Radico Khaitan in Rs 150 crore spread plan

Lalit Khaitan-promoted Radico Khaitan Ltd is planning to invest Rs 150 crore in new distilling capacity and ten bottling units across the country within the next 1-2 years.

"The company is growing at a fast pace and these investments are in line with the growth in business. We hope to close the current financial year with a turnover in excess of Rs 750 crore and hope to touch a turnover of Rs 1,400 crore by 2007," Abhishek Khaitan, executive director, Radico Khaitan Ltd, told Business Standard .

Radico Khaitan operates the country's largest distillery at Rampur in Uttar Pradesh with a capacity of 60 million litres per annum.

Khaitan said that the new capacity would be of 30 million litres and is likely to be located in western India.

Khaitan did not rule out the possibility of adding new distilling capacity through an acquisition. "There are talks going on with a few players. Nothing has been finalised as yet," he said.

A greenfield distillery of 30 million litres can cost upto Rs 50 crore.

Khaitan added that the company could go through the acquisition route for the new bottling plants also.

The entire investment for the expansion will be funded through a combination of the company's internal accruals and debt.

"Our debt-equity ratio is very low. We can raise debt to meet the requirements of our expansion plans," Khaitan said.

Even before the new capacities are in place, the company has drawn up plans to enter the fast-growing white spirits (gin and vodka) segment of the market.