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Aditya Sharma    

Mumbai, India

I am a MBA students and simultaneously reading on capital market to get some knowledge on fundamental research where I more focus on business model, opportunity size of the industry and their related parameters who help me out to find out great businesses for the investment. Nevertheless, I always look forward to learn about grow further into the same.

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Contributor since: 2022







Radico Khaitan Limited

Radico Khaitan Limited: A Business Analysis

About The Company

Incorporated in the year 1943, Radico Khaitan is one of the most recognised IMFL (Indian Made Foreign Liquor) brands in India.

The company was initially known as Rampur Distillery Company and was focussed on distillation and bottling for branded players and canteen stores of armed forces.

Later on in the year 1997, Radico Khaitan ventured into its own branded IMFL products and launched its first brand 8PM whisky which became its millionarie brand within a year of its launch.

Manufacturing Facilities

Radico Khaitan carries out its manufacturing activities through 3 owned distilleries in Rampur, UP and 2 joint ventures in Maharashtra and Aurangabad.

The company has total capacity of over 165 million litres and operates 33 bottling units spread across the country. 

We have two state-of-the-art distillery campuses located strategically in India. The Rampur Distillery in Rampur (Uttar Pradesh) and Radico NV Distilleries Maharashtra Limited, a joint venture in Aurangabad (Maharashtra), have a combined capacity of over 160 million litres. We operate a total of 33 bottling units across India, including five owned and operated by us. We have recently invested in conversion of our Rampur capacities into dual feed mode and in establishing a new facility in Sitapur (U.P.).

Revenue Breakup

IMFL - Regular and Others 41.10%
IMFL - Prestige and Above 40.40%
Non IMFL  18.50%

Business Highlights

Strong industry landscape

Pan India Presence

Radico Khaitan has a robust sales and distribution network, with over 75,000 retail and 8,000 onpremises shops in key alcohol categories throughout India. In addition to wholesalers, around 300 personnel, organised into four zones with each zone being led by a regional profit centre head, help to maintain an efficient sales and distribution presence across the nation. The Company can thus ensure product
availability across channels and geographies due to its sophisticated and efficient distribution system. 

Business Growth Drivers

Foray into vodka to create a niche for itself by filling white spaces:

Radico has gained market share in vodka segment after entering into the same in 2006 where Romanov a lower end price by United Spirit and Smitnoff a premium end price by PRI’s were already there in the vodka segment. However, Radico launched Magic Moments in the mid-premium end (in between Romanov and Smirnoff), and within three years achieved volume of one million cases. With its differentiated positioning, Magic Moments was able to capture more than 60% market share in the vodka segment.


Market leader in vodka segment; launching premium products to consolidate position.


The company is expanding their products through focsuing on whisky and other categories like gin & brandy.


Reducing dependency on vodka segment: Radico Khaitan is expanding premium offering products like Whisky, Gin and Brandy.

  • The success of these new launches in gin, brandy, and whisky segments have helped RDCK reduce dependency on Magic Moments. The company has been able to create five in-house millionaire brands (8 PM whisky, Contessa rum, Old Admiral brandy, and Magic Moments vodka).


Radico Khaitan Volume growth:


Financial Performane

Profit and Loss


Balance Sheet


Cash Flow Statement




Mr. Lalit Khaitan - (Chairman and MD)

Mr. Abhishek Khaitan - (MD)


Shareholding Pattern




Experienced promoters and reputed name: RKL, promoted and managed by the Khaitan family, has been in the business of liquor manufacturing since 1943 (by the name of Rampur Distillery). In 1998, RKL entered the branded liquor segment with the launch of ‘8PM Whisky’. Since then, the company has launched various successful brands, and at present, RKL is one of the leading players in the Indian liquor industry.


Strong position in the defence segment: RKL is one of the largest players in the defence market, where its most famous brand is ‘Contessa’ rum. Two more brands – ‘After Dark Whisky’ and ‘Morpheus Brandy’ – have been approved to supply to the canteen store department (CSD). The company derives around 10%-11% of IMFL sales income from the CSD. There are stringent conditions for entering into the CSD segment, leading to entry barriers for new players.

High entry barriers: Liquor policies governing its production and sale are entirely controlled by the respective state governments. With all the alcohol-consuming states/Union Territories having their own regulations and entry-exit restrictions, it is difficult for new entrants to procure licenses, thus providing a competitive advantage to the existing players. 



I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Business relationship disclosure:

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Stocx Research Club). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure:

Source - Company's website, presentation, annual report, rating report. Disc - Given information in the article is for the knowledge purpose only as it is not an recommendation.

Disclosure legality:

I am not a SEBI Registered individual/entity and the above research article is only for educational purpose and is never intended as trading/investment advice.


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