Radico Khaitan in focus: Alcohol beverage maker to launch premium segment gin

Indian alcohol beverage maker Radico Khaitan Ltd will soon be launching Jaisalmer Indian Craft Gin in the premium segment. As of now, the company sells a range of gins called Joy of Juniper, Joy of Pink, and Joy of Citrus. After Radico Khaitan launches its latest gin offering in the market, it will be in direct competition with Bacardi's brand Bombay Sapphire. Radico Khaitan has reported a 15 per cent fall in fourth-quarter profit, hurt by soaring input costs. Their consolidated net profit also fell to Rs 426.5 million ($5.15 million) for the quarter ending in March 31, from Rs 501.6 million a year ago.

Revenue from operations rose 4.7 per cent to Rs 33.75 billion. However, input costs spiked by nearly 14 per cent, pushing total expenses up 5 per cent. Radico, based in the northern state of Uttar Pradesh, declared a dividend of Rs 3 per share.

India's alcohol and beverage industry has been battling high raw material inflation, with prices of extra neutral alcohol (ENA) and rectified spirit (primary raw materials needed to make alcoholic beverages) inching up every quarter. Bottle prices also spiked due to inflation in natural gas and soda ash required for glass production.

Radico was further hurt by a 5.5 per cent rise in excise duty costs, an expense that hurt its peers United Breweries and Sula Vineyards as well. 

The share of the company opened at Rs 1282.35 and touched a day-high at Rs 1395.00 on Tuesday.