radico corporate presentation august 2011
TRANSCRIPT
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Radico Khaitan LimitedCorporate Presentation
August 2011
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Important Notice
2
Safe Harbor
This presentation contains statements that containforward lookingstatements including,but without limitation, statements relating to the implementation of strategic initiatives, andother statements relating to Radico Khaitans future business developments andeconomic performance.
While these forward looking statements indicate our assessment and future expectationsconcerning the development of our business, a number of risks, uncertainties and other
unknown factors could cause actual developments and results to differ materially from ourexpectations.
These factors include, but are not limited to, general market, macro-economic,governmental and regulatory trends, movements in currency exchange and interest rates,competitive pressures, technological developments, changes in the financial conditions ofthird parties dealing with us, legislative developments, and other key factors that could
affect our business and financial performance.
Radico Khaitan undertakes no obligation to publicly revise any forward looking statementsto reflect future / likely events or circumstances
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Contents
1. Investment Highlights 4
2. Industry Dynamics 5
3. Strategic Outlook 8
4. Business Overview 9
5. Structure and Management 15
6. Financial Performance 19
7. Marketing Strategy 24
3
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Strong
CompetitivePosition
One of the largest players in the Indian liquor industry
Alcoholic beverages industry value is expected to grow at 2011-15 CAGR of 10%
Low alcohol consumption per capita in India providing room for significant growth Operates three distilleries and one JV with total capacity of 150 million litres
Scale advantage as advertising of alcoholic beverages is restricted in India
Section 1: Investment Highlights
Delivering onthe
Premiumization
Strategy
Focus on quality and brand image rather than price point
Launched 7 new brands over the past decade - the highest among Indian players
3 new brands launched in the past three years, all in premium categories
Pioneered printed technology for label description on the bottles
StrongFinancials
Market cap of Rs. 1,775 Crore with FY11 revenues of Rs. 1,331 Crore
Recent de-leveraging and steady cash flow generation provides financial flexibility
Ongoing volume growth in high margin premium liquor space
Pan-IndiaDistribution
Network
Pan-India manufacturing and distribution network covering over 95% of retail outlets Sale through over 450 wholesalers covering over 36,000 retail and 5,000 on-premise outlets
33 bottling units spread across the country limit interstate taxes and transport costs
4
StrongPresence
in CSD
One of the largest provider of spirits to the CSD
Barriers to entry in CSD market due to stringent qualification and registration requirements
17 products registered with the CSD across categories
Registrations have lifetime validity
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5
Section 2: Industry Dynamics
Indian Spirits Market Size and Growth
Spirits sales in India is currently 221 million cases and is expected to reach 355 million cases by2015
Demand for spirits in India is expected to grow at a 10% CAGR between 2011 2015
Blended scotch whisky, single malt scotch whisky and vodka are expected to lead volume growthbetween 2010 2015 with a 19% volume CAGR each
Increased premiumization and the introduction of international brands is expected to drive averageunit prices higher going forward
Brown spirits constituted the largest segment with whisky, brandy and dark rum accounting for over95% of the market, by both volume and value
Brandy16%
Rum20%
Whisky59%
White Spirits5%
Sales of Spirits by Category (Volume): 2010
Brandy11%
Rum14%
Whisky70%
White Spirits5%
