Indian Liquor industry overview – The Indian liquor segment is one of the rapidly developing as well as quickly evolving liquor markets at global level. India has become huge opportunity for global brands along with homegrown craft and artisanal brands. There are 6.5 crores people who have attained legal age for drinking over next 5 years, the demographics are in support of the sector, specially for creative alcobev products. As per latest reports presented by IWSR Drinks Market Analysis Report presented in May 2024, the overall Spirits or IMFL sector market size was 382 million cases in CY 2023 at increasing CAGR of 3.8% over 2022. If we analyze data based on region, South India is largest consumer of alcobev with market share of 60% followed by North, East, and West regions.
In IMFL, Whisky has achieved largest market share of 66%, the Brandy is second largest segment with 19%, Rum is third largest segment with share of 13%, Vodka and Gin have a low market share in single digit. The FY-23 has observed decline in double digit volume increment, FY-24 has faced many challenges by sector which has resuluted in decline of single digit growth. The impact variables have been rise in excise duty rates in India’s largest IMFL consuming state i.e Karnataka along with fluctuating inflation scenario is main raw material of ENA, affecting profit and supply of IMFL products, specially in popular and below categories.
Though there are many challenges, the trend of premiumisation plays key role in bringing change in alcobev segment. The Indian craft Gin consistently performs well, the other luxury segments like Indian Single Malts also coming to lime light. This kind of craze for Indian made premium alcobev products will increase to other segments like Brandy. There is growth in home consumption of alcohol with many brands entering into “Ready to Drink” space. As per IWSR, the increasing beverage alcohol market is forecasted to bring growth in terms of beverage alcohol over next 5 years, india is the country which has achieved huge success.
Premiumisation trend – The income level is increasing and rising world exposure, consumers at present ar shifting towards “drink less, but better”. Brandy as segment saw growth in low single digits in FY-24 but observed huge single digit increment in Prestige and Above segment. Moreover, there has been rising interest in luxury and premium products has observed huge development in Craft Gin and Single Malt segment.
Indian brands leaving a mark – Those days are gone when foreign brands were considered to be best quality. This trend has been observed in consumer sector, the trend is more visible in alcohol beverages industry. There is clear shift from foreign brands to Indian brands. A well-known example is Indian craft Gin, the Indian premium brand has seen increment of 40% in FY-23 compared to FY-22 the growth was 19% for premium gins. Furthermore, Indian premium gins has captured 46% share in premium gin in FY-23 compared to 26% in FY-19.
Flavoured spirits – The one of the rapidly developing segment is flavoured spirits within alcoholic beverages segment. It has been observed traditionally, increment in flavoured spirits is not seen in white spirit, but brown spirits as well. Flavoured spirits has achieved popularity among women consumers. In this article, you will learn interesting information about Tilaknagar Industries Ltd Share Price Target, promoter holdig, shareholding pattern, market cap, ROCE, ROE, Industry, Headquarters.
Tilaknagar Industries Ltd – Key Points
Name of promoter
Mr. Amit Dahanukar
Founder
Shri Mahadev L. Dahanukar
Established
1933
Industry
Alcohol
Headquarters
Mumbai, Maharashtra
Manufacturing facilities
4
Tilaknagar Industries Ltd – Statistics
Market cap
Rs 4,724 crores
ROCE
22%
ROE
24.6%
Mansion House Brandy
largest selling brandy in India and second largest selling brandy in world
Courrier Napoleon Brandy
Second fastest growing brandy and third fastest growing spirits at global level
Stock PE
24.6
Book value
Rs 38.5
About Tilaknagar Industries Ltd
Tilaknagar Industries Limited was founded in 1933 as The Maharashtra Sugar Mills Limited by Shri Mahadev L. Dahanukar. In 1970’s, the company began manufacturing of alcohol and very soon became popular in production of alcobev brands in India. The company is rapidly developing IMFL companies in India for second year in a row. The company is the manufacturer of India’s highest selling premium brandy, Mansion House Brandy. The company sells over 15 types of different brands of brandy, whisky, gin, vodka. The brandy labels of company capture the prestige and above segments.
