The Hindu Business Line : Radico Khaitan net profit jumps 39 pc

WITH prices of key raw materials easing, liquor major Radico Khaitan's net profit jumped by 39 per cent to Rs 8.63 crore in the second quarter of the fiscal from Rs 6.21 crore in the same quarter last year.

The sales turnover was Rs 275.44 crore, up by about 11 per cent over the corresponding quarter last year.

The company expects its margins to improve further in the coming quarters.

"We are well on our way to achieving a topline growth of 25 per cent and a bottomline growth of 30 per cent this year," Mr Abhishek Khaitan, Managing Director, Radico Khaitan Ltd, said.

According to Mr Khaitan, the company is looking at an inorganic growth strategy and is studying possible acquisitions both overseas and in India.

Radico recently put through an agreement with Brihan Maharashtra Sugar Syndicate Ltd for acquisition of key brands such as Brihans Napoleon Brandy, Brihans Premium Whisky, Brihans Grape Brandy, Tropicana White Rum, Calcutta Dry Gin, Lord Nelson Rum, Red Russian Vodka etc. These brands have been acquired at a total cost of Rs 35 crore. The acquisition takes the total number of brands in the company's portfolio to 35.

The company recently announced that it has set up a grain-based distillery plant at a cost of Rs 85 crore in Uttar Pradesh, which will commence operations from December. The grain alcohol will be used in Radico's own grain-based brands such as Whytehall Whisky, Special Appointment whisky etc and will also be exported. "We will soon be rolling out a new grain-based vodka under the Magic Moments brand," Mr Khaitan said.

Major brands in the company's portfolio include 8 PM, Contessa Rum, and Old Admiral Brandy among others.

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