Radico Khaitan board nods expansion of two capital projects; Stock plunges 4%

4 Feb 2022 , 11:41 AM

The Board of Directors of Radico Khaitan Ltd in its meeting held on February 03, 2022 has approved the two capital projects which would enable the Company to capitalize on the future growth opportunities in the branded business along with securing raw material supplies.

As per regulatory filing, the board has approved the conversion of the existing 140 KL per day molasses plant at Rampur, UP into dual feed (“Rampur Dual Feed”)

Further, the board has decided to establish a new greenfield grain based distillery in Sitapur, UP with production of upto 330 KL per day (“Greenfield Project”).

Sitapur campus will be 100% self-sufficient on its power requirements using bio fuels from the inception.

In addition to producing 330 KLPD of Extra Neural Alcohol (ENA), Sitapur campus will also have the following facilities which are expected to be operational by Q3 FY2023:

• Bottling plant of IMFL and CL. It will be ramped upto 10 million cases, for IMFL and CL, each to be set up in phased manner over the future based on business demand
• Malt maturation hall keeping in view the future growth potential of Rampur Indian Single Malt 

Also, investments required for Rampur Dual Feed is Rs185cr and Greenfield Project is Rs55cr where the mode of financing of Rs370cr will be from Long Term Borrowings and balance Internal Accruals, said company in a filing.

At around 11:41 AM, Radico Khaitan was trading at Rs1,007.15 apiece down by Rs42.25 or 4.03% on Sensex.