Rampur Whisky Maker Weathers West Asia Storm, Eyes 15% Revenue Growth

India's premium spirits maker Radico Khaitan has begun resuming shipments to the Gulf after regional conflict brought exports to a near-standstill for nearly two months, according to a Reuters report.

The maker of Rampur whisky and Jaisalmer gin says dispatches have been gradually picking up since late April, offering relief after a difficult stretch for its international business.

The Gulf Disruption

The conflict between US-Israel alliance and Iran hit consumer spending and duty-free channels across the Gulf, a key market for premium spirits, driven by a large and wealthy expatriate community. "We could not ship out anything in March and most of April. But the good thing is, now slowly and steadily, the shipments are starting back into the area," Sanjeev Banga, President of Radico's international business, told Reuters.

Exports account for 5% to 6% of Radico's total sales volumes and 9% to 10% of its revenue, though the company does not provide a regional breakdown.

The Gulf slowdown did not dent the company's overall export performance. Growth in Africa, Asia-Pacific, and airport retail more than compensated for the Middle East weakness, pushing export sales to a record in the financial year ended March 31.

Overall, net revenue for the year expanded by 25% to around $637 million, while EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margins improved to 16.8% from 13.8%, driven by strong demand for premium brands including Royal Ranthambore and Sangam.

Managing Director Abhishek Khaitan expects revenue to grow over 15% in the current financial year, with margins expanding by 120 to 125 basis points, even as higher glass and freight costs persist.

Khaitan attributed the optimism to a clear shift in consumer behaviour toward higher-end products. "The regular range is not growing that much. People are drinking less, but they are drinking expensive and refined products," he said.

The Glass Problem

This development comes at a time when the broader alcobev industry is quietly absorbing another pressure point. Glass manufacturing, which relies heavily on natural gas, is facing input cost stress due to supply disruptions linked to the West Asia conflict.

Spirit bottles account for roughly 20% of total raw material costs, and with current inventories estimated to last only a couple of months, margin pressure may intensify.

The risk is particularly acute for India, the world's fourth-largest natural gas importer, which sources nearly 40% of its supply from Qatar, making any supply disruption a direct threat to production capacity, just as peak season demand begins to build.