Mumbai: Radico Khaitan Ltd, India’s No. 2 liquor maker, is scouting for marketing tie-ups with international firms to expand its distribution network in India, chairman Lalit Khaitan told reporters on Monday.
“There are many foreign companies who want to enter India and are looking for distribution partners. We hope to tie up with them,” he said, adding the firm was not planning any joint ventures as of now.
Radico, which already has a marketing tie-up with California-based Ernest & Julio Gallo, also has a joint venture with UK-based Diageo Plc to make and sell liquor products in India.
It had plans to cut its stake in the joint venture, its chief financial officer Dilip K. Banthiya had told Reuters in May. Khaitan, who is also the managing director of the firm, declined to comment on the plans on Monday.
Radico, which has brands such as 8 p.m. Whiskey, Magic Moments, Contessa Rum and Old Admiral Brandy in its portfolio, in its four-year old joint venture with Diageo has so far produced the premium whiskey brand, Masterstroke, launched about three years back.
The firm does not have any capex plans for capacity addition in FY11. “We have already expanded a lot. Our capacity is adequate. We are spending a lot of money on advertising and marketing,” Khaitan said.
The firm will spend about 7% of total sales on advertising this year, he added.
Radico, which posted a 50% jump in net profit to Rs16.05 crore in the quarter-ended June, expects to maintain the growth, going forward, Khaitan said.
He expects the company’s revenues to grow 20% in FY11 and volumes to rise 15-17% in the same period as it focusses on high-end premium brands in the country.
Radico saw overall volume sales of 14.62 million cases in FY10, a growth of 13.6% from the same period a year earlier.
The firm is expecting a topline growth of 20-22% and expects operating profits to climb 27-30% in FY11, Banthiya had told Reuters in May.
Its net profit for FY10 surged to Rs41.54 crore from Rs6.53 crore a year ago and sales jumped 23% to Rs1,150 crore.
At 12.24 p.m., shares were up 0.89 percent at 153 rupees in a firm Mumbai market. (Reporting by Aniruddha Basu, Writing by Swati Pandey, Editing by Ramya Venugopal) REUTERS