Limca becomes Rs 2800 crore brand; how Ramesh Chauhan turned a lemonade drink into India’s favorite lime beverage

“When life gives you lemons, make lemonade,” nobody personifies this motivational idiom, both literally and metaphorically, than Ramesh Chauan– the man who created Limca, India’s favorite lemony beverage, which has recently achieved a major milestone by becoming a brand worth Rs 2800 crore.

Let us delve into the remarkable history of Limca and how an Indian entrepreneur turned a modest lemonade drink into the country’s favourite lime beverage:

How Ramesh Chauhan established Limca?

In 1970, Ramesh Chauhan, the man famous for creating the popular bottled water brand “Bisleri”, stumbled upon the idea of creating a refreshing beverage that would be more suited to the Indian palate and climate, instead of other soft drinks such as colas which dominated the Indian market at the time.

Chauhan realised that lemonade was the preferred drink in India during the blistering summers, and prepared a zingy lemonade formula that was uniquely Indian in taste and preparation. But even though Limca was first formulated in 1970, it took seven long years to enter production because emergency was imposed in the country in 1975.

Ultimately, after the emergency was lifted in 1977, Limca entered factory production and was initially manufactured by Delhi-based Lima Limca Limited, who bottled the refreshing beverage in both glass and plastic bottles.

Limca’s unique marketing strategy

Apart from its refreshing taste, the success of Limca is also attributed to its aggressive marketing strategy, which was targeted towards India’s young population with catchy slogans like ‘Limit to lagao’, that inspired the youth to challenge their limitation in an era where India was emerging as regional economic power in South Asia.

Since then, Limca has periodically changed its taglines, such as its current one “Chadha le Taazgi”, but every catchphrase is meant to convey the same message of freshness and zingy taste which Limca represents.

How Coca-Cola acquired Limca?

After the economic liberalization in 1992, global brands started pouring into the Indian market. This included the American beverage giant Coca-Cola, who received a rude shock when it realised that local beverage brands like Limca, Thums Up, and Gold Spot– all owned by Parle Agro’s Ramesh Chauhan at the time– were outselling its products by a significant margin.

However, instead of competing with these popular Indian brands, Coca-Cola decided to acquire them to expand its product portfolio in the country. According to market experts, the primary reason behind Coca-Cola purchase of Limca and other local beverage brands was to minimise competition.

In 1993, Coca-Cola purchased Limca, and now the popular lime beverage has become a brand worth Rs 2800 crore, according to the company’s filings.

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