Lahori Zeera puts scale over IPO, bets on co-bottlers to meet demand: Nikhil Doda

Beverage brand Lahori Zeera is prioritising manufacturing expansion and market scale over a near-term public listing as it races to address persistent supply shortages amid surging demand. Nikhil Doda, Co-founder and Chief Operating Officer (COO), Lahori Zeera, said that despite adding a large Lucknow facility and operationalising three co-bottling units ahead of summer, the company continues to remain supply-constrained, with demand still outpacing production.

In an interview with BW Retail World, Doda noted that the company has no IPO plans for at least the next year as it focuses on scaling sustainably. To support its next phase of growth, Lahori Zeera is doubling down on an asset-light co-bottling model and plans to add another eight to nine manufacturing units next year across high-demand markets such as Bihar, Uttar Pradesh, Madhya Pradesh, Jharkhand and Chhattisgarh.

Doda highlighted that the company, which closed FY26 at around Rs 775 crore in revenue, is targeting Rs 1,200 to 1,300 crore in FY27, driven largely by backend expansion and stronger traction beyond North India, while quick commerce and modern trade contribution has risen from about 1 per cent last year to 5 to 6 per cent in the first quarter itself.

Asset-light Scale, IPO Waits

Doda said Lahori Zeera remains firmly in a “hyper growth phase”, with most of the Rs 200 crore raised last year deployed towards expanding manufacturing capacity. While margins have remained flat, he said that was a deliberate choice as the company reinvested profits to seed newer markets, even those over 1,000 kilometre away.

“We have made money and deliberately that money has flown into seeding other markets,” Doda said, adding that freight costs should moderate as newer facilities come online. At its current scale, Doda said market share remains a bigger priority than margin expansion, particularly amid strong demand and intense competition in beverages.

“We do not want to lose out on market share,” he said, while maintaining that the company intends to “grow sustainably” and stay profitable during expansion. A key part of that strategy is Lahori Zeera’s shift to an asset-light manufacturing model, where co-bottlers invest in production infrastructure instead of the company.

“Now the brand can grow without investing in manufacturing,” Doda said, adding that the model, which has been in the works for two years, significantly reduces capital burden and supports long-term scale.

On listing plans, Doda said there is “no pressure” for an IPO or fresh fundraising right now, as expansion capex is increasingly being absorbed by co-bottlers and operating costs are funded internally. While investors would eventually need an exit, he clarified that an IPO remains “a thought process” and is not on the cards “at least in the next one year.”

Supply Crunch Persists, Hero Product Still Dominates

Doda said Lahori Zeera’s growth continues to be constrained more by manufacturing than demand. While the company had signed five co-packers, only three became operational in time, with the remaining two expected to come online next month. “We were still short of supplies,” Doda said, adding that Lahori Zeera remains “sold out” and is “still struggling to meet the demands” despite backend expansion.

According to Doda, summer demand remained robust and broadly in line with internal expectations, though delayed plant commissioning capped upside. “The numbers could have been even better,” he said, noting that the backend had been prepared for anticipated growth, but bottlenecks on the manufacturing side continued through Q1.

At the same time, Doda said the company is comfortable continuing as a hero-product-led brand, calling it “a blessing in disguise.” He argued that one dominant SKU has helped Lahori Zeera scale efficiently, as distributors and retailers benefit from faster inventory movement and limited slow-moving stock. “We have been able to grow efficiently up until now only because of one SKU,” he said.

Doda, however, acknowledged that the company’s focus on Lahori Zeera during peak summer months has restricted the growth of newer flavours. To maximise output in H1, the company prioritises Lahori Zeera production and avoids flavour changeovers that reduce efficiency. As a result, non-core products contribute only 10 to 12 per cent of sales, though Doda said newer markets in East and West India are showing a more balanced mix, with Lahori Zeera accounting for 50 to 60 per cent of sales compared to over 95 per cent in North India.

Beyond North India, New Channels Gain Traction

Doda said Lahori Zeera is seeing encouraging early traction beyond its northern stronghold, with consumers across the 17 to 18 states where the company operates responding positively once they try the product. Rather than aggressively flooding new markets, he said the company is taking a calibrated approach to expansion by “seeding the product” gradually and increasing shelf presence over time.

“As and when the consumer tastes the product, they see it everywhere, they come back for it,” Doda said, adding that ethnic Indian beverages are seeing a broader consumer pull nationally as shoppers become increasingly open to experimenting with newer flavours.

Even as South India emerges as the next major focus market, Doda said growth is not being driven solely by geographic expansion. Calling Lahori Zeera’s growth strategy “three-dimensional”, he said the company still sees significant headroom in core states such as Punjab, Haryana and Delhi through deeper outlet penetration, while existing stores are also seeing higher throughput. “The drop size is increasing every year,” he said.

Alongside general trade, alternate channels are beginning to scale up meaningfully for the company. Doda said quick commerce and modern trade, while still a small part of the business, are growing “very, very fast,” aided by new shelf additions and recent approvals from IRCTC.

Premiumisation Push, Rs 10 Price Point Holds

Doda said Lahori Zeera is gradually pushing premiumisation through larger pack formats, which already contribute 16 to 17 per cent of revenues, though the company has no intention of moving away from its core Rs 10 play. Calling it an “eight to ten-year journey”, he said the brand eventually wants 30 to 40 per cent of volumes to come from larger packs, but is growing the segment cautiously.

“We are happy selling Rs 10 products. We do not want to leave that shelf either,” Doda said. On newer categories, Doda said Lahori Aamras, the company’s entry into the RTS juice segment, has exceeded expectations in its pilot phase. Positioned as a chatpata mango drink aligned with Lahori’s flavour profile, the product already contributes nearly 2 per cent of sales volume in its first year. “We have got a wonderful response from the market,” Doda said, adding that the company expects Lahori Aamras to become a Rs 100 crore brand next year as fresh capacity is added.

Despite rising Pet prices and input cost pressures, Doda said Lahori Zeera expects to sustain its Rs 10 price point profitably for at least the next four to five years through manufacturing efficiencies and packaging optimisation. “The kind of visibility that we have, at least for five years, given the previous inflation trends in plastics and other raw materials, we will still be able to continue with this price point and still make money,” he added.

He argued that while larger beverage players are sacrificing margins to protect shelf space amid the ongoing price war, Lahori Zeera remains profitable. “Even Coke, Pepsi have come down to Rs 10 fighting Campa,” Doda said, adding, “We still make money when we sell our product.”

GCC Markets On Radar

Doda said Lahori Zeera is reviving plans to enter international markets through a UAE co-bottling unit, after putting discussions temporarily on hold amid geopolitical uncertainty in the region. He said the company has received strong inbound interest from GCC markets, particularly the UAE and Saudi Arabia, over the last few years, but wants to avoid a “half-hearted” rollout.

“Plan is definitely to go to UAE first and then to other GCC countries from there,” Doda said, adding that talks with bottling partners remain underway as the company looks to tap the Indian diaspora and regional demand.