Radico eyes inorganic growth

Radico Khaitan Ltd, one the of the largest liquor manufacturers in the country, is looking forward for acquisition of bottling plants, distilleries and liquor brands besides expanding its brands of 8 PM whisky and Old Admiral brandy to other categories of liquor.

The company had earmarked an amount of Rs 150 crore last fiscal to finance its inorganic growth plans. Of this, it spent Rs 65 crore last fiscal on acquiring Whitehall whisky brand from Bacardi International and Anab e Shahi Winery near Hyderabad.

"Another Rs 85 crore is now available for acquiring new units. We are looking for acquisition of bottling units located anywhere in the country and distilleries located in western Maharashtra," Radico's president -- sales and marketing, Raju Vaziraney, told Business Standard.

Vaziraney said that the company had started expanding its 8 PM whisky brand to rum and brandy categories. Similarly, Old Admiral brand would be expanded to whisky and rum categories.

These two have been featured as the fastest growing regional brands in the world in the Drinks International Millionaire Survey 2004-05. Radico's Contessa Rum also featured as one of the fastest growing regional rum in the world.

Drinks International, published in Belgium, is a buyers guide to drinks business. Its May 2005 edition stated that while 8 PM registered a growth rate of 38 per cent in the past four years, Old Admiral growth rate stood at 48 per cent. In all, three Indian brandies, two Indian whiskies and one Indian rum figured among the fastest growing league in the survey.

"While the Indian liquor industry is growing at 10 per cent per annum, we are growing at 58 per cent annually," Vaziraney said, adding that 8 PM was the only whisky brand in the country that had registered a sale of 1 million cases in the first year of its launch in 1998-99.

Radico had sold 10.02 million cases of liquor brands last fiscal as against a sale of 6.34 million cases in 2003-04. The company's turnover increased from Rs 727 crore in 2003-04 to Rs 995 crore in 2004-05.

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On a high

• Radico earmarked Rs 150 cr last fiscal for its inorganic growth plan
• Acquired Whitehall whisky brand from Bacardi International for Rs 65 cr and will use the remaining Rs 85 cr for acquiring new units