Latest news with #Radico
&w=3840&q=100)
Business Standard
03-06-2025
- 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.
India Today
26-05-2025
- Business
- India Today
Radico Khaitan launches TRIKĀL and Morpheus whiskies
Radico Khaitan is raising a toast to India's evolving taste for premium spirits with the launch of two distinct whiskies—TRIKAL Indian Single Malt and Morpheus Super Premium the new launches, the company's goal is to dominate both the luxury and super-premium categories, building on the global success of its flagship Rampur Indian Single at the storied Rampur Distillery, TRIKAL marks Radico's boldest foray yet into the Indian single malt space. Priced between Rs 3,500 and Rs 4,500, the whisky debuts in key markets including Uttar Pradesh, Haryana, and Maharashtra, with plans for a wider national and global rollout in the coming 'TRIKAL is not merely a whisky—it is a temporal voyage,' the company said in a statement. 'It's a convergence of heritage and horizon, crafted not just for the moment, but for every moment that ever was or ever will be.'Radico's Managing Director Abhishek Khaitan positioned the launch as a milestone in the company's premiumisation journey. 'The Indian Single Malt segment has witnessed a remarkable transformation over the past decade. The launch of TRIKAL marks yet another milestone in Radico Khaitan's journey to elevate Indian spirits on the world stage and reflects our long-term vision of investing in innovation-led, homegrown luxury.'Echoing the sentiment, Chief Operating Officer Amar Sinha called TRIKAL a result of passion and precision. 'Every element, right from the selection of barley to the rare combination of casks used for maturation... We have blended tradition and technique to create an indulgent experience that connects with the deeper essence of time itself.'advertisementAlongside TRIKAL, Radico has also introduced Morpheus Super Premium Whisky, priced between Rs 1,200 and Rs 1, on the brand equity of Morpheus Brandy, which commands a 60% share in India's super-premium brandy segment, the new whisky is aimed at the next generation of drinkers—urban, aspirational, and achievement-orientated.'With Morpheus Whisky, we are proud to extend this powerful legacy into the super-premium whisky segment,' said Khaitan. 'This launch represents not just a strategic milestone for Radico Khaitan, but also a toast to the next generation of achievers who redefine success on their own terms.'Formulated with imported Scotch malts and Indian grain spirits, Morpheus Whisky is aged in Bourbon barrels to deliver a bold, full-bodied profile with fruity and floral notes—crafted for those who pursue ambition with intensity.
Economic Times
08-05-2025
- Business
- Economic Times
How will India-UK FTA affect Indian alcobev stocks?
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Mumbai: Shares of most Indian alcohol companies fell on Wednesday after India and the United Kingdom finalised a Free Trade Agreement (FTA) that includes deep cuts in import duties on Scotch whisky and gin. The move is expected to make imported liquor more affordable in India, a development that may challenge local liquor brands in the premium and luxury the new FTA, India has agreed to cut import duties on Scotch, whisky and gin from 150% to 75% with immediate effect, with a further reduction to 40% over the next 10 years. This means that imported spirits, especially premium Scotch, will become much cheaper for Indian of Som Distilleries and Breweries fell 4%, Radico Khaitan and Piccadilly Agro declined 3% each. Companies fear that cheaper Scotch could erode the market share of Indian-made premium liquor. But not everyone is Spirits, India's biggest liquor company and part of the global Diageo group, could emerge as a big winner from this deal. That's because 32% of its sales already come from luxury and premium brands, many of which are imported Scotches bottled in origin (BIO). Shares of United Spirits gained 0.9%."While competition from imported scotch whiskey (no of cases) might increase, the Indian Alco-beverage sector, which uses bulk whisky as raw material for blended Scotch, stands to benefit," said Chakri Lokapriya, CIO - Equities, LGT Wealth taxes make up around 15% of the retail price of imported Scotch in estimate the new tariff structure could lead to price drops of 8-20% over time, making imported brands much more lower duties, these premium imports could see stronger demand and higher volumes. Analysts estimate that United Spirits' BIO Scotch portfolio could grow at a compound rate of 33% over the next three years, driven by rising affordability and changing consumer Diageo's global supply chain means United Spirits is well-positioned to scale up its Scotch offerings without major cost pressures. Even if profit margins from imported Scotch remain limited (around 10%), the sheer volume growth is likely to boost the company's overall companies like Radico Khaitan may face more direct pressure. However, they also import Scotch in bulk to blend with Indian spirits, so cheaper raw material could help them cut costs and improve margins. Radico's super-premium products, which use imported Scotch for blending, could see a margin gain of about 100 basis points, according to analysts."Radico imports the bulk of scotch for blending premium products. This could reduce raw material costs significantly for Radico, which can lead to expansion of gross margin by ~100 bps helping Radico's super-premium portfolio (~10% of IMFL revenue)," Lokapriya while competition may increase, some Indian firms could still benefit by using cheaper imported ingredients to make better-quality products at more competitive prices.
