To cater to this significant demand for Indian single malts, the company has tripled its plant capacity over the years, and has expanded its permium product portfolio. Earlier this month, it introduced a new single malt variant, ‘Spirit of Victory 1999 Pure Malt Whisky,’ priced at around ₹5,000. Initially available in Uttar Pradesh, it will soon be introduced in other states.
“Now, our entire focus is on the premium and above segment, and we are one of the few brands to have created so many brands organically. This range is growing very well despite the regular range witnessing a decline,” said Khaitan. The company is confident of catering to the premium segment, buoyed by its position as the largest exporter of single malts, he added.
In FY24, Radico Khaitan derived 57% of its value from ‘prestige and above’ brands. In the current financial year, it is up by 10%, to 67%. ‘Prestige and above’ is a classification used by spirits manufacturers to categorize products based on the selling price. This segment typically includes products priced above ₹1,000.
In the nine months ended December 2023, the company reported a gross profit of ₹11,984 crore, up 28% from ₹9368 crore a year ago. During this period, it sold 8.34 million cases of its prestige segment, which accounted for 44% of overall volumes, growing 22% over a year earlier.
Revenue from the prestige and above category stood at ₹2134 crore, up nearly 16% from the corresponding period of FY23.
The company’s journey started in 1998 with 8PM whisky, which gained in popularity. Over time, it diversified its product range and distribution network. However, the wafer-thin margins for regular spirits, prompted the company to shift towards premium products in 2016, and subsequently, it launched the Rampur single malt, Khaitan said.
“Indians are now proud drinkers of Indian single malts, which was never the case earlier. Foreign companies are also launching single malts, which is a testament to this fact,” he said.
Today, the Rampur brand boasts seven ‘expressions’ or variants, following the expansion of both distillation and maturation capacity from the initial 2.6 lakh kiloliter per day (klpd) plant. It had set up another 5 klpd plant at the same location in 2018-19. Notably, its signature reserve variant commands an impressive ₹5 lakh in duty-free shops.
In FY25, the company aims to produce 2.5-3 times the cases produced in FY24 at its new facility in Sitapur. This facility has additional maturation capacities to support the anticipated volumes growth of Rampur in the coming years.
“We’ve always believed in the single malt story, and is the largest producing whisky nation in the world, and people are loving Indian malts around the world. But given the limitation on matured malt being available for bottling, availability of Rampur has been restricted. Hence, it has been allocated selectively to the export markets first and then to the domestic market including canteen stores department as the volumes increased.”
Other brands in the portfolio, including Magic Moments vodka and Morpheus brandy, are also witnessing robust growth. Magic Moments commands nearly 58% of the domestic vodka market, while Morpheus enjoys a solid presence in southern states.
Radico Khaitan anticipates substantial volume growth for single malts, propelled by capacity expansion and increased availability of matured malt. It is also confident of growing its diverse portfolio across categories.
Single malt whisky comes from one distillery, but can be aged in different types of casks. Demand for Indian single malt witnessed remarkable growth since the pandemic with leading brands, such as Amrut, Paul John, Indri, and GianChand, driving the expansion.
According to the Confederation of Indian Alcoholic Beverage Companies (CIABC), India sold around 6.75 lakh cases of single malt whiskies in 2023, with over 50% produced by Indian firms. This marks a robust 16% increase in volumes from 5.77 lakh cases a year ago.
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Published: 29 Feb 2024, 05:57 PM IST