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Dr Lalit Khaitan My Dear Radiconians

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Dr Lalit Khaitan My Dear Radiconians ISSUE 3 ISSUE 2019 JUN A QUARTERLY NEWSLETTER FROM THE HOUSE OF RKL APR - APR VOLUME 1 1 VOLUME Dr Lalit Khaitan chairman and managing director My dear Radiconians, ET ME begin with congratulating you all on the remarkable 2019 fiscal. This was made Lpossible by the skill and commitment of our management and employees who delivered the planned ramp-ups across our portfolio and business. The quarter began with welcoming PM Narendra Modi led NDA back in power. Continuity of existing government brings optimism and hope of promises being delivered to accelerate the growth for one of the key contributors to GDP-Liquor industry- leading to further positive contribution to Indian economy. Alongside, as a responsible corporate, I am proud of the increasingly significant role we are playing in paying back to the society. As a part of our CSR plan, the drive of increasing water levels at the near- dead ponds in Rampur has been exhibiting very encouraging results in the recent times. In 2016, Radico implemented water recharging scheme to elevate the water levels in the water bodies of 26 villages in Rampur. The process has not only helped with the water retention but has also scaled up the water levels. In the same scheme of activities, the distillery recently commissioned the Condensate Processing Unit that helps reclaiming the wastewater that consequently reduces the consumption of fresh water and saves natural resources. We are committed to this drive to sustain the natural resources for the society. In a number of crucial aspects, the picture today is better than it was a couple of years ago, and much better than it was in July 2018. While Challenges remain and hard work lies ahead, it is important that we don't lose sight of how far we have come. I would also like to congratulate the Radiconians for the exceptional success of their kids who, in their respective academic courses, passed with flying colours this exam season. This is the testimony to the hard work the parents and the kids put in to build a strong future ahead. I thank all of you for your continued faith in our capabilities and your tireless efforts towards making Radico Khaitan a soulful workplace. RADICO KHAITAN LIMITED NEWSLETTER Dear Team, E ARE all achieving new highs! and we always have best practices as This is how I would sum up the our aim. last quarter. On the brands part, I can’t be happier to WWe announced our financial results and see Magic Moments Vodka soaring from the performance of the fiscal year 2019. being a category leader in India to being the Our operational and financial results have fastest growing vodka brand in the world. been remarkable with improvement across Two of our brands are ranked among the top all key areas. Driven by a strong growth in 15 of the IWSR 100: Fastest- growing spirit the premium brands portfolio, we delivered brands in the world; Magic Moments Vodka net revenue growth of 15% leading to made it to the 7th position whereas 8PM corresponding profitability enhancement. Last quarter we also received the new Whisky secured the 11th spot. Not only in We generated strong free cash flows and government and their new budget. Till India, but Internationally also Radico brands reduced net debt by over Rs. 250 Crore date, this government pursued pro-growth continue to get recognised for being top during the year. Towards the second half initiatives and, I believe, the budget will notch quality brands.The Gin Guide Awards of year, we experienced raw material cost continue the impetus to further boost 2019, UK conferred the ‘Best Gin from Asia’ pressures which was more than offset by a economic growth and investor confidence. award to Jaisalmer Indian Craft Gin recently. favourable product mix. Our profitability As proposed in the budget, we, being a These bestowals authenticate our methods to improved with EBITDA margins expanding listed corporate, believe that having a 35 navigate the way to be the industry leader in from 14.7% in FY2018 to 16.7% in FY2019. percent public float is positive in terms the near future. Strong operational achievements were of better corporate governance standards I am very pleased with the performance complemented by a robust financial and valuations and carries a potential of of FY2019 and with all the initiatives performance that returned significant cash increasing India's weight in the global undertaken during the last few years, I am to shareholders. In line with our strategy of indices. On Corporate Governance, we are confident about our future growth trajectory. maintaining a balance between delivering all firmly of the belief that good corporate returns to shareholders and preserving funds governance is fundamental and brings value for growth capital, we proposed an increased to our company and is of benefit to all. Abhishek