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K. Giriprakash

Bangalore, Nov 21 The top independent distributor of foreign liquor brands in the country, including the Absolut Vodka brand, Kyndal India has decided to get into manufacturing its own liquor brands.

“We have decided to change our stripes and want to turn into a complete liquor company,” Kyndal India’s Director, Mr Siddharth Banerji, told Business Line. He said by April-June next year, Kyndal will start manufacturing and marketing its own brands in the country.

It plans to float joint ventures with a slew of companies for setting up distilleries and have its own brands for whiskies, gins, vodkas and brandy.

“There are a quite a few who are keen to set up joint ventures with us and we should start the operations soon,” Mr Banerji said. Though he did not give investment details, Mr Banerji said setting up distilleries should not cost much and only working capital was required.

“I think distribution is the key to the success of any brand. Hence, we are going to leverage on our wide distribution network to market our products,” he said.

He said there will be no clash of interest between Kyndal’s own brands and that of foreign brands which it markets as both of them will complement each other.

Kyndal itself distributes 150,000 cases (of 12 bottles each with 750 ml) of various brands globally, of which 50,000 cases are distributed in the domestic market. All its products which it markets currently are priced between Rs 501 and above Rs 5,001.

Kyndal already markets its own wine brands in the country as well as in the international market. Through its group company Mojaveh Beverages it has a joint venture with Nashik-based Holkar Estates to produce and market wine brands that include, 30th Latt, Flamingo and Trinity.

Mr Banerji said the alcohol market in India was growing at 11 per cent CAGR though the per capital consumption of alcohol was extremely low in India. “Hence, there is a good opportunity for us to enter the market as the potential is very high,” he said.

Mr Banerji pointed out that some of the global brands which Kyndal distributes and markets had been performing extremely well in India. He said Absolut Vodka which it distributes and markets in India had a 76 per cent share of the 50,000 cases per year of the premium vodka market. In value terms, its share was about 40 per cent.

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