Mumbai: India’s No. 2 liquor maker, Radico Khaitan Ltd, is in advanced talks for marketing tie-ups with three overseas companies, a senior official told Reuters on Wednesday.
“There are at least three negotiations that are taking place, which are at an advanced stage. We are extremely hopeful that in the first quarter of the next year we will have a couple of announcements,” said Ankur Sachdeva, senior vice-president, international business. Radico Khaitan, which has brands such as 8 p.m. whiskey, Magic Moments, Contessa rum and Old Admiral brandy in its portfolio, has a marketing tie-up with California-based Ernest&Julio Gallo.
It also has a joint venture with world’s largest liquor maker, UK’s Diageo Plc, to make and sell liquor products in India.
Radicao, which is looking for overseas tie-ups primarily for exclusive rights to sell global brands in India , had plans to reduce stake in its Diageo JV. However, the plans remain plans so far.
“As of now its a status quo situation,” Abhishek Khaitan, managing director, said regarding the stake sale.
The Indian liquor maker, which currently exports to Africa, South East Asia and Europe, plans to strengthen exports.
“We have made a foray into Europe recently in the travel retail segment and we are concentrating on building that,” Sachdeva said.
Exports contribute 6-7% to the firm’s total revenues.
In India it is launching After Dark, which was one of the two premium whiskey brands it launched earlier this year, across India by April, Khaitan said.
Indian made foreign liquor (IFML) -- semi-premium, premium and super premium -- makes 80% of sales.
It is also planning a hike in prices across its portfolio in April, but did not specify the quantum of price increase.
“We will increase prices in and around April but a quantum will be difficult to specify,” he added.
Radico had earlier said it is expecting a topline growth of 20-22% and expects operating profits to climb 27-30% in FY11.
For the quarter ended September it posted a net profit of Rs188 crore on net sales at Rs307 crore.
Shares of the firm ended down 2.98% at Rs156.1 in a weak Mumbai market.