Indian liquor company Amrut Distilleries expects its business to grow steadily over the next two years as demand for premium alcoholic drinks spreads beyond major cities.
According to Managing Director Rakshit N Jagdale, the company expects its revenue to grow about 8% in FY26, while sales volume may increase by around 5%. For FY27, Amrut is even more optimistic and is aiming for about 10% growth in volumes.
Demand expanding beyond metro cities
The company says demand for premium spirits like single malt whisky and luxury rum is no longer limited to metro cities. Consumers in tier-2 cities are increasingly buying higher-quality drinks as their incomes rise. Demand from tier-3 cities is also expected to grow gradually in the coming years.
Rum gaining popularity
Although whisky is still Amrut’s main product, the company is noticing more interest in premium rum. Some consumers who usually drink whisky are now trying higher-end rum instead of switching to other spirits like brandy.
International market challenges
Amrut currently exports its products to 58 countries. However, demand for Indian single malt whisky has been weak in the last two years, especially in Europe and the United States, due to lower alcohol consumption. The company hopes the international market will improve in 2026.
Impact of UK trade deal
Jagdale also said the upcoming UK-India free trade agreement could bring both benefits and risks. The deal may make Scotch whisky cheaper in India, which could increase competition for local brands.
At the same time, Amrut imports blended malt Scotch, so lower prices could also help reduce its costs.
Capacity expansion
To prepare for future growth, Amrut has increased its distillation capacity to about 1.3 million litres.
Overall, the company believes that rising incomes and changing drinking habits in smaller cities will continue to boost demand for premium spirits in India.
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