India’s Top 500 Companies 2019

INDIA’S TOP 500 COMPANIES 2019 113 Experts’ View The company is more profit-focused than volume-focused. How do you think your sector will evolve over the next few years? The industry is focusing on premiumization, and Radico has already started steering with the industry trend. With the launch of new premium products and upgradation of the existing product portfolio in the premium segment, the company is in line with the industry to grow this trend. Rampur Indian Single Malt Whisky has made its debut in the domestic market and is giving tough competition to its contemporaries. The brand bagged a ‘Gold Award’ in 2017 and a ‘Grand Gold Award’ at the “Monde Selection Quality Awards”, a ‘Double Gold’ at the “World Wine & Spirits Awards” San Francisco, and was rated among the top 5 whiskies in the world by “Whiskey Cask Magazine”, US and whiskyadvocate.com . After a huge success in the International Markets, Jaisalmer Indian Craft Gin is all set to spread the charm in the domestic market. Magic Moments Verve is spreading its reach and gaining popularity rapidly. 8 PM Premium Black Whisky has been launched in over 8 states in the premium segment, and the response so far has been very encouraging. A number of new products in the premium segment are in the pipeline in different categories. As the world is moving towards digitalization, the conventional industry does not shy away from the same. We are in a rapidly changing world where digital connectivity and social media forms a critical part of business operations and consumer engagement. In the years to come, we will continue to enhance our digital outreach and footprint to gain valuable analytics and insights into consumer behaviour and preferences. Digital marketing and processes are going to be the key for our future initiatives. What is the company’s growth strategy over the next 5 years? Upgrading and repositioning our products in the prestige and above category is the way forward to be able to scale up the volume and margin in the years to come. To leap into the future, we will continue to focus on generating strong free cash flows, de-leveraging, and creating strong brands, in addition to investing in marketing and advertising of our premium range of products. We have already seen that this strategy has worked for us and has enabled the company to deliver desired results over the years. Our recent new launches, together with the existing diversified portfolio places us optimally for the next orbit of growth. We have already launched our luxury products such as Rampur Indian Single Malt Whisky and Jaisalmer Indian Craft Gin. We further repositioned our signature brand – Magic Moments – and launched Magic Moments Verve one level above our international contemporaries. We have sharpened our focus on the packaging, and offered the product in incomparable frosted bottles and canisters. The marketing of this product resonates with the bar the product has set in the market. Bollywood heartthrobs Jacqueline Fernandez and Kartik Aaryan are at the forefront to endorse the zesty product. We will also be tapping into new premium product ranges in various categories. To set this plan in motion, we are in the process of upgrading the technology and expanding our manufacturing facilities. What kind of policy support would you recommend the regulator/ government to provide to the industry? We appreciate the government for their continued support and efforts to regulate the industry so that it gets its rightful share and recognition for its contribution to revenue generation, employment- both direct and indirect and economic development. TheGovernment’s efforts and intervention in regulating the industry endorses transparency and compliance that makes it accountable to the economic growth and development. The tax and excise duty structure is a gateway for the industry to generate economic value for the nation without compromising on compliance with applicable laws and regulations at any level. The challenge that the Industry faces in the immediate future Is the increase in input costs due to the following reasons: • Non inclusion of the sector in GST. As a result, the industry is unable to offset the taxes levied on input costs. • Availability of molasses for producing its key raw material i.e. Extra Neutral Alcohol (ENA) is becoming a challenge because of the Government’s initiative of using Ethanol made from molasses ENA for blending in Petrol. This is resulting in price of molasses moving northwards. Despite the above, the outlook for the Industry is buoyant and continues to reflect in the growth of volumes and revenue during the fiscal year 2018-19 . The outlook for the period ahead is as bright and encouraging. Dun & Bradstreet