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Pernod Ricard becomes India’s biggest spirits maker
Pernod Ricard has become the largest spirits producer in India with a consolidated sales revenue of INR268 billion (£2.5bn) in FY24.
The spirits giant, headquartered in France, has pushed rival United Spirits, owned by Diageo, into second spot, according to local reports.
United Spirits reported INR260bn in operating revenue for the fiscal year ended 31 March 2024, The Week has reported. It said that Pernod Ricard India has reported an overall 6.9% increase in its operating revenue for FY24, and its profit rose 20.9% to INR16bn, according to the Registrar of Companies data accessed by business intelligence platform Tofler.
India is now Pernod Ricard’s second biggest market by value, and largest by volume, and was a bright spot for the company in its overall results for the first quarter of FY25. The French group reported a 2% rise in overall sales in India, despite an 8% drop in Asian markets overall.
In China, where extra tariffs hang over Martell Cognac, sales slumped by 25%. Scotch and Cognac were the worst affected sectors with weak demand throughout the summer and during the important mid-Autumn festival which features much family travel and gifting.
In the July to September first quarter it achieved sales of €2.78 billion, an organic fall of 5.9% compared with the same period in 2023, or -8.5% in absolute terms.
In its biggest market, the US, Pernod Ricard’s sales fell by 10% as consumers continued to spend cautiously and the group made inventory adjustments. While it expects a ‘gradual’ improvement over the next nine months, much will depend on the Christmas season to which it is focusing on “strong activation plans and protecting marketing investment in our key brands”.
Pernod Ricard continues to invest in its Indian arm, and is in the process of building the largest malt distillery and maturation facility in Asia, to be situated in Nagpur, India. The company has already committed approximately INR1bn to the site, and plans to invest a total of INR18bn over 10 years.
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