For generations of Tamilians, the aroma of freshly brewed filter coffee has been an integral part of the morning ritual. Long before café chains became ubiquitous, the Salem-based brand Narasus had established itself as a household name, aided by iconic advertisements. Memorable campaigns included the catchy phrase “Besh besh… romba nanna irukku,” popularized by comedian Usilai Mani, and commercials featuring Aachi Manorama and Thengai Srinivasan.
The Changing Coffee Landscape
India’s coffee market has undergone a dramatic transformation. Urban consumers now increasingly favor instant coffee over traditional decoction, and cafés over home brewing. The younger generation, raised on food-delivery apps and global brands, views coffee less as a tradition and more as a lifestyle choice. Many legacy brands have struggled to keep pace. Narasus, a century-old, family-owned company, is reinventing itself while preserving the filter-coffee heritage that built the brand.
A Century of Coffee Excellence
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, exporting to more than 45 countries. The company reported a revenue of INR 641 crore in FY26 and remains one of South India’s largest privately held coffee firms, largely self-financed.
The Pivot to Instant Coffee
The company’s most consequential decision came in 2002 when it entered the instant coffee business. At the time, the segment was dominated by multinational corporations 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 reached nearly 17 containers per 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.
Manufacturing and Market Reach
Today, Narasus operates three instant-coffee production lines, exporting branded and bulk products to markets including the United States, 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 per year.
Despite its global reach, Tamil Nadu 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 Managing Director S Srudheep. “In many areas, we can even say we enjoy a near-monopoly.”
Adapting to New Consumer Trends
However, relying on loyalists is not enough as consumption patterns evolve. Narasus is repositioning itself for younger consumers by offering instant coffee that retains the taste of traditional South Indian filter coffee, providing familiarity without the effort of brewing decoction.
The company 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 items, from millet-based foods and noodles to cooking oils and health foods, helping diversify revenue while leveraging the brand’s trusted reputation.
Future Plans
Currently, Narasus operates around 81 company-owned outlets across Tamil Nadu, 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. The company aims for a pan-India presence over the next three years.
Narasus believes it can cross the INR 1,000-crore revenue mark within three to five years, with the instant coffee business, including exports, contributing INR 450-500 crore and traditional coffee generating around INR 500 crore. Exports are expected to remain a key growth driver, accounting for one-third of revenue.
