Pernod Ricard India Eyes Double-Digit Growth, Retains Top Slot With Rs 27,446 Crore Revenue in FY25

Pernod Ricard, the leading Indian alcoBev player with a revenue of Rs 27,446 crore in FY25, now aspires to have a "double-digit" growth in New Delhi, helped by factors as premiumization and innovation, its India MD Jean Touboul said on Tuesday.

Pernod Ricard India (PRI), growing with a CAGR of 8% in the last five years, sees a "structural tailwind" in New Delhi, which includes a growing economy, increasing average disposable income, along with demographic dividend, as India is adding 20 million new legal potential consumers every year.

"So, based on that, we see in future growing between the high single digit that we have been delivering over the last five years," Touboul told PTI.

However, based on the sound macroeconomic condition of India, which is expected to continue, Touboul said low double-digit growth is possible depending on the dynamism of the Indian GDP also.

"We are dependent to some extent on the pace of growth of the economy. That's the type of growth that we want to see," Touboul said.

For this, the strategy will remain the same, which is to premiumize and to be exposed to the highest possible categories, he added.

Globally, India is the largest market by volume for the French spirits major Pernod Ricard and second in terms of value.

Pernod Ricard, which owns single malt and blended Scotch whisky brands, including Chivas Regal, Ballantine’s, Royal Salute and The Glenlivet, said the recently signed Free Trade Agreement between the UK and India is "very favourable" and has a positive impact not only on its brand but the Indian players, who import bulk Scotch for their IMFL whisky.

Over the challenges faced on the policy front, Touboul said, "what we really like to see is first a fair playing field. So, every player is being treated the same as long as they respect the rules. And that's something we are attentive to. And we want to defend our rights to it. It's normally not necessarily a barrier against foreign companies."

For FY25, PRI has reported around 2.5% growth in its revenue from Rs 26,773.22 crore a year before.

Its nearest rival, United Spirits Ltd (Diageo India), had reported a consolidated Revenue from Operations of Rs 26,780 crore for FY25.

"So, we are still number one as we speak," Touboul.

However, when asked whether PRI expects to retain its number one position in the fast-growing Indian alcoBev market for the current fiscal, in which it sold its Imperial Blue business to Tilaknagar Industries, Touboul said it will depend on "how numbers will evolve exactly with the disposal of Imperial Blue business (in FY26), we will have to see."

"It also depends on how the competitors are doing, and how we are doing in the key states this fiscal year. I would say the temporary spot of number one or number two does not matter. With the strategic move of disposal of Imperial Blue, we will remain the leader or very close to the leader if we are not anymore in net sales," he added.

PRI has added a new brand 'Xclamat!on' under its Seagram's portfolio, entering into rum and brandy segment.

"We will be exposed to the higher categories, which are growing faster. So, even if we were to become number two for a temporary month, we would go back to the number one position very soon," said Touboul.

'Xclamat!on' will have presence in all five major segments of spirits - whisky, vodka, zin, rum and brandy - addressing the young cohort of consumers, who are looking for the premium type of consumption seeking "modern, bold and fun," he said adding 'it will have a unified price of Rs 700 (in Haryana), which will vary across states.

"But what we will maintain is that the price parity with the different categories, because this is exactly what we want to bring to the consumer, an opportunity to have a repertoire consumption of different categories of spirits at the same price points," said Touboul.

Pernod Ricard, which had acquired the Seagram's India business almost two and half decades ago, gets a vast majority of its topline and volume contribution by it.

"It's above 80% of the net sales and 95% of the volume," he said.

Earlier this year, PRI divested its Imperial Blue business to home-grown Tilaknagar Industries. Now PRI's Seagram profile consists of brands which include Royal Stag, Blenders Pride, 100 Pipers, Longitude 77 and the new brand 'Xclamat!on'.

"Disposal of the Imperial Blue business and the launch of 'Xclamat!on', both these moves form part of the same strategy. We want to premiumize and innovate," he said.