India’s Top 500 Companies 2019

INDIA’S TOP 500 COMPANIES 2019 130 Advertorial Radico Khaitan Limited About the Company Radico Khaitan Ltd (Radico), formerly known as Rampur Distillery & Chemical Company Ltd, was established in 1943 with a distillery manufacturing high grade Extra Neutral Alcohol (ENA) from molasses and grains. Radico is one of the leading manufacturers of Indian Made Foreign Liquor (IMFL). The company is engaged in the manufacture of alcoholic products. It is also a provider of branded IMFL to the Canteen Stores Department (CSD). In 1998, Radico launched its own brand of 8 PM Whisky, followed by Magic Moments Vodka in 2006 after serving other spirit manufacturers for over a span of five decades. Radico has three distilleries - Rampur Distillery in Rampur, UP and Radico NV Distilleries Maharashtra Ltd, a joint venture with NV in Aurangabad, Maharashtra besides 28 bottling units (5 Own and 23 Contract Units) In 2018, Radico received Grand Gold, Silver and Gold awards for its various products at the Global Monde Selection Awards. As part of its CSR initiative, the company has undertaken projects focused on conservation of natural resources, women development, health care & medical facilities, awareness for sanitation and safe drinking water, social awareness, rural development and skill building. Business Overview Radico operates three distilleries and one JV with a combined capacity of over 157 million litres. It operates 28 (5 own and 23 contract) bottling units across India, and exports its products to over 85 countries. The company has facilities to export Ethyl Alcohol in HDPE Barrels, IBCs and ISO Tanks. Radico has a distribution network of 55,000 retail and 5,000 on-premise outlets. This network covers 95% of retail points, clubs and bars in India. Product Portfolio The company has developed its entire brand portfolio with in-house capabilities. The Company launched ten new brands over the past decade, of which nine brands belonged to the premium category. 8PM Whisky, Contessa Rum, Old Admiral Brandy and Magic Moments Vodka are the company’s four millionaire brands, as they sell more than a million cases per year. Radico operates its business in the following four key verticals: • Domestic – The company’s Brands across the IMFL categories include Rampur Indian Single Malt Whisky, Magic Moments and Magic Moments Verve Vodka, Morpheus Premium and Morpheus Blue Brandy, 8 PM and 8 PM Premium Black Whisky, Pluton Bay Rum, Regal Talon Whisky, Whytehall Brandy, 1965 – The Spirit of Victory Rum, among others. • International – The brands made available exclusively for international markets are Rampur Indian Single Malt Whisky, Jaisalmer Indian Craft Gin, 8PM Honey Liqueur, 8PM Fire Liqueur and Contessa flavoured Rums. • Defence – The company offers 21 products to CSDs across various segments and flavours, including Morpheus XO Brandy, Magic Moments Vodka and Carlo Rossi Wines, among others • Manufacturing – Manufacturing activities are conducted at Rampur Distillery, company owned units, bottling units and pet division. Performance Highlights: FY2019 vs. FY2018 • Revenue from Operations (Net) of ` 2,096.95 Cr (+15.0%) • Prestige & Above brands volumes increased by 21.3% • Prestige & Above brands contribution to the total IMFL volumes of 28.3% (vs. 25.9% last year) • Gross Margin improved from 47.8% to 50.6% • EBITDA of ` 349.23 Cr (+30.6%); EBITDA margin improved from 14.7% to 16.7% • Reduction in interest costs from ` 68.24 Cr to ` 35.48 Cr • Total Comprehensive Income of ` 187.35 Cr (+53.6%) • Net debt reduced by ` 250.34 Cr during FY2019) Financial Snapshot (In ` mn) Total Income 62,970.4 Net Profit 1,234.5 Networth 11,421.2 Ratios NPM (%) 2.0 RONW (%) 10.8 Current Ratio (times) 1.3 (As on Mar 31, 2018) Management Details Chairman & Managing Director Dr. Lalit Khaitan Managing Director Abhishek Khaitan Chief Operating Officer Amar Sinha Chief Financial Officer Dilip K Banthiya Whole Time Director, Director – Operations K P Singh President – International Business Sanjeev Banga Address & Website Plot No. J-I, Block B-I, Mohan Co-operative Industrial Area, Mathura Road, New Delhi - 110044, Delhi www.radicokhaitan.com Abhishek Khaitan Managing Director Dun & Bradstreet D-U-N-S® No 91-861-6277 Top 500 Ranking Income 151 Net Profit 337 Networth 344 Note: *Information as furnished by company Dun & Bra street