Amrut Distilleries expects its sales to remain largely flat until 2030 as demand for its single malt whisky outpaces production, limiting the Bengaluru-based company's ability to capitalise on the category's growth.
According to The Economic Times, Managing Director of Amrut Distilleries, Rakshit Jagdale said the company cannot significantly increase volumes in the coming years because Indian single malt whisky requires at least three years of maturation. Amrut is therefore expanding its portfolio to reduce its dependence on a category where supply cannot be increased quickly.
Production Constraints Limit Growth
Amrut has an inventory of around 75,000 nine-litre cases of single malt whisky and expanded its distillation capacity to 1.3-1.4 million litres last year, the report said, adding that the additional capacity, however, will take time to translate into finished products available for sale.
To address this constraint, the company has introduced blended malt whisky to tap the premium spirits market without relying entirely on single malt sales, accroding to ET report.
Amrut is also planning a more affordable single malt for North India before December, ET reported. The product is expected to be priced around 15% below its Fusion brand, potentially helping the company reach a wider customer base.
Also Read: India Sells the World's Whisky. It Can't Define Its Own
Cheaper Scotch Poses Fresh Challenge
The India-UK free trade agreement could intensify competition for domestic whisky makers as cheaper imported Scotch enters the market. Jagdale told The Economic Times that prices of some imported Scotch brands have declined by more than 15%, affecting Amrut's sales in North India.
The company is refraining from major price cuts while assessing the agreement's impact, the report said, addding that the increased competition could particularly affect newer Indian blended whisky brands.
Beyond whisky, Amrut sells rum and brandy and is exploring a partnership with Mexican distilleries to develop a tequila brand. The company could initially bottle the product in Mexico before considering a shift to India.
Amrut and Paul John were among India's first single malt brands, launched in the 2000s. The market has since attracted newer players, including Piccadilly Agro's Indri and Kamet, as well as global spirits companies Pernod Ricard and Diageo, with Longitude 77 and Godawan, respectively.
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