### **Company Overview** Tilaknagar Industries Ltd (TI) is a leading Indian alcoholic beverage company with a legacy spanning over **90 years**, originating as *Maharashtra Sugar Mills Ltd* in **1933**. After exiting the sugar business, the company transitioned into **Indian Made Foreign Liquor (IMFL)** production in 1974 and has since evolved into a major domestic and international player, particularly in the **brandy and whisky** segments. TI operates a nationwide footprint with **21 manufacturing units across 12 states**, supported by an extensive distribution network of **~40,000 depots in 14 states**. The company distributes through **three primary channels**: state liquor corporations, distributors, and direct sales, while also exporting to **10 countries** across Africa, the Middle East, Southeast Asia, and Europe. --- ### **Strategic Transformation: From Regional Brandy Leader to Pan-India Multi-Category Player** As of November 2025, TI has executed a **comprehensive strategic pivot**, transitioning from a **regional, brandy-centric business** (where >90% of volume came from brandy and 85–86% from Southern India) into a **pan-India, multi-category spirits enterprise**. This shift is being driven by a mix of **organic innovation**, **inorganic acquisitions**, and **strategic investments** in craft and premium segments. Key highlights of this transformation include: - **Volume Diversification**: Whisky now contributes **over 65%** of total volumes, brandy over **30%**, significantly reducing previous brand concentration. - **Geographic Expansion**: Efforts are underway to strengthen presence in **non-Southern regions**, especially East & Northeast India, reducing regional dependency from ~86% to a more balanced footprint. - **Product Portfolio Evolution**: TI now competes across all five major IMFL categories—**whisky, brandy, rum, gin, and vodka**—leveraging both flagship brands and disruptive new product lines. --- ### **Flagship Brands and Product Innovation** #### **1. Brandy Segment: Market Leadership & Premiumization** TI remains **India’s largest brandy manufacturer**, with two global “Millionaire” brands (per Drinks International): - **Mansion House Brandy (MHB)**: - Top-selling brandy in India, second-largest globally. - Sold over **8.5 million cases in FY24**. - Anchors the **Mass Prestige** portfolio, performing strongly across South India and institutions like CSD. - **Courrier Napoleon Brandy (CNB)**: - Third-largest brandy in India, fifth-largest globally. - Third-fastest growing brandy worldwide in CY2024. - Sold over **1.7 million cases in FY24**, reflecting strong growth momentum. - **Monarch Legacy Edition**: - TI’s **first luxury brandy**, launched as a sipping brand to rival cognac. - Made from **100% pure grape distillates** (Indian & French), distilled in coal-fired copper pots, and matured in ex-red wine American oak barrels. - Aged up to **8 years**, targeting aspirational, premium consumers. - Priced at **₹6,750/bottle**, available in **6 Indian states and Hyderabad Duty Free**. - Has earned a **Bronze Medal at the 2025 London Spirits Competition** and multiple awards at the World Drinks Awards. - Part of a broader **premiumisation push**, with future plans including limited cask finishes, distillery experiences, and digital connoisseur platforms. - **Flandy**: - Asia’s **first premium flavored brandy** (Orange, Cherry, Peach, Green Apple). - Captured **20% of Flandy’s volume** in its first quarter of Green Apple variant launch. - Used to reposition brandy as **youthful, aspirational, and inclusive**. #### **2. Whisky Expansion: Entering the Dominant Category** With whisky constituting **over 60% of India’s spirits market**, TI has prioritized aggressive foray into this segment: - **Mansion House Whisky (MHW)**: - Relaunched in **2025** for semi-premium segment. - Targeting **East and Northeast India** (~6 million case market), with expansion into South India. - Combines **Scotch malts and Indian grain spirits**, aged in oak barrels. - Features a **180ml “hipster pack”** to attract younger consumers. - Gaining traction in **Assam**, with plans to expand via TI’s deep Southern distribution. - **Seven Islands Whisky**: - **Pure malt blend** combining four single malts: - Two from India (Himalayan foothills, Vindhyan ranges) - Two from Scotland (Speyside, Lowlands) - Leverages **tropical aging (India)** and **traditional Scottish maturation** for a distinct flavor profile. - Serves as the **anchor product** under the new **‘House of TI’** premium vertical. - Named after **Mumbai’s seven original islands**, with design reflecting maritime heritage—anchors, cartographic contours, and a modern aesthetic. - **Imperial Blue (IB)** – Strategic Acquisition: - **Third-largest whisky brand in India** by volume and value (8% market share), with **22.4 million 9L cases sold in FY25**. - Acquired via **slump sale** from **Pernod Ricard India** in July 2025 for **€412.6 million (~₹4,150 crores)**. - Includes **€70 million normalized working capital** and **€28 million deferred payment due in FY30**. - Financing plan: **Equity (₹2,296 crore via preferential issue)** + **debt**. - Received **CCI approval on October 7, 2025**; expected closing in **Q3 FY26**. - Expected to be **cash EPS accretive** post-closing, with margin expansion supported by **synergies and the UK-India Free Trade Agreement (FTA)**. - Marks TI’s **strategic entry into the national whisky market** and is poised to become the **base platform** for premium whisky launches. --- ### **Strategic Investments & Partnerships: Building the Craft & Disruptive Spirits Portfolio** TI is actively building presence in **craft, ready-to-drink (RTD), and premium categories** through equity stakes and commercial partnerships: #### **1. Spaceman Spirits Lab Pvt. Ltd. (SSL)** - **Maker of**: Samsara Gin, Sitara Rum, Amara Vodka. - TI’s stake: **21.36%** as of November 2025 (up from 12.98%), with investment of **₹13.15 crore** committed over 18 months. - **Option to increase ownership** upon SSL achieving strategic milestones. - **Usership Agreement**: TI distributes SSL brands across **Odisha, Puducherry**, and select **international markets**. - **Product Highlights**: - **Samsara Gin**: India’s **#3 craft gin brand** and known as "India’s favorite pink gin." - 6–7% market share in premium gin. - FY25 revenue: **₹25 crore**, >27,000 cases. - New variants: **Jamun & Pink Salt, Raw Mango & Jalapeño**, and **RTD Gin & Soda** (with Everyday Friday). - **Amara Pink Vodka**: **India’s first artisanal pink vodka**, filtered through pink rubies, targeting celebratory consumption. #### **2. Round The Cocktails Pvt. Ltd. (RTC)** - **Maker of Bartisans**, premium "ready-to-pour" cocktail mixers. - TI stake: **36.2%**, acquired via **₹8 crore investment**. - Bartisans offers **19 natural-flavor mixers**, including **Raid and Run (Jamun & Himalayan Salt)** and **Indian Summer (Mango, Chilli)**. - Distributed via **D2C, quick commerce, and modern retail**, with **₹3.5 crore FY24 revenue**. - Strategic goal: Align with India’s rising **at-home cocktail culture** and promote **brandy-based cocktails**. --- ### **Distribution and Manufacturing Strength** - **Manufacturing Network**: - **4 owned distilleries** (including Prag Distillery, Punjab Expo Breweries). - **17 contract/leased/tied-up units** across 12 states. - In-house **50,000 LPD molasses-based** and **100,000 LPD grain-based** distillation plants in **Shrirampur, Maharashtra**. - Expansion underway at **Prag Distillery (Andhra Pradesh)** to increase capacity from **6 to 36 lakh cases/year** (CAPEX: ₹35–50 crore). - **Distribution Strength**: - Deep penetration in **South, East, and North-East India**. - Strong **CSD (Canteen Stores Department)** presence. - Plans to leverage **Imperial Blue’s pan-India network** to accelerate reach of TI and SSL brands. --- ### **Growth Drivers & Strategic Objectives** #### **Core Growth Strategies** - **Premiumisation**: Across all categories, especially brandy (Monarch), whisky (Seven Islands), gin (Samsara), and vodka (Amara). - **Portfolio Diversification**: Reduce brandy volume share from 93% (2023) to **~80%**; scale whisky, gin, and RTD segments. - **Geographic Expansion**: Scale in **East & Northeast India**, reduce concentration risk. - **Export Growth**: Up **70% YoY** in FY25; new markets in Africa (DRC, Kenya), Middle East (Oman, Qatar). - **Inorganic Growth**: Focus on **acquisitions and strategic stakes** in high-potential brands and formats. #### **Marketing & Brand Building** - **A&SP Investments Increasing**: To improve brand perception and **“share of voice”**. - Major campaigns: - **“The Warm Embrace of Fatherhood”** – 15M viewers, 30M impressions, won **Ambrosia Award 2025**. - **“Mansion House Boyzzzz”** – Telugu web series (21 episodes) to engage youth in AP/Telangana. - **‘Welcome The Now’** brand anthem for Mansion House. - Rebranding **brandy as fun, youthful, and aspirational** through digital, music, and influencer marketing.