By Praveen Paramasivam
CHENNAI (Reuters) – Rampur whisky-maker Radico Khaitan is expecting a 20% revenue growth this fiscal year, an executive said on Thursday, as India’s growing middle class splurges on expensive liquor.
Several consumer labels including Reliance, Tata Group and Arvind Fashions, which sells Calvin Klein and Tommy Hilfiger, are targeting the booming Indian middle-class that is increasingly spending on higher-quality branded products.
Radico Khaitan reported 14.3% sales volume growth for the June quarter on Wednesday in its high-end category, which makes up roughly half its revenue. Its Rampur brand sells bottles for as high as 500,000 rupees ($5,955.39) in India where the per capita income is about $2,485.
“People are preferring to spend that extra because, in COVID times, they were drinking at home, so they are used to better liquor. That premiumness is going up and up,” Radico Khaitan Managing Director Abhishek Khaitan told Reuters.
In the reported quarter, the company launched three new products, starting at 4,000 rupees and going beyond 10,000 rupees, under its Rampur, Sangam and Jaisalmer brands.
Radico Khaitan “should see a topline growth of around 20% (for the current fiscal year),” CFO Dilip Banthiya said.
Analysts polled by LSEG expect 20.3% growth.
Radico Khaitan will be “more innovative” when promoting its brands, including at retail stores, Chief Operating Officer Amar Sinha said, if India bars surrogate advertisements and sponsoring of events by liquor sellers.
Reuters reported earlier this week India is planning tougher curbs on advertisements by liquor makers.
“(Liquor brands contribute) about 3 trillion rupees of taxes to the government, so they will continue to sell,” Sinha said.
($1 = 83.9550 Indian rupees)
(Reporting by Praveen Paramasivam in Chennai; Editing by Shinjini Ganguli)
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