Sales of Spirits by Category (Value): 2010
Source: Euromonitor International
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6
Section 2: Industry Dynamics
Key Drivers for Growth of Liquor Consumption in India
Income Growth1 India is one of the fastest growing economies in the world
with GDP growth of 8.6% in FY11
Per capita income has increased from US$460 in FY01 toan estimated US$1,380 in FY111
Growth in per capita income to drive discretionary incomegrowth at much higher pace than the GDP growth,boosting demand for lifestyle products including alcoholicbeverages
Rural economy is likely to see big upsurge in incomelevels due to various Govt initiatives
Attractive Demographics2
More than 60% of Indias population is in the age-group of15-45
Nearly 485 million people in the drinking age. Another 150million are likely to be added to this target population in
the next five years Following these favourable demographics, demand for
alcoholic beverages is set to rise
Underpenetrated Market3
India's per capita consumption of alcoholic beverages isamong the lowest in the world
A small increase in per capita consumption to significantlyalter industry growth, given the large population base
Income distribution (million households)
% of total population in the age group of 1564
84
38
20
65
70
53
35
80
107
0 50 100 150
1989-90
2001-02
2009-10
Middle High (>$2,000) Lower Middle ($1,000)Low (
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Section 2: Industry Dynamics
Indian Spirits Industry Trends
Increased Popularity ofPremium Products
Increased Proportion ofYoung Consumers With High
Disposable Incomes
Increased Demand for Vodka
Increased Demand forProducts at Attractive Prices
The increased availability and affordability of premium brands of blendedscotch whisky, white rum and vodka has resulted in increased demand forpremium brands
Driven by the increasing proportion of young consumers with highdisposable incomes who are experimenting with semi-premium and
premium spirits
Engagement of entertainment celebrities as brand ambassadors helped toportray vodka as a trendy drink and contributed to increased demand forvodka among young consumers
Demand for products targeting certain price points that are less expensivethan imported international brands is expected to increase
Import Restrictions Significant barriers to entry due to excise bonded warehouses and license
requirement in each state. Brands have to register each label individuallyand pay a hefty annual license fee
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Section 3: Strategic Outlook
Management Focused on Delivering a Well Defined Strategic Plan
2011: Current Position 2015: Vision
One of the largestplayer in Indianmarket
Strength in massmarket
Operationalturnaround
Deleveraged balancesheet
Strong contender inliquor space in India
Broad portfolio withfocus on premium
Significantly highercontribution margins
National andinternationalexpansion
Focus on premium brands
Enhance base in Southernstates
New international tie-upsfor distribution of premiumbrands
Continued de-risking ofmanufacturing facilities
Deleverage for balancesheet flexibility
Near Term Strategy
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Section 4: Business Overview
The Journey So Far
9
Started distillery in 1943
A major spirits supplier
Supplier of Rum to ArmedForces
Bottler for others
1943-1997: Spirit Company
Started branded division for production of IMFL and launched its first brand8 PM Whisky in 1998
Created four Millionaire brands - 8PM Whisky, Contessa Rum, Old AdmiralBrandy and Magic Moments Vodka in last one decade in terms of casessold. Millionaire brands are the brands which sells over one million cases inan year
Strong sales and distribution network, covering bars, clubs and other retailpoints in India
Acquisition of Whytehall whisky from American Beverages (Mauritius)Limited, an affiliate of Bacardi Martini India Limited in 2004 and Brihansrange of brands from Brihans, Maharashtra sugar syndicate limited in 2005
