McKinsey wins SWC mandate

Liquor major Shaw Wallace Company (SWC) has roped in global consultancy firm McKinsey to help it become India's most profitable liquor company. The company's plan includes doubling its revenues and tripling profits in the next three years.

In a bid to transform targets into reality, the company has already charted out a strategy. "The strategy involves strengthening brand equity of existing bestsellers, creating best-in-class time to market process and achieving lowest-cost manufacturing and purchase operation," said Komal C Wazir, executive director, SWC, in a release today.

As part of the strategy, the company has undertaken exercises which include major streamlining of the brand portfolio entailing strengthening brand equity of the best sellers and launch of new brand extensions to fill in the gaps.

In the premium spirits segment, SWC continues to enjoy a leadership position. Its Antiquity Rare Premium Whisky currently accounts for 80 per cent market share in the super premium whisky segment.

"During the year under review, Royal Challenge became India's first premium whisky to attain sales of one million cases. Royal Challenge achieved the success despite stiff competition from international labels in the premium segment," said officials from the company.

Royal Challenge is SWC's sixth brand to enter the hall of fame as a millionaire brand.

The other millionaire brands straddle the entire brown spirits segment and include Director's Special Whisky, Haywards Fine Whisky, Old Tavern Whisky, Old Adventurer Rum and John ExShaw Brandy.

During the current year, plans are afoot to target new markets overseas for the premium brands, while further consolidating their share in the domestic markets.

In deluxe and prestige segments also the company's brands like Director's Special, Director's Special Black and White Mischief Vodka have surpassed new milestones.

White Mischief, India's largest selling vodka brand, currently accounts for 36 per cent share of the prestige vodka market in India and is growing at an annual growth rate of 35 per cent.

Brand extensions of White Mischief namely White Mischief Zing (a flavoured vodka), White Mischief Brandy and Black Mischief Rum brands launched in the year under review have met with huge response in view of youthful and spirited imagery and international packaging of these brands.

SWC has registered a 63 per cent growth in profit before tax to Rs 27.39 crore during 2003-04 against Rs 16.74 crore posted in the previous year. The company recorded a turnover of Rs 163.93 crore.

On a consolidated basis, the SWC group has posted a profit of Rs 174.87 crore as against a loss of Rs 10.74 crore last year.