HigH On Premium

High On Premium

We have a generation today seeking new and interesting experiences. Something that matches and satisfies their aspirations. We are seeing many consumers buying products and services, beyond their basic-need, because of the way it makes them feel.

and gave consumers what they want - an entirely new experience. Whether it is Magic Moments vodka or Morpheus Super Premium brandy, we created consumer segments that didn't exist. As a result, we established market leading positions in different industry segments.

The journey from being a distiller of spirits to a leading IMFL player with global brands has been remarkable.

Over the years, Radico Khaitan's growth strategy has been centered around one simple principle ? premiumization. Since the launch of our first premium brand, i.e. Magic Moments vodka, there has been no looking back.

We recognized the growth story of India, the increasing purchasing power of its consumers and their aspirations. Even as the world waited and allowed the story to unravel, we have been getting ready. In the last decade, we have launched twelve new brands of which eleven have been in the premium category.

We adopted an unconventional route to brand building. We identified gaps in the industry

We took a leap of faith when we launched Rampur Indian Single Malt Whisky and Jaisalmer Indian Craft Gin. Within a short period of its launch, both these products have established a mark for themselves in the global markets. This is true testament to our brand creation capabilities.

For Radico Khaitan, the last few years have been the phase of consolidation. Our performance during the last five years has been a result of our transformational strategy. With a robust brand portfolio, an exciting pipeline of new launches and a strong balance sheet, we are future ready and poised for the next stage of growth.

We are High on Premium!

contents

Corporate Overview

About Radico Khaitan

02

Brand Portfolio

04

Our response to Covid-19

11

Financial Highlights

12

Transformational Journey

14

Letter to Shareholders

20

QA with the MD

22

Board and Leadership

24

Business Strategy

26

Environmental Stewardship 28

Statutory Reports

Directors' Report

32

Annexures to Directors' Report 40

Management Discussion and 49 Analysis

Report on Corporate

58

Governance

Business Responsibility

78

Report

Financial Statements

Independent Auditor's

87

Report on Standalone

Financial Statements

Standalone Financial

94

Statements

Independent Auditor's

138

Report on Consolidated

Financial Statements

Consolidated Financial

144

Statements

Company Information

191

Total IMFL volume

22.34

Million Cases

(8.0%) y-o-y growth

Prestige & Above volume

6.51

Million Cases

29% of Total IMFL volume

Revenue from operations (Net)

`2,418.18 Crore

(0.4%) y-o-y growth

EBITDA

`407.79 crore

10.8% y-o-y growth 169 bps margin expansion

Net Debt

`197.54 crore

reduction during fy2021 `184.50 Crore

Excise Duty paid

`7,479.22 Crore

Disclaimer In this Annual Report, we have disclosed forward-looking information to enable investors to comprehend our prospects and take informed investment decisions. This report and other statements ? written and oral ? that we periodically make may contain forward-looking statements that set out anticipated results based on the management's plans and assumptions. We have tried, wherever possible, to identify such statements by using words such as `anticipates', `estimates', `expects', `projects', `intends', `plans', `believes', and words of similar substance in connection with any discussion of future performance. We cannot guarantee that these forwardlooking statements will be realized, although we believe we have been prudent in our assumptions. The achievement of results is subject to risks, uncertainties and even inaccurate assumptions. Should known or unknown risks or uncertainties materialize, or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated or projected. Readers should bear this in mind. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

ABOUT RADICO KHAITAN

A legacy of over 75 years...

Started in 1943, steadily and patiently, we have evolved from being just a distiller of spirits and bottler for others to a leading Indian Made Foreign Liquor (IMFL) company with a diversified brand portfolio. Today, we have some of the best known brands being served in the nation and international markets including Rampur Indian Single Malt whisky, Jaisalmer Indian Craft Gin, Magic Moments Vodka, Morpheus XO Brandy, 8PM and 8PM Premium Black Whisky, 1965 Spirit of Victory Rum, Old Admiral Brandy, Contessa Rum, After Dark Premium Whisky, etc

Formerly known as Rampur

Distillery Company

Five owned and 28 contract bottling units spread across the country with a total annual capacity of 160 million litres

Strong distribution network. Sale through over

75,000 retail and 8,000 on premise

outlets

Started the brand journey in 1998 with

the launch of 8PM Whisky

Five millionaire brands in our

portfolio ? 8PM Whisky, 8PM Premium Black Whisky, Magic

Moments Vodka, Contessa Rum and Old Admiral Brandy

One of the largest providers of branded IMFL to the Canteen

Stores Department (CSD), which has

significant business barriers to entry

A Fortune India 500 company

02 | Radico Khaitan Limited

Corporate overview | Statutory Reports | Financial Statements

Annual Report 2020-21 | 03

BRAND PORTFOLIO

"Products are made in a factory but brands are created in the mind."

Walter Landor, Branding Pioneer

We are one of the few companies in the Indian Alcobev industry to compete with international premium companies with our own home growth brands. In line with our mission statement, `To develop products that customers love and endorse', we have innovated, tested and ensured that we launch products and the customers will make them as Brands.