Khaitan dividend of Rs. 1.20 per share. Constant improvement is part of our culture Managing Director My Dear Team, Three cheers for the brand each one of you for your and we identify with that. To soonest as the HR department champions. contribution to this delightful escalate the excitement for concludes the paperwork. journey. We are committed to World Cup to another level, I take this opportunity to AM CONVINCED of the vision we set to see Radico 8 PM premium black whisky thank our employees, vendors successfully executing on Khaitan at the pinnacle in a launched a 360 degree World and the Board for their the strategy we proposed couple of years. Cup Campaign last quarter to confidence in us. I look forward Ilast quarter because we have This quarter brought another provide an experiential treat to your continued and valuable the right culture, talent and shockwave for the industry- to the India cricket fans and support in the years to come. necessary resources not only The enforcement of liquor ban to our consumers. The brand to deliver the current plan, but in Andhra Pradesh- that will launched a Word Cup song also to imagine new ideas and apply in the phased manner ‘8PM Premium Black Cricket ways to transform our business. but as stalwarts, we need Anthem’, showcasing the We are encouraged with growth to be resilient through the excitement of the countrymen across the product verticals and turbulence. The company is during the world cup series channels witnessed in Q1. ideating on the offset of this that binds people together. To Not one, not two but 4 of our dent and we are confident to boost the celebration for the brands have been listed in Top overcome this like we did with cricket lovers, we also launched 10 Best Selling Liquor Brands in a host of roadblocks in the a special edition of 8 PM their respective categories in a yesteryears. premium black Whisky World report published by “The Spirits Parallelly, when the world Cup pack. Business Brand Champions was eyeing the wave that the In the ending notes, I 2019”. Old Admiral Brandy, 8 general elections brought in would like to acknowledge PM Whisky, Magic Moments the country, the countrymen your support to expedite the Vodka and Contessa Rum have were all obsessing over a most awaited practise of the been ranked among top ten secondary religion-Cricket. year-Annual Performance in their respective categories. The love, passion, and madness Appraisals. You will all be Amar Sinha I would like to congratulate for cricket are in every Indian notified on your rewards as Chief Operating Officer APRIL-JUNE 2019 2 RADICO KHAITAN LIMITED NEWSLETTER MD’s BIRTHDAY CELEBRATIONS AT HO adico Khaitan celebrated RManaging Director Abhishek Khaitan’s birthday with full zeal and enthusiasm on 29th April 2019. A cake cutting ceremony was organised by his office to mark the occasion. MONDE SELECTION JAISALMER QUALITY AWARDS INDIAN CRAFT GIN Seven brands WINS THE GIN GUIDE from the house of Radico Khaitan were AWARD 2019 honoured with gold The first Craft Gin from awards at Monde India – Jaisalmer Indian Craft Selection Quality Gin bagged the ‘Best Gin Awards, Brussels. from Asia’ award at The Gin Guide Awards 2019, UK. MAGICAL ZINDAGI CONTEST In order to commemorate the for those stories that turned & Engagement on our Social Edition Calendar featuring association of the effervescent their life Magical.A special Channels. the 2 Bollywood Stars. JBL Kartik Aaryan & the bubbly micro-site was also created Our Social Contest brought Boombox was handed over Jacqueline Fernandez with to capture the entries and in close to 6.5k comments to 10 lucky winners whereas Magic Moments Music broadcast our video. We and stories out of which we 10 other winners won Studio, we launched a received a humongous gratified 300 winners with themselves an Electric Scooty nation-wide Digital Contest response from our audience movie tickets & 200 lucky each. The Top 3 entries won a “#MagicalZindagi” looking with over 45mn Video Views winners won our Limited Grand Trip to Budapest. 3 APRIL-JUNE 2019 RADICO KHAITAN LIMITED NEWSLETTER NOW AVAILABLE! MAGIC MOMENTS AND 8PM ON THE LIST OF IWSR 100: FASTEST- GROWING SPIRIT BRANDS IN THE WORLD. Rampur Indian Single pirits soar at Radico Khaitan as Malt is now available at the Stwo of our brands are ranked following 5-star properties. among the top 15 of the IWSR 100: The Oberoi, New Delhi Fastest- growing spirit brands in The Taj Mahal Hotel, the world ; Magic Moments Vodka Mansingh Road, New Delhi made it to the 7th position whereas Hotel Taj Palace, Sardar 8PM Whisky secured the 11th spot. Patel Marg, New Delhi Hyatt Regency, Bhikaiji Cama Place, New Delhi Indian Accent - WORLD ENVIRONMENT The Lodhi, New Delhi DAY AT RADICO This World Environment Day, JW Marriott Hotel, Radico Khaitan pledged to reduce Aerocity, New Delhi the carbon imprints and plant The Park, Janpath, more and more trees in their New Delhi vicinity.
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