Radico Khaitan targets US$57.29M in luxury brand sales by FY26 amid premiumization boom 

INDIA – Radico Khaitan, a leading player in India’s alcoholic beverage industry, anticipates its luxury brands will achieve Rs 500 crore (US$57.29M) in sales by FY26, driven by the ongoing premiumization trend, according to Managing Director Abhishek Khaitan. 

The company’s luxury portfolio, featuring Rampur Indian Single Malt, Jaisalmer Indian Craft Gin, Sangam World Malt, and Spirit of Victory 1999 Pure Malt, is poised for significant growth.  

Khaitan projects an 8-9 percent volume increase and a 12-15 percent value rise in the next fiscal year, building on a robust performance this year.  

“This year has been strong, and next year should be even better,” he told PTI, highlighting that the Prestige & Above (PNA) category is expected to exceed 15% growth, ensuring double-digit overall gains. 

In Q3 FY24, Radico Khaitan’s premium segment surpassed Rs 100 crore (US$11.46M) in turnover, reaching Rs 250 crore (US$28.65M) for the first nine months.  

To sustain this momentum, Radico Khaitan plans to introduce two new luxury brands in the first half of the next fiscal. “We have been working on these for years, and they will enter the Indian market soon,” Khaitan said. 

The company, which also owns premium brands such as Royal Ranthambore, Dazzle Vodka, and Morpheus Blue, continues to experience strong double-digit growth. Favorable demographics, including India’s rising per capita income and the addition of 20 million new legal drinkers annually, are expected to support further expansion. 

Despite India’s recent reduction of import duty on bourbon whiskey to 50 percent, Khaitan remains confident in domestic brands, noting that bourbon’s market share in India is minimal and unlikely to impact local players.  

However, he advocated for a phased reduction of the 150 percent duty on Scotch whisky under the India-UK Free Trade Agreement (FTA) to enhance the competitiveness of Indian brands in the premium segment. 

“Consumers take pride in choosing Indian brands,” he added. 

In FY24, the company recorded Rs 15,483.9 crore (US$1.8B) in gross revenue and sold 45.6 million cases, with PNA contributing 11.26 million cases and growing 20.3 percent year-on-year. 

In Q3 FY24, the company’s net profit rose 27 percent to Rs 95.48 crore (US$10.9M), while revenue increased 8 percent to Rs 4,440.90 crore (US$508.7M). PNA brands accounted for 50.9 percent of its IMFL volumes, growing 17.7 percent YoY. 

With evolving liquor retail policies in states like Uttar Pradesh and Andhra Pradesh expanding the retail network, Radico Khaitan anticipates continued growth in the IMFL segment.  

The company recently completed a Rs 750 crore (US$85.9M) investment in a new greenfield distillery in Sitapur and expanded capacity at its Rampur facility. 

“Our major capex is done, and we’ll now focus on routine maintenance,” Khaitan noted. Radico Khaitan also operates a distillery in Aurangabad, Maharashtra, with a total owned capacity of 320 million liters. 

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