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Business Standard
12 hours ago
- Business
- Business Standard
Piccadily Agro targets 1 mn cases of Whistler whisky in next three years
With its elevated blend and bold new identity, Whistler is poised to disrupt the mid-premium segment: Praveen Malviya, CEO - IMFL, Piccadily Agro Industries Limited Bengaluru Listen to This Article Piccadily Agro Industries, makers of the Indri brand of single malt, targets 1 million cases with the relaunch of Whistler Barrel Aged Blended Malt Whisky within the next three years. Praveen Malviya, CEO – IMFL, Piccadily Agro Industries Limited, said, 'With its elevated blend and bold new identity, Whistler is poised to disrupt the mid-premium segment. Our goal is ambitious — 1 million cases in the next three years — and we're confident Whistler will become a powerhouse brand that redefines what Indian blended malts can achieve.' The new variant will be available in 750 millilitres with 42.8 per cent
Time of India
14 hours ago
- Business
- Time of India
How UP's liquor lottery system helped Yogi govt double revenue to Rs 50,000 crore in six years
Luck favored Akhand Pratap Dubey from Madhya Pradesh when he won ownership of a country liquor shop in Uttar Pradesh's Jhansi district through an online lottery held after seven years. Dubey beat 284 others for a small shop on the state border, a reflection of the high demand generated by Uttar Pradesh's revamped excise policy. The new policy and the lottery system helped the state double its liquor revenue to Rs 51,000 crore in 2024-25, compared to Rs 23,927 crore in 2018-19 before the pandemic. Lottery drives high demand for liquor shops The government held an online lottery in March-April 2024 for 27,308 liquor shops across four categories: country liquor, composite liquor (selling both beer and Indian Made Foreign Liquor or IMFL), cannabis outlets, and model shops with seating arrangements. The lottery attracted 4,18,111 applications, with about 15 applicants per shop on average. The excise department collected Rs 2,000 crore from processing fees alone. The fees ranged from Rs 25,000 for cannabis shops to Rs 60,000 for model shops. Composite shops become most popular Composite liquor shops proved to be the most sought-after category. One outlet in Greater Noida received 265 applications. Excise commissioner Adarsh Singh said, 'It did bring down the number of standalone IMFL and beer shops, but also increased the density of outlets that serve both segments — the clientele for beer and that of IMFL.' The government shut 5,970 standalone beer shops and 6,563 IMFL shops, replacing them with 9,362 composite shops. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Recessão ou vibecessão? Franklin Templeton Brazil Leia mais Undo New entrants and experienced retailers compete UP excise minister Nitin Agarwal stated, 'An estimated 40% of these shops are owned by new entrants, while the remaining have been in this business from earlier.' He added, 'UP is at the top spot in the country when it comes to revenue collection through excise duty. The retail liquor business in UP has become extremely lucrative, and that is why we have witnessed increased participation in the lottery this time.' About 5.6% of applicants came from other states. Prohibition in Bihar benefits UP liquor sales The ban on alcohol in Bihar has also helped increase sales in UP border districts such as Kushinagar, Deoria, and Ghazipur. Sunil Singh, who runs a composite liquor shop in Kushinagar, said, 'Though overall business prospects of the composite shop and the sales they could generate would be known only after some time, the response so far has exceeded my expectations.' Estimates show that demand for country liquor and IMFL has nearly tripled in UP districts bordering Bihar since the prohibition began. Live Events Structural changes encourage new brands Manish Agarwal, managing director of Bareilly-based Superior Industries and a member of the All India Distillers' Association, said, 'The structural change in the way retail business is carried out in the state will help reach out to a larger number of patrons. The growing demand is encouraging stakeholders to come up with new brands.' (The article originally published in TOI)
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Business Standard
15 hours ago
- Business
- Business Standard
Radico Khaitan rallies 6%, hits record high; Motilal Oswal sees more upside
