Radico Khaitan, the second largest domestic liquor major, is set to enter the premium liquor market all by itself. The company plans to launch three new brands?two in whisky and one in brandy?in the near future. This, amidst speculations that the company’s joint venture with

Diageo is on the rocks. Radico Khaitan, incidentally, has a premium whisky brand, Masterstroke, under the JV.

The brands, which will be owned by Radico, are expected to be priced above Rs 550 per 750 ml bottle. The brandy brand is expected to hit the market in the next two months, while the whisky brands will be launched in the next financial year.

Sales of whisky in the Indian market are estimated to reach 83 million cases in 2008, up from 77 million cases during the previous year.

As per latest figures, the premium whisky category, priced between Rs 500-700, is growing at the rate of 49%. Premium whisky, however, constitutes just 0.20% of the total Indian made foreign liquor (IMFL) market.

At the same time, the regular segment (prices ranging Rs 150-220), which accounts for 23% of the IMFL market, has declined 3% for the year 2007-08. The IMFL market is expected to grow at the rate of 12% to 142 million cases in 2008, from 130 million cases in 2007.

Radico Khaitan has several whisky brands-such as 8 PM, Whytehall, Contessa and Old Admiral–in the regular segment. It also has Old Admiral and 8 PM excellency brandy brands.

Raju Vaziraney, COO, Radico Khaitan told FE, “With increase in disposable incomes, the premium whisky segment has seen tremendous growth this year. We are ready to offer what the market wants and are exploring the potential of new brands to be launched in the future.”

He also mentioned that the JV with Diageo is still on. The largest selling premium whisky brands in India are Blender’s Pride (Pernod Ricard), Royal Challenge and Signature (United Spirits). More than a million cases of Blender’s Pride and Royal Challenge had been sold last year.

As per studies, by 2011, the percentage of consumers in the age group of 20-59 will increase from 48% in 2001 to 54%. Around 150 million people are likely to be added to the target consumer group in this decade.

Radico Khaitan is also enhancing its distillation capacity; it is setting up a new distillery in Aurangabad, with an investment of Rs 135 crore, in order to cater to demand in the western region. During the current fiscal, the company is targeting around 12-13% volume growth over the previous year.