Nikhil Kamath's Rs 400 Crore Investment in Radico Khaitan: A Deep Dive
Nikhil Kamath Podcast: Billionaire investor and Zerodha co-founder, Nikhil Kamath, discussed his investment in Radico Khaitan, producers of renowned alcohol brands like Magic Moments vodka, 8PM whiskey, Rampur premium Indian single malt whiskey, and Jaisalmer Indian craft gin.
On his podcast episode titled ‘WTF, Alcohol is a $70B Business in India?’, Kamath revealed holding a 1.6-1.7 per cent stake in Radico Khaitan. Guests included Abhishek Khaitan (MD of Radico Khaitan), Minakshi Singh (co-founder of SideCar), Shuchir Suri (co-founder of Gin Explorer’s Club), and Suraj Shenai (founder of Goa Brewing Co.).
In a June 19 note, Antique Stock Broking highlighted Radico Khaitan's strong premiumisation trend, outperforming peers with a 7% year-on-year growth in millionaire brands in 2023. The brand's millionaire list includes the 1965 Spirit of Victory Rum, which hit a million cases, making seven millionaire brands in total.
Radico Khaitan has shown robust performance, with a 7% CAGR over four years, compared to flat growth for United Spirits and 2% for Pernod Ricard. The reopening of restaurants and bars boosted Magic Moments vodka's volume growth by 29% year-on-year to 6.2 million cases, making it the 6th largest vodka brand globally. The company's strategy to upgrade consumers from 8PM to 8PM Premium Black is succeeding, with the latter's volume growing by 18% to 3.3 million cases, while 8PM’s volume slightly declined by 2% to 8.9 million cases.
Radico Khaitan, one of India's oldest and largest manufacturers of Indian Made Foreign Liquor (IMFL), has a rich history. Abhishek Khaitan's father, GN Khaitan, purchased the company from Sanjay Dalmia, Chairman of the Dalmia Group, in 1973. Abhishek Khaitan shared his journey, from wanting to create a brand since school to joining the company in 1996 amidst financial struggles.
Despite initial setbacks, including a Rs 50 crore liability and the loss of a major bottling contract, Abhishek's determination led to the creation of Radico's iconic brands. Convincing the leadership to rebrand the company from Rampur Distillery and Chemical Company to Radico was a significant challenge, requiring multiple presentations.
Nikhil Kamath, Radico Khaitan, Magic Moments, 8PM whiskey, Rampur whiskey, Jaisalmer gin, Zerodha, investment, Abhishek Khaitan, alcohol industry, premiumisation, Indian Made Foreign Liquor, IMFI, business growth, podcast,
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