### **Overview** **Kati Patang Lifestyle Limited (KPL)** is an India-based, BSE-listed company that has transitioned into a high-growth, premium alcoholic beverages (alcobev) and lifestyle platform. Formerly *VirtualSoft Systems Limited*, the company rebranded to **Kati Patang Lifestyle Ltd** in December 2024 following a strategic pivot from its legacy businesses in broadband, virtual events, and mobile roaming. The transformation was completed with the divestment of its subsidiary *Roam 1 Telecom Ltd* in June 2024. KPL now operates as a **dual-focus platform**—combining **award-winning craft beer innovation** with a **community-driven, experience-first lifestyle brand model**, targeting millennials and Gen Z across India, the US, and the UK. The company is positioned to become **India’s first professionally managed, publicly listed homegrown alcobev and lifestyle platform**. --- ### **Core Business & Leadership** - **Ownership & Structure**: - Kati Patang brand is owned through **Empyrean Spirits Private Limited (ESPL)**, a 98% subsidiary of KPL. - Shantanu Upadhyay, **Joint MD & CEO of KPL**, is the co-founder of Kati Patang and founder of ESPL. He brings 14 years of prior experience from Boston Consulting Group and Deloitte, focusing on data-driven strategy and operational excellence. - **Asset-Light Model**: - No owned manufacturing facilities; products are produced via third-party contract manufacturers. - Recently secured **leased production capacity in Uttarakhand** to reduce dependency on Bhutan-based facilities, addressing prior regulatory challenges affecting Delhi markets. --- ### **Product Portfolio & Market Presence** #### **Flagship Beer Brands** Kati Patang beers are **award-winning craft brews** made using **distinctive Indian ingredients**—saffron, turmeric, ginger, peppercorn—offering a globally relevant yet unapologetically Indian identity. | Product | Description & Highlights | Awards & Recognition | |---------------------|--------------------------|-----------------------| | **Saffron Lager** | Crisp lager infused with Kashmiri saffron; gluten-free | Berlin International Beer Competition (BIBC) - Silver | | **Bareilly Bold** | Craft strong beer; malty with moderate bitterness | N/A | | **Zesty Amber Ale** | Amber ale with citrus and caramel notes; 4.6% ABV | BIBC Silver | | **Snappy Wheat** | Spiced witbier brewed with organic Indian spices; 4.6% ABV | BIBC Silver | --- ### **Distribution & Geographic Reach** - **India**: - Core markets: Delhi, Haryana, Himachal, Punjab. - **Relaunch of Saffron Lager** planned in Delhi & Haryana by end-Q3 FY26, supported by new Uttarakhand production. - Expansion into **Uttarakhand, Rajasthan, and Chhattisgarh** underway (starting Sep–Oct 2025). - Available in premium on-premise (bars, pubs) and off-premise (retail) outlets. **MRP: INR 150 per 330ml pint in Delhi**. - **United States**: - Distributed in **6 states**: Washington, Oregon, Arizona, California, North Carolina, Illinois. - Off-premise presence: **Total Wine** (all states except OR & ID), **Bevmo** (WA & CA). - Strategic expansion planned into **ID, GA, NY, FL, TX, VA**, and Northeast US. - Targeting distribution via **Kroger, Whole Foods, and Costco**. - **Secured new export purchase order** for Saffron Lager despite tariff concerns. - **United Kingdom & Europe**: - UK operations via **Kati Patang Ltd (UK subsidiary)**. - **23% stake in Chadkp Holdings Limited** (acquired Dec 2024), which owns **Chadlington Brewery** and **The Tite Inn** (Cotswolds, UK). - **Exclusive rights** to Kati Patang brand in UK; licensing rights in Continental Europe. - **Approved national rollout in JD Wetherspoon** (800+ venues), a major market access milestone. - Saffron Lager brewed under a 3-year licensing agreement at Chadlington Brewery (vegan-friendly, spring water sourced). --- ### **Growth Strategy & Expansion Goals** 1. **Market Expansion**: - India: Add 3 new states (Uttarakhand, Rajasthan, Chhattisgarh). - US: 3 near-term, 6 major long-term expansion targets. - UK & Europe: Leverage JV for scale and European licensing. 2. **Product Diversification**: - Expansion into **premium branded spirits** (organic and inorganic) to grow total addressable market (TAM) from **INR 8,000 crore to INR 80,000 crore**. - Future categories: Non-alcoholic beverages, F&B, hospitality, live events. 3. **Acquisition & Incubation Vision**: - Position KPL as **India’s first alcobev brand incubator**. - Use net proceeds to fund working capital for ESPL (₹13.1 crore allocated) and pursue **strategic acquisitions** in breweries, distilleries, and lifestyle brands globally. 4. **Capital Raise**: - Successfully raised **₹20.51 crore** in Sep/Aug 2025 via an **oversubscribed rights issue** (10.26 million partly paid shares at ₹20 each). --- ### **Marketing & Brand Community Ecosystem** Kati Patang operates a **communities-centric**, **IP-led marketing model** that merges brand engagement with **ROI-generating platforms**. Three flagship IPs: | IP Initiative | Format & Audience | Purpose | |----------------------------|--------------------|--------| | **Kati Patang Trial Room** | Live indie music events, pop-ups, artist collaborations (Delhi, Manali, Gaia Festival) | Supports experimental music; builds artist and fan community | | **Kati Patang Quiz League** | City-based quiz nights in restaurants; expanding to multiple venues | Builds loyal urban base; enhances on-premise sales | | **Kati Patang Spin City** | Vinyl music culture revival events; collector & audiophile community | Enhances brand exclusivity and retro-cultural appeal | - These IPs function as **scalable route-to-market platforms** for niche premium audiences and are planned to be rolled out in 2026–27 under “Weekender” and “Masterclass” formats. - Brand identity built on **freedom, creativity, and authenticity**, communicated through events, merchandise, and storytelling. --- ### **Q2 FY26 Performance Highlights (Nov 2025 Update)** - Despite **adverse weather** in North India (impacting Himachal and Punjab), alcohol business showed **9.7% net revenue growth QoQ (Q2 vs Q1)**. - **Premium mild beer**, led by Kati Patang brand, grew **32% in Q2 vs Q1**. - **Saffron Lager gaining traction in Delhi** post relaunch. - Active participation in **NBWA 88th Annual Convention (Las Vegas)** to promote Bareilly Bold and Saffron Lager in the US market. --- ### **Financials & Strategic Positioning** - **Revenue Transition**: - FY24 revenue: ₹138.73 million from legacy telecom and broadband operations. - Post-divestment, revenue now fully derived from premium beer and lifestyle operations. - **Risk Management**: - Mitigated regulatory risk in Delhi by moving production from Bhutan to Uttarakhand lease facility. - Monitoring **raw material cost fluctuations** and **contract manufacturing dependencies** as operational risks.