Incorporated in 1943, Radico Khaitan is one of the most recognised Indian Made Foreign Liquor (IMFL) brands in India, scaling new heights every year. It has achieved many milestones in its over eight decades of existence. One of the milestones is that seven of its brands are recognised as million-dollar successes. Its vodka brand – Magic Moments – is making waves, having captured an impressive 60% of the market share. In the luxury gin category, Jaisalmer has garnered 50% market share and is blazing guns. Ambrosia spoke to the Chief Operating Officer at Radico Khaitan,
Amar Sinha giving insights into how the company is looking at future growth.
Since rejoining Radico Khaitan, what changes have you brought in the company?
When I rejoined Radico Khaitan, the aim was crystal clear – we were focussing on our strategic goals of strengthening market position and driving long-term growth. To align with our core business strategy, my team and I worked extensively on developing operational excellence. From product development to market expansion, the idea was to go all out, and that’s exactly what we did – We streamlined operations, introduced new brands and innovated new variants while catering to the growing trend of premiumisation. Massive efforts were made to expand the company’s market presence, and we worked on integrating advanced technology across business operations, smoothening our manufacturing prowess.
What was the thought process and strategy behind these changes?
The idea and the objective were clear – Making Radico the largest, most successful and a profitable IMFL company of India.
Distribution is the key to this business apart from the quality product and pricing, how was this achieved?
Distribution is indeed a crucial component of Radico’s success, and the company has implemented several strategies to optimise its distribution network. Our distribution strength is underpinned by a robust network of over 80,000 retail outlets. We have systematically categorised our Off-Trade and On-Trade outlets, allowing for tailored strategies that address the unique needs of each category.
Our on-ground sales team undergoes regular and comprehensive training programmes. These initiatives are designed to enhance their skills, ensure they remain abreast of industry best practices, and effectively represent our brand.
What is the current overall volume for the company and what is the company turnover?
In FY2024, we reported a gross turnover of 15,483 crores. Our net sales went up to 4118 crores, out of which our Prestige & Above brands showed a significant volume growth of 20.3% (Y-o-Y) garnering sale of 11.26 million cases reaching a 68.5% in value.
How have the brands performed over the years, under your leadership?
We have achieved significant milestones, with seven of our brands now recognised as million-dollar successes, many of which have attained notable global rankings across various segments.
Our flagship brand, Magic Moments, has captured an impressive 60% of the market share in the vodka category, establishing itself as a dominant force. Similarly, Morpheus has risen to command 65% of the super-premium brandy segment, reinforcing our position in the high-end spirits market. Jaisalmer has also made remarkable strides, securing a substantial 50% market share in the luxury gin category.
Additionally, Royal Ranthambore has achieved extraordinary 2X growth, becoming the fastest-growing brand in the semi-luxury whisky segment. Notably, it is the first Indian brand to be priced above the best-selling Scotch whisky in India, a testament to its rising prestige and consumer appeal.
These accomplishments reflect our unwavering commitment to excellence and our strategic vision for expanding our brand portfolio on a global scale.
Radico has been able to successfully create wealth for its investors, what reason would you attribute to that?
Our growth is a testament to the strength of our brands, the exceptional quality of our blends, and the strong acceptance by our customers. These factors have not only driven our business success, but have also created substantial value for our stakeholders. Central to this success is the excellence of our team, whose dedication and professionalism have been pivotal in achieving our goals. Their unwavering commitment to high standards and continuous improvement has set us apart in a competitive market.
Additionally, the support and visionary leadership of Abhishek Khaitan, Managing Director Radico Khaitan Limited, has been instrumental in guiding our strategic direction and fostering an environment where innovation and collaboration thrive. This cohesive effort has propelled us forward and solidified our position as a leader in the industry.