Share price of Radico Khaitan today Share price of Radico Khaitan, a leading Indian Made Foreign Liquor (IMFL) company, rallied 6 per cent to hit a new high of ₹2,701.80 on the BSE in Tuesday's intra-day trade in an otherwise weak market. The stock price of this breweries & distilleries company surpassed its previous high of ₹2,666 touched on May 7, 2025. In the past one year, the stock has outperformed the market by surging 65 per cent, as compared to 6 per cent rise in the BSE Sensex. At 11:47 AM; Radico Khaitan was quoting 4.4 per cent higher at ₹2,659.15, as against 0.54 per cent decline in the benchmark index. The average trading volumes at the counter jumped multiple-fold, with a combined 830,000 equity shares changing hands on the NSE and BSE. The first quarter of FY26 marks an exciting milestone as Radico prepares to introduce two luxury brands - projects that have been under development for two years. These launches represent a major leap in Radico Khaitan's premiumization journey, reinforcing our confidence that the best is yet to come, the management said in March 2025 quarter earnings conference call. Looking ahead, the management said the company is poised for a strong double-digit growth in the Prestige & Above (P&A) category, enhanced profitability and a persistent focus on cash flow generation, all driving long-term value creation for the company's shareholders. The recent route-to-market (RTM) changes in Andhra Pradesh have progressed well, promoting stability and predictability in the regulatory environment. As a result, the company have seen strong traction for its brand portfolio and gained market share from 10 per cent in the first half to over 17 per cent in Q3 and 23 per cent in Q4FY25, which is highest in the industry. The management is optimistic that the pricing scenario for ENA and grains will remain stable going forward during FY26. Going forward, the company's focus will be on driving profitable growth along with cash flow generation, and more efficient working capital management, resulting in debt reduction. Motilal Oswal Financial Services view on Radico Khaitan Consumer acceptance for its premium brands over the years reflects Radico's long term brand upgrade story. Radico can further capitalize on this success by adding more brands to fill the white spaces to attract consumer segments that have higher volumes. Radico holds ~8 per cent share in the P&A category in the IMFL industry. For Radico, vodka accounts for ~50 per cent of its P&A portfolio, with an >80 per cent share in the P&A vodka industry. Besides, the company has significantly scaled up its P&A whiskey portfolio (contributes ~5mn cases), though from the industry point of view, it is still small with a 3 per cent share. Here, Motilal Oswal Financial Services (MOFSL) sees a good opportunity for Radico and it gives us confidence that the company can sustain its double-digit volume growth in P&A in the medium term. According to brokerage firm Radico has been one of the best-performing stocks among consumer names, with 25x return over the last 10 years and 8x return over the last five years. The valuation multiple has seen a notable re-rating over the last five years, with consistent outperformance of its P&A portfolio. However, MOFSL still believes that Radico will deliver strong earnings growth over the next 3-5 years considering the opportunity it has to scale up its P&A portfolio in the industry. 'We believe this portfolio expansion will help Radico expand its target user base and improve its trade confidence on execution, which increases the acceptance level for new products. We estimate 16 per cent revenue compounded annual growth rate (CAGR) during FY25-28E and EBITDA margin of 16.2 per cent by FY28 (similar to FY19). We believe a ~30 per cent EPS CAGR is good enough for sustaining rich valuations,' the brokerage firm said with value Radico at 60x P/E on June 2027 EPS to derive a target price of ₹3,000. About Radico Khaitan Radico Khaitan is among the oldest and one of the largest manufacturers of IMFL in India. In 1998 the company started its own brands with the introduction of 8PM Whisky. Radico Khaitan is one of the few companies in India to have developed its entire brand portfolio organically. The company's brand portfolio includes Rampur Indian Single Malt Whiskies, Sangam World Malt Whisky, Spirit of Victory 1999 Pure Malt Whisky, Jaisalmer Indian Craft Gin, Royal Ranthambore Heritage Collection Royal Crafted Whisky, Happiness in a Bottle: A Happily Crafted Gin, Morpheus and Morpheus Blue Brandy, Magic Moments Vodka, Magic Moments Remix Pink Vodka, Magic Moments Dazzle Vodka (Gold & Silver), Magic Moments Verve Vodka, 1965 The Spirit of Victory Premium XXX Rum and Lemon Dash Premium Flavored Rum, After Dark Whisky, 8PM Premium Black Whisky, 8PM Whisky, Contessa Rum and Old Admiral Brandy. Radico Khaitan is also one of the largest providers of branded IMFL to the Canteen Stores Department (CSD), which has significant business barriers to entry. The Company has distilleries situated in Rampur, Sitapur and Aurangabad, Maharashtra which is a 36 per cent joint venture. The company has a total owned capacity of 320 million litres and operates 43 bottling units (5 owned, 29 contract and 9 royalty bottling units). It is also one of the largest exporters of Alcoholic beverages from India, with brands available in over 102 countries.
