“Our company stands on two key principles – guaranteeing quality and assuring customer delight”- Jagatjit Industries

Established in the year 1944 with over 75 years of heritage, Jagatjit Industries Limited (JIL) is amongst the most prominent alcoholic beverages manufacturing companies in India. JIL’s guiding philosophy – “A Heritage of Quality” – finds expression at all levels of its activities; quality in manufacturing, technology, and in its relationship with its employees, dealers, and customers.

Talking about the company, Roshini S. Jaiswal, promoter and chief restructuring officer, Jagatjit Industries, says, “Over our enriching journey of more than 75 years in liquor manufacturing, what we have learned is to embrace modernization, to keep up with the changing trends. We are laser-focused on evolving our business to deliver more value for our customers, shareholders, and other stakeholders.”

As one of the largest IMFL (Indian Made Foreign Liquor) players in the country, JIL manufactures an entire range of alcoholic beverages such as Scotch, Whisky, Vodka, Gin, Rum & Brandy keeping in mind its promise – To provide superior products to the customers at an affordable price. Jaiswal adds, “Our current portfolio includes a brand in the ‘Millionaire Club’ i.e. selling more than a million cases annually.”

JIL has a state-of-the-art manufacturing base which is located in Jagatjit Nagar, Kapurthala District in the State of Punjab along with its other modern manufacturing unit in Behror, Rajasthan. It also has collaborations with bottlers all over India giving it a truly national presence.

The Royal Connect

A tiny hamlet called Hamira in the kingdom of Kapurthala in Punjab was the site for the unfolding of a family’s destiny. Sharing how the company has a connection with royals, Jaiswal tells us, “The Maharaja of Kapurthala, His Highness Sir Jagatjit Singh’s favorite cousin had a fiery, spirited daughter, Surjit. She was married to an ambitious young businessman, LP Jaiswal. During the Second World War, when the British requisitioned his home on Man Singh Road, Delhi (now the Punjab Circuit House), the Maharaja and his lady friend moved in with the Jaiswals at their home on Aurangzeb Road. That winter, as His Highness and the young couple became better acquainted, the germ of an idea that was to become Jagatjit Distilling and Allied Industries (now Jagatjit Industries Ltd.) was born in 1944.”

She further informed us that to start off the venture, the Maharaja presented the Jaiswals with 300 acres of land near the village of Hamira in a bid to create more employment opportunities there. And thus, Hamira became the stronghold for the first and largest distillery in India; and home to the Jaiswal family.

Impact of the pandemic and the way ahead

The Covid Pandemic had an atrocious impact on the liquor industry. Sharing JIL’s experience during the same, Jaiswal says, “The pandemic undeniably brought vast economic and social repercussions affecting many industries, including ours. It has reduced the consumer’s purchasing power because of the increased demand for health care and decreased high-risk activities.”

She added that while it is difficult to predict what will happen next in these uncertain times, the Jagatjit Team remains resilient, optimistic, and constantly innovating. “The attitude born out of our core values and shared vision where no challenge is impossible if we change the lens on how to solve it – ‘we can solve it’ is what has carried us thus far and will continue to do so in the future,” she says proudly.

JIL’s distinguishing quality

When asked about the key factor that sets JIL apart from the rest, Jaiswal remarks, “We have the unique distinction of being one of the largest integrated distilleries manufacturing potable alcohol in Asia and the first in India with in-house facilities for producing grain-based potable alcohol from fully automated distillation plants.”

She also shared that JIL is the first company in India to introduce state-of-the-art technology at its manufacturing base imported from M/S JP International, Finland. Its process parameters are controlled through Distributed Control Systems supplied by Emerson to ensure consistent quality of the product.

“We also made strategic acquisitions in multiple companies with the first being in the year 2017, in a Los Angeles-based ‘Lost Spirits Distillery’ known for its Disruptive Ageing Technology for spirits. Subsequently, in the year 2018 we made a strategic investment in a Scotland based ‘Loch Ewe Distillery’ making us the only domestic player to own a distillery in Scotland,” continues Jaiwal.

Competing in the market and standing out

Jaiswal believes that premiumization continues to play a vital role in heating up the overall competitive landscape. Surging input costs and rising competitive intensity have impacted the operating margins of IMFL companies, driving the shift towards premiumization. This is why JIL also expects industry advertising spending as well as brand investments to accelerate.

Talking about how JIL stands out among the other key players, Jaiswal goes on to say, “Our company stands on two key principles – guaranteeing quality and assuring customer delight. These principles are incorporated into the DNA of all our brands. Through all these years, we have successfully maintained the richness of our legacy and adapted to the dynamism of the digital age. We are committed to providing our customers with the best value proposition including superior brands matching their aspirational levels and exceptional quality at affordable prices.”

Innovating to stay ahead

The Research & Development Division at Jagatjit Nagar was established in 1971 covering the Chemical, Biochemical, Microbiological and Food Technology related research areas of interest to the company. Highly qualified and experienced personnel from various fields like sensory sciences, analytical chemistry, microbiology, and food technology are employed at JIL’s state-of-the-art R&D centre.

Jaiswal says, “Apart from maintaining stringent, consistent quality of existing products, R&D also looks at improving our processes so as to constantly improve product development and reduce costs by improving production yields.” She elaborates the company’s efforts to support Make In India, “With our investment in Lost Spirits Technologies, an award-winning Los Angeles based distillery known for its disruptive ageing technology, we are striving towards manufacturing world class aged and matured alcohol spirits which demonstrates our commitment to ‘Make in India’ initiative.” This is a significant strategy for JIL’s future to remain sustainable, designed to strengthen Jagatjit Industries and create long-term value for its shareholders and stakeholders across the value chain.

Strong network for smooth operations

Explaining how the company manages a strong network, she says, “We have a solid distribution network across India. A network so strong, that it ensures smooth operations and availability of our products giving us a truly national presence.” She added that JIL has made its foray into the international markets a few years ago with a presence across USA, Italy, Mauritius, Dubai, Oman, Kenya, Nigeria to name a few.

The journey at Jagatjit Industries

Going down memory lane, Jaiswal shares, “I joined the business as the Chief Restructuring Officer in 2015 when the company was undergoing a deep financial crisis but incorporating changes in the business was extremely difficult. The first year went into understanding the liquor industry which is highly regulated, the excise policies, pricing, and other things.”

Talking about the company’s restructuring efforts, she says, “Our success is attributed mainly to the restructuring efforts that began in 2018 and 2019. The franchise model that started in 2018 came to fruition in some states like Assam, where we saw exponential growth of our brand AC Black. Delhi also saw significant growth, as did our country’s liquor and exports. Moreover, in IMFL we focused our energy on turning a few markets around rather than focusing on all.”

Sharing JIL’s experience in 2021, she told us that 2021 was filled with challenges for most companies due to the pandemic, but for Jagatjit Industries, it was pivotal. She reminisces, “After years of losses, we turned the corner and became profitable. Despite many obstacles, what stood out was our ability to forge ahead and remain steadfast, working on our business model and strategies for long-term sustainable growth.”

Insights into the future

Commenting on JIL’s future plans , Jaiswal says, “Going forward, Jagatjit Industries will look at introducing new products in the premium & scotch category, expand to new geographies and also increase its production capacity.”