Radico Khaitan Ltd: Comprehensive Company Report

Official Name

Radico Khaitan Ltd. (Wikipedia)

Founding Date

1943 (Who We Are)

Founders/Leadership

Current leadership includes Dr. Lalit Khaitan (Chairman & Managing Director) and Abhishek Khaitan (Managing Director); further founder details are not available.

Headquarters

Plot No. J-I, Block B-I, Mohan Co-operative Industrial Area, Mathura Road, New Delhi-110044, India (Blog)

Legal Structure

Public Limited Company (Listed on NSE: RADICO)

Mission Statement

Information not specified in the available sources.

Vision Statement

Information not specified in the available sources.

Core Values

- Develop products that customers love and endorse (Values)
- Technological excellence, product innovation, and brand creation
- Commitment to environmental sustainability and governance
- Customer-centric approach ("Customer is the King")
- Continuous improvement and fostering creative thinking

1943

Inception

Founded as Rampur Distillery & Chemical Company Ltd., marking the beginning of its journey in Indian Made Foreign Liquor (IMFL).

Wikipedia Who We Are

1998

Launch of In-house Brands

Transitioned from contract distilling to launching its own brands with the introduction of 8PM Whisky.

Who We Are

2003-2004

Establishment of PET Division

Expanded into manufacturing PET bottles, scaling production from 8.5 million bottles in 2004 to 600 million bottles.

Wikipedia

2006

Joint Venture with Diageo

Formed Diageo Radico Distilleries Pvt Ltd as a 50:50 joint venture, integrating manufacturing with strong marketing expertise.

Wikipedia

2007

New JV and Distillery Setup

Initiated a tripartite joint venture with NV Distillers and Ridhi Sidhi Pvt Ltd to set up a greenfield distillery in Aurangabad; launched Masterstroke Deluxe Whisky.

Wikipedia

2009

Expansion of Product Portfolio

Launched Morpheus Brandy and, in collaboration with E&J Gallo, introduced Carlo Rossi wine in India.

Wikipedia

2011

Partnership with Suntory & New Whisky Launch

Entered an agreement with Suntory Liquors Ltd to market Yamazaki single malt and Hibiki whiskies; launched After Dark, a 100% grain-based whisky.

Wikipedia

2006

Joint Venture

Diageo

Established a 50:50 joint venture (Diageo Radico Distilleries Pvt Ltd) combining manufacturing and marketing.

Wikipedia

2007

Joint Venture

NV Distillers & Ridhi Sidhi Pvt Ltd

Set up a greenfield distillery in Aurangabad with a combined investment of ₹1.60 billion; Radico held a 36% stake.

Wikipedia

2009

Joint Venture

E&J Gallo

Partnered to launch Carlo Rossi wine in India, leveraging global brand expertise.

Wikipedia

2011

Partnership

Suntory Liquors Ltd

Collaborated to market Yamazaki single malt and Hibiki blended whiskies in India.

Wikipedia

Brand Portfolio

Shifted to an organic brand portfolio with more than 15 brands including 8PM Whisky, Magic Moments Vodka, Contessa XXX Rum, and Old Admiral Brandy.

Who We Are

Manufacturing & Distribution

Operates two state-of-the-art distilleries (Rampur and Radico NV) with a total capacity exceeding 157 million litres and 28 bottling units nationwide.

Who We Are

International Reach

Exports to over 85 countries and collaborates with partners like Diageo and Suntory to enhance its premium positioning.

Wikipedia

Diversification

Expansion into PET bottle manufacturing and joint ventures in the wine and ethanol segments, evolving from a single-product focus to a multi-segment approach.

Wikipedia

Volume Growth

Regular segment volume recorded at 13.4% with mid-single-digit growth expectations in the regular segment.

GuruFocus

Premium Segment Growth

Strong earnings growth driven by premium product offerings.

Stock Performance

Recent volatility observed amidst broader industry trends (MarketsMojo).

Monetization

Premium pricing, strategic expansion into premium segments, and backward integration leading to higher margins.

Innovations

Use of diverse cask finishes, unique packaging designs, and significant investment in in-house R&D for organic brand development.

Fredminnick

Scalability Measures

Geographic expansion (e.g., focus in Andhra Pradesh and Kerala), expanding capacity with new infrastructure investments, and enhanced product portfolio.

Differentiation

Robust brand portfolio, strong backward integration, and a dual focus on both premium and regular segments.

