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Pincon Spirit Limited (PSL) will raise nearly ₹315 crore through a combination of equity and debt instruments that include issue of fresh equity shares, non-convertible debentures (NCDs) and fixed deposits.
The funds, to be raised in tranches over a two-year period, will be used towards its ₹400-crore expansion plans.
According to Arup Thakur, Director – Finance and CFO, PSL, the remaining ₹85 crore will come from bank loans.
“We have got the shareholders’ nod for raising funds through a combination of issue of fresh equity shares, NCDs and fixed deposits,” he told BusinessLine . Headquartered out of Kolkata, the BSE-listed company reported net revenue of ₹602 crore. Nearly 30 per cent (₹182 crore) of this was from the FMCG division, that includes edible oils like mustard, soya and palm.
The remaining came from its liquor business –sale of country spirit, Indian-made foreign liquor (IMFL) and traded (liquor) brands.
New Facilities According to Thakur, the immediate focus will be on shoring up volumes in the liquor segment. This will be done through the setting up of a greenfield country spirit facility at Kharagpur.
It will have a capacity of 8,00,000 cases a month.
The company is also eyeing acquisition of a new facility at Burdwan.
The other part will be expanding the existing capacities at the Rajarhat and Madhyamgram units.
Its Rajarhat (on the north-eastern fringes of Kolkata) facility has a production capacity of 1,00,000 cases a month and will see an addition of a tetra packaging line (for IMFL) there.
Expansion by fiscal end On the other hand, the Madhyamgram facility in North 24 Parganas has a capacity of 2,50,000 cases a month.
“Expansion – both greenfiled and brownfield — is expected to be completed by the end of this fiscal,” the CFO said.
A major player in the East and North-East, Pincon is also eyeing entry into other south Indian states like Tamil Nadu, Telangana and Andhra Pradesh, by this fiscal. It will also consolidate its presence in Karnataka.
Other high liquor consumption places like Delhi, Haryana and Punjab are also on its radar. “By 2018 we intend to be a pan-India player,” he said.
FMCG business The expansion in the edible oil business is expected to happen by the end of FY16 or early FY17. As of now, it is planning to foray into South India with the launch of its sunflower oil brand between January and March next year.
The sunflower oil will, initially, be manufactured from Pincon’s own facility in Agarpara in North 24 Parganas.
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