Business Standard

John Distilleries plans 30-acre Karnataka plant with Rs 600 cr investment

Given the alcobev major's extensive domestic and international presence, JDL anticipates growth in the domestic liquor market

Paul P John, Chairman, John Distilleries Limited

Paul P John, Chairman, John Distilleries Limited

Aneeka Chatterjee Bengaluru

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Following the expansion of its Goa facility, Bengaluru-based John Distilleries Limited (JDL) is now considering a new 30-acre plant in Karnataka with an investment of about Rs 600 crore. The company also targets nearly 150 cases of Single Malt and about 2.3 crore cases of all other brands combined by the end of FY25.
 
“The Karnataka plant is planned as a greenfield project with an investment of about Rs 500-600 crore. However, we are open to discussions with other states and may consider relocating if they offer more favourable incentives. Within the next 3-4 years, we need to set up another plant with a capacity of at least 12,000 litres per day,” Paul P John, chairman, John Distilleries Limited, told Business Standard in an interview.
 
 
JDL is set to launch the highly sought-after Weller Bourbon Whiskey variants—Special Reserve and 12-Year—in November, priced at approximately Rs 4,500 and Rs 8,500, respectively. This release will be in partnership with Sazerac. The domestic market already features Fireball, Buffalo Trace Bourbon, Benchmark Bourbon, and Sazerac Rye.
 
John also emphasised the company’s plans to launch two new vodka variants: one in the lower price category, similar to the Original Choice portfolio, expected within the next six months, and another targeting the high-end segment, anticipated by next year. JDL will soon be adding another gin to its Roulette portfolio.
 
Given the alcobev major’s extensive domestic and international presence, JDL anticipates growth in the domestic liquor market. "Over the past 7-8 years, the Indian market has evolved from 30 per cent domestic sales and 70 per cent international to 50 per cent domestic. Currently, international sales comprise 30-35 per cent, with the remainder from domestic sources. The domestic market is steadily inching up," John added.
 
Discussing challenges, John stated, “Given our liquid (liquor) constraints, we are prioritising supply management over entering new markets. However, we cannot meet targets for some of our cheaper brands. We anticipate that these challenges will persist for the next 2-3 years. Our current focus is on optimising our supply and solidifying our presence in the markets where we are already established.”
 
In keeping with the festive spirit, JDL is set to roll out its Christmas edition, continuing a six-year tradition. Each year’s release features new packaging and a unique blend, aptly named the Paul John Christmas Edition, with the current year indicated on the label. The edition has already been introduced in international markets, with Goa as the exclusive recipient in India. Other Indian markets can expect it in the coming weeks. A total of 8,000 bottles will be available globally, priced between Rs 8,000-10,000 (approximately $100-135), including taxes.
 
“We are looking forward to 20 per cent overall growth in sales. Last year, we achieved 5 crore cases with all our brands combined,” added John.
 
The whiskey maker is present in about 44 countries globally, including the US, UK, Australia, Germany, Taiwan, and France. Its portfolio ranges from single malts, XO brandy, crafted gins, blended whiskies, and wines, among others.
 
According to sources, Paul John’s Single Malt (PJSM) sales in India reached nearly 72,000 cases in FY24. PJSM holds about 20 per cent market share in the premium segment domestically. Internationally, PJSM sold over 30,000 cases during the same period.
 

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First Published: Oct 29 2024 | 7:29 PM IST

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