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Radico Khaitan to establish Scotch whisky arm

The board of directors for Indian spirits producer Radico Khaitan has approved the establishment of a Scotch whisky division that will be 100% owned by the company.

Radico Khaitan
Radico Khaitan hopes to expand its portfolio to include Scotch whisky

On 22 January, the company filed a statement with the National Stock Exchange of India, reporting its intention to incorporate its UK subsidiary, Radico Khaitan Scotland Ltd.

As a 100% company-owned division, Radico Khaitan Scotland will be promoted by the company and incorporated in accordance with the applicable laws of the UK.

The proposed subsidiary will be established to handle distillation, maturation, storage, and trading of Scotch whisky and spirits.

A spokesperson of Radico Khaitan told The Spirits Business: “Radico is one of the largest importers of vatted malt spirits. We import matured malt spirits of various profiles and ageing, which we use for blending in our various whisky products.

“As our whisky portfolio grows, our import requirement will also increase in the coming years. This step is towards securing access to mature supply chains for distillation and maturation in a cost-effective manner. At the moment, we have passed a board resolution to enable us to explore various opportunities.”

The new division will aim to acquire, own, and operate a distillery in Scotland.

The company’s spokesperson continued: “The objective is to set up an entity which will be helpful in establishing our presence there to explore future opportunities.

“There may be multiple rationales: first, for procuring fresh make spirit and long-term value creation through inventory maturation; second, proximity to UK and EU markets; and third, acquire a distillery in Scotland in future, should there be an attractive opportunity available.

“However, all these thoughts are at a very initial stage, particularly the acquisition bit, where we are not actively pursuing or evaluating any assets.”

New Delhi-based Radico Khaitan has seen sales increase over the past 12 months, including ‘record’ turnover and profits in its first and third quarters.

The company’s portfolio includes brands such as Rampur Indian single malt, Sangam whisky, Jaisalmer Gin, The Kohinoor rum, The Spirit of Kashmyr, and D’Yavol Spirits.

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