Radico Khaitan announces commissioning of greenfield grain distillery at Sitapur

Radico Khaitan announced the commissioning of a greenfield grain distillery with a capacity of 350 kilolitres per day in Sitapur, Uttar Pradesh, in a regulatory filing.

A captive power plant of 15 MW and a malt maturing facility with a capacity of 10,000 barrels were also installed at the Sitapur location, according to the company.

“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,” the regulatory filing said.

“We expect that the plant will fully stabilise within 2-3 weeks’ time and shall achieve over 90 percent efficiency. The full financial benefit of the Sitapur manufacturing facility is expected to be realised from Q3 FY24,” said Lalit Khaitan, Chairman, and Managing Director of the company.

With a trailing PE of 79.30x, the stock is the second most expensive in absolute terms among alcohol-making peers.

Radico Khaitan's primary business is the manufacture of alcoholic beverages. Their activities include a varied range of spirits such as whiskey, rum, brandy, and vodka. With a manufacturing capacity of 165 million litres per year, the company is the largest maker of Indian Made Foreign Liquor (IMFL).