### **Overview** **SOM Distilleries & Breweries Ltd (SDBL)** is a leading Indian alcoholic beverages company headquartered in Bhopal, Madhya Pradesh. It is the **only publicly listed Indian company** operating across **both beer production and Indian Made Foreign Liquor (IMFL)** manufacturing, giving it a unique dual-segment business model that mitigates seasonality risks and drives operational and marketing synergy. With a strong pan-India presence and growing international exports, SDBL is positioned among the **fastest-growing players in the Indian alcobev sector**, targeting leadership in both beer and premium spirits segments. --- ### **Business Segments & Product Portfolio** SDBL offers a diversified portfolio across beer and IMFL categories, catering to mainstream, premium, and super-premium consumer segments. #### **Beer Brands** - **Flagship Brands (each >1 million cases/year):** - **Hunter**: Premium strong beer; top-selling in Delhi’s neutral market and dominant in MP, Odisha, and UP. - **Black Fort**: Regional strong beer with widespread consumer base. - **Power Cool**: High-volume brand; the **#2 beer in Karnataka** and key in MP. - **Innovation & Premium Launches:** - **Woodpecker**: **India’s first twist-cap beer** and **first filtered wheat beer**, launched in FY2020. Recognized as **"India’s Leading Brand – Rising Star 2025"** for innovation. - Variants: Glide (mild), Crest (strong). - Features: Direct-print bottles (sustainable), anti-counterfeit packaging, and no bottle opener needed. - **Legend**: New strong beer brand launched in Karnataka, gaining traction with 10.7 lakh cases in H1 FY25. #### **IMFL Brands** - **Whisky**: *Milestone Blue*, *Pentagon Gold Edition*, *Mahavat*, *Genius* - **Rum**: *Pentagon XO*, *Black Fort XXX* - **Vodka**: *White Fox* - **Brandy & RTDs**: *Legend Brandy*, *Naughty Orange*, *Cosmo Cranberry* --- ### **Strategic Focus in FY2025–2027** #### **1. Expansion into Premium Segments** SDBL is strategically transitioning from a beer-centric business to a **360-degree AlcoBev company**, with **premiumization** at its core. Key moves: - **Launch of Mahavat Whisky (Nov 2025)** - **Category**: Mid-premium (regular) whisky; price range **₹1,000–1,100**. - **Taste Profile**: Bold flavor with notes of **pear, smoke, candied sweetness, and woody-cocoa finish**. - **Positioning**: Inspired by royalty, leadership, and self-expression—targeting aspirational consumers. - **Rollout**: Initially launched in **Bhopal**, now available in **MP, Delhi, and UP**; expanding across **Northern India**. - **Significance**: Entry into a large, profitable segment dominated by multinationals; reflects strategic shift toward premium IMFL growth. - **Future IMFL Pipeline**: - Development of a **single malt whisky** under *Bhimbetka*. - Second-phase setup of a **distillery** in UP greenfield project. #### **2. Geographical Expansion & Manufacturing Capacity** SDBL is investing heavily to deepen market reach and address capacity constraints. - **Greenfield Project in Farrukhabad, Uttar Pradesh (via subsidiary Woodpecker Greenagri Nutrients Pvt. Ltd.)