Radico Khaitan Plans Three New Luxury Launches, Expects Premiumisation Trend To Stay

Radico Khaitan Ltd. plans to launch three new luxury products soon in India as it looks to enhance portfolio in the country's booming premium market.

"Premiumisation is a trend that is here to stay," Chief Financial Officer Dilip Banthiya told NDTV Profit. "We are going to launch two new luxury products in six months in India. Another super premium whiskey is also in pipeline," he said, without divulging more details on the new launches.

The executive said alcohol beverage industry is seeing good volume growth and the company is doing better than the average, thanks to market-driven government policy across states.

"Radico is growing in double-digit. We have seen market-driven policies for retail and wholesale across many states. The route-to-market has improved in Andhra Pradesh and so has the availability of brands. We have gained market share there," Banthiya said.

Alcohol beverage makers are increasingly looking at the upper band of the consumer market as Indians juice up their choices armed with higher disposable income.

Luxury and semi-luxury brands had net sales value of Rs 100 crore in the third quarter and Rs 250 crore in the nine-month period of fiscal 2025. Given the exceptional demand in the domestic as well as international markets, the company expects Rs 500 crore net sales in fiscal 2026, according to an investor presentation.

Radico Khaitan, whose offerings include the popular Magic Moments Vodka, will focus on expanding its malt and malt maturation, Dilip Banthiya said.

The company's annual capital expenditure will be Rs 150 crore for branded business and it will be funded by internal accrual, he said. It projects 9-10% volume growth and 15-17% rise in topline.

"We are expecting a stable scenario in terms of raw material costs and continue to expand margin with our product mix and premiumisation. We are expecting 15% growth in Prestige & Above (P&A) segment," he said.