Spirit of Ambition

Imported labels no longer have India's premium shelves to themselves as homegrown spirits gain recognition and push for global market share

- By Yuthika Bhargava

For decades, imported Scotch and London gin ruled India's premium shelves. But what was once the preserve of foreign brands is now contested ground as Indian labels narrow the distance on imports in the premium race. In the most expensive bars in Delhi and Mumbai, it's no longer unusual to see a Rampur single malt or Jaisalmer gin commanding the same attention as their Scottish or British counterparts.

Consumers are moving beyond everyday blends, willing to pay more for distinctive and upscale experiences. That shift has cracked open a space long guarded by international heavyweights like Pernod Ricard and Diageo.

Into this crowded, fast-moving arena steps Radico Khaitan, best known for labels like 8PM whisky and Magic Moments vodka. With Rampur single malt and Jaisalmer gin, the company has broadened its portfolio to increase visibility in the premium spirits segment, both at home and overseas.

But competition from multinational heavyweights and ambitious Indian players is intense. Hurdles in the alcohol industry in the shape of heavy regulations, frequent changes in excise policies, state-level pricing controls and occasional state bans remain. Input costs for grain, extra neutral alcohol (ENA), glass and packaging are also volatile. Global trade friction is the new variable in this equation.

In this landscape, Radico Khaitan's bet on premiumisation is both a growth opportunity and a test of whether an Indian company can build a true luxury spirits brand in a market where price still weighs heavily on consumer choice.

“Our focus is on the luxury and semi-luxury space, creating products the world desires, like The Spirit of Kashmyr vodka...Our target is that our P&A [prestige and above] category should grow by 15% annually over the next three years. The numbers will follow. Once volumes grow, operating leverage kicks in,” says Abhishek Khaitan, the company's managing director.