### **Company Overview** **Associated Alcohols & Breweries Ltd (AABL)**, founded in 1989 and headquartered in Barwaha, Madhya Pradesh, is a leading integrated manufacturer in India’s alcoholic beverages sector. With over four decades of operational expertise, AABL has evolved from a molasses trader and country liquor (IMIL) producer into a diversified, pan-India player across the entire liquor value chain. The company is the flagship entity of the **Associated Kedia Group**, led by promoters **Anand Kumar Kedia** and **Prasann Kumar Kedia**. AABL operates **India’s largest single-location integrated alcoholic beverages manufacturing facility**, spanning 150 acres. The plant is strategically located in central India—near Indore—offering logistical advantages with equidistant access to major markets including Maharashtra, Kerala, Delhi, Karnataka, and Chhattisgarh. --- ### **Core Business Segments & Integrated Model** AABL operates through a **fully integrated, asset-light, and flexible model** spanning: - **Extra Neutral Alcohol (ENA)** manufacturing - **IMFL (Indian Made Foreign Liquor)** – proprietary and licensed brands - **IMIL (Indian Made Indian Liquor)** - **Grain-based Ethanol production** - **Malt manufacturing** - **By-products (e.g., Dried Distillers Grains with Solubles – DDGS)** - **Contract manufacturing and bottling** It serves both **B2B** (supply, job work, bulk ENA) and **B2C** (proprietary brands) markets. --- ### **Manufacturing & Production Capabilities (as of Nov 2025)** | **Facility** | **Capacity** | |----------------------------|-------------------------------------------| | **ENA Plant** | 45 MLPA (installed); 180 MLPA (licensed) | | **Ethanol Plant** | 130 KLPD (40 MLPA installed) | | **Bottling Lines** | 41 lines, 16 million cases/year | | **Malt Plant** | 6,000 liters per day (LPD) | | **Captive Power Plant** | 60% co-generation; plans to reach 100% | | **Land Bank** | 150 acres (allows extensive expansion) | The company has **fungible production capabilities**, allowing it to switch between ENA, ethanol, and malt production based on market demand and pricing. --- ### **Strategic Partnerships** AABL has a **20+ year strategic partnership with Diageo**, one of only **four exclusive contract manufacturing partners** for the global leader in spirits. It also has deep collaborations with **Inbrew** and serves as a franchisee/bottler for marquee brands, including: - McDowell’s No.1 - Bagpiper Deluxe - Director’s Special - White Mischief - Blue Riband Gin These relationships provide **stable volume off-take and diversified revenue**, contributing approximately 27–30% of total revenue. --- ### **Product Portfolio & Brand Strategy** AABL markets a **diverse portfolio of 14 proprietary brands** across whiskey, vodka, gin, rum, and brandy, targeting economies to super-premium segments. #### **Key Proprietary Brands:** - **Hillfort** – Premium blended malt whisky - **Nicobar** – Super-premium handcrafted gin - **Central Province (CP)** – Portfolio across whisky, vodka, rum, and flavored variants - **Titanium Vodka** – Positioned in premium segment (competes with Magic Moment) - **Bombay Special Whisky** – Core economy brand - **Lemount White Brandy** – India’s (and world’s) first white brandy, launched in Kerala #### **New Product Launches (2025–26)** - **Hillfort Whisky** (Q1 FY25) - **CP Vodka** (Q1 FY26) – triple-distilled, gaining strong traction in MP - **Kultur** – Ready-to-Drink (RTD) product in 330ml cans, targeting younger urban consumers - **Tequila** – Brand launch scheduled for Jan 2026, following formal approval from Mexico - **Brandy extension** and **single malt whisky** – in pipeline --- ### **Revenue Segments & Growth Drivers** | **Segment** | % of Revenue (circa FY25) | Growth (YoY) | |-----------------------------|---------------------------|-----------------------| | **Licensed IMFL** | ~26–28% | 8–10% | | **Proprietary IMFL** | ~16–17% | 15–18% (value/volume) | | **Merchant ENA** | ~23% | Declining (due to captive shift) | | **Ethanol Sales** | Growing (via EBP program) | 10–15% | | **By-products (e.g., DDGS)**| ~5–8% | Stable | | **IMIL** | ~27% | Volume-stable at cap | > **Note**: As of FY26 H1, **58% of ENA is used for captive consumption**, reflecting a strategic shift toward **value-added products**. --- ### **Premiumization Strategy** AABL is actively transitioning from a commodity-heavy B2B model to a **branded B2C-led business**, with a clear focus on **premium and super-premium segments**: - Premium products growing at **18–20% annually** - Target to increase **premium product share to 50%** in proprietary sales (from current 10–15%) - Proprietary IMFL brands achieving **35–37% YoY value growth** in H1 FY26 - EBITDA margin target: **15–18%** for proprietary brands (vs. ~10% for franchise work) --- ### **Geographic Expansion & Market Penetration (Pan-India Roadmap)** AABL has successfully established a **strong presence in Madhya Pradesh (20–25% market share)** and **Kerala (Top 4–5 IMFL player)**, where it achieved **1 million cases in FY22–23**, one of the fastest such milestones. #### **Current Markets:** - Madhya Pradesh - Kerala - Delhi - Chhattisgarh - West Bengal - Punjab - Goa (via local bottling) #### **Recent Expansions (2024–25):** - Entered **Maharashtra and Uttar Pradesh** in 2023–24 - Appointed **ex-Diageo/USL leadership** to drive expansion - Direct sales teams operational in UP; building in Maharashtra #### **Future Entry States (2025–26):** - Goa - Puducherry - Odisha - Jharkhand - Karnataka Plans include local manufacturing in Uttar Pradesh and **regional greenfield bottling setups** to mitigate high transport costs and state-specific duties. --- ### **Strategic Projects & Capabilities Development** - **Malt Plant** (6,000 LPD): - ₹55–60 crore invested - Supports own single malt whisky development - Enables backward integration and quality control - Reduces reliance on external suppliers - **Ethanol Plant (130 KLPD)**: - Commissioned in FY24–25 - Supplying OMCs under EBP program - Achieved **85% capacity utilization** in H1 FY26 - Ethanol commands **~₹72/liter** (vs. ~₹55–60 for ENA), improving margins - **Single Malt Whisky Facility**: - To be commissioned by 2026 - First product launch post-24-month maturation (2028 target) - **RTD Market Entry**: - **Kultur** launched in MP, scaling to metros - Targets India’s **$72 million RTD market**, expected to grow at **20%+ CAGR** - **Tequila Launch**: - Exclusive rights from Mexico—the only Indian company to do so - Will import 100% agave spirit, bottle in India --- ### **Financial Performance (as of Jul 2025)** - **Revenue (FY24–25)**: ₹10,759 million - **EBITDA**: ₹1,280 million (**12% EBITDA margin**) - **PAT**: ₹814 million (**8% PAT margin**) - **10-year CAGR (FY16–FY25)**: - Revenue: **14%** - EBITDA: **15%** - PAT: **21%** - **ROE**: ~16% - **Debt**: Net debt-free / zero net debt --- ### **Competitive Advantages** 1. **Integrated Manufacturing**: Full control from grain to bottle 2. **Feedstock Flexibility**: Uses rice, maize, jowar, barley—switches based on cost 3. **Location Advantage**: Lowest inbound logistics cost among peers 4. **Scale Economies**: One of India’s largest grain-based ENA producers 5. **Backward Integration**: In-house ENA, power, malt, and ethanol 6. **Strong Distribution & Partnerships**: Long-standing B2B alliances and direct B2C expansion 7. **Premium Innovation**: Rapid success of Hillfort, Nicobar, CP Vodka, Lemount --- ### **Regulatory & Environmental Initiatives** - Fully compliant with **Ethanol Blending Programme (EBP) 2025 target** - Zero effluent discharge; full water recycling - 60% captive power; aiming for 100% - DDGS by-product contributes **5–8% of revenue** - Registered for **CSD (Canteen Stores Department)** distribution—potential high-growth channel --- ### **Merger & Consolidation (Ongoing)** AABL is in the process of amalgamating with **Mount Everest Breweries Limited (MEBL)**, the **largest beer company in Madhya Pradesh**. The merger aims to: - Create a **unified alco-beverage platform** (spirits + beer) - Broaden B2C footprint and retail reach - Enable **cross-selling** (beer in summer, rum in winter) - Achieve **economies of scale** and margin improvement Post-merger, the entity will operate one of India’s most diversified and integrated models in the sector.