Siddhartha Sharma, promoter, Piccadily Agro Industrie.
Piccadily Agro Industries Restricted (PAIL), the producer of Indri single malt and Camikara rum, is embarking on an bold ₹1000 crore enlargement plan, which was introduced by the corporate earlier this month. This features a brownfield enlargement of its distillery and malt amenities in Indri, Haryana, a greenfield enlargement in Mahasamund, Chhattisgarh, and the institution of its first worldwide distillery in Portavadie, Scotland. In September 2024, PAIL raised ₹262 crore by way of a preferential allotment from traders, with an extra ₹50 crore invested by the corporate’s promoters. The enlargement is predicted to be accomplished throughout the subsequent 24 months, with part one of many Indri plant’s malt and ethanol amenities slated to complete in early 2025.
In 2023, Indri Whisky earned nationwide recognition by profitable the ‘Greatest in Present, Double Gold’ award on the Whiskies of the World Awards after a rigorous blind tasting course of. Competing in opposition to over 100 whiskies from across the globe, Indri outperformed quite a few worldwide manufacturers, together with Scotch, bourbon, and different single malts from Canada, Australia, and the UK.
With the rising demand for whisky, each within the financial system and premium craft spirits class, India is now recognised because the world’s largest whisky market. Piccadilly’s enlargement comes at a pivotal second, bolstered by its Q2 FY25 monetary outcomes, which present a 63.45 % year-on-year income progress and a 74.45 % enhance in EBITDA, underscoring the corporate’s rising power and the worldwide curiosity in Indian spirits.
In dialog with Forbes India, Siddhartha Sharma, promoter, Piccadily Agro Industries Ltd and the distillery, talks about Indri’s world recognition, its nationwide and world enlargement, present tendencies within the Indian alcobev area and extra. Edited excerpts:
Q. Previously couple of years, Indri has gained a number of recognition in India in addition to globally. What units Indri other than all the opposite world rivals?
After we speak about world rivals, I feel the principle distinction is the sort of barley that we use in India. India has not been a whisky-producing nation predominantly; it’s a whisky-drinking nation. We do not develop a number of barley, so there’s not been a number of analysis on it, like there’s been a number of analysis on wheat and rice and different merchandise. The number of grain that we use is the six-rowed barley (a sort with a rounded head and 6 kernels per node alongside the stem) which is grown in Rajasthan. That selection is completely different from the two-rowed, which is a modified selection, which grows throughout Argentina, Europe, and is used globally as the bottom for brewing beer and whisky. There’s much more sugar in there, so that you get a special flavour profile. Ours is extra protein heavy, and so a special flavour profile. I feel that’s one cause why Indri is completely different from the world friends.
Second is the variation in climate that India sees. It goes right down to nearly zero levels, say in Haryana, within the winters, and all the best way as much as 50 levels in the summertime, so the variation of temperature is 50 levels across the yr. Whereas, in different international locations wherever whisky is made, the utmost variation can be 10-15 levels. The variation in temperature influences nearly 70 % of the whisky’s character due to the interplay with wooden, and that is what creates the magic.
Q. After profitable the title of the perfect whisky on the earth in 2023, how has the popularity impacted the model’s fame?
It is undoubtedly helped us. I additionally should say that earlier than Indri was declared the world’s finest, it bagged many extra recognitions. We have since been profitable. There was an endorsement of the product globally, and wherever we have travelled, wherever we have taken the product, there’s been a number of appreciation. Just lately, I acquired to find out about Bungalow, a brand new restaurant in New York referred to as Bungalow [by celebrity chef Vikas Khanna], with which we’ve got no collaboration, and I learn that Indri whisky sells extra there as in comparison with Macallan. The information made my day.
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So, sure, awards do assist. Folks get launched to your product, however will they arrive to you once more is the principle query. Simply because any person says it is good, it would not make whisky promote. The purpose is that you just did attempt it as soon as, since you heard about it, however do you come again to that whisky once more? I feel that is the important thing, and that is the place we have been profitable. We’re being served at weddings. We have a devoted fan base and individuals are shopping for it repeatedly. The journey begins from the place folks begin to attempt you, after which you need to ship on value, on high quality, and you need to hold doing it repeatedly.
Q. Are you able to inform us about Piccadily’s enlargement technique in India? What are a number of the key challenges you anticipate in increasing your footprint throughout India?
Each state in India is completely different. They’ve their very own excise guidelines. It is a state topic and there are completely different guidelines throughout India. Wherever we go, even once we go to distribute, our margins, our duties are structured. In India, every state is way larger than most international locations. These are fundamental challenges of the enterprise and one must reside with them. In response to me, what’s been good up to now four-five years is that this enterprise has been now thought of an ‘business’. It isn’t a taboo anymore, and the federal government and places of work are prepared to speak to distilleries. Alcohol was all the time brushed below the carpet earlier than that. It was not one thing that the political folks or the forms needed to speak about. However, due to the sort of jobs we’re creating, the sort of the income that has been generated for the federal government, now governments are beginning to realise it is a mainstream business and we’ve got to work with them and help them the identical means we help some other business.