33 bottling units: 5 own bottling units and 28 contract bottling units in India
In 2005, after creating brands in high volume regular categories, the
Company made foray into the semi premium segment by launching MagicMoments Vodka, in the white spirits segment (and attained the sales of 1million cases mark in FY 09)
In 2009, launched Morpheus Brandy, a super premium range brandy
In June 2010, launched two new whiskies i.e. After Dark & Eagles Dare inthe premium segment
In Q3 FY2011, announced the launched of After Dark on a pan-India basis
In April 2011, announced agreement with Suntory, Japan to launch superpremium whisky brands in India
1998-Current: One of the Largest IMFL Spirits Companies in India
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Section 4: Business Overview
High Success Rate of Brands Launches and Acquisitions
10
1 2 22 2
8PMWhisky
(Regular Range)
Old AdmiralBrandy
(Regular Range)
WhytehallWhisky
Acquisition(Deluxe Range)
BrihansBrands
Acquisition(Regular Range)
MagicMoments
Vodka
(Semi premiumRange)
2
MorpheusBrandy
(premiumRange)
Launched
2
After DarkWhisky
(premiumRange)
Launched
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Section 4: Business Overview
Broad Consumer Choice with Future Focus on Premium Brands
11
Regular< Rs. 150
Upper RegularRs. 150 300
Semi-PremiumRs. 300 450
PremiumRs. 450 550
Super Premium> Rs. 550
Whisky Big Hit, Windies,Radico Choice,Radico GoldSupreme, SpecialAppointment
8PM, Old Admiral,Whytehall
After Dark
Rum Big Hit, Windies,Black Cat, RampurNo.1, TropicanaWhite
Contessa,Bermuda, LoadNelson, OldAdmiral, BermudaWhite, ContessaWhite
Brandy Brihans Grape,Whitefield, Old
Admiral, 8PMExcellency
Brihans Gold,Napolean
Morpheus
Vodka Whitefield, Big Hit SpecialAppointment, RedRussian
Magic Moments,Magic MomentsRemix
Gin Contessa, BlueBird, Goa Dry Gin
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Section 4: Business Overview
Broad Consumer Choice with Focus on Premium Brands
12
8PM WhiskyContessa Rum8 PM Bermuda Rum
Whytehall WhiskyOld Admiral Brandy8PM Excellency Brandy
Magic Moments VodkaMagic Moments RemixVodka After Dark
Whisky
MorpheusBrandy
Carlo Rossi Wines
Yamazaki Whisky,Hibiki Whisky
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Section 4: Business Overview
13
Strong Distribution Footprint across India
Developed network of distribution
Pan India presence1
Radico has a strong sales and distribution networkwith a presence in retail and off-trade outlets in therelevant segments in different parts of India.
The Company has 33 bottling units spanningalmost the entire country, of which 5 belong to theCompany and 28 are contract bottling units
2
Currently sells to 468 wholesalers, who in turn sellto over 36,000 retail outlets and over 5,000 onpremise outlets. Wholesalers are supplied through147 sales depots
Apart from wholesalers, a total of around 200employees divided into 4 zones, each headed byregional profit centre head, ensure an adequateon-the-ground sales and distribution presenceacross the country
Strategically located bottling units3
Radicos strategic bottling units are spread acrossthe country
This is to avoid the high taxes levied on inter-statemovement of finished and in-process liquor
Collaboration with International players4
Ernest & Julio Gallo of California (one of the
largest wineries in the world) for distribution of theirwines and Suntory of Japan for distribution of theirpremium whisky brands in India
Own Bottling Units
Contract Bottling Units
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Section 4: Business Overview
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Diversification Across Regions and End Markets
Manufacturing Facilities1
Total capacity of 150 million litres
Three distilleries in the largest Sugar producing stateof Uttar Pradesh, minimizing supply transport costs
Uttar Pradesh (Rampur)2
Capacity to manufacture 102 million litres annually
Molasses Based: 75 million litres
Grain Based: 27 million litres
