Ramesh Krishnan: Steering Nepal Distilleries Towards Global Excellence with Innovation and Heritage

Ramesh Krishnan, Chief Executive Officer of The Nepal Distilleries, has consistently delivered outstanding results by blending strategic vision with meticulous execution. His tenure at The Nepal Distilleries is a testament to his ability to adapt and thrive in new environments while staying true to his core values of excellence, safety and empowerment. Under his leadership, the company has achieved significant milestones in product innovation, manufacturing excellence and people development.

Ramesh’s journey with The Nepal Distilleries began with a consulting role in 2018 but his passion for the team and the vision of the organisation soon inspired him to take on the mantle of CEO earlier this year. A staunch advocate of fostering local talent, he has been instrumental in developing a dynamic and inclusive workplace. His emphasis on quality, product consistency and aligning operations with international standards has fortified The Nepal Distilleries' reputation as a benchmark in the Nepali spirits industry.

Driven by a profound respect for Nepal’s heritage and its people, Ramesh is not just steering the company towards commercial success but also towards creating a lasting impact on the community. With a focus on innovation, sustainability, and leadership development, he is committed to ensuring that The Nepal Distilleries continues to be a source of national pride and a symbol of excellence in the global spirits market.

In this issue of Business 360, Krishnan speaks about what makes Khukri Rum stand out and his vision for the company. Excerpts:

What inspired your move to Kathmandu and join The Nepal Distilleries?

It is a bit of a journey. I had taken an early retirement, or what I now call a sabbatical because after five years, I am back into full-time work. Around the time I was about to take a break, I was introduced to Sharad Tibrewalla who is the promoter of this venture. This connection came through a former colleague who thought I would be a good fit, given my experience in the spirits industry.

To be honest, it was the right opportunity at the right time. I was drawn by the challenges and the people here. Over time, I fell in love with the place and the team. For me, it is not just about the company but also about the people and their potential. I wouldn’t have changed my mind to take on a full-time role if it wasn’t Nepal Distilleries.

I have worked in diverse roles in the industry: at Diageo, I was a Supply Chain Director handling operations in India and earlier in Tanzania. Later, as the Executive Director - Technical for Carlsberg in India, I also oversaw the Gorkha Brewery plant for a while. So, Nepal was not entirely new to me; I have been visiting the place since 2015.

When the opportunity to focus on supply chain operations at NDPL came up, it felt like a natural fit. The challenge of aligning operations to global standards was exciting and I have always believed in working with people who have clarity of vision. Nepal’s charm, its people, and the opportunity to tackle this challenge head-on made the decision easy for me.

Khukri Rum has become a household name in Nepal. What sets it apart in this competitive market?

Khukri Rum is deeply ingrained in the cultural fabric of Nepal. It is a product with a heritage that spans 65 years, dating back to 1959. For many Nepalis, Khukri is as essential as milk or water in other countries; it is part of their identity.

What truly sets Khukri apart is its quality and consistency. It is a unique rum, distinct even among international varieties. Over the years, we have worked to maintain this consistency while also introducing improvements in packaging and consumer engagement. Our goal has always been to honour its legacy while ensuring it stays relevant and appealing to modern consumers.

Khukri recently launched its Cask Series. What was the inspiration behind this?

If you have been making a product like Khukri Rum for over six decades, there is a natural expectation to innovate while staying true to the essence of the brand. Today’s consumers are global in their tastes. They might travel physically or explore through the internet and they are always looking for new experiences.

The idea behind the Cask Series was to offer something premium and distinctive, catering to this evolving consumer preference. During our research, we discovered unique maturation techniques and flavour profiles that we could experiment with. It is similar to the way a BMW offers a different driving experience compared to a standard car – both are great but one elevates the journey. The Cask Series is designed to give consumers a new, elevated experience with rum, much like aged whiskey.

Were there any challenges in launching the Cask Series?

Direct challenges. Not so much. The real challenge lies in being a pioneer. For Khukri, this meant experimenting with flavours and blending techniques that align with international palates. Unlike following an established trend, creating something new demands a deep understanding of your audience and a willingness to take risks.

Taste preferences are often influenced by local factors like food habits, weather and cultural nuances. For us, the challenge was to strike the right balance and create a product that feels both innovative and familiar to consumers. Through rigorous research, trials and feedback, we were able to achieve that.

“The future is all about growth and expansion. Locally, we are working on strengthening our product portfolio and offering consumers more choices, Cask Series being one. Globally, we are looking at expanding our exports footprint. Khukri Rum is a product that embodies the spirit of Nepal and we believe it has tremendous potential in international markets”

How do you balance respecting traditional values while incorporating innovation?

The ethos of Khukri lies at its core; it is a homegrown product that symbolises Nepali pride and resilience. While innovation is important, it is equally vital that we preserve this essence. In the past few years, we have ventured into new territories, launching a white rum and even diversifying into whiskey with brands like Aristocrat and vodka with Nude. We have also introduced a lower ABV of rum, Karda. These innovations are not just about expanding our portfolio but about maintaining the bold and brave spirit that Khukri represents.

