Tilaknagar Industries, maker of Mansion House and Courrier Napoleon brandies, is in the advanced stage of discussion with Tamil Nadu (TN)-based Indian made foreign liquor (IMFL) maker Imperial Spirits.
The deal is expected to be in the range of Rs 400 crore.
According to people in the know, Tilaknagar, which already has strong presence in the south Indian brandy market, will buttress their position with Imperial Spirits' manufacturing facilities. Imperial Spirits sells two popular brandy brands - Imperial XO Premium brandy and VSOP Brandy in Tamil Nadu, Kerala, Karnataka and Goa. Imperial produces more than 500,000 cases of foreign liquor a month.
As reported by Business Standard, Tilaknagar is also acquiring the complete IMFL business of BSE-listed IFB Agro Industries Ltd as the board has given approval on February 8. The Kolkata-based IFB sells vodka brand Volga and Blue Lagoon gin, the popular brands in Assam, West Bengal and Odisha.
When contacted, Amit Dahanukar, chairman, Tilaknagar Industries, refused to comment while Imperial Spirits officials were not available for comment.
Imperial Spirits started its operations in Goa during 2003, subsequently in the states of Karnataka and Kerala in 2004 and 2005, respectively. It has manufacturing units in Kerala, Karnataka and Goa. The group is in the process of entering Andhra Pradesh and Tamil Nadu markets, according to the company website.
Tilaknagar Industries has seven brands in the brandy category. Mansion House French Brandy, a leading brand in southern India, has a market share of 56 per cent in Andhra Pradesh, 78 per cent in Kerala, 97 per cent in Karnataka, 42 per cent in Tamil Nadu and 78 per cent in Pondicherry. Tilaknagar Industries has sales of 11.6 million cases for the nine months in FY14, while about 14 million cases had been sold in FY13.
