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Time of India
4 days ago
- Business
- Time of India
A home-grown liquor giant is making a bold pivot
The making of India's brandy boss Live Events You Might Also Like: India-UK FTA will make Scotch whiskies more competitively priced: Pernod Ricard India You Might Also Like: Alcohol makers seek phased import duty cuts, strong safeguards to prevent EU FTA misuse From brandy to whisky You Might Also Like: Amrut launches its ₹10 lakh marquee Indian single malt whisky (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Amid a rapidly transforming market, one of India's home-grown liquor producer is taking a sharp turn. Premium brandy manufacturer Tilaknagar Industries Ltd, the owner of India's biggest and the world's second biggest brandy brand Mansion House , is reportedly eying a big foray into whisky business. ET has reported based on information from people familiar with the matter that Tilaknagar Industries is the frontrunner in the race for the Imperial Blue whisky brand being sold by the French alcobev major Pernod Ricard Imperial Blue, Pernod Ricard's largest brand by volume, has an estimated enterprise value of up to $600 million, as per the ET report, and a deal will mean the largest M&A in India's liquor industry in more than a decade after Diageo's buyout of United Spirits in 2013 for $1.9 billion. Chairman-cum-Managing Director Amit Dahanukar refused to comment on ET's query on the proposed has been asked to submit a binding bid by June 23, as per the ET report, while Inbrew Beverages , established by London-based serial entrepreneur Ravi Deol, is also in the is one of the biggest markets for brandy, accounting for nearly 40% of the overall consumption globally. In India, brandy is the second most consumed alcoholic beverage after whisky, but more than 98% is sold in southern India, especially Kerala and Tamil Industries, or TIL, India's fifth-largest alcoholic beverage firm by market cap, is the leader by far in India's brandy business. The company enjoys a leadership position in the segment with 94% of total volume) in the IMFL industry, with a market share of nearly 25%, excluding Tamil Nadu, as per a CRISIL analysis from December last year. Within the prestige and above segment, TIL has around 30% market share. Brandy is the second largest in the spirits category, forming over 20% volume share after whiskey (55%).Tilaknagar was founded in 1933, as The Maharashtra Sugar Mills Ltd by Mahadev L Dahanukar. In the 1970s, the company shifted its focus to alcohol production, and soon became a prominent manufacturer of alcoholic beverage (alcobev) brands in India. Tilaknagar is the maker of India's highest-selling premium brandy brands, Mansion House and Courrier Napoleon. The company offers over 15 different brands of brandy, whiskey, gin, rum and vodka, with a focus on the 'prestige-and-above' segments. Manufacturing operations span 19 units, including 4 owned units and 15 contract manufacturing company has a strong distribution network of nearly 40,000 outlets across the country, and sells mainly through state corporations, direct sales, and distributors. It also exports to Africa, Middle East, East and South-East Asia and Europe, as per CRISIL. Tilaknagar is a major player in south India, which accounted for around 86% of total revenue. The promoters have experience of more than five decades and strong relationships with dealers/distributors. CMD Amit Dahanukar joined the board in 2001 and has been instrumental in guiding the company through its troubled phase and reviving the business forms nearly 20% of the overall IMFL market in India. Tilaknagar is the largest player in the brandy segment with nearly 25% market share excluding Tamil Nadu (market dominated by local players). Tilaknagar has a strong foothold and brand-recall in South Indian states (AP, Telangana, Karnataka, Kerala and Puducherry). In fiscal 2024, the company sold over 11.2 million cases (1 case = 9 litres), reflecting 16% increase compared to fiscal 2023, with southern states contributing 86% of the volume, as per Tilaknagar, a successful acquisition of Imperial Blue would help expand its brand as well as non-brandy portfolio. While brandy is a dominant category in Tilaknagar's portfolio, the company forayed into whisky in 2012, leveraging flagship brand Mansion House. However, more than 90% of its sales still comes from brandy. During its earnings call on May 21, chairman and managing director Dahanukar said Tilaknagar will focus on enhancing its presence within brandy and other IMFL categories through its own brands and strategic investments. Tilaknagar had earlier acquired Round The Cocktails, Spaceman Spirits and Incredible Spirits. Tilaknagar has been in a long-drawn trademark dispute with Allied Blenders & Distillers (ABD) and Dutch distiller Herman Jansen Beverages (formerly UTO) over its Mansion House if it indeed ends up buying Imperial Blue, will be making a big push into the whisky market when it is in ferment. After several years of growth, demand for spirits across categories slowed down to 1.6% in FY25, falling from 4.2% a year ago. Volume sales of whiskey, which accounts for roughly two-thirds of the market, saw a muted 