Mumbai-based Tilaknagar Industries, maker of liquor brands such as Mansion House Brandy, Senate Royale Whisky and Savoy Club Rum is eyeing a pan-India presence, following the acquisition of six brands from Delhi-based Alcobrew Distilleries.
The acquisition, wrapped up for just Rs 9 crore, will help the company penetrate both the CSD (canteen stores department) and civil markets in the north, something it had been looking to do for some time. “A pan-India presence is imperative from a growth point of view,” said Amit Dahanukar, chairman and managing director.
Sales for the 11 months ended February was seven million cases (12 bottles to a case). Much of this came from the southern states of Kerala, Tamil Nadu, Karnataka and Andhra Pradesh, where its brands are strong. After the acquisition and integration of the Alcobrew brands, a further three million cases would be added to overall sales.
Tilaknagar used the inorganic route in the past to sucessfully acquire a few key manufacturing facilities such as Prag Distillery in Andhra Pradesh and Surya Organic Chemicals in Karnataka. Its flagship manufacturing unit is located at Shrirampur in Maharashtra.
In recent months, however, the company has been turning to third-party manufacturers, as well as utilising leased premises to raise production. “It works faster that way,” says Dahanukar. “These units are located across the country.”
Currently, the company has 21 such tie-ups with third-party manufacturers, besides seven lease arrangements. It is also strengthening its sales and distribution network. “We have 60 distributors at the moment. We are appointing more,” said Dahanukar.