurabh Munjal, Nikhil Doda, and Saurabh Bhutna—decided to create a beverage inspired by India’s traditional flavors, focusing on Jeera (cumin) and rock salt.
• 😀 Saurabh Munjal, the entrepreneurial mind, had previously made successful ventures in Singapore and Punjab before deciding to return to India for his next big project.
• 😀 Nikhil Doda, with a background in agriculture and a love for food, played a key role in creating the original Jeera drink flavor that eventually led to the birth of Lahori Jeera.
• 😀 Saurabh Bhutna (Sunny) brought his expertise in ground-level operations and consumer engagement, ensuring their product reached the masses effectively.
• 😀 In 2017, the company Arkian Foods was established, launching Lahori Jeera—a product combining authentic taste with international-level branding.
• 😀 The product's name, 'Lahori Jeera', was chosen to emphasize its authenticity and connection to traditional Indian ingredients like Jeera and Lahori Rock Salt.
• 😀 Lahori Jeera's pricing strategy aimed at affordability, with the drink priced at just ₹10 to ensure it was accessible to people in tier 2 and tier 3 cities.
• 😀 To stand out from the competition, Lahori Jeera focused on premium branding with a sleek black and gold design, creating a distinct identity that made the product recognizable on shelves.
• 😀 Rather than spending on TV ads or celebrity endorsements, Lahori Jeera's founders emphasized product availability and quality, building a grassroots customer base that drove demand.
• 😀 Despite challenges like increased taxes on carbonated drinks in 2021, Lahori Jeera adapted smartly by reducing bottle size instead of raising the price, maintaining affordability and profit margins.

Q & A

What is the story behind the launch of Lahori Jeera?

Lahori Jeera was created by three cousins, Saurabh Munjal, Nikhil Doda, and Saurabh Bhotna, who were looking to introduce a traditional Indian drink made from jeera and rock salt. After trying various business ventures, they came up with the idea of creating a uniquely flavored jeera drink to fill the market gap left by major soft drink brands.

Why did they choose the name 'Lahori Jeera'?

The name 'Lahori Jeera' was chosen because of the unique ingredient used in the drink, which was rock salt or 'Lahori Namak.' The drink’s primary flavor is jeera (cumin), and the name reflects the authentic, traditional touch that they wanted to convey.

What was the pricing strategy of Lahori Jeera?

Lahori Jeera was priced at just ₹10 for a 250ml bottle, aiming to be affordable for customers, especially in tier-two and tier-three cities. The affordable price helped the drink gain traction in small towns, where affordability is a key factor in purchasing decisions.

How did Lahori Jeera stand out from other local drinks in the market?

Lahori Jeera differentiated itself from local drinks by focusing on premium branding, even with an affordable price point. The packaging used black and gold designs, creating a sophisticated image. This branding strategy made it stand out from other unbranded, generic local jeera drinks.

What challenges did Lahori Jeera face during its early distribution phase?

In the beginning, Lahori Jeera faced a major challenge when distributors demanded advance payment. The founders chose not to follow this condition and instead decided to connect directly with retailers, providing samples and gaining feedback. This direct connection helped them refine their product and increase market penetration.

What was the smart move that helped Lahori Jeera scale up its production?

Initially, Lahori Jeera used contract manufacturing, outsourcing the production to third-party manufacturers. However, as demand grew, they realized the need for their own manufacturing plant. Despite financial difficulties, they secured loans and set up their own facility in Punjab, which helped them scale up production significantly.

How did the increase in taxes in 2021 impact Lahori Jeera?

The government increased taxes on carbonated drinks by 40%, which posed a significant challenge for Lahori Jeera, as its profit margins were already low. Instead of raising the price, the company reduced the bottle size from 250ml to 160ml, maintaining the same price point but managing to preserve margins.

What was the marketing strategy used by Lahori Jeera?

Lahori Jeera initially avoided traditional advertising and instead focused on availability and word-of-mouth. They waited until their product was widely available before launching their first marketing campaign. This approach led to the campaign going viral, demonstrating that strong product availability can be more effective than costly advertising.

How did Lahori Jeera achieve rapid growth without large investor funding?

Lahori Jeera grew by focusing on a strong product, branding, and distribution. They avoided large-scale funding or investor backing and instead opted for sustainable growth through smart strategies, such as keeping costs low, scaling operations based on demand, and maintaining control over the business without giving up equity.

What is the future growth outlook for Lahori Jeera?

Lahori Jeera has shown significant growth, with revenues increasing from ₹80 crore in FY 2021 to ₹250 crore in FY 2022. The company aims to reach ₹500 crore in revenue by 2025. The demand for their product is growing rapidly, and they are expanding their presence across more states, including 18 states as of now.