Radico Khaitan will hand control of the JV to Diageo

Radico Khaitan will hand control of the JV to Diageo

Radico Khaitan has confirmed that it will pull out of its Indian partnership with Diageo, leaving the UK-based company with control of the venture.

Diageo Radico Distilleries, which was set up in 2006, will pass into Diageo’s hands, the Indian firm said late last week. The announcement follows confirmation in September of Diageo’s intention to end the Indian Made Foreign Liquor (IMFL) alliance “in the coming months".

Since September, Diageo has looked to set up its own distribution presence to handle its international brands in the country.

Releasing its fourth quarter and full-year results at the same time, Radico said that “net profits for the year have been adjusted for a loss of INR125m (US$2.3m) on the sale of this (JV) investment”.

For its fiscal year, net profits increased by 11.4% on the previous 12 months to INR791m, while net sales were up by 19.7% to INR15.3bn.