1.5% increase in volume last fiscal while brandy and vodka sales were flat, according to excise department data reported by ET. Brandy grew less than 1%. Globally too, liquor sales fell 1% by volume in 2024, according to alcohol market researcher IWSR, which attributed this to large markets such as China and India failing to live up to growth projections. Spirits slowdown in India has been attributed mainly to distribution changes in a few states, higher taxes and tipplers cutting back on most discretionary spends including these disruptions, liquor industry in India holds immense potential. Despite being the world's most populous nation with more than 1.4 billion inhabitants, India's drinking consumer base is estimated at around 300 million-of whom nearly half rely on cheap, unbranded 2024, India's alcohol industry is valued at approx. $64.19 billion with projections indicating it could reach $115.27 billion by 2034 at a CAGR of 6.7 per cent, as per an ET report. Spirits like whisky, vodka and rum are expected to dominate the market reaching USD 50.55 billion by 2034. India remains one of the world's largest consumers of whisky, accounting for over 48 per cent of global whisky liquor industry is transforming in response to consumer trends and policy shifts. Premiumization and innovation are driving growth, with consumers willing to pay more for craft breweries, premium whiskies and flavored spirits. Companies are adapting by launching unique offerings tailored to local tastes. Meanwhile, although e-commerce restrictions remain in place, some states are exploring online liquor delivery, which could unlock new growth opportunities. Policy reforms are also gaining momentum, with increasing pressure on state governments to streamline tax structures and modernize the industry. Progressive moves by states like reduced state duties by 10-15 per cent across various alcoholic beverage segments in Karnataka suggest a shift towards a more business-friendly the FTA with the UK, which includes deep cuts in import duties on several spirits, and a possible trade deal with the US can make make imported liquor more affordable in India which may challenge local liquor brands in the premium and luxury space, Imperial Blue whisky brand may not be impacted much as it straddles the space between mass and premium.
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Business Standard
4 days ago
- Business
- Business Standard
Tilaknagar tops $600 mn race for Imperial Blue, to expand whisky portfolio
Tilaknagar Industries, known for its Mansion House and Courrier Napoleon brandies, is emerging as the front-runner to buy the popular Imperial Blue whisky from French alcohol giant Pernod Ricard, according to a report by The Economic Times. The Imperial Blue brand is estimated to be worth up to $600 million. If the deal goes through, it will be the largest acquisition in India's liquor sector in over a decade — after Diageo's $1.9 billion buyout of United Spirits in 2013, the news report said. Inbrew Beverages, founded by London-based entrepreneur Ravi Deol, is also interested in acquiring Imperial Blue. However, Pernod Ricard found Tilaknagar's offer more attractive, though Inbrew has not been completely ruled out, The Economic Times mentioned. Tilaknagar, India's fifth-largest alcohol company by market value, has been asked to submit a binding bid by June 23. Funding the deal If the deal goes through, it will be funded through a mix of internal resources, bank loans, and private equity investment. Japan's Suntory Holdings, which owns brands like Jim Beam and Maker's Mark, initially considered bidding for Imperial Blue but later decided not to move forward. For Tilaknagar, led by chairman Amit Dahanukar, buying Imperial Blue would be a big step in diversifying its portfolio. While the company entered the whisky segment in 2012 using its flagship Mansion House brand, over 90 per cent of its sales still come from brandy. During its earnings call on May 21, Dahanukar said the company plans to grow its presence in brandy and other Indian-made foreign liquor segments through its own brands and strategic acquisitions. Tilaknagar has previously acquired Round The Cocktails, Spaceman Spirits, and Incredible Spirits. Imperial Blue's journey Imperial Blue was first introduced in India in 1997 by Canadian distiller Seagram. In 2001, Seagram sold its global business to Pernod Ricard and Diageo, with Pernod Ricard taking over the Indian business. The following year, Imperial Blue was relaunched with the memorable slogan, 'Men will be men', which helped build a strong following. Today, Imperial Blue is the world's eighth best-selling whisky, selling 22.8 million nine-litre cases in 2023, according to Drinks International's Millionaires' Club. However, this is down from its 2019 sales of 26.3 million cases, the news report said. This potential sale echoes Diageo's decision in 2022 to sell 32 low-margin Indian brands — including Haywards, Old Tavern, White Mischief, Honey Bee, Green Label, and Romanov — for ₹820 crore to Inbrew. Deol, who started Barista Coffee in 1999 and earned a reputation as India's 'coffee man', aims to make Inbrew a leading player in the alcohol industry by acquiring Imperial Blue.
