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Tilaknagar Industries (TI), makers of the Mansion House Brandy, which drives 86 per cent of its sales from the southern markets currently, plans to increase the revenue contribution from other markets like North and North-East in the current financial year, according to Amit Dahanukar, Chairman and Managing Director, of Tilaknagar Industries Ltd.
“Although the southern markets’ percentage share of sales will continue to increase, we anticipate a decline in their saliency to total volume in the years FY23–24,” Dahanukar said.
The company has Mansion House Brandy, Mansion House Brandy Reserve, Courrier Napoleon Brandy, and Courrier Napoleon Brandy Green, among others, under its product portfolio. Currently, Andhra Pradesh, Telangana, Karnataka, Kerala, Puducherry, and Tamil Nadu are its prominent markets in southern India.
New products
Dahanukar said that the company will be launching its new premium products Mansion House Reserve, the premium variant of its flagship brand, Mansion House, and its French Style flavored premium brandy (Flandy) into new markets in the next financial year.
Currently, Flandy is available in Telangana, and Puducherry and will soon be launched in Sikkim. Its Mansion House Reserve is available only in Tamil Nadu for now. The company said it is deliberating on the other markets that it can launch the products in.
Debt restructuring
TI had initiated debt restructuring after the company faced difficulties due to a highly-leveraged balance sheet. So far, the company has reduced its debt from ₹1,200 crore in March 2019 to ₹323 crore as of December 2022. Apart from debt reduction, TI has also raised ₹311 crore through three preferential issues over the past 15 months.
Dahanukar said that there has been a 13 per cent dilution in the promotor holding in the company. He added that given the strong cash flows, being generated through operations along with the reduction in finance costs, TI does not foresee a requirement to raise any further equity.
The company is betting big on the growing prominence of brandy in the Indian-made foreign liquor (IMFL) market. Dahanukar said brandy sales is expected to be close to 20-22 per cent of the overall IMFL industry, which is in the range of 70-75 million cases in the current financial year.
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