Tilaknagar Industries rose 2.63% at Rs 56.50 at 15:28 IST on BSE after the company said it has executed the agreement and acquired the complete IMFL business of the Kolkata-based IFB Agro Industries.
The announcement was made during trading hours today, 12 March 2014.
Shares of IFB Agro Industries were down 3.98% at Rs 190.50. The stock was volatile. The stock lost as much as 6.4% at the day's low of Rs 185.70 so far during the day. The stock rose as much as 4.33% at the day's high of Rs 207 so far during the day.
Meanwhile, the S&P BSE Sensex was up 44.14 points or 0.2% at 21,870.56.
On BSE, so far 1.76 lakh shares of Tilaknagar Industries exchanged hands in the counter as against average daily volume of 2.38 lakh shares in the past two weeks.
The stock hit a high of Rs 57 and a low of Rs 54.80 so far during the day.
Tilaknagar Industries (TI) said that the boards of the company and IFB Agro Industries (IFB Agro) have already approved the acquisition of IFB Agro by TI paying the way for transfer of all the Indian Made Foreign Liquor (IMFL) brands from IFB Agro's portfolio into that of TI. With this, TI has brought into its fold IFB Agro's Vodka brand Volga and 'Blue Lagoon' Gin - two of the most popular brands of the later in eastern Indian markets of West Bengal, Assam and Odisha.
The acquisition is thus set to expand the already existing robust IMFL product brand line of TI and add some of other premium brands like Leonov, Russki (Vodka), Goldcup, Benjamin (Brandy), Jubilation (Rum). 3 Cheers (Whisky) and Baluba (Rum) those are currently manufactured by IFB Agro, TI said in a statement.
In recent times, witnessing the growing sales, TI has been emerging as a leading IMFL player in Eastern Indian markets, TI said in a statement. This strategic acquisition will further help the company strengthen its presence in Eastern Indian markets and offer a diversified portfolio of liquor, particularty white spirit products, TI added.
According to the terms of the agreement executed between the two companies, the trademarks of all IMFL brands of IFB Agro stands transferred to TI. TI will also take over all the employees working in the IMFL division of IFB Agro.
Commenting upon the development, Mr Laxmi Narasimhan K, Deputy Managing Director of TI said, "This is an EBDITA accretive acquisition for us. We are focused more on profitable volumes and the acquisition of IFB Agro's IMFL business will give us access to a profitable product line. Coming up as a dominant IMFL player of South Indian market, we will now consolidate our position in eastern Indian market too. We hope to enhance sales of the newly acquired brands to one million cases per annum and improve our topline sales by over 10%".
IFB Agro Industries is engaged in the business of manufacturing alcohol, bottling of branded alcoholic beverages as well as processed and packed marine foods both for domestic & export markets.
Tilaknagar Industries' consolidated net profit rose 2.8% to Rs 17.41 crore on 23% growth in net sales to Rs 223.32 crore in Q3 December 2013 over Q3 December 2012.
Tilaknagar Industries is one of the renowned IMFL players (including whisky, brandy, gin, rum and vodka) with presence across India.
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