Malt Based: 460 thousand litres
The grain based facility was added in FY2007
Maharashtra (Aurangabad)3 Molasses based distillery commissioned in Dec
2008, under a JV, with annual capacity of 36 millionlitres
Grain ENA distillery commissioned in Feb 2010 withcapacity of 12 million litres
Strategic location minimizing freight costs toSouthern states
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Section 5: Structure and Management
Group Organizational Structure and Ownership
Radico Board ofDirectors
Dr. Lalit Khaitan(Chairman &
Managing Director)
Abhishek Khaitan(Managing Director) K.P. Singh (FulltimeDirector)
K.S. Mehta(Independent
Director)
Mahendra Kumar
Doogar(IndependentDirector)
Raghupati
Singhania(IndependentDirector)
Ashutosh Patra
(IndependentDirector)
NSE: RADICO; BSE: 532497 Market Capitalization ~$395 million
Share Outstanding (June 30, 2011): 132,574,20440.0%
26.7%
12.8%
10.2%
8.5%
1.6%0.4%
0.0%
Shareholding Pattern
Promoters
FII
Mutual Funds & UTI
Bodies Corporate
Indian Public
Insurance
Banks
State Govt
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Section 5: Structure and Management
Senior Management Team
Key Executives BackgroundDr. Lalit Khaitan
Chairman & ManagingDirector
Dr. Lalit Khaitan studied at Mayo College, Ajmer and has a Bachelors degree in commerce,
and has completed a management course from Harvard University. He is on the managingcommittee of a number of associations, including the PHD Chamber of Commerce andIndustry, the Associated Chamber of Commerce and Industry of India, All India DistillersAssociation, Uttar Pradesh Distillers Association and Confederation of Indian Industry. Dr.Khaitan has 45 years of industry experience and has been awarded the lifetime achievementaward by the Confederation of Indian Alcoholic Beverage Companies in 2005 and by
Alcobev in 2008
Abhishek Khaitan
Managing Director
Mr. Abhishek Khaitan joined Radico in 1996. He has a Bachelors degree in engineering inindustrial production, as well as qualifications in managerial finance and managerialaccounting from Harvard University. He has 14 years of industry experience and was namedthe Top Entrepreneur of the Year by Inspirit in 2008
K.P. Singh
Director (Production)
Mr. K.P. Singh is also the Occupier (as such term is defined under the Factories Act) of ourCompanys factory located in Rampur, Uttar Pradesh. He has a Bachelors degree in
science. Mr. Singh has over 33 years of experience in the liquor industry and has beenassociated with the Company for over two decades
Dilip. K. Banthiya
Chief Financial Officer
Mr. Banthiya is a fellow member of the Institute of Chartered Accountants of India (ICAI).He has 26 years of experience in corporate finance, treasury, international finance andcorporate mergers and acquisitions activity in India. Mr. Banthiya has been associated withvarious professional bodies & committees
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Section 5: Structure and Management
Senior Management Team (Continued)
Key Executives Background
Raju Vaziraney
Chief Operating Officer(Domestic Business)
Mr. Vaziraney has a Masters degree in economics from University of Rajasthan, a Mastersdegree in commerce from University of Delhi and diplomas from Bharti Vidya Peeth in salesand marketing, corporate law, and business administration. He has 28 years of experiencein the liquor industry. Prior to joining Radico in 2000, he was the Deputy General Manager inShaw Wallace. He was named the Top Executive of the Industry by Inspirits in 2009
Sanjeev Banga
Executive VicePresident (Exports)
Mr. Banga has a Bachelors degree in commerce from DAV College, Jalandhar and a
Masters degree in business administration from Punjab University. He has over 25 years ofexperience, having previously worked for Seagram India, Nestle India, Kohinoor Foods,Mason and Summers Alcobev, and Godfrey Phillips India, before Radico in 2008
Ankur Sachdeva
Senior Vice Presidentand Head, InternationalBusiness
