News: Radico closing in on European wine co
(DNA 09/08/2006) Mumbai - Radico Khaitan, the Rs 1,200-crore, second largest liquor maker in the country, is said to be acquiring a European wine company.
Both Abhishek Khaitan, managing director, and Lalit Khaitan, chairman and managing director, are said to be in Europe currently sewing up the deal.
The company may fund the acquisition by raising about $125 million through a convertible bonds issue or global depository receipts.
Radico will also be acquiring two more brands in Africa and West Asia by the end of current fiscal, according to sources.
The company has been on the lookout for domestic brands in the eastern and western regions where it does not have a significant presence.
It has appointed Rabo India Securities, the Indian arm of Netherlands-based Rabobank, to advise on acquisitions.
Radico aims to achieve a 25% growth in topline and bottomline annually for the next three years.
The focus on building brands has paid rich dividends for Radico in the recent past.
The company is breaking into newer and sophisticated markets with liquor brands developed to appeal to a wider palate.
It recently Rs 184 crore through a foreign currency convertible bonds issue. It had issued FCCBs worth $40 million with a greenshoe option of $10 million.
The money is being deployed for capital expenditure requirements and investments in joint ventures and subsidiaries abroad.
Radico Khaitan bought eight key brands of Brihan Maharashtra Sugar Syndicate for Rs 35 crore in last September.
It exports 8PM Whisky, Contessa Rum and Old Admiral Brandy to over 30 countries. It was exporting its products to UAE, Africa and South-East Asia, Australia, New Zealand and US.
The company registered 20% increase in net profit to Rs 13.28 crore for the quarter ended June 30, 2006, from Rs 11.06 crore in the same period last year, mainly due to diversification and aggressive brand building exercise.
Both Abhishek Khaitan, managing director, and Lalit Khaitan, chairman and managing director, are said to be in Europe currently sewing up the deal.
The company may fund the acquisition by raising about $125 million through a convertible bonds issue or global depository receipts.
Radico will also be acquiring two more brands in Africa and West Asia by the end of current fiscal, according to sources.
The company has been on the lookout for domestic brands in the eastern and western regions where it does not have a significant presence.
It has appointed Rabo India Securities, the Indian arm of Netherlands-based Rabobank, to advise on acquisitions.
Radico aims to achieve a 25% growth in topline and bottomline annually for the next three years.
The focus on building brands has paid rich dividends for Radico in the recent past.
The company is breaking into newer and sophisticated markets with liquor brands developed to appeal to a wider palate.
It recently Rs 184 crore through a foreign currency convertible bonds issue. It had issued FCCBs worth $40 million with a greenshoe option of $10 million.
The money is being deployed for capital expenditure requirements and investments in joint ventures and subsidiaries abroad.
Radico Khaitan bought eight key brands of Brihan Maharashtra Sugar Syndicate for Rs 35 crore in last September.
It exports 8PM Whisky, Contessa Rum and Old Admiral Brandy to over 30 countries. It was exporting its products to UAE, Africa and South-East Asia, Australia, New Zealand and US.
The company registered 20% increase in net profit to Rs 13.28 crore for the quarter ended June 30, 2006, from Rs 11.06 crore in the same period last year, mainly due to diversification and aggressive brand building exercise.
posted by InCar Group Press Room at 19:29
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