Rasna eyes S African beverage brand

AHMEDABAD: After having got a taste of overseas markets through exports, homegrown soft drink concentrate major Rasna is working up an appetite for overseas acquisitions. And on its menu is a beverage brand in South Africa, which Rasna is learnt to be close to lapping up for nearly $3 million.
According to sources, negotiations for the acquisition were at an advanced stage and could be wrapped up by Diwali.If it goes through, this will be the first overseas acquisition for the Rs 275 crore turnover Rasna and will take the company’s turnover up to Rs 300 crore. The acquisition target is among the top 5 beverage brands in South Africa having a manufacturing base close to Durban. The buyout will give Rasna a local cost advantage and access to nearly six neighbouring countries thanks to a regional free trade treaty, a source close to the deal told TOI.
When contacted Rasna Pvt Ltd chairman and managing director Piruz Khambatta confirmed that an acquisition was in the offing.
"We are actively looking at the inorganic route now to grow in the overseas markets instead of just focusing on exports. We will, however, continue to grow our volumes in existing markets and also try to introduce products in new markets," Khambatta said.
"The strategy would be to acquire the local brand and develop it in the region where it is strong," said Khambatta.