Core Business

Manufacturer and distributor of Indian Made Foreign Liquor (IMFL) and other beverages including Vodka, Whisky, Rum, Brandy, and Gin.

Radico Khaitan Official Wikipedia

Market Share

Leading position in the Vodka segment (over 50% market share) and significant presence in the premium and super-premium categories.

Business Standard

Competitors

Includes Tilaknagar Industries, United Breweries, Diageo, Sula Vineyards, Globus Spirits, Som Distilleries, and others.

Trendlyne GuruFocus

Industry Trends

Premiumisation, rise of flavored and cocktail cultures, raw material cost pressures, and regulatory changes at state levels.

Business Standard, Economic Times, Mint

Market Positioning

Positioned as an industry leader and innovator with a focus on premiumisation, robust distribution, and strategic partnerships.

Company Website

Order Book and Projects

Full capacity utilization, healthy non-IMFL revenue growth, and ongoing investments in capacity projects such as the Sitapur plant expansion.

Business Standard Moneycontrol

Whisky

Rampur Indian Single Malt Whisky

Flagship premium whisky produced at Rampur Distillery; crafted using traditional and modern techniques influenced by the unique microclimate of the Himalayas.

Fredminnick, Official Site

Whisky

Rampur Barrel Blush

Recently launched for the U.S. market; matured initially in American Bourbon barrels and finished in Australian Shiraz wine casks; features distinctive eco-friendly pink packaging with gold accents.

Fredminnick, PR Newswire

Whisky

Rampur Jugalbandi Series (#5 & #6)

Limited edition cask strength whiskies; one variant employs American Bourbon and Tokaji wine casks while the other is matured in Madeira casks for complex flavor profiles.

TheDrinksBusiness

Whisky

Rampur Asava, Spirit of Victory 1999

Luxurious domestic range aimed at the premium segment; priced at higher price points (e.g. Rampur Asava at Rs 10,000/bottle).

ET Retail

Vodka

Magic Moments Vodka, Remix Flavoured Vodka, Verve

Premium vodka range known for its smoothness and unique flavor variants.

Shoonya Blog

Rum & Brandy

Contessa Rum, Old Admiral Brandy

Offers a rich-flavored rum and a traditionally smooth brandy, adding diversity to the IMFL portfolio.

Shoonya Blog

Gin

Jaisalmer Indian Craft Gin

An innovative craft gin designed to cater to niche upscale segments and international markets.

PR Newswire

Premiumisation Focus

Emphasis on quality, innovative marketing, and premium product launches

Consistent shift to premium and super-premium categories enhancing margins and consumer appeal

BW Reporters

Innovation in Maturation & Packaging

Unique cask treatments and eco-friendly design

Adoption of multiple cask finishes (Bourbon, Tokaji, Madeira, Shiraz) and distinctive packaging to elevate the luxury consumer experience

Fredminnick; TheDrinksBusiness

In-house R&D Capability

Organic brand development and continuous product innovation

Leveraging in-house expertise to develop an entire portfolio and secure a competitive advantage through process efficiencies

India Infoline

Backward Integration

Securing extra neutral alcohol and raw material management

Significant investments aimed at reducing raw material volatility and maintaining product quality

Sharekhan PDF

2024-03-31

40,104,925,000

2,621,746,000

2023-03-31

31,044,181,000

2,203,513,000

2022-03-31

28,680,138,000

2,632,275,000

2021-03-31

23,740,110,000

2,771,580,000

2020-03-31

24,011,512,000

2,291,399,000

2024-03-31

4,671,270,000

3,512,272,000

16,553,651,000

2023-03-31

4,215,990,000

3,320,372,000

15,111,922,000

2022-03-31

1,890,993,000

124,726,000

7,543,350,000

2021-03-31

2,772,243,000

109,776,000

8,292,091,000

2020-03-31

4,037,718,000

51,540,000

9,398,636,000

Stock Ticker

RADICO

Exchange

NSE (Asia/Kolkata)

Market Capitalization (INR)

281,013,190,656

Enterprise Value (INR)

289,034,240,000

Trailing PE Ratio

91.78

Forward PE Ratio

53.16

Dr. Lalit Kumar Khaitan

Chairman & Managing Director (CEO)

Over 27 years with the company; approximately 22 years as CEO and over 50 years in the industry; transformed the company from a bulk supplier to a premium leader.

