Encouraged by the ongoing premiumisation in the alcoholic beverage (alcobev) segment, Radico Khaitan expects sales of Rs 500 Crore from its luxury brands, including single malt 'Rampur' and Jaisalmer Indian Craft Gin, in the next fiscal, its Managing Director Abhishek Khaitan said.
The company expects an eight-nine per cent volume growth, and value growth of around "12-15 per cent", Khaitan said, adding "this year has been a good year for us, and hopefully next year should be much better."
For the next fiscal, he said, "We expect the same thing, our premium PNA category (Prestige and above) should grow more than 15 per cent and we should be close to overall double-digit growth."
Radico Khaitan's luxury portfolio consists of Rampur Indian Single Malt, Jaisalmer Indian Craft Gin, Sangam World Malt and Spirit of Victory 1999 Pure Malt.
"For the first time in Q3 (December quarter) we achieved a turnover of Rs 100 Crore (from premium) and for the nine months of fiscal year 2024, we have achieved Rs 250 Crore (turnover). We are very confident that for fiscal year 2026, Radico Khaitan should achieve Rs 500 Crore of turnover, just for the luxury segment only," said Khaitan.
Moreover, to expand its presence in the fast-growing luxury alcobev segment, Radico Khaitan plans to add two more brands next fiscal.
"So in the first half, we are planning to come out with two more brands in the luxury space. So we have been working for the last couple of years on that, and hopefully in the first half, we will see their entry into the Indian markets," Khaitan said.
Radico Khaitan, which also owns other premium brands in the PNA category, including Royal Ranthambore, Dazzle Vodka, and Morpheus Blue, is experiencing high double-digit growth and expects the momentum to continue.
Tailwinds from growing per capita income and young demographics, such as India adding 20 Million new people to the drinking age bracket every year, will help the company maintain its momentum.
Khaitan is also unfazed about the government's decision to slash import duty on bourbon whiskey to 50 per cent and said it is very "minuscule" in size in the Indian liquor market and "that would not have so much pressure on the local companies".
However, over the ongoing talks for the UK-India Free Trade Agreement (FTA), he said the current duty of 150 per cent on Scotch whisky should be reduced in a gradual manner. It will allow the Indian brands to create space for themselves in the premium segment.
"Our single malts are now outperforming the foreign single malts also, it is priced higher," he said, adding duty cut on import of bulk whisky (non-branded) from Scotland by the Indian liquor companies, including Radico Khaitan will help them reduce costs.
Besides, Radico Khaitan (earlier known as Rampur Distillery Company) expects to continue its growth from Defense Ministry Canteen Stores Department (CSD), where it is one of the largest providers of branded IMFL to the armed forces.
"We are the market leaders there (at CSD). We would be having a close to 26 to 27 per cent and we feel the demand for the Indian products is very high. People are proud to consume the Indian brand," he added.
In the single malt and premium end, Radico Khaitan competes with Haryana-based Piccadilly Distilleries, Amrut and Paul John, among other brands.
In fiscal year 2024, Radico Khaitan's gross revenue from operations was at Rs 15,483.9 Crore and had sold 45.6 million cases, in which PNA category's volume was 11.26 Million cases (of nine bottles each). Its Prestige and Above category brands grew by 20.3 per cent year-on-year in volume terms.
