Radico Khaitan launches Scotland arm to secure malt whisky supplies and widen export reach

Radico Khaitan Ltd has set up a Scotland‑based subsidiary to secure malt whisky supplies and broaden its overseas footprint. The new entity, Radico Khaitan Scotland Ltd, will look at whisky distillation, maturation and trading but is not targeting any specific distillery purchase at this stage, Managing Director Abhishek Khaitan said. The move aims to meet the company's growing need for mature malt spirit and give it more flexibility in sourcing, aging and storage. It does not change the Indian origin of the Rampur single malt, which will stay distilled and matured in the Himalayan foothills. The expansion is part of a push to diversify export markets; Radico now sells its brands in more than 100 countries, with Africa, Asia‑Pacific and travel‑retail flagged as key growth zones. Recent disruptions in the West Asia and Gulf corridor highlighted the danger of over‑reliance on a few markets, prompting the firm to spread its distribution network further. Radico reported FY26 net revenue of over ₹6,000 crore, with its Prestige & Above range accounting for 46% of IMFL volumes and about 70% of value sales. In Q1 FY27 the premium portfolio grew 35.8% to 5.22 million cases, lifting its share to 53% of volumes and 77% of value sales. To curb rising glass‑packaging and freight costs, the company is leaning on product mix, manufacturing efficiency and its 321 million‑litre captive ENA capacity. Beyond whisky, it is expanding its premium spirits line through D'YAVOL Spirits, a partnership with Shah Rukh Khan, his associates and Zerodha co‑founder Nikhil Kamath, and plans to launch a tequila bottled in Mexico. Domestically, the firm is targeting stronger growth in South India – Andhra Pradesh, Telangana and Karnataka – via premium retail, hotels, restaurants and high‑end on‑trade channels for Rampur and Jaisalmer.

Context

Diversifying supply sources and markets helps a spirits maker reduce risks from regional disruptions and cost pressures, a strategy increasingly common among Indian liquor producers expanding globally.