Mr. Sachdeva is a graduate from Delhi University and holds a Post Graduate Diploma inSales & Marketing from Holmes College, Melbourne, Australia. He joined Radico inOctober 2010. Prior to this, he was working with William Grant & Sons, heading theirBusiness Development function in South Asia for almost 10 years. He has a total industryexperience of 16 years in the International Drinks and the Duty Free business
Kulbir Chaudhry
Vice President, HumanResources
Mr. Chaudhry, has a postgraduate diploma in personnel management from HimachalPradesh University, Shimla. He has 29 years of experience with companies includingEscorts, Hero Honda Motors and Bata India. He has been heading Radicos humanresources function for the last eleven years
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Section 5: Structure and Management
Independent Directors
Key Board Members BackgroundK.S. Mehta
Independent Director
Mr. Mehta is a B.Com, a Fellow member of the Institute of Chartered Accountants ofEngland and Wales and is a qualified Chartered Secretary from the Institute of CharteredSecretaries and Administrators, London. He has 38 years of industry experience, havingpreviously worked as a Director with Prudential ICICI and as President of the PHD Chamberof Commerce and Industry. He is also the managing partner of S.S. Kothari Mehta & Co
Mahendra KumarDoogar
Independent Director
Mr. Doogar has a B.Com from Udaipur University, and is a qualified CA and a FellowMember of the ICAI. He has over 31 years of experience, having previously worked with
Doogar and Associates, Chartered Accountants, as well as Doogar & Associates Securities,where he initiated merchant banking, project consultancy, fund management and financialstructuring of corporate undertakings
Raghupati Singhania
Independent Director
Dr. Singhania has a B.S. from University of Calcutta and is a Fellow of the Institute ofDirectors, London. He has over 41 years of industry experience. He is currently on the boardof directors of companies such as JK Agri Genetics Limited and JK Lakshmi Cement Limitedand is the chairman of Fenner (India) Limited. He is also currently the vice chairman andmanaging director of JK Tyre & Industries Limited
Ashutosh Patra
Independent Director
Mr. Patra, has a Masters degree in Arts and a Masters degree in Law. He has 36 years ofindustry experience. He is currently registered as an advocate with the Bar Council of Delhi.He is currently associated with OP Khaitan and Company (advocates and solicitors)
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Section 6: Financial Performance
(Rs. Crore) FY 2007 FY 2008 FY 2009 FY 2010 FY 2011
Net Revenues1 816.3 859.4 932.7 1,147.0 1,330.6
Growth (%) 19.2% 5.0% 8.5% 23.0% 16.0%
EBITDA2 73.9 78.4 45.7 130.1 149.0
Growth (%) (4.1)% 6.1% (41.8%) 177.4% 14.5%
Margin (Incl CBU sales) (%) 9.0% 9.1% 4.9% 11.3% 11.2%
Net Interest 26.5 34.4 45.2 61.7 27.5Growth (%) 11.7% 29.6% 31.4% 36.7% (55.4%)
Profit Before Tax 44.0 39.1 12.4 49.9 99.5
Tax Ratio (%) 26.1% 15.5% MAT 16.8% 26.8%
Net Profit 32.5 33.1 6.5 41.5 72.8
Growth (%) (28.0)% 1.6% (80.2)% 535.2% 75.3%
Margin (%) 4.0% 3.8% 0.7% 3.6% 5.5%
EPS (Rs.) 3.09 3.40 0.64 4.02 5.51
Growth (%) (34.0)% (10.0)% (81.2%) 528.1% 37.2%
Dividend (%) 25% 25% 15% 30% 35%
Equity Share Capital(Fully paid up equity share of Rs. 2.00 each)
19.29 20.49 20.49 26.37 26.51
Detailed Income Statement
Notes:
1 Net revenues includes sales from CBUs2 Excludes exceptional items and includes EBITDA from CBU sales
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Section 6: Financial Performance
Notes:1 Net revenues includes sales from CBUs2 Excludes exceptional items and includes EBITDA from CBU sales
First Quarter FY2012 Performance
(Rs. Crore) Q1 FY2012 Q1 FY2011% Y-o-YGrowth Q1 FY2012 Q4 FY2011
% Q-o-QGrowth
Net Revenue1 375.9 326.1 15.3% 375.9 333.8 12.6%
EBITDA2 42.8 34.1 25.6% 42.8 36.5 17.4%
% EBITDA Margin 11.4% 10.4% 11.4% 10.9%
Net Profit 20.7 16.1 29.2% 20.7 17.4 19.0%
% Margin 5.5% 4.9% 5.5% 5.2%
Basic EPS (Rs.) 1.56 1.22 27.9% 1.56 1.31 18.7%
