Zerodha Co-Founder Nikhil Kamath Talks About His Investment In Alcohol Brand

Zerodha co-founder Nikhil Kamath has shared details about his latest investment. The billionaire has purchased stakes in Radico Khaitan, the maker of prominent alcohol brands like Magic Moments, 8 PM whisky, Rampur premium Indian single malt whisky, and Jaisalmer Indian craft gin.

During the latest podcast episode, ‘W**, Alcohol is a $70B Business in India?’, Kamath revealed that he has around 1.6–1.7 per cent stake in the brand, which amounts to approximately Rs 400 crore.

He also shared that investment details were never shared in public before. Kamath was joined by Abhishek Khaitan, MD of Radico Khaitan, in the episode alongside SideCar co-founder Minakshi Singh, Gin Explorer’s Club co-founder Shuchir Suri, and Goa Brewing Co. founder Suraj Shenai.

While introducing Khaitan, Kamath said, “We are a very small, miniature partner to Abhishek in his business as an equity partner. It is an investment that has done very well for us. We have never spoken about it publicly. I think it is 1.6–1.7 per cent. We have Rs 400 crore of Abhishek’s stock, Radico, which is a great investment for me, so don’t blame me for being a bit nicer to him."

The stake was purchased in the open market.

During this time, the Radico MD also shared that the company had a turnover of Rs 4,200 crore in 2023 with an impressive market cap of over Rs 20,000.

Watch the full interview here:

More About Radico Khaitan

One of the oldest and largest manufacturers of Indian-made foreign liquor, Radico Khaitan, commenced its operations in 1943 as Rampur Distillery. Over the years, the company emerged as a major bulk spirits supplier.

In 1998, Radico Khaitan launched its first own brand, 8PM Whisky. Further, it added more brands to its portfolio, such as Magic Moments, Contessa XXX Rum, and Old Admiral Brandy.

The Antique Stock Broking in its June 19 note stated that the company’s millionaire brands have grown significantly, outperforming peers.

“Even on a four-year CAGR basis, Radico Khaitan has outperformed peers with 7 per cent CAGR versus it being flat for United Spirits and 2 per cent for Pernod Ricard. The opening of restaurants and bars (on-trade) led to the strong recovery of Magic Moments vodka, driving volume growth of 29 per cent YoY to 6.2 million cases," it added.