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Indian Family Business Awards 2021: Radico Khaitan adjudged most Innovative, Disruptive & Transformational Business of the year

Radico Khaitan has emerged as a major bulk spirits supplier and bottler to other IMFL manufacturers. Four of the company's labels are currently in the coveted Millionaires' Club — the global ranking of spirit and liqueur brands with sales of 1 million 9-litre cases or more.

April 29, 2022 / 08:22 PM IST

Radico Khaitan was adjudged the Most Innovative, Disruptive & Transformational Business at the inaugural Moneycontrol Indian Family Business Awards 2021, held in Mumbai. The company won in the Mega category, for business entities with annual revenues between Rs 1,000 crore and Rs 5000 crore.

The company has emerged as a major bulk spirits supplier and bottler to other Indian Made Foreign Liquor manufacturers.

Four of Radico Khaitan’s labels are in the coveted Millionaires' Club, the global ranking of spirit and liqueur brands with sales (shipments) of 1 million 9-litre cases or more. They are: 8 PM Whisky, which is ranked ninth among the top 30 whiskies in the world; Magic Moments Vodka, ranked 11th among the top 30 vodkas in the world; Contessa Rum, ranked the ninth best rum in the world; and Old Admiral Brandy, ranked the No. 2 brandy in the world.

Over the past five years, Radico Khaitan has been focusing on profitable growth and strong cash flows. Despite the pandemic, revenue growth during the FY2017-FY2021 period stood at 9.5 percent. Its EBITDA margin during the same period expanded from 12.5 percent in FY2017 to 16.9 percent in FY2021.

In FY21 (2020-21), the impact of the Covid pandemic led to the company generating revenue worth $2418.18 crore, slightly lower than the $2427 crore revenue it generated in FY20 (2019-20). However, the profit after tax rose to $353.1 crore in FY21, up from $272.7 crore in FY20.

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Radico Khaitan has selectively launched new products with their own niche market positioning. A case in point: the most successful Indian vodka, Magic Moments, was launched after extensive research and groundwork over two years to identify the right product category and brand in the premium segment.

Magic Moments currently has around 60 percent market share in India’s vodka market and around 90 percent of the relevant price point categories. No other vodka brand globally has this kind of positioning.

The company has launched Jaisalmer Indian Craft Gin in the luxury segment, which is a testament to its innovation and product development capabilities. This brand is positioned in the fast-growing craft spirits segment globally and capitalises on the years of Radico Khaitan’s leadership experience in the white spirits segment.

The premiumisation-led transformation has helped the company to consistently outperform the industry. In FY2019, the industry grew by 9.2 percent whereas the company grew 10.8 percent. In FY2020, the industry grew only 0.4 percent whereas the company outperformed it by a wide margin, with 12.5 percent growth.

In FY2021, because of the pandemic, the industry shrank 13.6 percent whereas Radico Khaitan contracted at a lower rate of 8 percent, which allowed it to continue gaining market share. Meanwhile, in FY2022 so far, the industry’s growth has been around 14 percent while Radico Khaitan has grown 23.9 percent.

Earlier known as Rampur Distillery Company, Radico Khaitan commenced its operations in 1943. As part of the family division, this business came under the direct control of Dr. Lalit Khaitan in the 1970s.

Abhishek Khaitan joined the family business and realised that the way forward was to move up the value chain and create the company's own brands. 8 PM Whisky was launched as the first whisky in the regular category to have blended Scotch and went on to become India’s first millionaire brand. Another millionaire brand, Old Admiral Brandy, was launched in 2002.



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first published: Apr 29, 2022 08:22 pm
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