Mint
07-05-2025
- Business
- Mint
Scotch and gin may not get significantly cheaper for consumers in India despite tariff cuts: Industry
Indian consumers eyeing cheaper Scotch whisky and gin after the India-UK trade pact should steel themselves for a disappointment. While the tariff on British whisky and gin was halved from an eye-watering 150% to 75% after three years of painstaking negotiations, this is not likely to reflect in prices, experts told Mint. This is because of several factors, including the multiplicity of local tariffs and liquor companies being unwilling to pass on the benefits of lower tariffs to consumers, citing narrowing profit margins. Liquor is imported in three different categories. Also Read | The dueling science behind how alcohol affects your health First is the high-end bottled-in-origin (BIO) category—where products are made and packaged in the UK, Scotch whisky for instance. Here, brands will benefit from lower costs and improved margins because of the tariff cut. But Indian states set liquor prices annually, based on their own excise duty or local taxes, and changing them is a time-consuming approval process. So, in the past, even where duties have been lowered, as in Maharashtra, prices have mostly stayed the same. Any benefit passed on to the consumer is expected to be modest. Many states have either not allowed price increases to domestic manufacturers in several years or have done so minimally. With increasing cost pressures, many companies have been squeezed tight on their margins for the last five-seven years as a result. In November 2021, for instance, Maharashtra reduced its excise duty on imported liquor from 300% to 150%, aiming to lower prices. But prices fell by only 30–50% and that too for a limited number of brands, so consumers didn't fully benefit from the government's move. Also Read | From champagne to bourbon, alcohol lands on front lines of global trade war The second category involves bulk Scotch imports, which are brought in by Indian companies and used in blending to make locally branded premium whiskies, the so-called Indian Made Foreign Liquor. The reduction in duty will lower costs for companies like Diageo, Radico and ABD, but they are unlikely to pass on these savings to consumers, industry figures said. These firms have been operating under margin pressure, they said, and are more likely to use the cost relief to protect their profits. The third segment is bottled-in-India (BII) brands such as 100 Pipers and Teacher's, where Scotch is imported in bulk and bottled locally. These products dominate the ₹ 1,000–2,000 price segment and face little pricing pressure from global competitors in any case and see no need to reduce their prices if more international brands come in. The only benefit to the Indian consumer will come in the form of a greater choice of British liquor brands. As per the latest available data, India consumed around nine million cases (of nine litres each) of Scotch whisky in 2024, either imported in bottles or imported in bulk and bottled in India. Indians consumed over two million cases of gin, of which imports accounted for around 250,000 cases. Also Read | PVR Inox seeks to widen alcohol sales in select premium markets to draw patrons 'Overall, at the consumer level there may not be much change. The supplier companies will more likely take the savings from customs duty reductions in their margins by increasing billing price. In Maharashtra where excise duty was reduced on imported products from 300% to 150% a few years ago, companies chose to increase their billing prices thus not really transferring reduction to consumers. It happens because import price in India historically has been very low to offset for high import duties." said Vinod Giri, director general of the Brewers Association of India. 'Even if companies do pass on any benefit, the reduction in consumer price will not be more than 10-12%. The gap between price segments is far too wide to have any impact from that level of reduction. " Giri formerly held the same position at the Confederation of Indian Alcoholic Beverage Companies (CIABC) and was closely monitoring this pact over the last few years. According to the FTA, the tariff on Scotch will be cut from 150% to 75% immediately, and to 40% over ten years. 