DeVANS to boost Samba beer capacity to 600K HL with Rs 60 crore investment

Jammu-based company DeVANS Modern Breweries also plans to enter the duty-free space with one-litre bottles of its Single Malt brand GianChand exclusively for travel retail

 

Jammu-based DeVANS Modern Breweries is planning to expand its beer production capacity in Samba to 600,000 from 400,000 hectolitres (HL) with an investment of about Rs 60 crore, the company told Business Standard. 

 

It also plans to enter the duty-free space with one-litre bottles of its Single Malt brand GianChand exclusively for travel retail, along with two new expressions which would be launched simultaneously in the Indian market.

 

Speaking about investments, Prem Dewan, managing director, DeVANS Modern Breweries, said, “Investment for us is a continuous process. We incur heavy capex expenditure every year on equipment for improving our processes and quality on a regular basis. 

 

 

The company plans to launch two limited editions of GianChand next year, its flagship Indian Single Malt. DeVANS is also looking to add about 10,000 barrels in the next couple of years to its current count of 8,000 to boost maturation capacity for which funds are being arranged. The bourbon whiskey barrels are imported from the US at a huge cost which has gone up phenomenally during the last couple of years from Rs 8,000 per barrel to over Rs 30,000 per barrel currently.

 

Beer constitutes the majority of sales of the company, accounting for about 70-80 per cent of total sales, though beer sales are done under huge competitive pressure. DeVANS competes with international brewers like UB Heineken, Budweiser and Carlsberg and also other local players in the country.

 

DeVANS presently has two umbrella beer brands – Godfather comprising the Godfather Legendary portfolio and Six Fields comprising the wheat and premium lager portfolio. DeVANS is strategically solidifying the nationwide presence of its Godfather brand by entering into production tie ups with breweries across India. The company presently has tie-ups with breweries in Arunachal Pradesh’s Aether Breweries (10,000 KL annual output), Jharkhand’s BDPL (32,000 KL annual output), Uttar Pradesh’s Vairagi Brewery (24,000 KL annual output), Tamil Nadu’s Tropical Breweries (50,000 KL annual output) and Assam’s Sunit Breweries (10,000 KL annual output). It is also planning for two more production tie ups by March 25.

 

Talking about the landscape of alcobev in India, Dewan added, “Everyone is now aiming at premiumisation in both beer and liquor segments and we are no exception. We are developing new products. Our Gin would hit the market in April 2025 along with a Herbal Liquor followed by a whisky in the premium range, a vodka and RTD’s.”

 

DeVANS is planning for an IPO in the next 4 to 5 years in order to fund its expansion plans.