Radico in foreign brand alliance talks

Liquor major Radico Khaitan is eyeing tie ups with foreign players to market and distribute their products in the Indian market.

Raju Vaziraney, president (sales and marketing) of the company said talks were at advance stage and an announcement was likely in next month.

"We are in dialogue with number of international players. A decision is likely to be taken in January," he informed.

The company has been in look out for a partner for a while now. Rumours have been doing rounds of Highland Distillers forging a strategic tie up with Radico but nothing has materialised yet. Highland Distillers has scotch brand Famous Grouse.

Radico has, at present, international marketing tie-up with Ernest & Julio Gallo, the largest manufacturer of wine and also with Interbrew.

Vaziraney said the volume has not been large given that prices were high due to import duty. Radico markets Ernest & Julio Gallo's Gallo of Sonoma County, Turning Leaf, Wine Cellers and Becks beer from Interbrew. Radico also has a 49:51 joint venture with Bacardi International in Whytehall India.

"The idea is to have the marketing arrangement in place, while the market opens up in 2005. Indian consumers have been looking at graduating to quality products. So it is imperative to have good international portfolio post 2005 when established brands will be more easily available in India," a liquor industry observer pointed out.

The company is also looking out for acquisitions in India. In last two years, the company has acquired two a whiskey and brandy brand in south.

At present, Radico is one of the leading player in IMFL and country liquor spaces and it is further consolidating portfolio by introducing new products. It has recently launched '8 PM Bermuda Rum' in the mid segment.

Radico's group sales in 2002-3 has been 8.5 million cases. Vaziraney said it was expecting sales of 11 million cases this fiscal. Company's turnover is also expected to rise from Rs 620 crore in 2002-3 to about Rs 800 crore this fiscal.