Radico Khaitan is making a bold push into the luxury spirits market, with plans to generate ₹500 crore in sales from its premium brands by FY26. Managing Director Abhishek Khaitan is confident that the company’s high-end portfolio, including Rampur Indian Single Malt, Jaisalmer Indian Craft Gin, Sangam World Malt, and Spirit of Victory 1999 Pure Malt, will continue to gain momentum as India’s alco-bev market undergoes rapid premiumization.

The company has been experiencing strong growth, with an 8-9% increase in volume and an expected 12-15% rise in value sales. Khaitan believes this trend will continue, especially within the Prestige & Above (PNA) segment, which is projected to grow by more than 15% in the next fiscal year. He noted that the company achieved ₹100 crore in luxury sales in Q3 alone, and for the first nine months of FY24, it had already crossed ₹250 crore. With this trajectory, hitting ₹500 crore by FY26 seems well within reach.

Radico Khaitan is also preparing to expand its luxury lineup with two new brands set to launch in the first half of the next fiscal year. These products have been in development for several years and are expected to further strengthen the company’s position in the premium market. Alongside its existing PNA brands, such as Royal Ranthambore, Dazzle Vodka, and Morpheus Blue, the company is seeing high double-digit growth and expects the momentum to continue.

India’s shifting demographics and increasing disposable incomes are playing a crucial role in this expansion. Every year, nearly 20 million people enter the legal drinking age bracket, fueling demand for premium and super-premium spirits. Despite recent reductions in import duties on bourbon whiskey, Khaitan remains unconcerned, dismissing bourbon as a small player in the Indian market. However, ongoing negotiations between India and the UK over a Free Trade Agreement (FTA) could have a greater impact, particularly on Scotch whisky. While Khaitan supports a gradual reduction in duties, he emphasized that Indian single malts are already outperforming some imported brands, both in pricing and sales. Lower import duties on non-branded bulk whisky from Scotland could help Indian companies like Radico Khaitan reduce costs without compromising their premium positioning.

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Beyond the retail market, Radico Khaitan holds a strong presence in the Canteen Stores Department (CSD) for the Indian armed forces, where it commands a market share of around 26-27%. Khaitan noted that demand for Indian brands remains high, as consumers increasingly prefer homegrown products over foreign alternatives. The company is also expected to benefit from new liquor retail policies in states like Uttar Pradesh and Andhra Pradesh, where an increase in retail outlets is driving growth in the IMFL (Indian-Made Foreign Liquor) segment.

Financially, Radico Khaitan closed FY24 with a gross revenue of ₹15,483.9 crore, selling 45.6 million cases of liquor, including 11.26 million cases in the Prestige & Above category, which saw a 20.3% year-on-year increase. In the December quarter, the company reported a 27% rise in consolidated net profit to ₹95.48 crore, with revenue from operations climbing 8% to ₹4,440.90 crore. The PNA category accounted for 50.9% of IMFL sales, a testament to the company’s successful shift toward premiumization.

To support its growing demand, Radico Khaitan has invested ₹750 crore in a new greenfield distillery in Sitapur and is expanding capacity at its Rampur distillery. The company also operates a distillery in Aurangabad, Maharashtra, bringing its total owned capacity to 320 million liters. Khaitan confirmed that the company’s major capital expenditures are complete, with only routine maintenance investments planned going forward.

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Radico Khaitan is competing with some of the biggest names in the Indian single malt segment, including Amrut, Paul John, and Piccadilly Distilleries, as well as global brands. With a strong distribution network, an expanding luxury portfolio, and aggressive market expansion, the company is poised to become a dominant force in India’s booming premium spirits industry. By focusing on high-quality offerings and capitalizing on evolving consumer preferences, Radico Khaitan is setting the stage for its next phase of growth in the alco-bev sector.