Time of India
20 hours ago
- Business
- Time of India
Happy hours in UP: How state doubled booze revenue in 6 years
Uttar Pradesh's liquor revenue has doubled to Rs 51,000 crore, driven by a new excise policy and composite shops selling both beer and IMFL Akhand Pratap Dubey stands across an iron grille that guards his shop, a wad of currency notes scattered on a wooden cot beside him. Grinning from ear to ear, he just cannot believe his luck. Akhand Pratap Dubey ' Hamari toh kismat chamak gayi. Laga jaise humnein KBC jeet liya ho (Lady Luck has smiled on me. It feels like winning KBC),' he says. On March 6, Dubey — from Tikamgarh in Madhya Pradesh — became the beneficiary of a crossborder bonanza. On that day, he became the lucky owner of a country liquor shop in Ninaura gram panchayat in UP's Jhansi, just on the other side of the state border. Dubey's stroke of luck came via an online lottery for ownership, which saw incredible participation. He, for instance, beat as many as 284 others for ownership of the 120sq ft shop, in a small patch of UP that cuts into MP on the 27kmlong Niwari-Prithvipur Road. And it was these lotteries, held after seven years, that boosted UP's liquor revenues, taking it to a staggering Rs 51,000 crore in 2024-2025 — double the pre-pandemic revenue of Rs 23,927 crore in 2018-2019. The main reason for the state's overflowing coffers is its changed excise policy, introduced last year, coupled with the introduction of 'composite' shops — which can sell both beer and IMFL (India made foreign liquor) — which made it possible for some categories of shops to cater to a much wider clientele. This, combined with the fact that store allocations were through lotteries, after a gap of seven years, created soaring demand, which saw as many as 15 people, on an average, vying for ownership of a single shop. Luck Of The Draw The lottery was held for fresh allotment of four kinds of establishments in UP: country liquor shops, composite liquor shops, cannabis outlets (bhaang shops) and model shops (IMFL and beer outlets withsitting space for patrons), under the new policy announced on Feb 6, 2024 with a single aim — to create more revenue streams and make room for the alcohol industry to grow in a stagnating market. The online lottery draw that was organised in March and April to award 27,308 vends saw 4,18,111 applications. After two rounds of lottery, each of the 27,308 shops (16,052 country liquor, 9,362 composite liquor, 1,459 cannabis and 435 model shops) has new owners. And UP's excise department earned Rs 2,000 crore, just through processing fees from applicants: Rs 25,000 for a cannabis shop, Rs40,000 for a country liquor shop, Rs 55,000 for a composite shop and Rs 60,000 for a model shop. Changing Fortunes Composite liquor shops — with both beer and IMFL on the shelves — were easily the most coveted category of outlets. One such shop, near Roza Yakubpur roundabout in Greater Noida, attracted as many as 265 bidders. Excise commissioner Adarsh Singh says the decision to introduce composite shops was a masterstroke. 'It did bring down the number of standalone IMFL and beer shops, but also increased thedensity of outlets that serve both segments — the clientele for beer and that of IMFL,' he explains. The department decided to shut 5,970 standalone beer and 6,563 IMFL shops. Instead, 9,362 composite shops were introduced, on the lines of MP and Rajasthan. Sensing a windfall, existing retailers did all they could to lay their hands on these prime liquor vends, filling in forms in the name of immediate family members, close relatives and acquaintances. Even many newcomers decided to take the plunge, not wanting to be left out. 'An estimated 40% of theseshops are owned by new entrants, while the remaining have been in this business from earlier,' says UP excise minister Nitin Agarwal. 