Tag Archives: beverage industry

Tilaknagar Industries reports 82% PAT growth in Q2

Expansion plans in East and North-East markets
TI leverages Samsara brand equity, soon to launch range of luxury products

Leading Indian-Made Foreign Liquor (IMFL) manufacturer, Tilaknagar Industries Limited (TI) has reported a profit after tax excluding exceptional items (PAT) of ₹58.2 crore, implying a growth of 82.4% over the ₹31.9 crore PAT reported in the corresponding quarter last year. The earnings before interest, tax, depreciation and amortisation (EBITDA) at ₹66 crore grew 39% over the ₹47.4 crore EBITDA reported in Q2 of the previous year.

Significantly, the company’s EBITDA margin expanded 422 basis points year-on-year (YoY) to 17.6%. Adjusted for the subsidy income, EBITDA came in at ₹56 crore, at a margin of 15.3%, showing 188 basis points expansion YoY. This growth in profitability was witnessed despite muted growth in net revenue from operations, at 5.8%, to ₹374.9 crore due to a temporary slow-down in growth, caused by policy transition in one of company’s key markets, Andhra Pradesh, which has recently opened liquor retail to private parties in the state.

Amit Dahanukar, Chairman and Managing Director, Tilaknagar Industries said, “With retail going private in Andhra Pradesh mid-October onwards, we expect to continue with our industry-beating growth trajectory, achieved through a combination of doubling down on our market share gains from our brandy portfolio as well as our new product launches across categories.”

The company that has a strong foothold in key markets of South India, as well as certain markets in East India, recently launched Mansion House Gold Barrel Whisky in Assam. With this launch, the company plans to further expand into the East and the North-East markets where whisky enjoys an 80% share of IMFL market in the East and North-East markets.

TI’s flagship brand Mansion House Brandy is India’s highest selling brandy and the eighth-largest selling spirits brand across categories, while its second millionaire brand, Courrier Napoleon Brandy has emerged as the third-fastest growing spirits brand globally. The company plans to creatively invest in advertising and sales promotion to provide a meaningful share of voice to the brandy category in the overall IMFL market.

During the quarter under reference the company become net debt free, nearly six months ahead of its original target date for achieving the net debt-free status. “From a peak debt more than ₹1,100 crore in March 2019, to achieving the net debt free status, we have come a long way. This transformation was achieved through a combination a financial prudence and achieving industry-beating profitable growth,” Dahanukar added.

The company attributes the growth in profitability to superior brand-mix as well as effective cost-optimisation initiatives. With the worst of the inflationary cycle over, the company anticipates further growth in profitability in the upcoming quarters.

Recently, the company moved to increase its investment in Spaceman Spirits Lab Pvt. Ltd. (SSL), maker of Samsara Gin and Sitara Rum, to 20% from the earlier 10%. TI will leverage the Samsara brand equity to showcase a robust luxury portfolio, along with its soon-to-be launched range of luxury products.

Suntory Holdings establishes Suntory India

Leave a reply

Names Masashi Matsumura as Managing Director

Suntory Holdings has announced the establishment of Suntory India Private Limited, which aims to cover corporate functions required to build a firm business foundation and accelerate growth in its existing spirits business and establish opportunities for soft drinks as well as health and wellness businesses in the Indian market. The new company will commence its operations in July.

“We are delighted to unveil a new base of Suntory Holdings in India, a country with a large population and a rapidly growing economy,” said Tak Niinami, President & CEO of Suntory Holdings. “India is a remarkably attractive market and a key geopolitical player on the global stage, with strong cultural and economic ties with Africa, the Middle East, and Asia. Together with our spirits business, Suntory Global Spirits, we will enhance our presence as a multifaceted beverage company in this vital market by supporting our soft drinks and health & wellness businesses to build foundations in India through investments and partnerships.”

Suntory India will be headed by Managing Director, Masashi Matsumura with its office located in DLF Cyber City, Phase II, Gurgaon, Haryana.

The Group offers a diverse portfolio of products, from award-winning Japanese whiskies Yamazaki and Hibiki, iconic American whiskies Jim Beam and Maker’s Mark, canned ready-to-drink -196, The Premium Malt’s beer, Japanese wine Tomi, and the world-famous Château Lagrange. Its brand collection also includes non-alcoholic favourites Orangina, Lucozade, Oasis, BOSS coffee, Suntory Tennensui water, TEA+ OolongTea, and V energy drink, as well as popular health and wellness product Sesamin EX. Founded as a family-owned business in 1899 in Osaka, Japan, Suntory Group has grown its operations throughout the Americas, Europe, Africa, Asia and Oceania, with an annual revenue (excluding excise taxes) of $20.9 billion in 2023. It has a strength of 41,511 employees across the world.

Tilaknagar Industries Launches Green Apple Flavoured Brandy

Leave a reply

Tilaknagar Industries Limited, a leading Indian-Made Foreign Liquor Manufacturer (IMFL), has unveiled a new flavour innovation under its Flandy (premium flavoured Brandy) range. Mansion House Flandy has now been launched in an all-new Green Apple flavour in the state of Telangana, to begin with.

