RADICO Khaitan, India's second-largest spirits maker by volume, is betting on a premium-focused growth strategy this fiscal. The company's net profit rose 55.6% to Rs 10.7 crore during the first quarter ended June 30 against Rs 6.9 crore in the year-ago period, even as key raw material costs continued to run high.

“We have concentrated on the premium segment of our portfolio and have seen gains largely from this segment. We are also chalking out plans for two more brown spirits brands within this segment in FY10,” Radico Khaitan MD Abhishek Khaitan told ET.

Radico clocked 22.7% growth in consolidated earnings at Rs 274.4 crore during the quarter against Rs 223.6 crore in the comparable period a year ago. At a time when lower sugar output has impacted the availability of molasses, Radico increased its operating margin from 10.2% to 11.1% with some of its bigger brands migrating to grain-based spirits and on the back of price increases taken in several states.

Source :The Economic Times / 22nd July 2009