Radico Khaitan anticipates sales of Rs 500 crore from its luxury brands, including Rampur Indian Single Malt and Jaisalmer Indian Craft Gin, in the next fiscal year, according to Managing Director Abhishek Khaitan.
The company expects volume growth of 8-9% and value growth of approximately 12-15%, Khaitan stated in an interaction with PTI. “This year has been positive for us, and we expect even better results in the coming year,” he added.
For the next fiscal year, Radico Khaitan forecasts continued growth in its premium Prestige & Above (PNA) category, with an anticipated increase of over 15%, contributing to an overall double-digit growth rate.
The company’s luxury portfolio includes Rampur Indian Single Malt, Jaisalmer Indian Craft Gin, Sangam World Malt, and Spirit of Victory 1999 Pure Malt.
Financial Performance and Future Plans
Radico Khaitan reported that its premium segment achieved a turnover of Rs 100 crore in Q3 of FY24 and Rs 250 crore over the first nine months of the fiscal year. The company is confident of reaching Rs 500 crore in turnover from its luxury segment by FY26.
To expand its presence in the premium alcoholic beverage market, Radico Khaitan plans to introduce two additional luxury brands in the first half of the next fiscal year. “We have been working on these brands for the last couple of years, and they should enter the Indian market soon,” Khaitan said.
In addition to its luxury offerings, the company owns other premium brands in the PNA category, such as Royal Ranthambore, Dazzle Vodka, and Morpheus Blue, all of which have been experiencing strong double-digit growth.
Market Dynamics and Industry Developments
Khaitan highlighted the role of increasing per capita income and demographic trends, including the addition of 20 million individuals to India’s legal drinking age annually, in sustaining growth momentum.
Regarding recent government policies, Khaitan noted that the reduction of import duty on bourbon whiskey to 50% would have a limited impact on the domestic liquor market. However, he suggested that the existing 150% duty on Scotch whisky under the UK-India Free Trade Agreement (FTA) should be lowered gradually to provide space for Indian brands in the premium segment.
“Our single malts are now outperforming foreign single malts in some segments and are priced higher,” he said, adding that reduced import duties on bulk whisky from Scotland could help Indian liquor companies lower costs.
Radico Khaitan also continues to be a key supplier to the Defense Ministry’s Canteen Stores Department (CSD), where it holds a market share of approximately 26-27%.
“In CSD, we are market leaders and see strong demand for Indian brands,” Khaitan said.
In the premium segment, Radico Khaitan competes with other Indian brands such as Piccadilly Distilleries, Amrut, and Paul John.
Financial Performance and Expansion
For FY24, Radico Khaitan reported gross revenue of Rs 15,483.9 crore, with sales of 45.6 million cases. The PNA category accounted for 11.26 million cases, reflecting a year-on-year volume growth of 20.3%.
In Q3 FY24, the company’s consolidated net profit rose by 27% to Rs 95.48 crore, while revenue from operations increased by 8% to Rs 4,440.90 crore. The Prestige & Above brands segment saw a 17.7% rise in volume to 3.67 million cases, contributing 50.9% of the company’s Indian-made foreign liquor (IMFL) sales.
Radico Khaitan expects further growth in the IMFL segment, supported by new liquor retail policies in states such as Uttar Pradesh and Andhra Pradesh, which have led to an expansion in retail outlets.
On the capital expenditure front, the company has invested Rs 750 crore in a new greenfield distillery in Sitapur and is expanding its existing Rampur distillery. “Our major capital expenditure is complete, and we will now focus on regular maintenance investments,” Khaitan said.
Radico Khaitan also operates a distillery in Aurangabad, Maharashtra, with a total owned capacity of 320 million liters.
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