[CAPTION]Siddhartha Sharma, promoter, Piccadily Agro Industrie. [/CAPTION]
Piccadily Agro Industries Limited (PAIL), the producer of Indri single malt and Camikara rum, is embarking on an ambitious ₹1000 crore expansion plan, which was announced by the company earlier this month. This includes a brownfield expansion of its distillery and malt facilities in Indri, Haryana, a greenfield expansion in Mahasamund, Chhattisgarh, and the establishment of its first international distillery in Portavadie, Scotland. In September 2024, PAIL raised ₹262 crore through a preferential allotment from investors, with an additional ₹50 crore invested by the company’s promoters. The expansion is expected to be completed within the next 24 months, with phase one of the Indri plant’s malt and ethanol facilities slated to finish in early 2025.
_RSS_In 2023, Indri Whisky earned national recognition by winning the ‘Best in Show, Double Gold’ award at the Whiskies of the World Awards after a rigorous blind tasting process. Competing against over 100 whiskies from around the globe, Indri outperformed numerous international brands, including Scotch, bourbon, and other single malts from Canada, Australia, and the UK.
With the increasing demand for whisky, both in the economy and premium craft spirits category, India is now recognised as the world’s largest whisky market. Piccadilly’s expansion comes at a pivotal moment, bolstered by its Q2 FY25 financial results, which show a 63.45 percent year-on-year revenue growth and a 74.45 percent increase in EBITDA, underscoring the company’s growing strength and the global interest in Indian spirits.
In conversation with Forbes India, Siddhartha Sharma, promoter, Piccadily Agro Industries Ltd and the distillery, talks about Indri’s global recognition, its national and global expansion, current trends in the Indian alcobev space and more. Edited excerpts:
Q. In the past couple of years, Indri has gained a lot of recognition in India as well as globally. What sets Indri apart from all the other global competitors?
When we talk about global competitors, I think the main difference is the kind of barley that we use in India. India has not been a whisky-producing country predominantly; it is a whisky-drinking country. We don’t grow a lot of barley, so there’s not been a lot of research on it, like there’s been a lot of research on wheat and rice and other products. The variety of grain that we use is the six-rowed barley (a type with a rounded head and six kernels per node along the stem) which is grown in Rajasthan. That variety is different from the two-rowed, which is a modified variety, which grows all over Argentina, Europe, and is used globally as the base for brewing beer and whisky. There’s a lot more sugar in there, so you get a different flavour profile. Ours is more protein heavy, and so a different flavour profile. I think that is one reason why Indri is different from the world peers.
Second is the variation in weather that India sees. It goes down to almost zero degrees, say in Haryana, in the winters, and all the way up to 50 degrees in the summer, so the variation of temperature is 50 degrees around the year. Whereas, in other countries wherever whisky is made, the maximum variation will be 10-15 degrees. The variation in temperature influences almost 70 percent of the whisky’s character because of the interaction with wood, and that’s what creates the magic.
Q. After winning the title of the best whisky in the world in 2023, how has the recognition impacted the brand’s reputation?
It’s definitely helped us. I also must say that before Indri was declared the world’s best, it bagged many more recognitions. We’ve since been winning. There has been an endorsement of the product globally, and wherever we’ve travelled, wherever we’ve taken the product, there’s been a lot of appreciation. Recently, I got to know about Bungalow, a new restaurant in New York called Bungalow [by celebrity chef Vikas Khanna], with which we have no collaboration, and I read that Indri whisky sells more there as compared to Macallan. The news made my day.
Read more: Whisky is a very flexible drink: Shinji Fukuyo of Suntory Spirits
So, yes, awards do help. People get introduced to your product, but will they come to you again is the main question. Just because somebody says it’s good, it doesn’t make whisky sell. The point is that you did try it once, because you heard about it, but do you come back to that whisky again? I think that’s the key, and that’s where we’ve been successful. We are being served at weddings. We’ve got a dedicated fan base and people are buying it again and again. The journey starts from where people start to try you, and then you have to deliver on price, on quality, and you have to keep doing it again and again.
Q. Can you tell us about Piccadily’s expansion strategy in India? What are some of the key challenges you anticipate in expanding your footprint across India?
Every state in India is different. They have their own excise rules. It’s a state subject and there are different rules all over India. Wherever we go, even when we go to distribute, our margins, our duties are structured. In India, each state is much bigger than most countries. Those are basic challenges of the business and one will have to live with them. According to me, what’s been good in the past four-five years is that this business has been now considered an ‘industry’. It’s not a taboo anymore, and the government and offices are willing to talk to distilleries. Alcohol was always brushed under the carpet before that. It was not something that the political people or the bureaucracy wanted to talk about. But, because of the kind of jobs we are creating, the kind of the revenue that has been generated for the government, now governments are starting to realise this is a mainstream industry and we have to work with them and support them the same way we support any other industry.