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Section 6: Financial Performance
Performance By Brand Refocus on Mainline Brands
(lakh cases) Q1 FY2012 Q1 FY2011% Y-o-YGrowth Q1 FY2012 Q4 FY2011
% Q-o-QGrowth
Magic Moments 6.20 5.14 20.6% 6.20 4.38 41.5%
Morpheus Brandy 0.70 0.50 40.0% 0.70 0.59 19.3%
8 PM Whisky 13.62 11.62 17.2% 13.62 8.69 56.7%
Contessa Rum 6.05 5.86 3.2% 6.05 6.09 (0.7)%
Old Admiral Brandy 8.05 7.26 10.9% 8.05 6.48 24.2%
Total Main Line Brands 34.62 30.38 14.0% 34.62 26.23 32.0%
Other Brands 13.00 12.03 8.1% 13.00 13.52 (3.8)%
Total 47.62 42.41 12.3% 47.62 39.75 19.8%
Mainline Brands as a % of Total 72.7% 71.6% 72.7% 66.0%
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Section 6: Financial Performance
Capex and Depreciation Trends
Significant capex from FY06 FY09 was principally for grain-based distillery, bio-gas co-generation power plant,bottle printing and frosting machine in Bahadurgarh in the state of Haryana, digesters, molasses tanks and PETbottle manufacturing machines
FY10 capex consisted principally of investments in PET manufacturing machines, digesters, tanks, malt andgrape maturation facility, alcohol storage tank and bottle frosting machines in Bahadurgarh
FY11 capex consisted primarily of enhancing IMFL bottling capacity, bottle printing capacity and routinemaintenance expenses
Capex needs were primarily met from cash generated from operating activities and proceeds from capitalmarket transactions
43
82 81
52
41
1619
23 2627
010
20
30
40
50
60
70
8090
FY07 FY08 FY09 FY10 FY11
(Rs.Crore)
Capex Depreciation
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Section 6: Financial Performance
QIP Deleveraged the Balance Sheet
Repaid a portion of debt with proceeds from Rs. 342Crore QIP in March 2010
Working capital loans are primarily to CBUs
As of June 30, 2011, net debt was Rs. 430.1 Crore
Redeemed all of its remaining $50 million, 3.5% ForeignCurrency Convertible Bonds that were issued in Julyand August 2006
Total redemption of $44.22 million was fundedusing proceeds from a new low cost 7-yearmaturity External Commercial Borrowing
Agency InstrumentAmount(Rs. Cr.) Rating
CARE Long Term Bank Facilities 612.66 A+
CARE Short Term Bank Facilities 60.00 PR1+
11646
144 108 105
299
294
374
185 235
218
200
183
1531511.6x
1.8x
2.8x
0.7x0.7x
0.0x
0.5x
1.0x
1.5x
2.0x
2.5x
3.0x
0
100
200
300
400
500
600
700
800
FY07 FY08 FY09 FY10 FY11
(x)
(Rs.
Crore)
Leverage and Debt / Equity
Term Loans Working Capital Loans FCCB Net Debt / Equity
5.6x 5.8x
14.3x
3.2x 2.9x
8.6x
6.9x
15.3x
3.4x 3.3x
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
18.0x
FY07 FY08 FY09 FY10 FY11
(x)
Debt / EBITDA
Net Debt / EBITDA Total Debt / EBITDA
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Section 7: Marketing Strategy
Proven Success at Marketing and Growing Brands
Brand Marketing Success Story
8PM Whisky
MagicMoments
ContessaRum
MorpheusBrandy
A Millionaire Brand in One Year of Launch
Award Winning Vodka
Market Leading Rum in CSD
Innovation in Packaging
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Section 7: Marketing Strategy
Marketing Success: 8PM Whisky A Millionaire Brand in one year of Launch
8PM Whisky1 8 PM Whisky, launched in 1998, achieved sales of
1 million cases in its very first year of launch inwhat is typically considered the largest segment ofthe Indian whisky market in terms of sale volume
By virtue of this achievement, the brand is listed inthe Limca Book of World Records 2001
Awards3
FY07: Won a bronze medal at International SpiritsChallenge
FY02: Nominated for an award at Cannes afterhaving won the gold medal at Delhi AdvertisingClub and silver in the Ashby Advertising awards ofMumbai Ad Club
FY01: 8 PM Whisky TV commercial awarded asbeing the 'Best 5 ads of the century' by Advertisers
Association of India in 2000
Superlative Growth
Adjudged the fastest growing whisky by DrinksInternational magazine (UK) in 2005
Became the youngest brand to achieve 100%distribution in the country and attain a level of 4million cases in FY07
