The Hindu Business Line : Radico Khaitan acquires bottling plant in AP

The Rs 620-crore liquor company is best known for its brands 8 PM whisky and Contessa rum. The bottling plant, belonging to M & S group, has a capacity to bottle over one million cases a year.

According to the Joint Managing Director, Mr Abhishek Khaitan, with this acquisition the total liquor production capacity of the company will increase to 10 million cases, in the 85-million cases spirit market. This is the company's first acquisition in the South.

In a press release here on Wednesday, Mr Khaitan said that the current acquisition was a part of Radico's plans to locate 10 bottling units at strategic locations across India. The first acquisition was made in Rajasthan last month. Eight more bottling facilities would be acquired within a span of three years.

Anab-e-Shahi, which also has a licence for secondary distillation, is located off the Bangalore-Hyderabad highway. It is in the business of marketing and distributing major spirit and beer brands, including the products of South African Breweries and Khodays group.

With this deal, Radico will be able to supply all its main brands to the southern market, including 8 PM Whisky, Contessa Rum & Old Admiral Brandy cost effectively.

"It is part of the company's consolidation programme. The company generates 40 per cent of its sales from the southern States. With this plant in Andhra Pradesh, the figures will move up to 45 per cent," Mr Khaitan added.

More Stories on : Mergers & Acquisitions | Breweries

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page