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Boby Kurian

Bangalore , Nov. 24

THE promoters of the Chennai-based Empee Distilleries have floated a new separate spirits company, Apollo Alcobev Ltd, which will roll out a slew of grain-based products shortly.

This follows the acquisition of Alembic's distillery near Bangalore by Mr Shaji Purushotaman, a promoter of Empee Distilleries, and some other unidentified investors earlier this year.

A former Shaw Wallace & Co honcho, Mr Sat Pal Chaudhry, will head the new company as Chief Operating Officer (COO). Speaking to Business Line, Mr Chaudhry said the company would have a monthly production capacity of roughly 2.5 lakh cases.

Mr Chaudhry held various top management positions in Shaw Wallace and spearheaded that company's brewery division as executive vice-president.

Apollo Alcobev is expected to develop new brands in all flavour segments of the Indian Made Foreign Liquor (IMFL) business and also tap emerging segments including Ready-To-Drink (RTDs) over a period of time. Meanwhile, sources said Empee would transfer a few of its recently registered brands into the newly incorporated entity. This might include Club Royal Whisky and Club Polo Vodka, which have already hit some selected markets in the South, including Chennai.

Apollo Alcobev, based out of Bangalore, is also expected to scout for manufacturing tie-ups across the country in its bid to take the brands national.

The management of the company will be in the hands of Mr Purushotaman even though there is bound to be no overlapping of management duties between Empee Distilleries and Apollo.

"The new company will be independently managed and will slug it out with Empee nationally," sources close to the promoters said.

Empee Distilleries, with revenues touching Rs 300 crore operates through two plants in Tamil Nadu and Kerala and has sizable market shares in the IMFL markets of these two States, especially in brandy and rum flavours.

Empee Distilleries more than a year ago sold its brewing arm to the UB group in a deal estimated at over 100 crore.

Informed sources said the promoters of Empee along with some strategic investors were charting a plan to expand their IMFL business nationally. Empee's diversified interests include chemicals, sugar and hospitality.

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