The Hindu Business Line : More Pernod Ricard brands to hit Indian shelves

Although company officials refused to comment on the pricing for the products in the retail market, they maintained that the pricing will be very competitive.

NEW DELHI, Feb. 14

FOLLOWING the acquisition of Seagram's spirits and wine business, Pernod Ricard has emerged as the number one foreign producer of liquor in India. Speaking on the company's strategy for the Indian market, Mr Patrick Ricard, Chairman and CEO of Pernod Ricard said, "With the acquisition, we have added a range of premium and popular brands to our existing portfolio. The key brand acquired in India is Royal Stag, which has shown terrific growth."

Pernod Ricard's local operations were recently merged with that of Seagram India. The new entity will continue functioning under the aegis of Seagram India. Seagram India is now keen to introduce key brands from Pernod Ricard's international portfolio. Says Mr Richard Burrows, Joint Managing Director, Pernod Ricard, "We would be looking to launch products in the segments of whisky, rum and wines into the Indian market." More specifically, the brands which will shortly be introduced into the retail market are Jameson Irish Whisky, Havana Club Rum and Jacob's Creek premium wine.

Although company officials refused to comment on the pricing for the products in the retail market, they maintained that the pricing will be very competitive. Prior to the acquisition, only two Pernod Ricard brands were available in India - Santiago and Tilsbury. However, Mr Ricard rules out pumping in fresh investment into the Indian entity soon. "Our focus for the next three years will be on repaying our borrowings, which currently stand at approximately Euro 5 billion. Only after this period, we will undertake substantial investments or acquisitions. However, we will look at acquisition opportunities if they do arise."

Till now, Seagram India has received investment of approximately $ 40 million. However, the company had been able to break even in 1998 (within three years of its starting of operations), mainly on account of the success of its locally produced brand, Royal Stag. According to Mr Param Uberoi, Managing Director, Seagram India, "The company has been growing at over 50 per cent (in volume) per year. And, we expect to maintain that growth rate in the coming year." Seagram India had recorded sales worth Rs 350 crore last year.

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