Shares of Radico Khaitan were trading a percent above their previous close on 18 September after the company announced the commissioning of a greenfield distillery with a capacity of 350 kilo-litres per day located at Sitapur in Uttar Pradesh.
The company also added that they will install a captive power plant of 15 megawatts and a malt maturation facility with a capacity of 10,000 barrels at the Sitapur site.
The company said in its regulatory filing, “Spread over 107 acres, the Sitapur greenfield project will not only add to the growth of the company’s branded business but also secure extra-neutral alcohol (ENA) supplies to the local manufacturing as well as the contract bottling units. Together with the Rampur campus, the ENA production from the Sitapur plant will be able to support the branded business growth for the next 7-10 years.”
Lalit Khaitan, Chairman and Managing Director of the company, said that they expect the plant to be fully stabilised within 2-3 weeks time and will achieve over 90% efficiency, and the full financial benefits of the plant are expected to be realised from Q3 of the current fiscal year.
The company manufactures alcoholic beverages and has a diverse portfolio of spirits, including rum, whiskey, vodka, and brandy. The company is the largest manufacturer of Indian Made Foreign Liquor (IMFL) and has a production capacity of 165 million litres per annum.
In its quarterly report for the April-June quarter, the company posted a 26.4% YoY increase in its revenue from operations at Rs 953.9 crore and a 10.2% YoY increase in its net profit at Rs 68.3 crore.
At 3:27 pm, the shares of Radico Khaitan were trading at Rs 1,239 or 0.99% above its previous close on NSE.