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Business Standard
15-05-2025
- Business
- Business Standard
Tilaknagar Industries shares soar 14% as Q4 profit more than doubles
Shares of Tilaknagar Industries zoomed nearly 14 per cent on Thursday's intraday session after the company reported over a twofold jump in its profit during the fourth quarter of the financial year 2025. Tilaknagar Industries' stock rose as much as 13.9 per cent during the day to ₹329.1 per share, the biggest intraday gain since April 22 this year. The stock pared gains to trade 10.7 per cent higher at ₹335.1 apiece, compared to a 0.44 per cent advance in Nifty 50 as of 11:00 AM. Shares of the company extended gains to their fourth day and have risen nearly 25 per cent from its recent lows of ₹270, which it hit earlier this month. The counter has fallen 20 per cent this year, compared to a 3.7 per cent risen in the benchmark Nifty 50. Tilaknagar Industries has a total market capitalisation of ₹6,454.79 crore, according to BSE data. Tilaknagar Industries Q4FY25 results Net profit of Tilaknagar Industries rose 145.95 per cent to ₹77.35 crore in the quarter ended March 2025 as against ₹31.45 crore during the previous quarter ended March 2024. Revenue rose 13.11 per cent to ₹405.81 crore in the quarter ended March 2025 as against ₹358.78 crore during the previous quarter ended March 2024. For the full year, net profit rose 66.36 per cent to ₹229.59 crore in the year ended March 2025 as against ₹138.01 crore during the previous year ended March 2024. Revenue rose 2.88 per cent to ₹1,434.15 crore in the year ended March 2025 as against ₹1,393.95 crore during the previous year ended March 2024. Also Read The company reported volume growth of 20.1 per cent year-on-year (Y-o-Y), primarily driven by strong performance in Andhra Pradesh, Karnataka, and Tamil Nadu. Further, the board of directors has recommended a dividend of ₹1 per equity share for the financial year 2024–25. 'The fourth quarter of FY25 marked a strong close to the year, with robust volume and value-led growth," Amit Dahanukar, chairman and managing director of Tilaknagar Industries, said in the statement. "This quarterly performance was driven by a resurgence in our largest market, Andhra Pradesh (AP), showing strength on both year-on-year and sequential bases. With the Route-to-Market (RTM) transition in AP now complete, we expect sustained growth in the state, in line with industry trends. Our performance in AP was further complemented by market share gains across other Southern states.' About Tilaknagar Industries Tilaknagar Industries (the erstwhile The Maharashtra Sugar Mills Limited (MSM)) is a recognized player in the alcoholic-beverages industry with an outstanding collection of brands. It has built a leading portfolio of brands across IMFL segment including Whisky Brandy Rum Gin and Vodka. The company's brand portfolio includes multiple categories, featuring two 'Millionaire' brandy brands – Mansion House and Courrier Napoleon – along with a strong presence in the whisky, rum, and gin segments through Mansion House Whisky, Madiraa Rum and Blue Lagoon Gin. Recently, Tilaknagar has expanded into the luxury segment with Monarch Legacy Edition Brandy.
