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Jan- Volu Radico Khaitan Limited Newsletter VOLUME 2 ISSUE 2 A QUARTERLY NEWSLETTERFROMTHEHOUSEOF QUARTERLY A R K L JAN- MAR 2020 RADICO KHAITAN LIMITED NEWSLETTER Dr Lalit Khaitan chairman and managing director “It is during our darkest operations is adhering to the moments that we must focus to guidelines and SOPs that the see the light.” -Aristotle government has set for the establishments. ll this while we were Every employee has to acquainted with this abide by the following: quote but today, we Aare all living it. Amid the Use of sanitizer and dark times, I am pleased to frequent washing of hands to report that Radico Khaitan ensure hygiene by each and has closed the financial year every employee FY2020 with a remarkable Wearing face masks is operational and financial mandatory for all performance. Despite the Distancing norms of at lockdown during the latter least 1 metre within our part of March 2020, we have offices and manufacturing delivered a robust double units digit IMFL volume growth. Regular sanitization This is a reflection of our of manufacturing units, strong brand equity and offices and disinfecting all consumer focused brand touchpoints portfolio. There is provision for The country was under lock thermal screening which down for the entire month everyone has to go through of April 2020 and it certainly We continue to evaluate has impacted all sectors of the impact of this pandemic the economy. We believe on our business and remain it is a temporary phase for cautiously optimistic. We our business and after the have a resilient capital lockdown is over, we shall structure and robust brand return to normalcy soon. portfolio to enable us to In a period of crisis like step towards a brighter and this, Radico Khaitan stands healthier future once this in solidarity with the nation is over.We are adopting and we are humbled to have a deliberate and prudent been able to make our small approach to our strategy contribution to the nation’s fight against Coronavirus. and it will have a similar ring to those who have seen In addition to cash contributions, we continue to Radico Khaitan consolidate and grow holistically over supply sanitizer to various district administrations in the last decade. UP and other government agencies. Going forward, our objective should not only be to On the internal management front, the company take measures in order to sustain ourselves but also has taken certain preventive measures to ensure safety prepare to face any other unforeseen circumstances in of its employees. Most of our manufacturing operations the future. Radico Khaitan has come a long way since have been equipped with advanced technologies and its inception; I would like to thank each one of you for hence, are fully automated. The workers’ involvement your contribution and hope for better results in the is very limited but whoever is involved in such times to come. JANUARY-MARCH 2020 2 RADICO KHAITAN LIMITED NEWSLETTER Abhishek Khaitan Managing Director Dear All, he world is facing an unprecedented Operations during FY2020 increased by work and dedication will lead us to our crisis due to COVID-19. The 15.7%. goals and help us maintain our top spot in pandemic has hit the global As you are aware that we currently the industry. Teconomy and companies across sectors are have four millionaire brands. At least two Each day is a new experience, and sadly forced to trim down costs and staff. more of our brands are approaching the challenges are not new in any business. That Business and their dynamics have changed milestone of annual sales of a million case is what keeps me going, because with every – internally and externally for stakeholders in the near to mid-term. I am also proud to challenge there’s something new to learn. I - as a result of the health and economic report that the 8PM family of brands has expect each one of you to take challenging crisis. crossed volume of 10 million cases during times like these as an opportunity to push At Radico Khaitan, we managed to keep FY2020. yourself and drive the company ahead our spirits high throughout and left no That’s not all, we have been ranked as the through your immense skill set and out-of- stone unturned to keep the business going. no. 1 mid-cap company in Fortune India’s the-box ideas. We also kick-started the production of hand “The Next 500” list, the first comprehensive The team should roll up their sleeves to sanitizers in March to cater to the primary ranking of India’s midsize companies. bounce back stronger in the post Covid-19 health authorities and workers and further Radico Khaitan has consistently improved world. We might face roadblocks on our expanded to bulk supplies to the private its ranking in this list from 60th in 2015 to way ahead, but I am confident that with the establishments. 28th in 2019 and jumped 27 places to 1st pool of talent in Radico it would not be a The Q4 results were announced last rank in 2020. daunting task. month. Even in these tough times, Radico The company has always been there As we move into FY2021, we will Khaitan has managed to continue the for its employees – be it the good times or continue to take necessary steps to maintain growth momentum and closed FY2020 bad – hence, our only expectation from the our robust foundation and financial with an outstanding performance. We are Radico family is that we work relentlessly strength whilst at the same time delivering pleased to deliver IMFL volume growth in the pursuit of delivering the best results differentiated consumer experience. We of 12.5%, led by Prestige & Above volume and grow exponentially. There is absolutely remain confident of our ability to deliver growth of 15.2%. Net Revenue from no shortcut to success and nothing but hard long term value to all our stakeholders. 3 JANUARY-MARCH 2020 RADICO KHAITAN LIMITED NEWSLETTER Dear All, e are all in this unprecedented time We have also concluded the fiscal 2019- be in our hands once the healthcare/Covid where we need to lay a new road 2020 on a higher note despite the flat industry warriors are done with their job. I do not have to future. The world economy is at growth. This trend of outperforming the an iota of doubt on our capabilities and can Wall-time low, business survival is questionable industry for the last 3 years consicutively has confidently say that Team Radico will bounce and the road to recovery is unpredictable. But been made possible by the sheer hard work back like no other and in no time. amid all this, my belief in my country India of each one of you and the strong foundation On this note, my dear team, I would like has strengthened. At the time when all the laid by Dr Lalit Khaitan and Mr Abhishek to conclude by saying this is the time for us to super-powerful countries are losing out on Khaitan. I am happy to report that we grew take the leap into the future alongside fixing their people and economy, we stand strong by over 12% in the last fiscal against the the present. The dynamics will change, the as a robust model to the world owing to our industry growth of 2.5%. We also have a demographics will change, and the nature will government’s exemplary crisis management bigger responsibility to not only maintain the change. We are all going to take the changes strategy, promptness and skill. The only performance but to encroach every space that in a positive way and move ahead and emerge certain fact at present is, that when we step this outbreak will create in the sector to rise. with flying colours. out in the world again, it will not be the same A temporary halt of the business is not place we breathed in before the clampdown. an alien phenomenon to the people who As you all know, the company stretched have been in the liquor business. From its line of business to support the country in prohibitions imposed by the states to the these testing times. We expanded to produce ban on sale of liquor on highways, the sanitizer to cater to the spike in the demand business comes across many predicted and to combat Covid-19. We have always been unpredicted hurdles but this time it has been a socially driven organization and have an exception not only for us but globally. But always served the society with the best of something that has always been a constant in our capability in the time of crisis and this such times that we bounce back stronger than outbreak, was another platform for us to ever, and this situation, my dear team is no give back to the society. Not only sanitizer, different. we have also been regularly supplying the We are an industry governments rely on essentials to the needy wherever we can and for their growth and we, will be no less than contributing significantly to various COVID economy warriors in the months to come. relief funds set up by the state governments. To repair the business and economy will Amar Sinha Chief Operating Officer Dear Radico Khaitan Team ish you all safety and good health! the next three decades, China rode the humbled to have been able to make our small I am writing to you in the most wave of globalisation and became the global contribution to the nation’s fight against unprecedented of times that manufacturing hub.
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