Reuters Simply Wall St

Abhishek Khaitan

Managing Director & Executive Director

Integral part of the family-led leadership with strategic oversight of growth initiatives.

Simply Wall St

Dilip Banthiya

Chief Financial Officer

Manages financial oversight and consistently participates in earnings calls; detailed tenure information not provided.

Simply Wall St

Amar Sinha

Chief Operating Officer

Over 30 years of experience in sales, marketing, and operational leadership; formerly served as Executive Director at the Wave Group.

Radico Khaitan Management

Sanjeev Banga

President – International Business

Focuses on expanding the global presence and strengthening international brand portfolios; specific tenure not detailed.

Reuters

M. Prakash

Executive VP – Corporate & Technical Operations

Oversees technical operations; functions similarly to a CTO given the absence of a formal role.

Board Structure

Led by Dr. Lalit Kumar Khaitan and Abhishek Khaitan, supplemented by several independent directors (e.g., Tushar Jain, Sharad Jaipuria, Sushmita Singha); average board tenure ~5.5 years (Simply Wall St).

Compliance & Transparency

Comprehensive code of conduct; separate legal and compliance teams; robust internal financial controls and adherence to state and regulatory guidelines (Corporate Governance - Radico Khaitan).

Recent Changes

New appointments such as Amar Singh as Whole-time Director highlight periodic leadership refreshment.

Employee Count

1,469 employees as of March 31, 2024 (increased by 10.53% YoY)

Stock Analysis

Turnover Rate

Specific turnover rate data not provided

Benefits & Perks

Life insurance, disability coverage, and paid holidays/vacation available

PayScale

Training & Development

No specific details available

Employer Reputation

Average employee rating of 3.33/5 based on 31 reviews; recognized as one of India’s admired liquor brands

JobBuzz

Primary Regions

Operations predominantly in India with brands achieving international recognition; detailed global office count is not explicitly disclosed.

Manufacturing Assets

Two major distilleries (Rampur in Uttar Pradesh; Radico NV in Aurangabad, Maharashtra) and 28 bottling units.

Domestic Focus

Expanding premium portfolio and strengthening distribution channels (e.g., expansion into canteen stores for military bases).

Sharekhan PDF

International Expansion

While several brands have international recognition, there is no explicit detailed strategy for a dedicated global office expansion.

Future Plans

No specific regions outlined; focus remains on strengthening premium offerings and maximizing domestic market potential.

Production & Energy

Utilizes state‐of‐the‐art production technologies including biogas generation from effluent, cogeneration plants using biogas-fired boilers and backpressure turbines.

Wikipedia

Bottle Manufacturing

Employs advanced glass technologies to produce lighter bottles, thereby optimizing raw material usage and reducing environmental impact.

Our Commitment – Rampur Distillery

Digital Supplier Onboarding

Implementation of a fully digital supplier onboarding process reducing turnaround time from nine days to one day, including dynamic discounting and remote documentation approval.

Treasury Today

Digital-First Marketing

Adoption of influencer-led campaigns, content marketing, and partnerships with OTT platforms to capture the shifting consumer landscape.

Medianews4u

John Barleycorn Awards 2024

Jaisalmer Gold Gin recognized as Best Gin, among other awards for luxury and innovative packaging.

PR Newswire

Just Drinks Excellence Awards 2024

Multiple recognitions for innovation and excellence across its product portfolio.

Just Drinks

Market Insights

Utilizes consumer data and social media analytics for market sentiment analysis and to guide new product launches.

Quartz

Operational Optimization

Applies analytics to enhance distribution chain efficiency, scheduling, and packaging operations.

Quartz

Diageo

Joint Venture (50:50)

2006

Entry into the premium IMFL segments through partnered manufacturing and distribution efforts.

Wikipedia

NV Distillers & Ridhi Sidhi Pvt Ltd

Tripartite Joint Venture

2007

Expansion through establishment of a greenfield distillery in Aurangabad, enhancing production capacity.

Wikipedia

E&J Gallo

Joint Venture

2009

Launch of Carlo Rossi wine, expanding the product portfolio with international expertise.

Wikipedia

Suntory Liquors Ltd

Marketing and Distribution Agreement

2011

Distribution and market expansion of premium whiskies such as Yamazaki and Hibiki within India.