Mr Amit Dahanukar, Chairman and Managing Director, Tilaknagar Industries said, “Our Mansion House Premium Flavoured Brandy is a category-first innovation. It has been well-received across markets and its saliency, as a percentage of Mansion House Brandy in relevant states, has grown significantly. The launch of the all-new Green Apple flavour is a testimony to Flandy’s strong performance since its introduction in FY23, and is in line with our plans to further enhance our premium Brandy portfolio while strengthening our regional foothold.”

TI has seen very encouraging response to its Flandy range in the state, aiding the Company’s jump to become the fourth-largest IMFL player and the third-largest IMFL Prestige & Above (“P&A”) player, in Telangana, in FY24.

Tilaknagar Industries, which is one of India’s largest manufacturers of premium Brandy, had earlier rolled out its Mansion House Flandy range in Orange, Cherry and Peach flavours. Telangana is one of the prominent IMFL markets and has one of the highest Prestige & Above (“P&A”) segment with over 50 per cent saliencies across IMFL industry in India. It is estimated that the Brandy P&A segment in the state has grown by 18 per cent in FY24, as compared to almost 8 per cent growth in IMFL P&A segment over the same period. Additionally, in terms of flavours, Green Apple is the largest selling flavour in the flavoured spirits category in the state, providing a large canvas to the brand to gain market share.

First movers in premium flavoured brandy

Mr Ahmed Rahimtoola, Chief Marketing Officer, Tilaknagar Industries said, “We are first-movers in the premium flavoured Brandy category in India. In addition to this, an elevated demand for flavoured drinks and the predominant cocktail culture trend gives Tilaknagar Industries a competitive advantage across markets. The new Green Apple variant of Mansion House Flandy is another step by TI to enrich consumer experience and drive growth.”

The Mansion House Flandy range has a unique blend of natural fruit flavours. The latest offering has been infused with sweet green apple essence which is complemented by the nuanced richness of oaky undertones, delivering a truly palate-enriching experience to consumers.

In the financial year ended March 2024, Tilaknagar Industries volumes grew 16 per cent, year-on-year, in comparison to the overall IMFL industry growth of 2-3 per cent for the same period, making it fastest growing IMFL company in India for the 2^nd year running.

India stands out as one of the largest markets for Brandy, globally. Within IMFL, Brandy is the second-largest product category, accounting for more than 20 per cent share of the industry by volume. Moreover, the premium Brandy industry in India is expected to continue expanding market share within the overall Prestige and Above IMFL segment.

Founded in 1933 by Shri Mahadev L. Dahanukar as Maharashtra Sugar Mills, the company has nine decades of excellence in the consumer goods category. The Dahanukar family continues to be the promoter of TI sharing the same vision and values as the founders. Under the current leadership of Amit Dahanukar, the company has grown to be the largest manufacturer of premium brandy in India. Its portfolio comprises of two ‘Millionaire’ brandy brands, Mansion House and Courrier Napoleon. TI has presence in whisky, rum and gin categories through Mansion House Whisky, Madiraa Rum and Blue Lagoon Gin.

UBL, AB InBev, Carlsberg jointly form Brewers’ Association of India

Leave a reply

In a move that might not be surprising to many, India’s leading beer manufacturers United Breweries – controlled by Dutch manufacturer Heineken, AB InBev, and Carlsberg have come together to jointly forming a new industry body Brewers’ Association of India (BAI). The three companies own the 85% of the beer market in India via their brands Budweiser, Hoegaarden, Corona, Carlsberg, Tuborg among others.

While UBL leads the Indian beer market with its brands Kingfisher, Kalyani Black, Heineken, Amstel Bier. BAI, which is formed in partnership with the World Brewing Alliance (WBA), and is expected to focus on growing the beer category in India, drive innovation, moderation, and sustainability in the Indian beer market.

WBA is the global industry body consisting of brewers and brewing trade associations from leading markets, including Australia, Canada, the US, Europe, Japan, Korea, Latin America, Brazil, and New Zealand.

BAI is headquartered in Delhi and is going to be headed by Vinod Giri, who will assume office on June 1, 2024. Giri until now was heading the Confederation of Indian Alcoholic Beverage Companies (CIABC), the apex body of the Indian alcoholic beverage industry.

“The time is right for brewers to raise their voice on these issues. The Brewers of India will be a vital part of promoting moderate drinking, promoting our industry,” said Justin Kissinger, President and CEO, WBA.

The new association will also be open to other brewers, Indian and international both, who share the belief in growing the Indian beer industry responsibly.

AB InBev India President Kartikeya Sharma said, “There are many barriers to the growth of India’s beer category, including inequitable taxation, accessibility, and the ease of doing business. We will continue to advocate to unlock a new era for the beer category.”

Carlsberg India MD Nilesh Patel said, “The beer industry is an important sector for the states as it provides significant direct and indirect employment and generates significant revenues for the state to invest for its citizens.

“Through the Brewers’ Association of India, the industry expects to bring best global practices and further strengthen the sector.”

UBL MD & CEO Vivek Gupta said, “Together, the industry can help shape policies promoting responsible choices for consumers around moderate alcohol beverages, a robust taxation and regulatory framework and promoting investments for socio-economic benefits. We look forward to collaborate with governments and other stakeholders.”

The three companies have significantly invested in India. While Carlsberg operates seven breweries, UBL has 19 and AB InBev India has 10 of them across the country.