Latest news with #MadhuKanna
Time of India
7 hours ago
- Business
- Time of India
Radico Khaitan give Indian Whisky a hangover
Liquor companies such as Radico Khaitan and Piccadily Agro Industries expect high tariffs to make Indian single malt whiskies costlier in the US, putting them at a disadvantage to those imported from other countries and local American brands. Indian alco-beverage companies have been trying to expand into the US for over a decade now, selling Indian single malts across retail outlets such as Costco, Tesco, Amazon and Total Wine & More. Radico Khaitan, which sells brands like the Rampur Jugalbandi series with multiple variants aged on American bourbon casks in the US, said there may be a $5-10 price increase per bottle if the 50% tariff is imposed. The company currently sells bottles at $80-100. Madhu Kanna, head of international business at Indri whisky maker Piccadily Agro, said the 50% tariff could place 'considerable pressure' on Indian single malts which are beginning to gain 'well-deserved recognition among US consumers". Kanna said a significant increase in price may affect the affordability of Indian single malts and other premium spirits for US consumers. 'In such a scenario, we would be navigating a highly competitive landscape, especially against locally produced spirits, scotch (which currently faces a 10% tariff), and other international spirits from countries with more favourable trade terms,' he said. Imports of Indian 'beverage, spirits and vinegar' category in the US totalled $19.2 million in calendar year 2024, as per United Nations COMTRADE President Donald Trump last week signed an executive order to double the tariff on US' imports from India to 50%. While the initial 25% duty came into effect Thursday, the additional 25% is effective August 27. Sanjeev Banga, president (international business) at Radico Khaitan, said the company will wait and see how the tariffs pan out. 'Since it's an evolving situation, we are trying not to give a knee jerk reaction,' Banga said.
Economic Times
a day ago
- Business
- Economic Times
Indian single malt exporters at disadvantage following high US tariffs
Synopsis Indian single malt exporters like Radico Khaitan and Piccadily Agro Industries face challenges in the US market due to a doubled tariff of 50%, increasing prices and creating a disadvantage against competitors. This tariff could limit new consumers from trying Indian single malts, impacting their growth in a competitive landscape dominated by local spirits and Scotch. Agencies Representational image Companies exporting Indian single malts to the US such as Radico Khaitan and Piccadily Agro Industries say the high tariff will increase prices there and put Indian whiskey at a disadvantage to those coming from the UK, local brands distilled there and other Indian alco-beverage companies have been trying to expand into the US for over a decade now, selling Indian single malts across retail outlets such as Costco, Tesco, Amazon, Total Wine & More among others. Madhu Kanna, head of international business at Piccadily Agro, the makers of Indri Whiskey, said the 50% tariff could place 'considerable pressure' on Indian single malts which are beginning to gain 'well-deserved recognition among US consumers."Kanna said a significant increase in consumer pricing may limit the ability of new consumers to savour Indian single malts and other premium spirits. 'In such a scenario, we would be navigating a highly competitive landscape, especially against locally produced spirits, scotch (which currently faces a 10% tariff), and other international spirits from countries with more favorable trade terms,' she 'beverage, spirits and vinegar' category imports to the US in calendar 2024 was $19.2 million, as per United Nations COMTRADE data. The US has doubled the tariff on India to 50%. Banga said the US is a strategic export market for Radico Khaitan with exports contributing around 10-11% of total sales. And for Piccadily Agro, exports contribution to the turnover was 4.6% in FY24. The FY25 numbers are still not declared. As per its Q4FY25 report, "Indri captured an established 55% share of Indian single malt export market"."For products like the Indian single malts there is, at least with some players, a shortage of the aged liquid. And therefore, they have to ration their supplies, not just in India but also internationally. They are not able to fulfill the demand they have because of the absence of the appropriate amount of liquid. Ideally it should be a wait and watch approach," he reason is that there is no point losing out on a market as important as the US when the industry is already low on supply. "Would you want your stock to be stuck on the shelf there because you are competing on price with the other players? I don't think you would want to do that. Hence, waiting and watch, is what we need to do,' he to Statista, the largest markets for Indian alcobev exports in FY25 were UAE, followed by Singapore and Tanzania. The Indian diaspora in the UAE drive the demand for Indian dark spirits such as rum and whiskey.
Time of India
a day ago
- Business
- Time of India
Indian single malt exporters at disadvantage following high US tariffs
Companies exporting Indian single malts to the US such as Radico Khaitan and Piccadily Agro Industries say the high tariff will increase prices there and put Indian whiskey at a disadvantage to those coming from the UK, local brands distilled there and other markets. The Indian alco-beverage companies have been trying to expand into the US for over a decade now, selling Indian single malts across retail outlets such as Costco, Tesco, Amazon, Total Wine & More among others. Madhu Kanna, head of international business at Piccadily Agro, the makers of Indri Whiskey , said the 50% tariff could place 'considerable pressure' on Indian single malts which are beginning to gain 'well-deserved recognition among US consumers." Kanna said a significant increase in consumer pricing may limit the ability of new consumers to savour Indian single malts and other premium spirits. 'In such a scenario, we would be navigating a highly competitive landscape, especially against locally produced spirits, scotch (which currently faces a 10% tariff), and other international spirits from countries with more favorable trade terms,' she said. Indian 'beverage, spirits and vinegar' category imports to the US in calendar 2024 was $19.2 million, as per United Nations COMTRADE data. The US has doubled the tariff on India to 50%. Banga said the US is a strategic export market for Radico Khaitan with exports contributing around 10-11% of total sales. And for Piccadily Agro, exports contribution to the turnover was 4.6% in FY24. The FY25 numbers are still not declared. As per its Q4FY25 report, "Indri captured an established 55% share of Indian single malt export market". "For products like the Indian single malts there is, at least with some players, a shortage of the aged liquid. And therefore, they have to ration their supplies, not just in India but also internationally. They are not able to fulfill the demand they have because of the absence of the appropriate amount of liquid. Ideally it should be a wait and watch approach," he said. Menon's reason is that there is no point losing out on a market as important as the US when the industry is already low on supply. "Would you want your stock to be stuck on the shelf there because you are competing on price with the other players? I don't think you would want to do that. Hence, waiting and watch, is what we need to do,' he said. According to Statista, the largest markets for Indian alcobev exports in FY25 were UAE, followed by Singapore and Tanzania. The Indian diaspora in the UAE drive the demand for Indian dark spirits such as rum and whiskey.
