Pernod Ricard India, a prominent spirits company, is anticipating the commencement of operations at its Kanpur distillery and bottling unit in the upcoming year. This state-of-the-art facility has been established with a substantial investment of INR 400 crore.
The project boasts an impressive bottling capacity of 7.2 million cases per year, with the potential for expansion up to 10 million cases. Pernod Ricard India’s Kanpur facility will be dedicated to manufacturing the company’s domestic brands. By establishing this distillery, the company, known for producing Royal Stag, seeks to enhance its supply chain across various regions, with a particular emphasis on the Northern markets.
According to Pernod Ricard India, approximately 97 percent of its sales portfolio consists of domestically produced brands. Among its homegrown brands are Royal Stag, Royal Stag Barrel Select, Blenders Pride, Blenders Pride Reserve Collection, Imperial Blue, and 100 Pipers.
The French liquor giant has placed significant emphasis on its growth prospects in India. Presently, the country stands as the brand’s third-largest market, following the United States and China.
During an interaction, Ranjeet Oak, the Chief Commercial Officer of Pernod Ricard India, expressed the company’s commitment to invest INR 200-300 crore annually in the Indian market.
“We’ve been investing over INR 200 – 300 crore annually and will continue to do so as India is a primary market where we want to invest and grow.”
In regard to its yearly performance, Oak remarked that the company achieved double-digit growth in FY23, clearly signaling the brand’s upward trajectory in the country.
Regarding geographical expansion, he emphasized that tier-two and beyond towns are becoming significant growth markets for the brand.
“While metros and tier-one cities have been growing and are a mainstay of our business. We’ve seen tier two, as well as the next rung of towns, come up where consumers are preferring more premium higher-quality products. So, we are expecting growth to come from these areas,” the CCO stated.
Additionally, Pernod Ricard is directing its attention towards exporting its India-made products. Presently, the brand boasts exports to over 30 markets and has ambitious plans to venture into newer developing and developed markets in the near future.