Indian botanicals. Of the 11 botanicals used in the distillation, 7 have been sourced from all four corners of India. Jaisalmer Indian Craft Gin is like an oasis in the desert, with an elegant refreshing finish that lingers long after.

Within a short span, Jaisalmer Indian Craft Gin has a global footprint in more than 25 countries and is loved and adored by our customers.

Jaisalmer Indian Craft Gin, The Royalty Awaits

Rampur Indian Single Malt Whisky, Decades of Perfection

Jaisalmer Indian Craft Gin is as royal and spectacular in its lineage as the name suggests. Dedicated to this spectacular way of life, Jaisalmer Indian Craft Gin harks back to imperial age of Maharajas and Maharanis and their leisure moments. A triple-distilled neutral grain spirit, re-distilled in a traditional copper pot still; the recipe is handcrafted in a time-honoured way.

Derived from the ancient Indian knowledge of herbs; retaining the classic gin flavour of juniper berries, a refreshing twist has been added with hand-picked

AWARDS

? Best Asian Gin by The Gin Guide Awards 2019 ? Gold Medal by The Fifty Best New York 2020 ? Grand Gold at the Monde Selection for two consecutive

years 2020 and 2021 ? Scored 95 points at Ultimate Spirits Challenge 2020 ? Double Gold by The Fifty Best New York 2021 ? Gold Medal Winner at International Spirit Challenge

2021 ? Scored 94 points at Ultimate Spirits Challenge 2021

With footprint in over 45 countries, Rampur Indian Single Malt Whisky was made available in Delhi, India, for the very first time at select retails and the top 5-star properties. Rampur is a luxury brand that is manufactured at our plant in Rampur (UP). It is aged to perfection in the foothills of the Himalayas and is called the Kohinoor of single malts. Packaged in a stout bottle with a thick base, the bottle exhibits a quintessential look as it comes in a hand-crafted silk pouch. It has drawn global recognition for its smoothness, taste, and quality within a very short time, since its launch in FY2017, with expressions priced between US $70 and US $1400. Its success is an a rmation of our R&D expertise. We have made investment in malt capacity expansion to cater to the demand for this product.

AWARDS

? Gold Medal Winner at The International Spirits Challenge 2021

? Scored 92 Points at The Ultimate Spirits Challenge 2021 ? Scored 90 Points at The New York International

Competition 2021

04 | Radico Khaitan Limited

Corporate overview | Statutory Reports | Financial Statements

Magic Moments Vodka, Make Every Moment a

Magic Moment

Launched in 2006, Magic Moments is India's largest premium vodka brand with around 60% market share. Produced from the finest grains, its triple distilling process is a mark of absolute purity. This premium vodka is smooth and gives an enriched taste. No wonder, this brand of vodka is a millionaire brand of the Company winning many coveted laurels. As a brand extension, the Company's brand Magic Moments Remix has been an instant hit. Available in di erent flavours including Green Apple, Orange, Lemon, Lemongrass & Ginger, Grapefruit & Watermelon, the flavours have become a favourite amongst mixologists that take the experience up a notch.

? Ranked 11th largest vodka globally by the Millionaires' Club, 2021

AWARDS

? Ranked 13th best-selling vodka globally on The Spirits Business Brand Champions list

? Magic Moments Premium Grain Vodka and Lemon flavour won Gold awards at the Monde Selection, 2021

Magic Moments Verve, The Smooth Blend of

Sophistication

Verve is a super-premium vodka launched in 2012. Using a five-staged slow filtration process with silver and platinum filters, this vodka is unique, with distinct flavours that have made it a hit among consumers. With a 20% market share of the premium vodka category making, it continues to be one of the fastest growing vodka brand in the super premium segment.

? Won Gold in eight calendar years - 2013, 2014, 2015, 2016, 2017, 2019, 2020 and 2021 at the Global Monde Selection Awards

AWARDS

? Two flavours ? Green Apple and Orange ? won International High Quality Trophy and Gold award (for the third consecutive year) at the Monde Selection, 2021

? Two newly launched flavours Lemon Lush and Cranberry Tease won Gold and Silver awards, respectively, at the Monde Selection, 2021

Annual Report 2020-21 | 05

Morpheus XO Brandy, Dare to Dream

With around 60% market share in the premium brandy category, Morpheus is India's largest selling premium brandy. Crafted by our master blenders to challenge traditional brandy tenets, it's rich blend is truly irresistible. Named after the Greek God of Dreams, it provides an exotic experience to the premium brandy lovers. Its goblet packaging and brand positioning have helped create a niche as a spirit that is intense and sophisticated.

AWARDS

? Won Gold six times at the Monde Selection Awards in the calendar years ? 2011, 2015, 2016, 2017, 2018 and 2021

Morpheus Blue XO Premium Brandy,

Dare to Dream

Indulge in the taste of excellence the enriched XO blended premium brandy in the sublime allure of Morpheus Blue. The true embodiment of understated perfection. Crafted by our master blenders, Morpheus Blue is perfection in a bottle, packed for the most deserving of dreamers.

AWARDS

? Won International High Quality Trophy and Gold award (for the third consecutive year) at the Monde Selection, 2021

06 | Radico Khaitan Limited

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