### **Overview** Globus Spirits Limited (GSL), established in 1992, is a fully integrated Indian alcoholic beverages company with over 30 years of heritage in the spirits industry—rooted in the distillation legacy of the founding Swarup family dating back to 1958. The company follows a “Grain to Glass” business model, maintaining control across the entire value chain through five state-of-the-art, multi-feed distilleries located in Rajasthan, Haryana, West Bengal, Uttar Pradesh, and Bihar. With an annual distillation capacity of approximately **301 million liters**, it is one of India’s largest grain-based distillers. GSL operates as a dual-engine growth company: - **Regular & Others (R&O)**: A stable, high-margin cash flow business focused on value and premium price points. - **Prestige & Above (P&A)**: A high-growth, high-margin segment targeting the luxury and premium consumer segments. --- ### **Business Segments & Strategy** #### **1. Consumer Business: Dual Growth Engines** The consumer-facing business is divided into two core strategic segments, contributing **~65% of total revenue** (R&O and P&A combined) and serving as the primary engine for future growth. ##### **a. Regular & Others (R&O) Segment** - **Leadership Markets**: Rajasthan (market leader), Uttar Pradesh, Haryana, Delhi, and Bengal. - **Expansion Focus**: Uttar Pradesh is a major growth market with an estimated monthly size of **~1 crore cases**; recent bottling unit commissioning and plans for a **200 KLPD greenfield distillery** in UP are key enablers. - **Performance**: - H1 FY26 revenue: ₹444 crores (+5% YoY). - Stable EBITDA margin of **16–18%**, industry-leading due to fast cash cycles, low asset intensity, and strong cash flows. - 3-year volume CAGR of **9%**, driven by innovation (e.g., GR8 Whisky, Ghoomar), brand building, and geographic expansion. - **Brand Portfolio**: Includes 3 major regional brands selling ~16 million cases annually. Flagship IMIL brands include **Nimboo, Goldee, Narangi, and Heer Ranjha**. - **Packaging Innovation**: TetraPak® brick packs (e.g., GR8 Times) launched for convenience, safety, and appeal to mobile consumers. ##### **b. Prestige & Above (P&A) Segment** - **Growth Trajectory**: - Revenue in H1 FY26: ₹80 crores (**+55% YoY**). - Q2 FY26: **62% YoY revenue growth**. - FY25 revenue: ₹1,293 million (**186% YoY increase**), surpassing ₹1,000 million target. - Now contributing **5% of total revenue** (up from <1% in FY23), aiming for **25% by FY29**. - **Profitability Outlook**: Nearing EBITDA breakeven, with **Delhi, Uttar Pradesh, and West Bengal already profitable**. West Bengal expected to turn profitable soon. - **Brand Portfolio (22 brands total)**: - **Luxury Tier** (under *The India Craft Spirit Co.*), includes: - **DOAAB**: Launched Expression 02 – *The Old Man & The Blossom*, India’s first single malt matured in **rare Japanese Mizunara oak casks** (launched Nov 2025). - **Terai**: India’s first craft dry gin (distilled in Behror, using 11 botanicals from Khari Baoli), now expanded to include **Litchi & Mulberries** variant. - **Terai Vodka**: World’s first **amethyst-filtered vodka**. - **Semi-Premium Brands**: - *Mountain Oak* (blended Scotch & Indian grain spirits), *Brothers & Co.*, *Snoski Vodka*, *Seventh Heaven*, and *Governors Reserve*. - **Geographic Presence**: - P&A available in **10 states**; planning **15–17 states** by FY26–27. - India Craft Spirit Co. brands present in **8+ states**, 125+ markets, and **4,000+ premium retail and on-premise outlets** (bars, clubs, gourmet stores). - **Awards & Recognition**: Over **35 international awards** in London, Berlin, Hong Kong, and San Francisco. --- ### **Manufacturing & Integrated Operations** - **Total Annual Capacity**: ~301 million bulk liters of alcohol; bottling capacity of ~29.4 million cases. - **Dual-Use Facilities**: Multi-feed distilleries (maize, rice, molasses) allow flexible switching between **ENA (Extra Neutral Alcohol), ethanol, and premium spirits** based on profitability. - **Key Facilities**: - **Rajasthan**: 54.4 million liters (produces R&O, P&A, bulk ENA). - **West Bengal**: 102 million liters (largest unit; produces all categories + bulk ethanol + contract bottling). - **Haryana**: 47.6 million liters; **100 KLPD ENA expansion** underway, fungible between grain and molasses. - **Uttar