Amrut sees rum gaining ground as premium spirits demand spreads beyond metros

Rakshit N Jagdale, Managing Director, Amrut Distilleries
| Photo Credit:
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Amrut Distilleries expects to close FY26 with around 8 per cent revenue growth and a 5 per cent increase in volumes, with the liquor maker projecting a stronger FY27 and targeting about 10 per cent volume growth next year as demand for premium spirits, including single malts and luxury rum, expands beyond metros into tier-2 cities.

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The company currently exports to 58 international markets. However, Rakshit N Jagdale, Managing Director, Amrut Distilleries, said overseas demand for Indian single malt whiskies has remained largely subdued over the past two years, weighed down by weaker consumption in Europe and the U S. As a result, the international market has been challenging for Indian single malts, though conditions may improve in 2026.

He also noted that the UK free trade agreement (FTA), due to which Scotch whiskeys will get cheaper, presents both opportunities and risks for domestic players, as the industry remains uncertain about the minimum import price (MIP) that will be applied under the pact.

“The industry is worried about cheaper Scotch whiskeys being dumped in India. Going forward, we expect good competition from single malt whiskeys and premium blended whiskeys coming in from Scotland. On the other hand, since we import blended malt Scotch, those prices will soften to a large extent, providing us with an opportunity,” he said.

In the domestic market, premium and luxury rums are gradually gaining traction. While whisky remains Amrut’s core category, the company is seeing growing consumer interest in experimenting with higher-end rum offerings.

“Whiskey dominates our sales, but we are trying to create a mark with rum as well. Consumers may move partially from whiskey to rum rather than to brandy,” he said.

Rising disposable incomes in tier-2 and tier-3 cities are also driving demand for higher-quality spirits, as consumers increasingly aspire to trade up from quantity to quality. Tier-3 cities are expected to follow more gradually, though they are also likely to contribute to future growth.

Recently, Amrut also recently expanded its distillation capacity to nearly 1.3 million litres.

Published on March 9, 2026