Q. Are there any specific states that you’re focusing on for expansion?
We are already there in the north. We’re kind of catering to this whole northern region, where we can probably send ourselves all the way up to Rajasthan and Madhya Pradesh. But, now we wanted to focus on Bihar, Jharkhand, Orissa, and Chhattisgarh, so we chose Chhattisgarh as a destination for a new distillery. The region has an abundance of grain and energy, and there’s a lot of rice, maize and grain available for production at a better cost than the northern states. And, the saturation of distilleries is much more in the northern states, rather than in Jharkhand, Orissa or Chhattisgarh. That’s why we chose Chhattisgarh.
Q. In terms of international expansion, what are some of the key markets you’re targeting?
For India and our products from India, that is the rum and the single malt, the US and Canada are still the biggest markets because they have a huge appetite for building brands and consuming large volumes of alcohol. Also, the Indian population there is huge and the people are now proudly wanting to embrace Indian products, which might have not been the case 10-15 years ago. I’ve seen nowadays if somebody goes to somebody’s house in America, they want you to try an Indian single malt, Indri or some other brand. That is helping us build the blocks for the Northern American market.
Q. What is your perspective on the Indian whisky industry today? How do you perceive the current trends?
There are two things that have happened in India. Number one is that technology has made information much more easily available. Everybody who is consuming alcohol, food, beverages is now aware of what they are drinking and eating. They usually search online about what they are having and what the background story is. People have started to consciously choose things that are better in quality for them.
Read more: Decoding the differences in Scottish whisky
And second, from when Covid came and went, it changed people’s perception of saving up for tomorrow. People obviously focus on making money, but also on living their lives for today. They are now investing not just in a good house, but also their daily needs. These are the two major shifts which have happened in my opinion—Covid and information dissipation for the younger generation, which knows what they want to have and is willing to experiment with new products. And then, after experimenting, sticking to the products that they like; they’re not willing to accept whatever their dad had.
And also, with Indri, we’ve seen something that we are very excited about, and has worked for us. A lot of women love Indri. The narrative used to be that usually a lot of men will like whisky, and women will have vodka or wine or something. Nowadays, I go to parties and I see more women having whisky, as compared to men. That’s a shift which is changing a lot of narratives in the premium alcobev space.
Q. How do you see Indian-made whiskies competing in the global market?
I think Scotland can be said to be a big player in the production of good whisky. It would be incorrect to say that we did not learn how to make whisky from them. Of course, they make great whisky and it’s a different product altogether. That’s why Piccadily decided to go to Scotland to set up a new distillery to make a unique, different single malt. We are not going to follow the path that every other single malt in Scotland does. It is going to be different, but it’s too early to already let the cat out of the bag. Also, in the alcohol space in India, because the quality is going up, there are a couple of distilleries making great products which are getting accepted worldwide. There is a scope which Indian distillers have not yet realised, which we feel Piccadily wants to do. We want to be an alcobev company on the global stage. We don’t want to be limited within India. We want to create a company and brands which are global brands. You go to an airport, you go to a ship, you go to a hotel, anywhere in the world, and you should have our products in the mini bar.
Q. Where do you see Piccadily Distilleries in the next five years? What is your vision for the brand and its growth trajectory?
Piccadily will expand its production capabilities, increasing total capacity to 250 kilo litres per day (KLPD) of its distillery Indri, Haryana. This includes boosting ENA/Ethanol production to 220 KLPD and scaling up the malt production from 12 KLPD to 30 KLPD. Additionally, the company is expanding its warehousing infrastructure to accommodate over 1,00,000 barrels. I believe these developments will enable Piccadily to meet the growing demand for premium whisky both in India and international markets, while also fuelling the creation of new products and expanding its portfolio into other spirit categories.
Piccadily is also set to launch a state-of-the-art visitor centre at Indri, aimed at whisky tourists and connoisseurs eager to explore the nuances of whisky making. This new initiative will enhance the overall visitor experience, complementing the company’s expansion efforts in the premium spirits industry.
Read more: Men like Rosé & women like single malts—that’s the new normal: Ipsita Das, Moët Hennessy India
We are also setting up a green field state-of-the-art distillery in District Mahasamund in Chhattisgarh, with a production capacity of 210 KLPD comprising ENA/Ethanol production of 180 KLPD and malt production of 30 KLPD. The project is underway and is scheduled to be completed by Q2 FY26. To make a step towards our global expansion, we are establishing our first international distillery in Portavadie, Scotland, following a long-term goal of becoming an international alcobev company— this is an industry first for any Indian alco-bev company.
We are entering a transformative phase in our growth journey. This expansion is not just about scaling up our operations; it’s about reshaping the future of premium Indian alcobev spirits on a global stage.
