Radico Khaitan is seeing strong growth by focusing more on premium and luxury liquor products. The company is tapping into India’s rising demand for high-quality spirits, offering everything from its popular 8PM whisky to ultra-premium Rampur single malts.
The strategy is working well. Premium products now contribute nearly 70% of the company’s IMFL revenue, a sharp rise from earlier years. This growth is being driven by higher incomes, urban lifestyles, and younger consumers looking for better quality and new experiences.
Radico is balancing both ends of the market. While 8PM whisky continues to generate strong volumes in the mass segment, its luxury offerings bring in higher margins. This dual approach gives the company a strong position in the evolving alco-bev market.
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However, the company’s high valuation is a concern for investors. Its stock trades at a premium compared to peers, reflecting strong growth expectations. At the same time, competition from global players like Pernod Ricard and United Spirits remains intense, with both companies also pushing premium products.
There are also risks. Expanding too aggressively in the luxury segment could impact brand positioning, and any economic slowdown may affect premium demand.
Despite this, analysts remain positive. Most have given a “Strong Buy” rating, expecting continued growth driven by premiumization and strong market demand.
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