After a consolidating phase in FY2016 yaur executive management team entered the yearahead with a relentless focus on delivering yet another year of profitable financialresults. The pleasing performance during FY2017 was a testament to the resilience of ourlong term strategy the inherent strength of our business model and the attractiveness ofour brand portfolio. Last year was not however without its surprises and challenges. Whileboth demonetization and the highway liquor ban had a temporary impact on our volumes andsales growth wc were successfully able to quickly adjust to the disruptions in the marketenvironment. Radico Khaitan continued to prioritize the generation of strong free cashflows and the deleveraging of its Balance Sheet. We ended the fiscal year 201 7 with asound capital structure that provides us with valuable strategic and financial flexibilityto capitalize on the Indian consumer growth story ahead of us.
Consistent with our strategic and operational focus on premiumization we launched twonew exciting brands; Rampur Indian Single Malt and Regal Talons Semi Premium whiskiesduring FY2D17 The successful launch of this single malt whisky is a real testament to ourR&D strength and product development capabilities. Our aim with the Rampur IndianSingle Malt was to create a truly memorable consumer experience consistent with thecompany^ long established brand equity We are taking an additional leap Into this excitingJourney by adding a new dimension with Rampur Indian Single Malt. Regal Talons is targetedat addressing the gap in our premium whisky portfolio and capturing the opportunity in thelargest segment of the Indian spirits industry. Our existing drinks portfolio togetherwith these new launches is expected to drive a sustainable and profitable growthtrajectory for Radico Khaitan in the years to come
India is poised to become the third largest consumer market globally in the near term.Increasing disposable incomes changing consumption patterns towards lifestyle productsand rapid urbanization will he the key drivers of this growth. India has the youngest ageprofile amongst the BRICS nations and major global economies with a median age of around28 years. Around 66% of the country's population is also within the legal drinking age.These two demographic indicators alone powerfully highlight the growth opportunities forconsumer companies in India.
Radico Khaitan with its strong brand portfolio coupled with a flexible capitalstructure is suitably poised to enter another exciting growth phase. To sum up we areSpirited and Soaring!
Or. Lai it Khaitan
Chairman and Managing Director