The company posted a low single-digit volume growth in the first half of the year due to national and state elections, said Chairman and Managing Director Amit Dahanukar.
Dahanukar also discussed the rationale behind the recent launch of the company’s first luxury brandy, Monarch Legacy Edition, priced at ₹6,750 for a 750 ml bottle in Maharashtra.
Also Read: Tilaknagar luxury brandy price and other details
“For us, it’s a natural progression to move up the value chain. We feel there is a market to be addressed in this category, similar to the activity seen in the luxury whiskey space,” he said.
The product will be introduced in Maharashtra, Puducherry, Karnataka, and select export markets, with prices varying from ₹3,500 to ₹8,000 depending on the region.
Brandy accounts for 20% of the overall alcoholic beverage market in India, as per Euromonitor, with Tilaknagar Industries contributing significantly through its brands Mansion House and Courrier Napoleon.
These brands are key players in the company’s portfolio, which consists of 85% products in the prestige and above category.
Brandy makes up 94% of the company’s sales volumes, with South India accounting for 86% of its sales.
Tilaknagar also recently doubled its stake in Spaceman Spirits Lab (SSL), the producer of premium Indian craft gin Samsara and craft rum Sitara, to 20%.
Dahanukar said the collaboration is synergistic, with both companies benefiting from the alliance, but declined any comment on plans to increase the stake further.
Also Read: Andhra Pradesh liberalises excise policy: Premium liquor stores and strict regulations coming up
Tilaknagar also plans significant expansion in Tamil Nadu, which is nearly 50% of the country’s brandy market.
The company’s second quarter revenue grew to ₹375 crore from ₹354 crore in the same quarter last year. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose to ₹66 crore from ₹47 crore, with margins improving to 17.6% from 13.4%. Profit After Tax (PAT) also grew to ₹58 crore from ₹37 crore last year.
Also Read: Tilaknagar Industries launches luxury brandy Monarch Legacy Edition, check price and other details
Tilaknagar’s current market capitalisation is ₹8,013.48 crore, and its shares have risen nearly 62% over the past year.
For more details, watch the accompanying video
