Radico Khaitan Limited · NSE:RADICO
Radico Khaitan — Investor Presentation (October 2009)
31 slides from Radico Khaitan's investor presentation, October 2009
Slide 1: Radico Khaitan Ltd. Corporate Presentation
Radico Khaitan Ltd. Corporate Presentation October, 2009 1
Slide 2: Indian Spirit Industry
Indian Spirit Industry According to Euromonitor International, Industry has been growing @ 9.4% p.a. for the last 9 years. Industry size for 2008 (January to December):- Total market volume: 160.5 million cases in 2008 Cases in millions % Liquor industry segmentation: Whisky 99.8 62.1% Brandy 27.7 1
Slide 3: Key Drivers for Growth of Liquor Consumption in India
Key Drivers for Growth of Liquor Consumption in India Economic expansion and increasing urbanization is driving the emergence of a larger middle class that increasingly appreciates premium goods and services, including high end spirits, and is willing to pay for it Income distribution (million % of
Slide 4: Region wise CAGR alcohol sales growth for last 10 years
Region wise CAGR Alcohol sales growth for last 10 years 10 - year compound annual growth rate (%) 10 - year compound annual growth rate (%) World Alcohol Sales Volume Value 14 12 10 8 6 4 2 0 -2 World Japan Western Australasia North Asia ex - Africa and Latin Central and Europe America Japan Middle
Slide 5: Radico – The Journey So Far
Radico – The Journey So Far… Radico’s total sale volume for the year ended March 31, 2009 was 12.9 million cases 1943-1997 - Spirit Company 1998-Current – One of the Largest IMFL Spirits Companies in India ♦ Started distillery in 1943 ♦ Started branded division for production of IMFL and launched it
Slide 6: High Success Rate Of Brands Launches & Acquisitions
High Success Rate Of Brands Launches & Acquisitions 2009 2006 2005 2004 2002 1998 1972 MAGIC CONTESSA WHYTEHALL BRIHANS MOMENTS Morpheus Brandy 8PM OLD ADMIRAL RUM WHISKY BRANDS VODKA (premium WHISKY BRANDY (Regular Range) (Regular Range) (Regular Range) Acquisition Acquisition (Semi – premium Range
Slide 7: Innovations
Innovations Radico creates new brands through innovative design of production outlook and blend. The Company always tries to deliver quality and brand image that is beyond the price point for the Brand. Radico’s brands are relatively young . Accordingly, we have capitalized on this advantage and tak
Slide 8: Radico Marketing Success Stories: 8PM Whisky
Radico Marketing Success Stories 8PM WHISKY 1 – 8 PM Whisky, launched in 1998, achieved sales of 1 million cases in its very first year of launch in what is typically considered the largest segment of the Indian whisky market in terms of sale volume. – By virtue of this achievement, the brand is lis
Slide 9: Radico Marketing Success Stories
Radico Marketing Success Stories • New packaging launched in FY09 is a grain blended whisky • Also the first scotch-blended whisky in the segment and was launched with a specially designed heavy bottle. 9
Slide 10: Magic Moments Vodka
Radico Marketing Success Stories Magic Moments Vodka - Successful Brand launch in 2006 - Innovation in packaging - Created new price point in vodka semi premium segment - Fastest growing brand of the company. - Rewarded with Gold Medal at Monde selection in 2008 - Achieved 1 million case mark in FY,
Slide 11: Magic Moments Remix Vodka
Radico Marketing Success Stories Magic Moments Remix Vodka- launched in six different flavors in 2008. – Chocolate – Green Apple – Raspberry – LemonGrass & Ginger – Lemon – Orange Remix has potential to be a separate business vertical. 11
Slide 12: Marketing Success Stories: Magic Moments Vodka
Radico Marketing Success Stories Magic Moments Vodka 12
Slide 13: Awards Won by Magic Moments Vodka
Awards Won by Magic Moments Vodka Awards received by Magic Moments Vodka in 2008: Monde Selection 2008 Magic Moments Vodka – Gold Medal International Spirits Challenge 2008 Magic Moments Remix Orange Vodka - Silver Medal International Wine & Spirits Competition 2008 Magic Moments Vodka- Silver Magic
Slide 14: M2 and Magic Moments Remix: Spreading the Magic
M2 and MAGIC MOMENTS REMIX Spreading the Magic.. Global Vodka Industry ~ 22.5% of Indian Vodka Industry ~ 3.4 % (5.5 million) (2008-09) Indian Vodka Industry grew 24.9% CAGR for 3 yrs(2005 – 08) At Present M2 Driving the semi-premium Magic Moments became a millionaire brand in 2008-09 Vodka segment
Slide 15: Contessa Rum
Radico Marketing Success Stories CONTESSA RUM 1 – Contessa Rum is Radico’s flagship Rum brand – Contessa is a millionaire brand and has registered sales of 2.5 million cases in FY09 Dominant in CSD 2 – Leading Brand (with a 18.6 % market share) in the Indian CSD rum market. – Steadily upstaged Old M
