Radico Khaitan plans Rs 85 cr grain distillery

Radico Khaitan, the country's second largest liquor company, will set up a grain-based distillery plant at an investment of Rs 85 crore in Uttar Pradesh. The grain-based distillery plant, reportedly the first of its kind in the country, will start operations from December 2005.

The new distillery plat, part of Radico's strategic growth move, would help the company compete in the US and European markets, where whiskies are made of grain and not molasses, said Lalit Khaitan, chairman and managing director, Radico Khaitan.

"The company is looking to expand aggressively both on the domestic and the export fronts. Hence, to achieve strong growth, it has stepped up its investment plans and has introduced additional funds," Khaitan added.

Besides, for domestic market growth, Radico is considering setting up a distillery unit in the western or the southern part of the country, adding additional bottling units in Assam, Punjab, Haryana, Karnataka etc, as well as acquiring brands that are growing to expand its portfolio and take it into newer segments and markets, he said.

In line with this growth plan, the company recently signed an agreement with Brihan Maharashtra Sugar Syndicate for acquisition of key brands like Brihans Napoleon Brandy, Brihans Premium Whisky, Brihans Grape Brandy, Tropicana White Rum, Calcutta Dry Gin, Lord Nelson Rum and Red Russian Vodka, among others, at an investment of Rs 35 crore.

"These eight key brands of Brihans have national presence and are also registered in the canteen store department (CSD)," the company sources said.

Radico has added these to its existing portfolio of 26 brands having three millionaire club brands "" 8 PM Whisky, Contessa Rum and Old Admiral Brandy. For Radico, total volume sales from the Brihan's portfolio were at around 1 million cases.

Business Standard had earlier reported that the company, as part of its product portfolio expansion plan, would be looking at acquiring brands that would help its overall growth strategy.

In a bid to strengthen its overseas market presence, Radico had recently set up a subsidiary "" Radico Global - in Dubai to deal in global trading and to route future acquisitions or joint ventures outside India. The company is now exporting its products to more than 30 countries all over the world.