Radico Khaitan Ltd.

Radico Khaitan Ltd. Investor Presentation October 08

Contents • The Indian Spirits Market • Challenges Of Indian Spirits Industry • Indian Spirits Industry – Growth Drivers • Radico - The Journey So Far • Future Growth Drivers for Radico

Contents • 6. SWOT Analysis • 7. Financials • 8. Core team of Radico

The Indian Spirits Market • Grown at CAGR of 9% over the past decade with 11-12% in last 2 years • Total market volume: 140 million cases in FY2008 • Liquor industry segmentation: Whisky 61% Brandy 19% Rum 15% White Spirits 05% • Lowest per capita consumption: India 1.4 (In litres) China 3.0 Thailand 3.5 Japan 3.8 Source: NACER

Challenges for Spirits Industry • Liquor in India is a state subject. Addressing each state is like addressing a country. • High investments for production & distribution channels. • Restrictive Liquor Advertising. High entry barriers for new entrants

Indian Spirits Industry Growth Drivers Large increase projected in emerging and regular consumers Aspiration Profile Change in Urban India Spending Patterns 1012 1178 Age Profile Shift from savings to spending on lifestyle products & services 150 million likely to be added to target consumer group in this decade > 60 7 8 20-59 48 54 0-19 45 38 2001 2011 Increasingly favourable demographics profile & increase in discretionary spends to further boost demand Source: NCAER, BW Marketing Handbook

Growth Drivers of the Spirits Industry • 790 million are in the drinking age group which are increasing by 20 million annually • Deregulation by state governments. Strong growth opportunities in the coming years

Radico – The Journey So Far.. 1943-1997 - Spirit Company 1998-2008– Second Largest Branded Company • Started Distillery in 1943 • A Major Spirits Supplier • Supplier of Rum to Armed Forces • Bottler for others • Launched its first brand 8 PM Whisky in 1998 • Second fastest growing company in the world by volume from 2002-2006. (avg growth rate:29.8%)* • Creation of number of Millionaire brands - 8PM Whisky, Contessa Rum and Old Admiral Brandy. • Market leader in semi- premium vodka segment with launch of Magic Moments in 2006 –reaching millionaire club by 2008-09 • Strong and dedicated sales & distribution team, covering 95% of bars, clubs and retail points • Acquisition of Whytehall whisky from Bacardi Martini India Ltd in 2004 and Brihans range of brands from Brihans, Maharashtra in 2005. • 28 bottling units : 5 own bottling units & 23 Contract bottling units in India • Diageo : Radico JV to create premium brands in the IMFL segment with its first launch of Masterstroke Deluxe Whiskey in 2007. *Source: JP Morgan Nov 2007

High Success Rate Of Brands Launches & Acquisitions 2006 2005 2004 2002 1998 1972 CONTESSA RUM (Regular Range) ~2.5 millioncase 8PM WHISKY (Regular Range) ~4 million case MAGIC MOMENTS VODKA (Semi – premium Range) ~1.1million OLD ADMIRAL BRANDY (Regular Range) ~2 million case WHYTEHALL WHISKY Acquisition (Deluxe Range) ~0.5 million case BRIHANS BRANDS Acquisition (Regular Range) ~1.5 million case

FY 2008 FY 1998 Radico’s Robust growth over last decade Over the last 9 years Radico Volume grown at CAGR of 23% against Industry volume CAGR at 9%

Indian Spirits Segmentation Liquor Segment Industry estimates

Radico Marketing Success Stories • 8 PM Whisky • Launched in 1998, it was the first Indian whisky (blended with scotch) offered to Indian consumers • First Spirits brand to enter Limca book of Records for selling one million cases in the first year of launch • The launch TV campaign was adjudged among the best ads of the century at Cannes • Recently famous Bollywood actress Mallika Sherawat endorsed the brand.

Radico Marketing Success Stories 8 PM Whisky • The new packaging launched in FY 09 is the first Grain blended whisky launched in operating segment. • Grain proposition is considered to be smooth, mellow & a superior whisky.

