The Hindu Business Line : SWC to foray into country liquor segment with brand Haywards

SHAW Wallace & Co has decided on extending its Haywards brand to power its way into the country liquor segment. The company is in the midst of rolling out its new business in Uttar Pradesh to be followed by Rajasthan, top company officials said.

"We have decided to tap the equity of the Haywards brand to foray into country liquor which is being put into market in Uttar Pradesh," the company sources said. The entry into country spirits is happening at a time when the rectified spirits (RS) price is ruling at record high and the Uttar Pradesh Government has reportedly agreed to a price hike. "Haywards brand borders on cheap segment in the whisky category, and hence we thought of extending it into branded country liquor as well," sources added.

Shaw Wallace (SWC) said the roll out of its country liquor was happening in glass and PET bottles in 750 ml, 375 ml and 180 ml packs. SWC will introduce its new business through Central Breweries & Distilleries located in Meerut, sources said. The sale of country liquor in Uttar Pradesh is based on State determined quotas and the company has approached the administration to increase the quota for the Meerut plant, which is now pegged at around 15,000 cases monthly, sources added.

It is estimated that the domestic country liquor market, restricted to select States, is more than double the size of Indian Made Foreign Liquor (IMFL) sales. The IMFL majors, including the industry leader UB group, have been looking at entering the branded country liquor business. Radico Khaitan is the only IMFL company to have a significant presence in country liquor through its brands such as Jhoom and Masti in Uttar Pradesh. Business Line first reported Shaw Wallace's plans to tap country liquor following a recommendation by McKinsey & Co, while preparing a future roadmap for the country's second largest IMFL marketer.

Shaw Wallace's country liquor foray is spearheaded by Mr Deepak Chaudhuri, who is poised to take over as the President of the company's liquor division in April 2005. Mr Chaudhuri, now designated as Joint President, had earlier headed the company's beer division, which formed a 50:50 joint venture with SABMiller.

Shaw Wallace has set an agenda of tripling its profits in three years. During the financial year 2003-04, while the revenues of the liquor business have increased by more than 20 per cent to Rs 1,014 crore from Rs 840 crore in 2002-03, the net profit has jumped 166 per cent to Rs 46.18 crore from Rs 17.62 crore in 2002-03.