Nikhil Kamath Invests Rs. 400 Crore in a Liquor Company: “Never Spoken About It Publicly”

Nikhil Kamath Invests ₹400 Crore in a Liquor Company: "Never Spoken About It Publicly"

Nikhil Kamath Invests ₹400 Crore in a Liquor Company: "Never Spoken About It Publicly"

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Zerodha’s co-founder reveals his significant stake in Radico Khaitan, valuing it at approximately ₹400 crore, acquired through open market transactions.

Nikhil Kamath, the co-founder of Zerodha, has made headlines with his revelation of a significant investment in the liquor industry. During a recent podcast, Kamath disclosed that he has invested approximately ₹400 crore in Radico Khaitan, a leading liquor company known for brands such as Magic Moments vodka, 8PM Whisky, Old Admiral brandy, and Rampur single malt.

Kamath, 37, shared that his stake in Radico Khaitan ranges between 1.6 to 1.7 percent, acquired through transactions on the open market. “I’ve never spoken about it publicly,” Kamath admitted during the podcast, which featured Abhishek Khaitan, the Managing Director of Radico Khaitan, as well as co-founder of SideCar Minakshi Singh, co-founder of Gin Explorer’s Club Shuchir Suri, and founder of Goa Brewing Co Suraj Shenai.

The announcement sheds light on Kamath’s strategic investment choices and his confidence in Radico Khaitan’s potential. “We have ₹400 crore of Abhishek’s stock – Radico, which is a great investment for me, so don’t blame me for being a bit nicer to him,” Kamath humorously remarked.

Radico Khaitan, which has a market capitalization of ₹22,949 crore, initially focused on bottling but shifted its focus to branded beverages in 1997. The company competes with industry giants such as United Spirits, Stilldistilling Spirits India, and Third Eye Distillery Holdings.

However, Kamath’s investment and the nature of the podcast has drawn criticism from Dr. Cyriac Abby Philips, known as “The Liver Doc.” Dr. Philips criticized Kamath and the podcast’s participants for allegedly promoting the idea that alcohol consumption, even in moderation, is beneficial for health. “When these businessmen start glorifying their business of alcohol by equating it to ‘good healthcare intervention,’ it goes definitely into the realm of health misinformation,” Dr. Philips stated.

Despite the criticism, Kamath’s significant investment in Radico Khaitan underscores his belief in the company’s future growth and his willingness to diversify his investment portfolio.