Business · Companies · 6 hrs ago
Amrut expects whisky supply limits and cheaper Scotch to constrain sales through 2030
Amrut Distilleries expects its sales to stay flat through 2030 because demand for its whisky is outpacing what it can produce.
The Bengaluru-based company is an Indian single malt pioneer, but it cannot quickly increase single malt output because the whisky needs at least three years to mature.
Amrut has expanded distilling capacity, yet its available single malt inventory is limited.
Cheaper Scotch imports are adding pressure, after prices of some imported brands fell by more than 15% and affected Amrut sales in North India.
India’s free trade pact with the UK is expected to bring in more lower-cost Scotch, which could also weigh on sales of domestic whisky brands, especially newer blended whiskies.
Amrut is broadening its range beyond single malt, including with blended malt whisky, and plans a more affordable single malt for North India before December.
The company is holding off on major price cuts while it assesses the trade pact’s impact.
Amrut Distilleries expects limited whisky supplies and cheaper Scotch imports to constrain sales through 2030, managing director Rakshit Jagdale said.
Demand for its whisky is sharply outstripping production, and single malt needs at least three years to mature.
The company has 75,000 nine-litre cases of single malt inventory and expanded distillation capacity to 1.3–1.4 million litres last year.
Amrut is broadening its portfolio with blended malt and plans a more affordable single malt for North India before December.
- Who
- Amrut Distilleries and its managing director, Rakshit Jagdale.
- What
- The company expects supply limits and cheaper Scotch imports to constrain sales through 2030.
- When
- The outlook is through 2030. Amrut plans to introduce a more affordable single malt before December.
- Where
- Amrut is based in Bengaluru, India; the planned affordable single malt is for North India.
- Why
- Whisky demand is outstripping production, and maturation takes at least three years. Cheaper Scotch imports are also affecting sales.
This story does not have two clearly opposing sides.
Amrut expanded distillation capacity to 1.3–1.4 million litres.
Amrut plans to offer a more affordable single malt in North India.
Jagdale expects sales to be constrained by limited supply and cheaper Scotch imports.
- Single malt inventory
- 75,000 nine-litre cases
- Distillation capacity
- 1.3–1.4 million litres
- Maturation period
- At least three years
- Scotch price changes
- Some imported brands have dropped over 15%
- Affordable single malt
- Planned at about 15% below the price of Amrut’s Fusion brand in North India
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What people are saying
Before 2030, we'll see sort of flat sales because that's the quantity that we have.
We cannot increase the quantity.
Otherwise, you are stuck with single malt.
You are saddled with the limited volume that you can supply the market.