Slide 16: Old Admiral Brandy
Radico Marketing Success Stories OLD ADMIRAL BRANDY 1 – Old Admiral Brandy was launched in July 2002 and has increased its share in the Indian brandy market – Has been mainly targeted at the South Indian markets, – Old Admiral became a millionaire brand in FY05 in the third year of its launch – Adju
Slide 17: Royal Whytehall
Radico Marketing Success Stories Launched upgraded version of Whytehall , “Royal Whytehall” in key markets and is being supported by new marketing programmes. Sales grew 61.2% in 1 half of FY,10 17
Slide 18: Strong Distribution Footprint across India
Radico has a Strong Distribution Footprint across India Pan India presence 1 – Radico has a strong sales and distribution network with a presence in retail and off-trade outlets in the relevant segments in different parts of India. – The Company has 32 bottling units spanning almost the entire count
Slide 19: High Entry Barriers
High Entry Barriers Requires scale to set up all India manufacturing and distribution network. Existing players can leverage their distribution network to launch new brands without any substantial increase in costs. Restriction on inter-state movement of Liquor. Each state in India has its own regul
Slide 20: Radico Brand Portfolio
Radico Brand Portfolio Cases in 10,000 1st half 2010 1st half 2009 Brand Actual Actual Growth Actual Actual Growth 2007-08 2008-09 % age 2009-10 2008-09 % age 8 PM Whisky 349 339 -2.8% 194 169 14.3% Magic Moments 72 102 41.3% 68 49 38.0% Contessa Rum 236 250 6.1% 103 114 -8.9% OA VSOP Brandy 146 200
Slide 21: Price Increases taken in IMFL segment
Price Increases taken in IMFL segment All major players have increased prices of their brands in India Over Last year. Price increases have been taken in most of the segments/states , like Delhi, Punjab, Haryana, Uttar Pradesh, Kerala, Himachal Pradesh, Rajasthan, Maharashtra , Madhya Pradesh and CS
Slide 22: Radico's Sustained Competitive Edge
Radico’s Sustained Competitive Edge Distillery ¾The company has three distilleries in the largest Sugar producing states of Uttar Pradesh. Rampur-U.P. ¾The distillery has a capacity of manufacturing 102 million litres annually ¾ Molasses Based : 75 million litres ¾ Grain Based : 27 million litres ¾
Slide 23: Sustained Competitive Edge - Contd
Sustained Competitive Edge - Contd… Canteen Stores Department (CSD) Radico market share is 22.34% of the CSD volume. High entry barriers for getting brands approved. Brands Radico has successfully created four millionaire brands in last decade. Radico’s Grain based ENA Plant at Rampur is a hedge aga
Slide 24: Future Growth Drivers
Future Growth Drivers ¾ Moving towards premium brands, already launched Morpheus (XO Blended Premium Brandy ) in May 2009. ¾ Would endeavor to continue launching brands in Super Premium /Premium whisky segments. ¾ Improve market share of existing brands such as 8PM, Whytehall, Contessa Rum, Magic Mo
Slide 25: The Spirit Of France — Captured in a Goblet "Morpheus"
The Spirit Of France—Captured in a Goblet ”Morpheus” 25
Slide 26: Morpheus Brandy
Morpheus Brandy ♦ Morpheus – launched in May 2009. – Premium and highest priced brandy launched by any Indian company. ♦ With the French , XO blended and the innovative packaging, the brand name and its communication stands out as Super Premium Brandy. ♦ The initial rollout response in the Andhra Pr
Slide 27: Financial Summary Key Financials
Financial Summary Key Financials 1st Half 1st Half Particulars 2007-08 2008-09 FY 2009-10 FY 2008-09 Growth % (Rs. millions) Audited (Audited) (Un-audited) (Un-audited) Gross Sales 14220 15752 10424 7601 37.1% Net Sales 8595 9327 5331 4494 18.6% EBITDA 784 457 630 479 31.5% PAT 331 65 204 129 58.1%
Slide 28: Shareholding Pattern
Shareholding Pattern INDIAN PUBLIC, 17.11 BODIES CORPORATE, 6.26 STATE GOVT., 0.03 BANKS, 0.79 INSURANCE CO, PROMOTERS, 0.33 48.68 MUTUAL FUNDS & UTI, 12.67 FIIs, 14.10 As on 30.09.2009 28
Slide 29: Radico Core Team
Radico Core Team Lalit Khaitan (CMD) Abhishek Khaitan (MD) K.P Singh Dilip Banthiya Raju Vaziraney Sanjeev Banga Director, CFO COO, Head Mfg Operations Domestic Business International Business Vice Presidents /Asst Vice Presidents Management Committees , Regional Profit Center Committees. 29
Slide 30: Disclaimer
Disclaimer This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in any jurisdiction, including the United States. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to p
Slide 31: Thank You
THANK YOU 31
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