Radico plans listing overseas

Radico Khaitan, the second largest liquor manufacturer in the country, is planning to set up a new plant at Rampur (western UP) for the production of grain-based alcohol.

"We are investing around Rs 85 crore for setting up the plant. The plant may start operations in the first week of January 2006. It is a greenfield project and will be the biggest grain-based alcohol plant in India with a production capacity of 27 million litre per year," said Raju Vaziraney, president, sales and marketing, Radico Khaitan.

The company today announced the launch of its international brands division in Pune by introducing its famous Grouse scotch whiskey and the world famous Ernest and Julio gallo wines in the Pune market.

He further added, "We are also looking at acquiring a bottling plant in Andhra Pradesh next year, details of which will be disclosed soon. We are coming up with a stock-split next month and would like to get listed on global stock exchanges soon. We would prefer NYSE and Nasdaq for the matter. There are three plants in our mother factory running on molasses, grain and malt. The manufacturing capacity of the mother factory is 88 million litre per year. We are now going to focus more on production of grain-based alcohol. All our new brands will be grain-based and we aim to be a leader in every segment of liquor industry within five years."

"Currently, we are active in about 33 countries with plans to focus on African market. In FY05, our turnover was Rs 995 crore, which may see a 35 per cent rise in bottomline and 25 per cent rise in volumes by the fiscal end. Our current export is only 7 per cent of total sales, but in a couple of years we expect this number to grow significantly," he added.

Recently, Radico Khaitan & Brihan Maharashtra have entered into an agreement for acquisition of key brands from Brihans stable such as Brihans Napoleon Brandy, Brihans Premium Whiskey, Brihans Grape Brandy, Tropicana White Rum, Calcutta Dry Gin, Lord Nelson Rum, Red Russian Vodka etc by Radico.

"We are selling one million cases of Brihans liquors and expect to double it within a year," said Vaziraney.

"Liquor industry is growing at the rate of 20 per cent per annum where as the white spirit industry is gaining 40 per cent annually. In India, around 15 crore people will be added to the age group of 25-35 years within a decade and that is going to be our target segment, he added."

He said that the company foresees an explosion of demand for white spirit products in India.

''Direct advertising for liquor is not allowed in the country as is the case worldover. But it is the biggest revenue generator for states, so responsible liquor advertisements should be allowed in the country," he concluded.