Radico Marketing Success Stories Old Admiral Brandy • Launched in 2002 • Adjudged fastest growing brandy brand in the world by Drinks International for two consecutive years 2003 and 2004 • Sold one million cases in the second year of its launch • Katrina Kaif had endorsed the brand in 2004. *Source – Drinks International,U.K,May 2006

Radico Marketing Success Stories Contessa Rum • Largest selling rum brand in the defense segment in FY08 20% of the defense market share • Sold 2.35 million case in FY08

Radico Marketing Success Stories Magic Moments Vodka • The only successful Brand launch in the industry across all flavors in last 5 years • Innovation in Packaging • Created new price point in the segment • Fastest growing brand in the category • The youth icon of Indian Bollywood industry- Hrithik Roshan has endorsed the brand • Rewarded with Gold Medal at Monde selection in 2008

Radico Marketing Success Stories Magic Moments Vodka

Radico Marketing Success Stories Magic Moments Remix Vodka-launched in Six New Flavors in FY 09. • Chocolate • Green Apple • Raspberry • Lemon Grass & Ginger • Lemon • Orange

M2- Remix

Largest Alcohol Manufacturer in the Country Radico’s Sustained Competitive Edge Distillery • The company has its largest distillery in the country based in Rampur, UP • The distillery has a capacity of manufacturing 104 million litres annually • 100% capacity utilization • Molasses Based : 75 million litres • Grain Based : 28 million litres • Malt Based : 720 thousand litres • The grain based facility was added in FY07 New Greenfield project • The company has entered into joint venture to set up another distillery in Maharashtra with an annual capacity of 36 million litres • It is expected to be operational by Dec 2008 Canteen Stores Department (CSD) • Radico market share is 29% of the CSD volume. • High Entry Barriers for getting brands approved.

Diageo – Radico Joint Venture The Blue Blood Marriage Diageo is the No.1 premium alcohol Beverage company in the world It has 10 brands among the top 20 brands in the impact’s hot brands survey ( impact –UK based trading magazine) Diageo has a strong presence in premium scotch segment with leading brands in India such as- Johnnie Walker, Black & White and VAT 69 • The company has entered into a 50:50 JV with Diageo which is the largest Premium liquor player globally to set up a brand marketing company • The JV has launched its first brand “ Master Stroke” in the deluxe whiskey segment. It has registered sale of around 230000 cases in 1st year • Both the companies have contributed Rs.75 million as the equity capital • Shahrukh Khan had endorsed the brand Masterstroke Diageo Radico Pvt. Ltd. Organization Structureof JV Asif Adil MD Raju Vaziraney CEO Dr. Lalit Khaitan Director Abhishek Khaitan MD

M2 with Flavors Spreading the Magic.. Global Vodka Industry ~ 22.5%* Indian Vodka Industry ~ 3% (4.4 million) (2007-08) Indian Vodka Industry growing 36% CAGR M2 Driving the semi-premium Vodka segment At Present M2 Vodka aims to become a millionaire brand in 2008-09 M2 CAGR~96% (2006 onwards) Industry Market Share ~15% Semi –premium segment market share~ 70% Indian Vodka Industry ~ 15 million (estimated) Indian Vodka Growth seen at ~ 27% CAGR In 5 years By 2013 Magic moments aiming at becoming market leader in the vodka category *Source JP Morgan 2007

Future Growth Drivers • Magic Moments • Expanding M2 brand portfolio through 6 new flavors introduced in the country • Test marketing of M2 vodka initiated in international markets in FY09 • Increasing width of distribution through CSD in FY09 • 8PM growth track • Launch of new packaging in the country with strong new communication backed by Malika Shehrawat’s endorsement • Launch of grain blended whisky • New Brand Launches • Exploring possibilities of tapping premium spirits market segment through launch of premium brands in the country. • Open to Strategic tie ups with global players • Old Admiral Brandy and Contessa Rum to witness the volume growth • Due to upgradation of the consumer from cheap to regular

Strengths Second largest player in the Indian spirits market 3 millionaire brands Innovation in brand creation. Established distribution network Largest distillery in UP and Maharashtra Large Presence In CSD Opportunities Launching new premium brands Making inroads in the untapped markets Uniform Federal Excise Policy Strategic tie up with global players Weakness Surrogate advertisement Not present in all price points Threats Volatility in raw material prices Change in regulatory environment. SWOT Analysis

Financial Summary Key Financials

Shareholding Pattern As on 28.09.2008

Lalit Khaitan (CMD) Abhishek Khaitan (MD) Radico Core Team Raju Vaziraney COO, Domestic Business Sanjeev Banga Head International Business Dilip Banthiya CFO K.P Singh Director, Mfg Operations Vice Presidents /Asst Vice Presidents Management Committees , Regional Profit Center Committees.

Disclaimer Certain statements in this presentation concerning our future growth prospects are forward- looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, including those factors which may affect our cost advantage, wage increases, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed- price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring companies outside India. Radico Khaitan may, from time to time, make additional written and oral forward-looking statements, including our reports to shareholders. The Company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the company.

Thank You! Q&A

Radico Khaitan Ltd.