** - **Total Investment**: ₹600 crores (₹370 cr debt with SDBL guarantee; ₹200 cr equity/unsecured loans). - **Phase 1 (FY27 target)**: Brewery producing **1 million cases/month (12 million/year)**. - **Phase 2**: Integrated **distillery unit**. - **Purpose**: Strengthen presence in **UP**—India's largest consumption market—and enhance supply chain in North India. - **Existing Capacities (as of Sep 2025)**: - **Beer**: 38.2 million cases/year (Bhopal, Karnataka, Odisha). - **IMFL**: 3.9 million cases/year. - **Odisha Plant Expansion**: Capacity increased from 6M to 9M beer cases annually, improving eastern India reach. - **Uttar Pradesh Plant**: Expected **commercial operations by June 2026**—will de-risk supply and meet demand surge in northern markets. #### **3. Distribution & Market Penetration** - **Current Presence**: Operates in **9 states + 2 UTs**, including core markets: **MP, Karnataka, Odisha, Jharkhand, Delhi, UP, Chhattisgarh, Rajasthan, Tamil Nadu**. - **Market Leadership**: - **MP**: ~45% market share (FY24). - **Jharkhand**: **2nd largest beer company**, 22% share. - **Recent Approvals**: - **Telangana (May 2024)**: Entry into one of India’s top beer consumption markets (~20% of national volume). - **Rajasthan**: Now permitted to sell **both beer and IMFL**, boosting revenue scope. --- ### **Financial & Operational Performance (FY2025–Q2 FY2026)** | Metric | Value | |-------|-------| | **FY2025 Total Volume** | 245.8 lakh cases (Beer: 234.4L; IMFL: 11.4L) | | **Q2 FY2026 Total Volume** | 39.8 lakh cases (Beer: 35.7L; IMFL: 4.1L) | | **IMFL YoY Growth (Q2 FY26)** | **64.5%** | | **Revenue Contribution (Q2 FY26)** | Beer: **80.5%**, IMFL: growing share | | **Price Realization (Q2 FY26)** | Beer: ₹607/case; IMFL: ₹1,068/case | | **Expected H2 FY26 Revenue Addition** | **₹800 crore** (driven by seasonality & Mahavat scaling) | **Profitability Drivers**: - Improved **returnable glass bottle management**. - Stable raw material costs (glass, sugar). - Operational efficiency from **new wraparound packaging** (25% gain at Bhopal plant). --- ### **Innovation & Marketing Strategy** - **Premium Channels**: Expanding Woodpecker and Mahavat into **airports, lounges, travel retail, and premium hotels**. - **Brand Campaigns**: “Make Space for Woodpecker” – lifestyle-focused positioning. - **Compliance-Driven Marketing**: Digital promotions focus on **indirect engagement** due to ASCI regulations. - **RTD Expansion**: Flavored ready-to-drink variants (e.g., Hunter Pint Beer, Naughty Orange) to capture youth and urban consumers. --- ### **Leadership & Governance** - **Anand Agrawal**, ex-Hindustan Unilever, Diageo, Pernod Ricard, appointed **Chief Marketing Officer (CMO)** in Apr 2024. - Leading premiumization drive for **Woodpecker, Mahavat, and future single malt**. - **Strategic Partnerships**: - **Carlsberg**: Contract manufacturing at Odisha plant improves utilization. - **Radico Khaitan**: IMFL/RTD co-production in Karnataka. - **White Owl, 7 Ink Brews**: Contract brewing. --- ### **Sustainability & ESG Initiatives** - Water conservation, energy efficiency, and waste reduction integrated into operations. - **Recycled glass usage** and **direct-print bottle tech** (Woodpecker) reduce environmental footprint. --- ### **International Expansion** - **Exports** to **25+ countries**, including USA, UK, UAE, Germany, Africa. - **MoU with Indian Fashion FZE (UAE)**: Exporting to **West and Central Africa**; initial shipments include *Black Fort*. - **FDA-approved beer exports** to **USA**. --- ### **Financial Highlights & Growth Trajectory** - **Revenue CAGR (FY22–FY24)**: **55%**. - **Beer CAGR (3-year)**: **59%**. - **Public Listing**: Listed on **BSE (1994)** and **NSE (2014)**. - **One of only two listed beer companies in India**. --- ### **Key Competencies & Differentiators** - **Dual-segment player** (Beer + IMFL): Unique in Indian capital markets. - **Innovation-led portfolio** (twist-cap, filtered wheat beer, bold whisky launches). - **Efficient supply chain & contract manufacturing**. - **Focus on Tier-II/III cities** with high growth potential. - **Strong regional leadership** with scalable models.