The Hindu Business Line : Radico Khaitan to enter TN market

IN a move, which would have a significant impact on its sales in the current year, liquor company Radico Khaitan has struck an alliance to enter the Tamil Nadu market for the first time.

The company has tied up with bottling company, Midas Golden Distillers in the State to commence bottling of Radico's key brands. "Production in the State is likely to commence in early April. We would initially be introducing 8PM whisky, Contessa rum and Old Admiral brandy," Mr Raju Vaziraney, President (Sales and Marketing), Radico Khaitan, said.

Tamil Nadu is one of the largest markets for liquor in the country. "We would like go a little cautiously in the State. Our initial focus would be on building our brands in the markets. We expect to sell about 30,000-40,000 cases in the first couple of months in the State," Mr Vaziraney said.

According to industry estimates, the size of the liquor market in Tamil Nadu is pegged at anywhere between 110 lakh to 120 lakh cases annually.

The Rs 620-crore Radico Khaitan has aggressive expansion plans for this year and is looking to ink more bottling tie-ups in the country as well as setting up its own facilities.

The company is looking at setting up or acquiring 10 production units and one distillery in the next three years. One bottling unit has already been set up at Rajasthan.

Radico Khaitan is planning to invest about Rs 150 crore towards its expansion plans in the next three years as well as for acquisition of brands. The company is eyeing a compounded growth of 25 per cent in turnover in this period.

The total volume sales of the company was approximately 7 million cases in the nine-month period April-December 2003, while its sales in 2002-03 were about 8 million cases.