'While this is a welcome move, this may have a short-term impact on Indian products. However, we are confident about the quality of our products. We also hope that this deal will allow better ease of business for Indian products in the UK. It is also crucial to ensure that both nations maintain a level playing field, safeguarding the interests of domestic industries and promoting fair competition," said Paul P. John, chairperson of John Distilleries Ltd. "The cost of the bottled in origin brands should come down. There will also be a reduction in bulk spirit import prices and those bottled in India products with a significant scotch content will benefit. Consumers may not see much price difference as companies may not pass on the price changes," said Paramjit Singh Gill, chief executive officer (CEO), consumer division, Globus Spirits Ltd said. Globus makes Terai gin and Doaab single malt among other spirits. Domestic companies are confident that their higher end products should not feel any heat from international spirits as the consumer is now mature and understands their product and quality. Fullarton Distilleries—makers of Pumori gin—which recently got acquired by Allied Blenders and Distillers is not expecting much change in sales either. Many Indian companies, over the last two years, have turned their focus towards making their portfolios more premium in order to meet a more niche consumer demand. Earlier this week, Radico Khaitan , for instance, said 30% of its FY26 growth will now come from luxury spirits.
Time of India
07-05-2025
- Business
- Time of India
Indian Spirits cos stirred up to fight a premium battle as British scotch whiskies expected to flood India at reduced prices
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel A slew of premium British scotch whiskies are expected to flood India at much reduced prices from the UK with import tariffs on whisky and gin set to be halved to 75% from 150% under the new India-UK FTA deal announced late Tuesday, industry executives said, further bolstering an executive of an Indian company said this will lead to increased competition for domestic liquor companies, which are turning to premiumisation. "We are concerned about the impact on local spirits companies, since the FTA may lead to cheaper scotch imports .'In 2024, India's imports of whisky, gin and other spirits stood at $439.04 million, according to the United Nations Comtrade database on international trade. 'The treaty will enable improved accessibility and choice of scotch for Indian consumers, the largest whisky market,' Praveen Someshwar, MD of spirits maker Diageo India , UK-headquartered Diageo sells Johnnie Walker Scotch whisky, Tanqueray gin, Baileys cream liqueur and Smirnoff vodka. Executives said the FTA will make available affordable premium foreign brands and spark competition for domestic liquor companies, which are increasingly benefitting from premiumisation.'This signals a positive shift for India's alco-bev sector, particularly for companies that are premiumising,' said Abhishek Khaitan, managing director of Radico Khaitan . He said as the largest importer of scotch whisky for blending, Radico sees 'significant potential for cost advantages through the expected reduction in customs duties.'Khaitan said Radico plans to import scotch malt worth `250 crore in fiscal year 2025-26. The tariffs on spirits will be halved from 150% to 75% before being reduced to 40% in a decade."We anticipate that this will accelerate the ongoing trend of premiumisation within the alcobev sector, positively impacting the exchequer of Indian states. India will also have access to premium international brands at affordable prices,' said Sanjit Padhi, chief executive of Indian Spirits and Wines Association of India Paul P John, chairman of the homegrown John Distilleries said it is crucial to ensure that both nations maintain a level playing field, safeguarding the interests of domestic industries and promoting fair competition.