Q. Are there any particular states that you just’re specializing in for enlargement?
We’re already there within the north. We’re sort of catering to this entire northern area, the place we are able to most likely ship ourselves all the best way as much as Rajasthan and Madhya Pradesh. However, now we needed to give attention to Bihar, Jharkhand, Orissa, and Chhattisgarh, so we selected Chhattisgarh as a vacation spot for a brand new distillery. The area has an abundance of grain and vitality, and there is a number of rice, maize and grain obtainable for manufacturing at a greater value than the northern states. And, the saturation of distilleries is far more within the northern states, moderately than in Jharkhand, Orissa or Chhattisgarh. That is why we selected Chhattisgarh.
Q. By way of worldwide enlargement, what are a number of the key markets you are concentrating on?
For India and our merchandise from India, that’s the rum and the one malt, the US and Canada are nonetheless the largest markets as a result of they’ve an enormous urge for food for constructing manufacturers and consuming massive volumes of alcohol. Additionally, the Indian inhabitants there may be big and the folks are actually proudly desirous to embrace Indian merchandise, which could haven’t been the case 10-15 years in the past. I’ve seen these days if any person goes to any person’s home in America, they need you to attempt an Indian single malt, Indri or another model. That’s serving to us construct the blocks for the Northern American market.
Q. What’s your perspective on the Indian whisky business at present? How do you understand the present tendencies?
There are two issues which have occurred in India. Primary is that expertise has made data far more simply obtainable. Everyone who’s consuming alcohol, meals, drinks is now conscious of what they’re ingesting and consuming. They normally search on-line about what they’re having and what the background story is. Folks have began to consciously select issues which might be higher in high quality for them.
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And second, from when Covid got here and went, it modified folks’s notion of saving up for tomorrow. Folks clearly give attention to earning money, but additionally on dwelling their lives for at present. They’re now investing not simply in home, but additionally their every day wants. These are the 2 main shifts which have occurred for my part—Covid and data dissipation for the youthful technology, which is aware of what they wish to have and is prepared to experiment with new merchandise. After which, after experimenting, sticking to the merchandise that they like; they don’t seem to be prepared to just accept no matter their dad had.
And in addition, with Indri, we have seen one thing that we’re very enthusiastic about, and has labored for us. A whole lot of ladies love Indri. The narrative was once that normally a number of males will like whisky, and ladies could have vodka or wine or one thing. These days, I am going to events and I see extra ladies having whisky, as in comparison with males. That’s a shift which is altering a number of narratives within the premium alcobev area.
Q. How do you see Indian-made whiskies competing within the world market?
I feel Scotland will be stated to be an enormous participant within the manufacturing of excellent whisky. It might be incorrect to say that we didn’t learn to make whisky from them. In fact, they make nice whisky and it’s a special product altogether. That is why Piccadily determined to go to Scotland to arrange a brand new distillery to make a singular, completely different single malt. We’re not going to observe the trail that each different single malt in Scotland does. It’ll be completely different, but it surely’s too early to already let the cat out of the bag. Additionally, within the alcohol area in India, as a result of the standard goes up, there are a few distilleries making nice merchandise that are getting accepted worldwide. There’s a scope which Indian distillers haven’t but realised, which we really feel Piccadily needs to do. We wish to be an alcobev firm on the worldwide stage. We do not wish to be restricted inside India. We wish to create an organization and types that are world manufacturers. You go to an airport, you go to a ship, you go to a resort, wherever on the earth, and you must have our merchandise within the mini bar.
Q. The place do you see Piccadily Distilleries within the subsequent 5 years? What’s your imaginative and prescient for the model and its progress trajectory?
Piccadily will broaden its manufacturing capabilities, rising complete capability to 250 kilo litres per day (KLPD) of its distillery Indri, Haryana. This contains boosting ENA/Ethanol manufacturing to 220 KLPD and scaling up the malt manufacturing from 12 KLPD to 30 KLPD. Moreover, the corporate is increasing its warehousing infrastructure to accommodate over 1,00,000 barrels. I consider these developments will allow Piccadily to fulfill the rising demand for premium whisky each in India and worldwide markets, whereas additionally fuelling the creation of recent merchandise and increasing its portfolio into different spirit classes.
Piccadily can be set to launch a state-of-the-art customer centre at Indri, geared toward whisky vacationers and connoisseurs wanting to discover the nuances of whisky making. This new initiative will improve the general customer expertise, complementing the corporate’s enlargement efforts within the premium spirits business.
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We’re additionally establishing a inexperienced area state-of-the-art distillery in District Mahasamund in Chhattisgarh, with a manufacturing capability of 210 KLPD comprising ENA/Ethanol manufacturing of 180 KLPD and malt manufacturing of 30 KLPD. The challenge is underway and is scheduled to be accomplished by Q2 FY26. To make a step in the direction of our world enlargement, we’re establishing our first worldwide distillery in Portavadie, Scotland, following a long-term purpose of turning into a world alcobev firm— that is an business first for any Indian alco-bev firm.
We’re coming into a transformative part in our progress journey. This enlargement is not only about scaling up our operations; it’s about reshaping the way forward for premium Indian alcobev spirits on a world stage.