'UP is at the top spot in the country when it comes to revenue collection through excise duty. The retail liquor business in UP has become extremely lucrative, and that is why we have witnessed increased participation in the lottery this time.' The department estimates that nearly 5.6% participants in the lottery were from other states. Manish Agarwal, the MD of Bareilly-based Superior Industries, who is also the member of the allIndia distillers' association, says, 'The structural change in the way retail business is carried out in the state will help reach out to a larger number of patrons. The growing demand is encouraging stakeholders to come up with new brands.' Help From 'Dry Bihar' Prohibition in Bihar has also helped UP. Sunil Singh, an entrepreneur who used to operate a liquor store in Siddharth Nagar district, was awarded a composite liquor shop on Samaur Road in Tamkuhiraj, a town in Kushinagar, on the Bihar border. 'Though overall business prospects of the composite shop and the sales they could generate would be known only after some time, the response so far has exceeded my expectations,' he says. 'The sale is on the higher side in Tamkuhiraj, and a lot of people buy multiple bottles, unlike what I had seen in Siddharth Nagar.' With almost a decade since the enforcement of prohibition in Bihar, retailers operating liquor vends in Kushinagar, Deoria, Ghazipur, Ballia, Chandauli and Sonbhadra have reaped handsome profits. According to estimates, from the time prohibition was enforced, the demand for country liquor and IMFL has gone up almost threefold in those regions. In fact, tipplers from Bihar often take a boat ride across river streams that divide the two states to indulge. Many also take daily passenger trains and buses that ply between the two states.
Time of India
2 days ago
- Business
- Time of India
Top stocks to buy: Stock recommendations for the week starting June 2, 2025
Stock market recommendations: According to Motilal Oswal Financial Services Ltd, the top stock picks for the week (starting June 2, 2025) are Radico Khaitan and JK Cement. Let's take a look: Stock Name CMP (Rs) Target (Rs) Upside (%) Radico Khaitan 2547 3000 18% JK Cement 5465 6060 11% Radico Khaitan Radico Khaitan, a legacy player since 1943, is one of the oldest and largest IMFL manufacturers in India with a diverse portfolio across whisky, vodka, gin, rum, and brandy (ranging from INR500 to INR8000), covering a large customer base. Tired of too many ads? go ad free now Driven by consistent volume growth (from 20m cases in FY15 to 31m in FY25) & sharp execution, Radico has outperformed peers through premiumisation & is now expanding its premium & luxury portfolio to strengthen trade & consumer pull. With an ~8% IMFL market share and rising presence in the P&A segment, we estimate a robust 6%/22%/30% in revenue/EBITDA/APAT CAGR during FY25-28E. Overall volume is projected at 9%, driven by a robust 15% CAGR in the P&A portfolio. JK Cement JK Cement (JKCE) reported better-than-expected results for 4QFY25, exceeding our estimates primarily due to a strong 15% YoY growth in volumes. Revenue/EBITDA/adj. PAT rose by 15%/37%/69% YoY. Management aims to achieve ~20mt grey cement volume (~12% YoY growth) in FY26. Of the ₹150–200/t cost-saving target, ₹40/t was realized in FY25; FY26 should see ₹25–30/t savings plus a full-year ₹75/t benefit. JKCE remains one of our preferred picks in the cement sector. We raise FY26/27E EBITDA by ~4% each on higher volume and better profitability of its UAE plant. We expect its revenue/EBITDA/profits to post a CAGR of 15%/20%/31% over FY25-27E. Disclaimer: The opinions, analyses and recommendations expressed herein are those of brokerage and do not reflect the views of The Times of India. Always consult with a qualified investment advisor or financial planner before making any investment decisions.
