Radico Khaitan thirsty to enter beer market

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At present, the domestic beer market is dominated by United Breweries and SAB Miller who together control nearly 90 per cent of the 158 million-case market. The beer market in India is growing at the rate of 14 per cent though the per capita consumption is at around 1 litre. According to the United Breweries' Web site, it costs the least to set up a brewery in India. In Europe, the cost of setting up a brewery is about $100 a hectolitre where as in India it is about $35 a hectolitre.

Radico Khaitan already has an equal joint venture with the world's leading liquor company, Diageo. The joint venture makes 'Master Stroke' whisky brand in India. Diageo owns brands such as Johnnie Walker whisky, Smirnoff vodka and Captain Morgan rum.

Radico Khaitan which owns Asia's largest distillery in Rampur in Uttar Pradesh, has brands such as 8 PM whisky, Contessa rum and Old Admiral brandy apart from its recently launched Magic Moments vodka. It sold slightly over 13 million cases of IMFL (Indian made foreign liquor) during 2007-08, about the same as the previous year.

Taken from Business Line

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