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R. Balaji

Intends to issue 48-lakh shares

Chennai June 9 Empee Distilleries Ltd is planning a public issue to fund its Rs 182-crore expansion and diversification plan. The company intends to issue 48 lakh shares of Rs 10 each at a price to be decided through the book-building route.

According to an information filed by the company with the Securities and Exchange Board of India, the Chennai-based manufacturer of Indian made foreign liquor (IMFL) is expanding its distillation capacity at its existing unit in Tamil Nadu, setting up a new grain-based distillery in Andhra Pradesh and planning a residential project in Kanchipuram, Tamil Nadu.

The company plans to set up a 60 kilolitre per day (klpd) distillery that will use maize and jowar as raw material and a blending and bottling unit for Indian made foreign liquor in Nellore District, Andhra Pradesh.

Using grain-based alcohol is a novel initiative since the traditional route in the country is to use molasses as a raw material.

Alcohol production and the linked IMFL unit will cater to one of the largest markets, Andhra Pradesh.

The alcohol can also be supplied to its unit in Tamil Nadu, according to the company.

Empee Distilleries is also setting up a 7.5 MW biomass based power plant at Aranthangi, Tamil Nadu.

The company has entered into a power purchase agreement with the Tamil Nadu Electricity Board, which has permitted it to expand to 10 MW.

Residential Project

The residential project with a built up area of 2 lakh sq ft is to come up in Mevaloorkuppam is a diversification for the company.

The company owns over 20-acres land here and has earmarked nearly 17 acres for the residential project.

The company has permission from the Department of Town and Country Planning to construct over 12-lakh sq ft, which the company plans to do in four phases.

Empee Distilleries will expand the 20-klpd distillery at Mevaloorkuppam to 70 klpd. Its other distillery is in Palakkad, Kerala.

Empee Distilleries is a part of the Empee Group, which also has interests in sugar and hotels.

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