Wikipedia

Bemakers

Strategic Distribution Partnership

2024

Strengthening European market presence with direct-to-consumer outreach through a Danish distribution platform.

The Spirits Business

Product Diversification

Enhanced offerings from alliances with E&J Gallo and Suntory, adding premium wines and whiskies to the portfolio.

Manufacturing Capacity

Expanded capacities from joint ventures such as the greenfield distillery with NV Distillers and Ridhi Sidhi Pvt Ltd.

Global Distribution

Strengthened both domestic and international reach through partnerships with Diageo and Bemakers.

Market Competition

Intense competitive environment evidenced by stock underperformance relative to the sector.

Premium brand positioning, robust distribution channels (including a significant stake in CSD markets), and brand-building initiatives.

MarketsMojo HDFC Securities

Regulatory Issues

Complex and state-specific regulatory frameworks for the Indian spirits industry.

Enhanced internal compliance protocols, proactive regulatory monitoring, and regular consultations with government agencies.

Sharekhan PDF

Technological Disruptions

Changing digital landscapes may challenge consumer engagement and data security.

Adoption of digital marketing innovations, modernization of supply chain monitoring systems, and cybersecurity measures.

Raw Material Price Volatility

Fluctuations in extra neutral alcohol (ENA) and packaging materials impact costs and margins.

Strategic backward integration to secure supply, efficient working capital management, and cost-control policies.

Sharekhan PDF

Macro-Economic Risks

Global economic slowdowns and shifts in consumer disposable incomes may reduce demand.

Diversification of product offerings, enhancing premium segments, and leveraging tax-exempt channels like CSD.

Backward Integration

Secure raw material supply (ENA) through strategic investments

Short-term (2 years)

Investment to ensure high margins (Moneycontrol)

Product Innovation

Launch and expand premium product lines, e.g., Rampur Barrel Blush

Short-term

New premium launches for global markets (Fredminnick)

Working Capital Optimization

Enhance supply chain and working capital management to support margins

Short-term

Focused improvements for next two years (Moneycontrol)

Capacity Expansion

Infrastructure projects including Rampur Dual Feed and Sitapur Green Field

Long-term

Investments of Rs 956 crore since April 2022 (Economic Times)

Global Market Expansion

Enhance international presence targeting premium segments

Long-term

Continued international product launches and market penetration

Sustainability & ESG

Drive environmental sustainability in production and packaging

Long-term

Commitment evident in eco-friendly practices (Radico Khaitan ESG Profile)

Radico Khaitan vs. Meher Distilleries

Trademark dispute regarding the "ASAVA" mark versus "Rampur ASAVA".

Bombay High Court ruled in favor of Radico; costs awarded.

Economic Times

Radico Khaitan vs. Saroj Bhatt

Trademark infringement dispute over non-competing goods.

Court ruled no infringement due to dissimilar goods.

CaseMine

Radico Khaitan vs. Devans Modern Breweries

Trademark dispute over the mark "ELECTRA".

Court granted injunction against Devans for similar mark usage.

Indian Case Law

Insider Trading Case

Compliance officer penalized for failure to monitor trades in violation of insider trading norms.

Penalty imposed with enhanced trade monitoring procedures implemented.

Moneycontrol

Securities and Exchange Board of India (SEBI)

Oversees compliance with securities laws and insider trading regulations.

Competition Commission of India (CCI)

Investigates and mitigates anti-competitive practices.

Central Pollution Control Board

Ensures compliance with environmental regulations.

Primary Groups

Consumers of IMFL across a broad market spectrum including mass-market brands (e.g., 8PM Whisky) and premium trends (e.g., Magic Moments Vodka, Contessa Rum, Rampur Single Malt).

Demographics

- Median age around 28 years (Indianotes Report)
- 67% of the population within the legal drinking age
- Primarily urban and semi-urban middle-class consumers with rising disposable incomes.

Psychographics

Quality consciousness, premium aspirations, lifestyle orientation with emphasis on innovative packaging and brand experience, and a digitally savvy audience.

Digital Engagement

Uses social media and online campaigns to gather direct consumer feedback.

Data Analytics

Analyzes consumer preferences and engagement trends to guide new product innovation (Quartz).

In-person Feedback

Direct interactions during targeted campaigns to improve product and packaging innovations.

Reputation

Recognized for its long-standing market presence, premium brand evolution, and reliability; maintains a trust rating via reviews and strong brand credibility.