Xotik Frujus Private Ltd (XFPL), which is primarily into ethnic beverage manufacturing, is looking to grow its turnover to close to ₹500 crore in the next three years by ramping up both manufacturing and distribution across the country. The company’s turnover stands at close to ₹150 crore at present, said Anjana Ghosh, CEO of Xotik.

The company has expanded its manufacturing capacity in about six-to-seven locations across the country in the last few months to ensure the smooth availability of the product as it is set to ramp up its marketing and distribution efforts.

“The Indian beverages industry is estimated to be close to ₹60,000 crore and has been growing at a CAGR of about 20 per cent on a YoY basis. Almost 70 per cent of this market is dominated by the two major giants and the remaining 30 per cent comprises of ethnic drinks and juices. This segment has been growing faster even while there has been some degrowth in the other segment in the last few years due to changes in consumer preferences. With young India growing, this category is set to grow in the coming years,” Ghosh told businessline.

Also read: Tata Consumer’s NourishCo to expand functional beverages portfolio

The company has been registering a growth rate of more than 30 per cent on a YoY basis in the last few years and is hopeful of clocking a higher growth backed by its strategy of expanding its footprint across the country. It plans to touch a turnover of ₹1,000 crore in the next five years.

Xotik’s strategic expansion plans include identifying multiple manufacturing units across the west, east, north, and south of India where carbonated and hot fill lines are ready to penetrate markets in a big way. It already has a multi-line manufacturing facility in Daman. The company plans to invest ₹15-20 crore in the coming fiscal to ensure more production, limiting goods travel time, freshness of stock at the retail level, and to provide better service to trade.

Distribution

The company is currently present in 19 States and covers 780 Tier II and III towns. It has over 200 super stockists and more than 1,000 distributors covering around 1.5 lakh outlets across various parts of the country. It plans to strengthen its distribution deeper in some of the existing markets and also foray into newer markets.

Also read: Lifestyle beverage brand Salud raises the bar with launch of its newest gin

Xotik is planning to appoint an additional 150 super stockists and 700 distributors in FY 24, followed by another 100 super stockists and 1,000 distributors in FY-26. The ultimate goal is towards having a total of 400 super stockists and 3,000 distributors across India by the end of 2026.

“Almost 60 per cent of our business currently comes from western India and about 30 per cent from the east. We are looking to expand into newer markets and also strengthen our presence in some of the existing markets,” she said.

Related Topics