Tag Archives: business growth

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

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.

William Grant continues to grow with a positive momentum

With an evolving Indian consumer and alcobev market, William Grant & Sons has one of the most enviable portfolios in the industry. From award winning whiskies to popular gins, the company has been enjoying a healthy growth for the past few years. Sachin Mehta, Country Director, William Grant & Sons spoke to Bhavya Desai about the Indian market and the future roadmap for the company. Excerpts:

The overall business has been good for William Grants & Sons (WGS). It’s been growing at a healthy pace informs Sachin Mehta, the Country Director of WGS. The past 3–4-years have been particularly positive as Indian consumers are seeking and appreciating more premium and high-quality and prestigious products. “Our portfolio allows for a great fit to this trend of growing premium and luxury consumption growth in India,” he adds.

And if this trend is anything to go by then the future surely looks bright, with the Indian consumer looking towards more premiumisation, especially since WGS’ portfolio includes some of the most popular brands on the global stage. This includes brands like Grant’s Scotch Whisky, Monkey Shoulder Blended Malt Scotch Whisky, Hendrick’s Gin, Glenfiddich Single Malt Scotch Whisky and The Balvenie Single Malt Scotch Whisky. Sachin is also delighted to see brands like Hendrick’s, which has led, created and established the premium gin category, on the other hand, Monkey Shoulder has trended very well with its unique premium offering for the young and aware consumer. “We are blessed that our brands and quality liquid is loved by consumers here.”

Despite the popularity and the evolving pallet of the Indian consumer, WGS has no plans of creating specific products for the Indian pallet, not for the near future at least. “Our products have found a good preference to the Indian consumer’s pallet. The Indian consumers now have an evolved preference in line with the most developed in the world. At William Grant & Sons, we are committed to quality premium offerings to consumers and our current portfolio fits well to the evolving preferences of consumers.”

What’s interesting is that despite have a more premium portfolio, WGS has been successfully targetting the more affluent consumer, and the strategy is simple, with the Indian consumer evolving and seeking premiumisation across categories, from watches to cars to high-end spirits etc. – their brands cater to this growing demand for luxury products with their quality liquid.

Combine that with special liquids like the limited-edition releases and aged expressions, offered to collectors and explorers, better availability, an increasingly aware premium consumer and the retail experience have been key drivers in the recent past.

At the company’s UP bottling plant, the company bottles the two variants of Grant’s currently in India – Grant’s Triple Wood and Grant’s Distinction, in the blended scotch whisky category. Overall Grant’s continues to grow with a positive momentum with a dynamic play between the variants depending on the RTM of the state. “We are committed to continue to offer more variants to our consumer on Grants in the future.”

Undoubtedly, India is an important market for WGS not only because it’s growing, but also from the economic front and consumers preferences, tastes and premiumisation. India is now an important part of the global plans across categories and brands. “For example, we recently introduced the Grand Series, with Glenfiddich 21-year-old “Gran Reserve” and Glenfiddich 26-year-old “Grande Couronne”, Glenfiddich 29-Year-Old “Grand Yozakura” and the Time series with Glenfiddich 30-Year-Old – some of them limited editions and some of them rare and unique variants.”

Similarly, there are additional variants being introduced on The Balvenie Range as well. While many of these are still limited and allocated quantities – such variants now being offered to India reflects their commitment and focus on India as a market.

“We have also introduced Smokey Monkey, a new variant of Monkey Shoulder Blended Malt Whisky which was highly appreciated for its Smokey taste amongst our consumers. Similarly, Hendrick’s brings its limited-edition variants from the “Cabinet of Curiosity” to explore some curious offerings in India. Starting with Hendrick’s Midsummer Solstice in 2021, followed by Hendrick’s Lunar, Hendrick’s Neptunia, and, most recently, Hendrick’s Flora Adora.”