We are working with other distillers to protect the Indian single malt category: Radico’s Abhishek Khaitan

Radico’s Abhishek Khaitan opened up on protecting the Indian single malt category and the company's strategic shift towards the premium and luxury segments.

Radico Khaitan’s strategic shift towards the premium and luxury segments is paying rich dividends. The company derived 57% of its value from Prestige & Above brands in 2024. Earlier this week, Radico Khaitan, which has distilleries in Rampur and Aurangabad as well as a new facility in Sitapur, released its Sangam World Malt Whisky in the country, barely a year after its global launch. The whisky, which costs between ₹4,000 and ₹7,500, is a blend of different malt whiskies from around the world, including Rampur’s own Indian single malt.

Sangam’s India launch comes about a month after the introduction of Rampur Asava. The single malt whisky, priced at ₹10,000, is matured in ex-bourbon barrels and finished in Indian Cabernet Sauvignon casks.

“We are completely focused on the premium and above segments,” says Abhishek Khaitan, the company’s managing director. Besides Rampur and Sangam, Radico Khaitan’s portfolio also includes Jaisalmer gin, whiskies such as Royal Ranthambore and Spirit of Victory 1999, Magic Moments vodka, Contessa rum and Old Admiral brandy. Seven brands in its portfolio sell upwards of a million cases annually.

In this interview with Hindustan Times, Khaitan talks about the reasons behind the company’s success in the premium and luxury segments, its upcoming launches, including a cane juice rum and a luxury mahua, and its role in the creation of a trade body on the lines of the Scotch Whisky Association to promote and protect Indian single malts. Excerpts

It is tough to find Rampur single malt in most parts of India. Will the Asava and Sangam help change that perception?

The thing is, Rampur became so popular globally that supply was an issue. It was always on allocation. For instance, it took us four years to launch the Asava in India after it was introduced abroad. But we invested hugely in expanding capacity and enhancing our maturation facilities about a decade ago, and that is bearing fruit now. The quality of our spirit is assured at least for the next five to ten years. As far as maturation is concerned, we are in the process of doubling our maturation capacity at Sitapur from around 10,000 barrels at present. You’ll gradually see a lot of our single malts in retail stores across India, as well as many more expressions.

Most people know Radico Khaitan as the makers of Rampur Whisky, but Magic Moments has been also played a role in your premiumisation journey.

Magic Moments is now the world’s fourth largest-selling vodka. Our premiumisation drive, in a way, started with that. Back in the early 2000s, vodka’s share of the Indian alcobev market was barely one-and-a-half per cent. Right now, it’s over three per cent, and we have a market share of close to 60%. When we launched Magic Moments in 2006, there was no vodka available at that price. The same goes for Morpheus brandy — it cost thrice as much as other brandies on its launch in 2009. We know where the consumers are — they’ve just not been given an option when it comes to premium spirits. We are among the few companies that have an understanding of price-positioning in the Indian context and a great knowledge of the Indian palate. Raw material has been another one of our key strengths, along with market research and blending. These have stood us in good stead on our premiumisation journey both in India and globally. Of course, it wasn’t easy in the beginning. Back then, you had to explain who you were and all that. Today, we just say we are the makers of Rampur whisky.

You will be launching Kohinoor Reserve Indian Dark Rum in travel retail soon. Would you also consider launching it in India, considering how rum is going upmarket here?

In fact, an Indian launch is definitely on, maybe in the next couple of months. I think there is definitely a market here for premium rum. No one thought there would be a market for Indian single malt here, or premium gin, for that matter. And they were proved wrong.

Our Jaisalmer gin costs about ₹4,000 and competes with multinational brands. It has close to 50% share of the luxury gin segment in India. This month, we will be also launching the Jaisalmer Gold variant, which has 18 botanicals, including saffron. There’s no reason why a luxury rum won’t work in India. People are drinking less, but they are drinking good quality spirits.

There has been a fair bit of activity around mahua lately. Would Radico Khaitan look at championing an indigenous spirit and taking it global?

That is indeed part of our plan. We are actually considering launching a luxury mahua brand. There is lots in store on that front.

Rampur was among the brands that built the Indian single malt category. But there are now apprehensions of the category’s reputation being dented amid this almost indiscriminate proliferation of single malts.

Everyone wants to premiumise, but there are cost-pressures involved. So, there are many players entering the market, but you won’t be able to survive unless you have your fundamentals right. Radico Khaitan is a part of a group of distillers that is currently working on guidelines to promote and protect the Indian Single Malt category. This will be a registered body on the lines of the Scotch Whisky Association.