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How the Khaitans Built Radico Khaitan’s Liquor Empire
Lalit Khaitan’s family bought a struggling distillery in Rampur in 1972.
For many years, it mostly made alcohol that other companies sold under their own names.
Lalit and his son Abhishek decided to create brands of their own.
Their whisky brand 8PM sold one million cases in its first year.
Later, they introduced Magic Moments vodka, which became a major brand in India.
Radico Khaitan also developed premium Indian spirits, including whisky and gin.
The company says it now sells its products in more than 100 countries.
Its story shows how a family business moved from making ingredients to selling its own products.
Lalit Khaitan’s family bought the loss-making Rampur distillery for ₹16 lakh in 1972.
After years of supplying bulk alcohol, the company shifted toward building its own consumer brands.
Radico Khaitan launched 8PM whisky in 1998; it sold one million cases in its first year, according to the article.
The company launched Magic Moments vodka in 2006, and the article says it now holds over 60% of India’s vodka market.
For FY2026, Radico reported ₹6,050.4 crore in operating revenue and ₹600.3 crore in net profit.
- Who
- Lalit Khaitan, his son Abhishek Khaitan, and Radico Khaitan.
- What
- The family built a liquor company by shifting from bulk alcohol supply to developing consumer brands.
- Where
- The original distillery is in Rampur, Uttar Pradesh; the company also operates a distillery in Sitapur and bottling plants across India.
- When
- The family bought the distillery in 1972; 8PM launched in 1998 and Magic Moments in 2006. The article reports FY2026 results.
- Why
- The family sought to escape the low margins of selling bulk alcohol and capture more value through its own brands.
Reasons to pursue owned brands
Risks of leaving bulk supply
Moving beyond contract manufacturing
Reasons to pursue owned brands
Building consumer brands offered a way to capture more of the value created after alcohol left the distillery.
Risks of leaving bulk supply
The company lacked established brand experience, marketing resources, and a broad retail distribution network, making the move risky.
Launching vodka
Reasons to pursue owned brands
Abhishek Khaitan saw potential in changing urban lifestyles and believed vodka could grow into a larger category.
Risks of leaving bulk supply
At the time of the 2005 proposal, vodka represented less than 2% of the Indian liquor market and was viewed as a niche product.
Key facts
- Original purchase
- The Rampur distillery was bought for ₹16 lakh in 1972.
- 8PM launch
- Launched in 1998; the article says it sold one million cases in its first year.
- Magic Moments launch
- Launched in 2006.
- Vodka market share
- The article says Magic Moments commands more than 60% of the Indian vodka market.
- FY2026 operating revenue
- ₹6,050.4 crore.
- FY2026 net profit
- ₹600.3 crore.
- Exports
- The company exports to more than 100 countries, according to the article.
Quotes
Lalit Khaitan
Radico Khaitan chairman and managing director, quoted in a Fortune India interview.
“From class 9 onwards, I was very clear that I wanted to be in the liquor trade.”
financialexpress.com
Sources
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