The Hindu Business Line : Khodays set for a comeback

Bangalore, Sept. 28 Liquor major Khodays is all set to make a major comeback and has set aside Rs 200 crore for expanding and reviving some of its brands.

Khodays is also in talks with a distiller in Scotland for acquisition, Khoday India’s newly-appointed Chief Operating Officer, Mr Satpal Chaudhry, told newspersons on Friday.

“We are bringing in more professionals in the company and expect to capture a major share of the market,” Mr Chaudhry said. He said an earlier marketing arrangement with the Baggas had been terminated. The marketing will henceforth be done by Khodays itself.

Tie up

He said Khodays has tied up with Punjabi Foods International to market Red Knight and Peter Scot brands in the European markets. It is also in talks with others for marketing its brands in the US, he said. Initially, between nine and ten containers (each containing 1,300 cases of 700 ml bottles) per month will be exported to Italy and later to Germany and other European Union countries. Each container will be sold at €35,000.

In the domestic market, Peter Scot sells about 85,000 cases (12 bottles of 650 ml each) per year and Red Knight sells about 2 lakh cases per year. “We expect to sell three times the current sales in another two years,” Mr Chaudhry said. An amount of Rs 200 crore has been earmarked for expanding the capacities of its five distilleries, one brewery as well as 11 bottling plants. A vodka brand in the premium segment and a beer brand from Germany will also be launched soon, he said. The Rs 200-crore investment will be spreadover a period of two-three years.

He said the capacity of the brewery in Bangalore will be expanded to 5 lakh cases per year from 2 lakh cases.