Pradesh**: New **greenfield 200 KLPD distillery** under development (expected Q3 FY26), enhancing captive supply and margin control. - **Vertical Integration Advantages**: - High purity ENA via **multi-pressure distillation**, enhancing drink safety and taste. - One of India’s first to use high-grade ENA in IMIL (before mandatory regulations). - **Franchisee Bottling Agreements** with global players including Diageo, Bacardi, and United Spirits Limited (USL). - **By-products & Sustainability**: - **Corn oil extraction** from DDGS (distillers’ dried grains), sold to **animal nutrition sector**. - **Zero-waste model**; by-products contribute to ~13% of revenue (e.g., DSG feed, industrial CO2). - Pioneered commercialized **maize-based co-product streams**. --- ### **Strategic Expansion & Market Entry** - **Geographic Focus**: - Core R&O: **Rajasthan, UP, Haryana, Bengal, Delhi**. - P&A Expansion: Targeting **15–17 states**, with tailored portfolio per state based on excise policies and consumer preferences. - **UP Prioritization**: Identified as a **strategic high-growth market** across R&O and P&A; expected to drive long-term volume and margin uplift. - **Market Entry Philosophy**: - **State-by-state rollout** focused on **profitability**, route-to-market readiness, and team alignment. - Takes **3 months to 2 years** to achieve full brand uptake depending on execution. - **New Markets Monitored**: Bihar, Odisha; in “wait and watch” phase. --- ### **Diversified Growth Initiatives** - **Joint Venture: Globus ANSA India Ltd.** - With **ANSA McAL (Trinidad & Tobago)** to launch **Carib® Beer** in India. - Carib 500 ml strong beer launched in UP in FY25; strong initial response. - Q1 FY26 launch of **Carib® in premium imported beer segment** via contract manufacturing. - **Ready-to-Drink (RTD) Segment via Bored Beverages Pvt. (51.13% owned)**: - Flagship brands: *No Label Mead* (5% ABV), *NOT OUT* (15% ABV, carbonated mead). - Initial launch in Delhi, UP, Haryana, Punjab. - RTD market expected to grow from **3.82 crore to 6.56 crore litres by FY25**. - 1.2 lakh pints of *No Label* sold in Delhi & Haryana by Mar 2023; **7% market share in Delhi**. --- ### **Financial & Capital Allocation Highlights** - **Growth Targets (FY29)**: - **Total Consumer Category Revenue > ₹2,200 crores**. - **EBITDA Margin > 17%**, with **25% of revenue** from P&A segment. - **Investments**: - **₹220 crore total capex** planned: ₹140 crore for UP projects, ₹80 crore for tech upgrades. - H1 FY26 spending: ₹30 crore on IMFL bottling (UP), ₹15–20 crore on tech; **total capex ₹80 crore**. - **No Greenfield/Expansion in Ethanol/ENA Beyond FY24 Projects**: Strategic shift to **maintenance and optimization** only. - **Fuel & Input Management**: - **Maize-based ethanol** now **84% of allocation**; stable pricing and margins (~₹24–24.5/kg). - Secured **long-term fuel supply agreements** with Coal India (30–35% of need) at fixed 5-year prices. - **Cash Flow Model**: - Manufacturing (bulk alcohol) provides **cushion and reinvestment capability**. - Earnings from early markets (e.g., Rajasthan) are being reinvested into new geographies. --- ### **Premiumization & Innovation** - Driving the **consumer-led premiumization** trend: - P&A growing at **triple-digit CAGR**, now a key margin driver. - Innovation in **brown and white spirits**: craft whisky, vodka, gin, rum, single malt. - **Product Launches (FY25–FY26)**: - DOAAB Expression 02 (single malt, Mizunara cask). - Terai Litchi & Mulberries variant. - Brothers & Co. Whisky (blend of Scotch, Bourbon, Indian single malt). - NOT OUT RTD (premium positioning: strength & resilience). - **Awards**: 35+ international recognitions for DOAAB, TERAI, Mountain Oak, Brothers & Co. --- ### **Key Strengths** 1. **Vertically Integrated & Efficient Model** – Full control from grain sourcing to bottling. 2. **Strategic Geography Play** – Manufacturing in **alcohol deficit states** for pricing power and faster brand penetration. 3. **Dual Growth Engine** – Stable cash flow (R&O) + high-margin upside (P&A). 4. **Consumer-Centric Innovation** – Strong R&D, tailored brands, premium storytelling. 5. **Fungible Supply Chain** – Flexible feedstocks and output (ethanol vs. ENA vs. consumer spirits). 6. **Sustainable Operations** – Near-zero waste, by-product monetization, greenfield expansions.