Ravi Kumar Distilleries Ltd (RKDL) has acquired 51 per cent stake in Karnataka-based SV Distilleries Pvt Ltd as part of its expansion plans. The total cost of the project, including expansion of the newly acquired facilities, would be Rs 86 crore, according to a senior official from the company. The acquisition and expansion will be funded through the proceedings from its recent initial public offering.
The company has informed the Bombay Stock Exchange that it had signed a share purchase agreement with SV Distilleries that would enable it to control the management of the latter. Post acquisition, which is expected to complete in the first quarter of the current fiscal, SV Distilleries would become a subsidiary of the company.
SV Distilleries has a manufacturing plant at Bidar, Karnataka, including ethanol project and an Indian made foreign liquor (IMFL) bottling plant. It currently has a capacity to manufacture 40 kilolitre per day of spirit and 60,000 cases of IMFL per month.
After the expansion, the facility would manufacture 100 kl spirit while the IMFL manufacturing would remain the same, said a senior official from Ravi Kumar Distilleries on condition of anonymity. The 4.5 Mw power plant, which is also part of the expansion, is expected to provide capital consumption along with a part of it for sales.
The acquisition, along with capacity expansion, is expected to give the company 100 per cent growth by the closure of the current fiscal year, added the official.
RKDL has a liquor products manufacturing plant in Puducherry. It has also tied up with various liquor companies in the country, including Radico Khatian Ltd, Shashi Distilleries Pvt Ltd, John Distilleries Ltd, Gemini Distilleries (Pondy) Pvt Ltd and Mondovi Distilleries & Breweries Pvt Ltd.