Radico Khaitan Limited, one of the largest spirits companies in India (referred to as “Radico Khaitan” or the “Company”), announces its results for the first quarter ended June 30, 2019.
Commenting on the performance, Dr. Lalit Khaitan, Chairman, and Managing Director said:
“It is heartening to note that after a strong performance in FY2019, Radico Khaitan has continued to build upon the momentum in Q1 FY2020 as well. Despite an overall slowdown in the economy, we delivered strong growth across all key brands and geographic regions. In the short term, we have faced raw material price pressure but that does not impact our long-term growth and margin trajectory. We remain focused on investing in our core premium brand portfolio which will enable us to deliver long-term sustainable value creation for all stakeholders.”
Commenting on the performance, Mr. Abhishek Khaitan, Managing Director said:
“We reported a strong operational performance in Q1 FY2020 with top-line growth of 20.8% compared to Q1 FY2019. This growth was driven by a strong Prestige & Above category volume growth of 16.0%. While our existing brands such as 8 PM whiskey, Magic Moments vodka and Morpheus super-premium brandy continued to perform well, the recently launched 8 PM Premium Black whiskey and 1965 premium rum made an increasingly meaningful contribution. Over the last few quarters, we have seen significant raw material price pressure, but with the ongoing price increases and premiumization, we are confident of sustaining our profitability margins during the year.”
Radico Khaitan at a Glance:
Radico Khaitan Limited (“Radico Khaitan” or the Company) is among the oldest and one of the largest manufacturers of Indian Made Foreign Liquor (“IMFL”) in India. Earlier known as Rampur Distillery Company, Radico Khaitan commenced its operations in 1943 and over the years emerged as a major bulk spirits supplier and bottler to other spirit manufacturers. Driven by the vision of the promoters, in 1998 the Company started its own brands with the introduction of 8 PM Whisky. Radico Khaitan is one of the few companies in India to have developed its entire brand portfolio organically. This is a true testament to the Company’s R&D strength and understanding of customer preferences. The Company’s brand portfolio includes After Dark Whisky, Contessa Rum, Jaisalmer Indian Craft Gin, Magic Moments Vodka, Magic Moments Verve Vodka, Morpheus Brandy, Morpheus Blue Brandy, Old Admiral Brandy, Pluton Bay Rum, Rampur Indian Single Malt Whisky, Regal Talon Whisky, 1965 – The Spirit of Victory Rum, 8PM Premium Black Whisky and 8PM Whisky. Currently, the Company has four millionaire brands which are 8 PM Whisky, Contessa Rum, Old Admiral Brandy and Magic Moments Vodka. Each of these brands sells more than a million cases per year.
Over the years Radico Khaitan has been focusing on the premiumization of its portfolio. The Company has launched six new brands in the past five years, all of which are in the premium category. Radico Khaitan is also one of the largest providers of branded IMFL to the Canteen Stores Department (CSD), which has significant business barriers to entry. The Company has three distilleries in Rampur, Uttar Pradesh and one in Aurangabad, Maharashtra which is a 36% joint venture. The Company has a total owned capacity of 157 million liters and operates 28 bottling units (5 owned and 23 contracted) spread across the country.