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Radico Khaitan to set up distilleries in Kyrgyzstan, other countries

Radico Khaitan Limited is setting up a distillery in Kyrgyzstan to produce its range of liquor brands in the central Asian republic.

RKL is also exploring the possibility of setting up similar facilities in a few other European nations, K P Singh, senior vice-president (operations) at Radico's Rampur distillery, said.

''We have already submitted the proposal with regard to the Kyrgyzstan distillery and it has been accepted by their government. RKL would be providing the technical know-how, plant and machinery for setting up the distillery,'' Singh said.

A team would shortly visit the place to finalise modalities of the deal. He further stated that proposals for setting up distilleries in other countries have also been submitted to the respective governments and a final nod is awaited. However, Singh refused to name the countries.

This, he said, is part of the company plans to go international.

In addition, RKL is also introducing a line-up of premium liquor brands in India while phasing out its economy liquor brands. A major chunk of the cheap liquor brands, which were used by the company as an entry strategy into the Indian market, have already been discontinued and the remaining would be phased out by 1999-end.

The company's economy liquor brands include Willy's rum, Windies rum, Old Admiral whisky, Gold Finger whisky and the Crown series of whisky.

RKL, Singh said, has already reduced its dependence on the economy liquor brands for volume sales. Initially, these brands used to contribute around 80 per cent of RKL's total sales. This has now been brought down to around ten per cent.

Radico Khaitan has also embarked on a Rs 3.4 billion expansion and modernisation programme at its Rampur distillery and has initiated talks with leading financial institutions for part-financing the move.

''We will be expanding our installed capacity from 33,500 kilo-litre per annum to 60,000 kl per annum this year by investing around Rs 200 million,'' Singh said.

In order to further boost capacities, Radico Khaitan had recently tied up with seven bottling units in various parts of the country.

UNI

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