Business Standard
15-05-2025
- Business
- Business Standard
Tilaknagar Inds rallies after Q4 PAT soars to Rs 77 cr
Tilaknagar Industries zoomed 11.93% to Rs 338.75 after the company reported a 145.9% surge in consolidated net profit to Rs 77.35 crore on 13.1% increase in revenue from operations (excluding excise duty) to Rs 405.81 crore in Q4 FY25 over Q4 FY24. Profit before tax (PBT) surged 145.8% YoY to Rs 77.31 crore during the quarter. EBITDA stood at Rs 78 crore in Q4 FY25, registering the growth of 62.6%, compared with Rs 48 crore in Q4 FY24. EBITDA margin was at 19.3% in Q4 FY25 as against 13.4% in Q4 FY24. The company registered a volume growth of 20.1% YoY, mainly driven by strong growth in Andhra Pradesh, Karnataka and Tamil Nadu. On full year basis, the companys consolidated net profit jumped 66.4% to Rs 229.59 crore on 2.9% increase in revenue from operations to Rs 1,434.15 crore in FY25 over FY24. Amit Dahanukar, chairman & managing director, said, "Q4 FY25 has seen a very strong close to the year; with high volume and value-led growth. Quarterly growth was driven by resumption of strong performance in our largest state of Andhra Pradesh (AP), both on YoY and QoQ terms. The Route to Market (RTM) change in AP is completed, and we expect our performance in the state to continue its growth trajectory, in-line with the industry. AP has been well supported by our other Southern states, each of which have seen market share improvements. On the profitability front, we have seen strong growth in subsidy-adjusted EBITDA for Q4 FY25 at Rs 65 crore (up 35.5% YoY) with 16.6% margins. I am very proud to share that this is our highest-ever quarterly EBITDA. For FY25, the subsidy-adjusted EBITDA stands at Rs 226 crore, with margin at 16.1%. The growth in profitability has been aided by strong volume growth, operating leverage and disciplined cost management. Our focused drive on cash flow management continues, and we now stand at a net cash level of Rs 107 crore, showcasing our Balance Sheet strength. Meanwhile, the companys board recommended a dividend of Rs 1 per equity share having face value of Rs 10 each for FY25 to the members at the ensuing Annual General Meeting (AGM). Tilaknagar Industries (TI) is one of Indias leading alcoholic beverage (alcobev) companies. It is engaged in the business of manufacture and sale of Indian Made Foreign Liquor and its related products.
Business Upturn
14-05-2025
- Business
- Business Upturn
Tilaknagar Industries Q4FY25 results: Net profit soars 95.7% YoY to Rs 77 crore; revenue up 13.1% to Rs 406 crore
By News Desk Published on May 14, 2025, 21:26 IST Tilaknagar Industries Ltd. (TI), the maker of Mansion House Brandy, reported its highest-ever quarterly EBITDA and strong earnings growth for the quarter ended March 31, 2025 (Q4FY25), buoyed by robust sales across key southern markets. The company's net profit (excluding exceptional items) surged 95.7% year-on-year to ₹77 crore, up from ₹40 crore in Q4FY24. Revenue from operations rose 13.1% to ₹406 crore, supported by a 20.1% volume growth, particularly from Andhra Pradesh, Karnataka, and Tamil Nadu. The EBITDA came in at ₹78 crore, registering a 62.6% increase. Adjusted for subsidy income, EBITDA stood at ₹65 crore, translating to a 35.5% YoY growth, with margins improving 319 basis points to 16.6%. Full-year performance (FY25 vs FY24): Revenue: ₹1,434 crore vs ₹1,394 crore (up 2.9%) EBITDA: ₹255 crore vs ₹185 crore (up 37.4%) PAT (excluding exceptional items): ₹230 crore vs ₹141 crore (up 62.9%) Net cash position: ₹107 crore as of March 31, 2025 Chairman & MD Amit Dahanukar said, 'This was our strongest quarter ever. Our focused growth in Andhra Pradesh and other southern markets, along with operating leverage and disciplined cost management, helped us deliver exceptional profitability.' The company also recommended a dividend of ₹1 per share for FY25. Other updates: Monarch Legacy Edition Brandy won a Bronze at the London Spirits Competition 2025 Commenced marketing of Samsara Gin under a user agreement with Spaceman Spirits Lab Disclaimer: This report is based on official company filings and is for informational purposes only. It does not constitute investment advice. News desk at