By keeping the product’s soul intact and focusing on what makes Khukri special, we have managed to balance tradition with progress. And, of course, we are always looking at ways to take Khukri to global markets. It is a product that represents Nepal, and we want the world to experience it.

Does Nepal’s local environment and natural resources influence the taste and quality of Khukri Rum?

Absolutely, but not in the way you might think. In my 31 years in the food and beverage industry, I have learned that maintaining consistent quality is a meticulous process. Natural variations in raw materials, like water or crops, are inevitable. Last year’s sugarcane crop, for example, may differ from this year’s due to weather conditions.

That is where robust processes come in. At Khukri, we have set high standards for every step of production. We are ISO 9000 and ISO 14000 certified by DNV, and our systems are designed to ensure that any variations in raw materials are balanced out in the final product. So, while the environment does play a role, our focus on process consistency ensures that every bottle of Khukri meets the same high-quality standards.

What’s next for Khukri Rum?

The future is all about growth and expansion. Locally, we are working on strengthening our product portfolio and offering consumers more choices, Cask Series being one. Globally, we are looking at expanding our exports footprint. Khukri Rum is a product that embodies the spirit of Nepal and we believe it has tremendous potential in international markets.

We are also exploring new avenues within the liquor industry, staying true to Khukri’s bold and adventurous ethos. Whether it is introducing innovative products or expanding our reach, our goal is to ensure that Khukri remains a symbol of pride for Nepali’s everywhere.

Sustainability has become a global priority. What steps are you taking to ensure the manufacturing process aligns with sustainability goals?

Sustainability is a key focus for us, particularly when it comes to water conservation which is a major part of the SDGs. We strive to reuse water as much as possible, not just in the product but in other processes as well. One of our key performance indicators is water consumption per litre of product produced. Over the past seven years, we have reduced our conventional water usage by almost 40%.

We have also installed handpumps in some provinces to make clean water available to all. Additionally, through our CSR initiatives, we support sugarcane farmers as part of the SDG goal of Poverty Alleviation. Just last week, we completed a project to enhance productivity in Madhesh Province, where the chief minister joined us. This initiative helps improve sugarcane yields, a critical raw material for us.

We have been supporting a school close to our factory by providing uniforms, books and also nutritional meals. Over 20% of our employees are women and many are in managerial/leadership positions as part of our Gender Equality SDG Goal. NDPL has participated in the mountain cleaning campaign along with other stakeholders.

You have an extensive background in business leadership and operations. How have your experiences with global brands like PepsiCo, Diageo and Carlsberg influenced your approach at Nepal Distilleries?

My journey of applying these experiences began the day I joined Nepal Distilleries almost seven years ago. The vision set by our investor was clear: to make this company a benchmark in the industry.

We started by prioritising safety. No one at our factory works without proper safety gear or personal protective equipment. Safety is a non-negotiable principle for us, ensuring that every employee returns home safely. I believe promoting safety at work extends to creating a culture of safety at home and in the community. It also drives discipline.

Quality and consistency have been other key areas of focus. We have implemented ISO standards and invested heavily in training and equipment. We also send our staff abroad for advanced training. All these efforts have been influenced by my previous experience in multinational companies.

We have made significant progress in people development, product quality and manufacturing excellence. While there is always room for more growth, I believe we have come a long way, despite setbacks like Covid 19.

One of my proudest achievements is empowering local talent. For instance, our blender is a woman, likely one of the few in this industry. Developing local leaders has been a personal mission for me.

What is your vision for Nepal Distilleries over the next five years?

Considering Nepal’s demographic changes, our vision is to focus more on exports and premium spirits. The population of legal drinking age is declining as young people migrate, making exports critical to our growth.

We aim to align with changing consumer preferences for quality and sophistication. Our goal is to enhance our product portfolio and make them globally recognised.

I want Nepal Distilleries to be known internationally, just like major brands are associated with their parent companies. For instance, people may not recognise Diageo but they know Johnnie Walker and Smirnoff. Similarly, we want our brands to gain global recognition while elevating Nepal Distilleries as a world-class manufacturer.

You emphasise building motivated and passionate teams. Could you share an example of how you facilitated nimble decision-making?

A good example is how I have personally involved myself in supply chain operations. Over the past seven years, I have interviewed nearly all the leadership team members in our plant. Today, I am proud that our operations run seamlessly even when our Chief Supply Chain Officer is away.

It is a testament to the strength and independence of our team. We have worked hard to develop capabilities locally, which is no small feat given the limited exposure available here compared to places like India.

As an example, I am also particularly proud of our blender, a young woman who joined us as an executive in quality functions and is now leading one of the most challenging aspects of our manufacturing process. Many of our functional leaders at the plant joined us fresh out of college. These stories of growth and independence are what drive me.