Radico Khaitan Resumes Liquor Exports to Gulf Amid Easing Tensions
Liquor maker Radico Khaitan resumes Gulf shipments as tensions ease
The Economic TimesImage: The Economic Times
Radico Khaitan, an Indian liquor manufacturer, has resumed exports to the Gulf region after a halt due to regional conflicts. The company reported a 25% increase in net revenue to ₹60.5 billion ($637.58 million) for the fiscal year ending March 31, driven by demand for premium spirits.
- 01Radico Khaitan's shipments to the Gulf resumed after a disruption caused by regional conflicts.
- 02The company reported a 25% increase in net revenue to ₹60.5 billion ($637.58 million) for the last fiscal year.
- 03Exports contribute 5% to 6% of sales volumes and 9% to 10% of revenue.
- 04Managing Director Abhishek Khaitan anticipates a revenue growth of over 15% in the current fiscal year.
- 05Consumer trends show a shift towards premium products despite overall reduced consumption.
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Radico Khaitan, known for its Rampur whisky and Jaisalmer gin, has resumed shipments to the Gulf region after a disruption that began in March due to regional conflicts. Sanjeev Banga, president of the company's international business, noted that shipments have been gradually resuming since late April. The Gulf market is significant for Radico, as it represents 5% to 6% of sales volumes and 9% to 10% of revenue. Despite the challenges, the company achieved a 25% increase in net revenue, reaching ₹60.5 billion ($637.58 million) for the year ending March 31. The EBITDA margin also improved to 16.8% from 13.8%, reflecting strong demand for premium brands such as Royal Ranthambore and Sangam. Managing Director Abhishek Khaitan projects revenue growth of over 15% for the fiscal year that began in April, despite rising costs for glass and freight. He highlighted a trend of premiumisation, where consumers are opting for higher-end products even as overall consumption declines.
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The resumption of shipments to the Gulf is expected to stabilize Radico Khaitan's revenue streams, benefiting the company and its stakeholders.
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