How three cousins built Lahori Zeera into a Rs 525 crore desi beverage business

Some dreams take root early and never fade. For cousins Saurabh Munjal, Nikhil Doda and Saurabh Bhutna, who grew up together, it was always about building something of their own. 

“We’re first cousins, the same age, and have grown up together. This built a deep bond and an instinctive understanding between us. Doing something together was always the dream. After exploring several options in the F&B space, we decided to focus on Indian beverages because we believed this category had immense potential to grow,” Nikhil Doda, Co-Founder, Director and COO of Lahori Zeera, tells 30Stades.

In 2017, they rolled out Lahori Zeera, their flagship and most popular drink, from a small facility in Punjab. 

The trio gave a carbonated twist to the drink made with lemon juice, black pepper, dry ginger, and cumin. The product was well received and there has been no looking back since then. 

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In a short time, Lahori Zeera, an ethnic beverage brand, has carved a niche in the crowded Indian market with its range of carbonated drinks made with natural Indian ingredients. Archian Foods Private Limited is the parent company of Lahori Zeera.  

From humble beginnings to rapid growth

The company’s product lineup now includes Zeera, Nimboo, Shikanji, Kacha Aam, Imli Banta, Masala Cola, and more.

"Today, Lahori Zeera is present in 18 states, backed by a network of over 2,000 distributors. It is available in more than five lakh retail outlets and sells over 5 million (50 lakh) bottles daily during peak summer months,” Nikhil points out.           

“Last year, we recorded a net revenue of Rs312 crore, and by this March, the company is on track to close at over Rs525 crore (an over 68 percent growth). The goal for FY26 is Rs 1,000 crore in revenues," Nikhil says.

If traditional cola brands can achieve billion-dollar sales in India, there’s no reason why an Indian-origin ethnic beverage brand can’t do the same, he adds. 

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Identifying market gap

The non-alcoholic beverages market in India was valued at Rs1.37 lakh crore in 2023 and is expected to reach INR 2.10 lakh crore by 2029, expanding at a CAGR of 7.06 percent.

Lahori Zeera was born out of a simple yet powerful idea – bottling classic Indian flavours with a unique twist. The trio saw a massive industry that had remained unchanged for years. It was a space waiting to be redefined. Ethnic Indian beverages, in particular, stood out as a largely untapped category, one that major brands had not focused on.

“We felt this gap wasn’t just an observation; it was an opportunity. We started with a very small manufacturing facility in Punjab, but the intention was clear -- to focus solely on ethnic Indian drinks,” says Nikhil.

"Our vision has always been clear - to make 'desi' the new cool.”

That’s why the cousins chose to focus on ethnic Indian, formulating flavours deeply rooted in nostalgia yet refreshing for the modern palate. These flavours have always been a staple in Indian kitchens, but no one had ever thought of bottling them and building a brand around them, Nikhil adds.

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Overcoming challenges

Despite the overwhelming consumer demand, Lahori Zeera had to tackle two major challenges. The first is the capital-intensive nature of production facilities. The machinery required is expensive, and the time it takes to establish new units has led to consistent stock shortages. “Supply has been our biggest bottleneck,” he says.

“To manage this, we are now exploring a co-bottling model, a strategy successfully used by major beverage brands like Coca-Cola, Pepsi, and Bisleri,” Nikhil says.

“This will allow us to scale faster by setting up multiple production facilities, at the same time, unlocking the brand’s full potential once our manufacturing capabilities are in place,” explains Nikhil.

Another major challenge has been the high GST rate of 40 percent, which puts significant pressure on trade margins and profitability. While it remains a hurdle, the company has developed strategies to navigate these financial constraints while ensuring sustained growth.

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Infrastructure and manpower

Currently, Lahori Zeera operates with a production capacity of fifty lakh bottles per day across its two facilities in Punjab and Gujarat. To meet increasing demand, the company is working to double the capacity to 10 million (100 lakh) bottles daily by this year. 

This expansion includes the addition of a state-of-the-art facility in Lucknow, along with three more co-packing facilities set for launch within the year.

“Our manufacturing plants are fully automated, ensuring end-to-end production with zero human touch. We utilize a combination of indigenous and imported machines, sourced from renowned, time-tested brands used by leading beverage companies worldwide. This ensures efficiency and consistency in every bottle we produce,” says Nikhil.

What began with a small team of just 20 people has now expanded to over 1,800 members and contractual employees. Nikhil stated that over the years, the team has grown into a highly skilled and experienced workforce, with experts and leaders across all domains, bringing deep industry knowledge and expertise in the beverage sector.

Pricing

From the beginning, affordability was at the core of Lahori Zeera’s vision. They understood that India is a price-sensitive market where accessibility plays a crucial role in a product’s success.

"We ensured the beverages remained budget-friendly without compromising quality,” Nikhil says. This commitment is reflected in its pricing strategy, with a 160 ml bottle retailing at just Rs10, making it affordable and appealing.

This journey has earned Lahori Zeera immense recognition, along with accolades such as Best Startup, Iconic Retail Brand, the IAA Award for Best Ad Film, and many more.

The company wants to establish a strong foothold in the non-carbonated drinks segment. 

While there has been significant interest from international markets, exports haven’t been a focus yet. However, the company is gearing up to enter GCC countries soon, a market with immense potential. “We truly feel that our journey has just begun,” Nikhil shares.

Research and development have been at the core of Lahori Zeera’s success. The company has a dedicated R&D centre where they experiment with new ideas and flavours.

"This commitment to innovation ensures that Lahori Zeera remains a dynamic and evolving brand. We have several exciting flavours in the pipeline, and we’re ready to introduce them to the market in the coming years,” Nikhil adds.

Advice for aspiring entrepreneurs

The founders believe that India offers a unique advantage to entrepreneurs. The country has a big consumer base, yet many sectors still have limited choices, opening up vast opportunities for innovation.

“Aspiring entrepreneurs should focus on identifying gaps, creating innovative products, and offering real value to consumers. The key is to understand consumer needs, be adaptable, and stay ahead of trends,” Nikhil signs off.

(Chandhini R is a Kerala-based journalist specialising in human interest, entertainment, and art and culture stories).

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