Rasna, an India-based producer and marketer of instant juice concentrates, intends to form a new entity – Rasna Beverages – solely dedicated to develop, distribute and market ready-to-drink (RTD) products catering to the needs of domestic market.

The move is part of the company’s strategy to venture into the RTD segment, which the company believes will improve its profit margin.

Rasna is planning to collaborate with international brands to bring the products to the target market that includes energy drinks, fortified water and premium juices.

The company is exploring options with two European and an Amercian business house to form a brand licensing deal or technical collaboration, reported TheEconomic Times.

Rasna chairman Piruz Khambatta said the company may sign more than one brand licensing and collaboration agreement for different beverage sectors.

"Premium beverages are growing rapidly as consumers are travelling more often and looking for choices. Besides, margins are more in such beverages," Khambatta added citing the company’s latest move.

The company has not disclosed the names of potential partner companies for the final deal, which is expected to take shape in the next two months.

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Though the Indian powdered drink segment is crowded with the presence of multinational companies such as Cadbury Kraft’s Tang and Coca-Cola’s Fanta Fun Taste (earlier Sunfill), Rasna has maintained its market share of about 80% in the estimated INR5bn ($98.99m) market.

Rasna Beverages will work separately with its own brands and a dedicated sales, marketing and distribution teams.

Rasna Beverages will develop products for the entire vertical of the RTD segment, which will include beverages for premium customers.

With an internal arrangement, the company will invest INR500-600m ($9.94-11.92m) for an environmentally-sustainable production line in the Indian states of Gujarat or Maharashtra, Khambatta added.

Rasna aims to finish the construction of the new plant in the next two years, and meanwhile explore the options to import some RTD beverages for trial marketing in the domestic market.