From Legacy to Luxury, Amrut’s Bold Leap

Amrut Distilleries Ltd is basking in the glory of its latest limited-edition, The Expedition, as it marks 75 years of creating world-class spirits. Touted to be India’s longest matured single malt, Amrut has set a new benchmark with its focus on premium and luxury spirits. At the forefront of this milestone is its Managing Director Rakshit N. Jagdale who has pushed boundaries while keeping an eye on innovation since taking charge. In this engaging conversation, Rakshit shares his insights with Bishan Kumar on the company’s financial health, brand expansion, and the emotional significance of the latest 15-year-old whisky release. 

Congratulations on Amrut’s 75th anniversary. The Expedition is not only the longest matured single malt but also the most exquisitely packaged whisky the country has ever seen. What was the vision behind launching this, limited edition expedition, and can we safely say that history has been created with this launch?

Yeah, absolutely. I think we have created history in our own way, bottling India’s oldest single malt whisky, 15 years old. I think, and we have set a new benchmark for ourselves, and God willing, we will progress to the next level, could be 18 years old in the coming years.

In order to commemorate 75 years of Amrut’s establishment, we wanted to go to the next level. We did introduce Amrut’s Greedy Angels 12-Year-Old a couple of years ago. So, I think the time was right to go to the next level and come up with a 15-year-old expression.

I know you were so attached to your father and looked up to him. When the company is celebrating its 75th anniversary and he’s not around, how are you holding up while celebrating his legacy?

I can’t put it in words. You’re absolutely right; it was launched today in his honour. As I mentioned during my welcome address, I strongly feel his presence today. In fact, the photograph that you showed, I think we’re deeply touched by that. Thank you for that. There’s always been a special connect between Spiritz and Amrut. Yeah, we’re doing it just to commemorate and celebrate what he has achieved for Amrut and the Indian alcobev industry.

How challenging was it to make a 15-yearold whisky in India and how did you come up with that? Also, please throw light on its target consumers who would prefer spending that kind of money on it? 

It was extremely challenging. This 15-year-old Amrut Expedition was initially matured in a sherry oak cask for about seven years and then it was recast into an ex-bourbon barrel for eight years. We had to carefully monitor the whisky once it crossed about seven to eight years because of the climatic conditions over here in India. The whisky tends to mature much faster because the Angels’ share is extremely high.

This whisky is priced anything between $10,000 and $12,000. We have just 75 bottles world over, nine have been allocated for India and remaining are spread across the world — in Europe, US, some of them in the APAC region and ASEAN countries as well. Things are becoming difficult for the spirits and consumers in India because of high logistics rates and ingredients cost going up. But we are targeting consumers who appreciate whisky globally, who are whisky connoisseurs and appreciate Indian single malt whisky, especially Amrut.

Please give some idea about the financial health of the company. How are you managing to retain profitability? Are you planning to get more funds to augment your operations?

As far as the company’s finances are concerned, in the current fiscal, we’ll be doing net sales revenue of close to ₹550 crore which is a landmark achievement for us. Also, we have a very strong EBITDA because of the single malt risk rate and our premium products, and looking at nearly 17-18 percent EBITDA, which is fairly good in our industry. Overall, this year, we’ll be probably touching, close to 6.5 million cases of the entire portfolio. 

So, if we are likely to build on this growth factory, we do require more funds to put into higher production and expansion. We require funds for enhancing our distillation and maturation capacities over here in Bengaluru. For now, everything has been arranged and we are good to go on that front.

Are you planning to rethink your strategy for mass market brands and spend more time and money into the premium brands? Also, which markets hold the most potential for your premium and super premium brands?

You’re absolutely right. With the mass market brands, we are currently present in only two states in India, Kerala and Karnataka. We are not taking our mass market brands to the rest of India because, as we understand, with the tremendous cost push that keeps happening, with alcohol prices increasing every year, it doesn’t make sense, to be in the mass market category. So going forward, our focus will be on premium and luxury. 

I think North India has a potential (for premium and super premium brands) that we have to capitalise and target. It’s that we don’t have enough stock. CSD is another important market for us, where our products are appreciated a lot and that is another major market for us.

As and when stocks are made available, our focus will be, on the CSD market primarily, and then we’ll increase our footprint across the rest of India. Going forward, I think the availability of Amrut from the production side will be much larger. From this year onwards, we will see more Amrut being available across the world, especially in India. However, I don’t see much, activation happening as far as Amrut is concerned in the North India.

You’ve tied up with IGL for North India operations of Maqintosh. Are you going to put more brands under that arrangement?

We’re only present in a few states in North India (for Maqintosh) and would like to expand this model along, with IGL’s approval and assistance. We’re very happy with this understanding that we have with IGL. Recently, we have an arrangement to go ahead with Old Port rum and Deluxe rum as well. So, the possibilities are endless with IGL

What is your outlook for the future of Indian whiskies and, where do you see Amrut Distilleries growing in next five years?

The concept of premiumisation has taken off in a very big way in India over the past 10 years. I think that trend of premiumisation is certainly going to sustain and Amrut’s focus is going to be premium and luxury only wherever we are going to sell in India.

Recently, we launched, India’s first jaggery distilled rum matured for six years. It was completely sold out within a matter of days. Our focus will be niche products like this in future.