Grew 12.9% in FY11
2
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Section 7: Marketing Strategy
Marketing Success: Magic Moments Award Winning Vodka
Magic Moments Vodka1
Successful Brand launch in FY06 Created new price point in vodka semi-premium segment Innovation in packaging Radicos fastest growing brand with 127% CAGR since FY2006 Grew 33.2% and sold 1.89 million cases in FY11 25% industry market share and 85% semi-premium market share Magic Moments Remix Vodka launched in six f lavors in 2008: Chocolate, Green Apple,
Raspberry, Lemongrass & Ginger, Lemon, Orange Remix has potential to be a separate business vertical
Awards2
2011: Monde Selection 2011: Grand Gold Remix
Lemon Grass and Ginger Flavoured Vodka Three flavors in remix range: Gold Award Remix Green Apple Flavoured Vodka:
Bronze2010: Monde Selection 2010 : Gold award Remix Green Apple Flavoured Vodka:
Silver Medal Remix Chocolate Flavored Vodka: Gold Remix Lemongrass & Ginger flavored
Vodka: Master Trophy International High Quality Trophy 2010:
Magic Moments Vodka Remix chocolate flavored vodka ISC: Silver
2009: Monde Selection 2009 Magic Moments Premium Grain: Gold Magic Moments Flavored Lemongrass &
Ginger: Gold Magic Moments Flavored Green Apple:
Bronze2008: Monde Selection 2008 : Magic Moments
(Gold) International Spirits Challenge 2008: Magic
Moments Remix Orange (Silver) International Wine & Spirits Competition
2008: Magic Moments Vodka (Silver),Magic Moments Flavored Orange (Silver),Magic Moments Flavored Green Apple(Silver, Best in Class)
Alcobev 2008: Magic Moments (BestPackaging Innovation)
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Section 7: Marketing Strategy
Marketing Success: Contessa Rum Market Leading Rum in CSD
Contessa Rum1 Radicos flagship Rum brand
A millionaire brand with total sales volume of 2.4million cases in FY11
Dominant in CSD2
Leading brand in the Indian CSD rum market
Steadily upstaged Old Monks leadership position
in the CSD market over the past 6 years
One of the top selling brands across all categoriesin CSD
Highest priced rum in CSD
Awards
3 The brand has won quality awards at Monde
Selection 2008 and International Spirits Challenge2008
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Section 7: Marketing Strategy
Marketing Success: Morpheus Brandy Innovation in Packaging
Morpheus Brandy1 Launched in May 2009
Premium and highest priced brandy launched byany Indian company
Targeted at the Super Premium segment2
With the French, XO blend and the innovativepackaging, the brand name and its communicationstands out as Super Premium Brandy
Product has been launched in all the southernbrandy consuming states of Tamil Nadu, Andhra,Kerala, Pondicherry and Karnataka
Awards
3 In 2011, the brand won the Monde Selection Goldaward
In 2010, the brand won the Monde Selection Goldaward
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Section 7: Marketing Strategy
New Brand Launch: Focus on Premium Segments
After Dark Whisky1
Launched in June 2010 in select markets
Announced launch on a pan India basis in Q3FY2011
The Thought2
The Night has different Connotations for
different people, the night unfolds differentlyand brings a unique world of desire, adventureand excitement
In fact, its where the fun and action begins
After Dark, the brand here plays the role ofgetting people together, adding energy andspontaneity to the evening, giving people aworld where the party never stops
Awards3
In 2011, the brand won the Monde Selection Silveraward
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Contact Details:
Radico Khaitan Limited
B-1/J-1, Mohan Co-operative Industrial AreaMain Mathura Road, New Delhi 110044Ph.: +91 11 409 75 400 / 444 / 500 / 555
Fax: +91 11 4167 8841 / 4167 8842
Dilip Kumar BanthiyaChief Financial Officer
[email protected]+91 11 4167 6218 (W)
MukeshAgrawalHead-Investor Relations
[email protected]+91 11 4097 5423 (W)
Saket Somani
Churchgate Partners
+91 22 3953 7444 (W)