How filter coffee giant Narasus made an ‘instant’ transformation

For generations of Tamilians, the aroma of freshly brewed filter coffee has been part of the morning ritual. Long before café chains arrived, the Salem-based brand Narasus had become a household name, aided by iconic ads, including the memorable “Besh besh… romba nanna irukku” catchphrase popularised by comedian Usilai Mani and campaigns featuring Aachi Manorama & Thengai Srinivasan.

Yet India’s coffee market has changed dramatically. Urban consumers increasingly favour instant coffee over decoction, and cafés over kitchens. The youth, raised on food-delivery apps and global brands, consume coffee less as tradition and more as a lifestyle. Many legacy brands have struggled to adapt. Narasus, a century-old, family-owned company, is reinventing itself while preserving the filter-coffee legacy that built the brand.

Founded in 1926 as a roast-and-ground coffee company, Sri Narasu’s Coffee Company today sells filter coffee, instant coffee, premixes and packaged foods, while exporting to more than 45 countries. The company, which clocked revenue of Rs 641 crore in FY26, remains one of South India’s largest privately held coffee firms and is largely self-financed.

The company’s most consequential decision came in 2002 when it entered the instant coffee business. At the time, the segment was dominated by MNCs and a handful of domestic players. For a company associated almost entirely with traditional filter coffee, the move appeared risky but proved transformative.

P Sivanantham, chairman and a member of the promoter family, recalls that many questioned whether Narasus could compete. “That challenge motivated us,” he says. The instant coffee business expanded the company’s scale and ambitions. Exports surged, particularly to Russia, where shipments once touched nearly 17 containers a month in 2007. More importantly, it exposed Narasus to private-label contracts and bulk international markets, transforming a regional family enterprise into a globally connected manufacturer.

Today, it operates three instant-coffee production lines, exporting branded and bulk products to markets including the US, Europe, the Gulf and Australia. Its manufacturing footprint includes a roasting-and-grinding facility with an annual capacity of around 9,000 tonnes and an instant-coffee plant capable of producing nearly 8,000 tonnes a year.

Despite its global reach, TN remains Narasus’ strongest market, with an estimated share of about 40% in the state’s filter-coffee market, alongside an even stronger presence in pure coffee blends. “In roast-and-ground coffee, we see ourselves as a dominant regional player,” says MD S Srudheep. “In many areas, we can even say we enjoy a near-monopoly.”

However, relying on loyalists is not enough as consumption patterns evolve. Narasus is repositioning itself for younger consumers, offering instant coffee that retains the taste of traditional South Indian filter coffee, offering familiarity without the effort of brewing decoction.

Narasus has also expanded into e-commerce and quick-commerce platforms while launching premixes, sachets, and other convenience-focused food products. Its outlets, once dedicated coffee stores, now stock a range of products, from millet-based foods and noodles to cooking oils and health foods, helping diversify revenue while leveraging the brand’s trusted reputation.

Currently, it operates around 81 company-owned outlets across TN, Puducherry and Bengaluru, alongside direct distribution and wholesale networks. It sees opportunities across southern states as well as rising demand in northern India, where coffee consumption among younger consumers is increasing. It eyes pan-India presence over the next three years.

Narasus believes it can cross the `1,000-crore revenue mark within three to five years, with the instant coffee business, including exports, contributing `450-500 crore and traditional coffee generating around `500 crore. Exports are expected to remain a key growth driver, accounting for one-third of revenue.

(This correspondent was in Salem at the invitation of the company)