The company’s production process is performed across 19 units including 4 owned units and 15 contract manufacturing units with main unit located in Ahriranpur, Ahmednagar district, Maharashtra. In Shrirampur, the company has 100 KLPD grain based distillery and 50 KLPD molasses based distillery. The company sold 11.2 million cases in FY-24, an increment of 15.7% compared to sector growing a low single digit growth over same period. The brandy has been given more importance of which 94% of contribution is made by brandy out of total portfolio. The South India is largest consumer of brandy with huge share of its portfolio i.e. 86%.
The top 6 south states of Karnataka, Tamil Nadu, Kerala, Telangana, Puducherry. The company has rise its market share from 3.6% in FY-23 to 4.2% in FY-24 an increment of 16.67%. The increment in market share is very stark in brand segment, rising market share from 9.4% in FY-13 to 11.1% in FY-24. The company became top player in IMFL in lighthouse market of Puducherry and became third largest IMFL player in Telangana and Karnataka. The noteworthy point is that Karnataka is not only largest IMFL consuming state and Telangana one of the top IMFL consuming states but bothese markets has achieved top position in consuming whisky. The increment in market share has been achieved by both brands of company i.e. Courier Napoleon Brandy and Mansion House Brandy. The Mansion house Brandy was sold more than 8.5 million cases in FY-24, Courier Napoleon Brandy was sold exceeding 1.7 million cases in FY-24, observing a growth of 49% for year. This huge growth was led by doubling down on enhancing width and deep distribution channel along with more focused visibility drives.
The company achieves strong supply chain across country, basically selling through direct sales and distributors, state corporations. The company exports its products to Middle east, Europe, Africa, East and South-East Asia.
Tilaknagar Industries is top producer of brandy in India, popularly established in South India. The company started with huge dedicated for brandy and has increased product basket to include rum, gin, whisky, and vodka providing unique variety of tastes. The company has established strong footprint in South India, this region is popular for brandy market, which makes India as preferred place for spirit. Taking benefit of modern production unit, the company produces liquors that meets best quality guidelines. The production capacity of market and unique creativity supports us to adopt changing preferences of consumers, attaining best benefits in country. In South india, the products of company has gained popularity with huge consumption in states of Telangana, Puducherry, Tamil Nadu, Kerala, Andhra Pradesh.
At Tilaknagar Industries, truck drivers play important role in managing business operations, serving as main link in distribution channel that makes sure that spirits is delivered on each corner on daily basis. They are not employees of company but their strong commitment is very important to us. This huge dedication is possible due to backup by their families, the true heroes who are important behind the scenes and wheels. The company enters into India’s young people, looking for expansion that joins with New Bharat’s vision. As country looks for global expansion, the company exports products and importance of creative, spirited India. The strategy expands the distribution and show Indian talent at global level.
Product portfolio
Courrier Napoleon – Courrier Napoleon Brandy has achieved unique position in product basket fulfills with vision of new youth. This brand has achived 56% year-on-year growth has appeared as top player in prestige brandy segment. The company is planning to scale Courrier Napoleon Brandy across India and launch creative varieties of brands, redevloping its path towards leadership. This approach highlights strong commitment to grab the importance of creativity and excellence as we fulfill unique tastes of dynamic,young market.
Mansion House Chambers – The company presented Mansion House Chambers Brandy the best choice for those who give importance to finer things. This best version of famous Mansion House Brandy brings joy with complex fruity aromas and subtle hints oak. Each sip provides velvety texture, smooth, grabbing the essence of luxury. It is filled in cut glass bottle beautifully sculpted. mansion House is not a drink it is a symbol of pride and prestige. The brandy experience is amazing and unforgettable.
Madiraa Rum – Be prepared to face amazing tradition of Madeira Portugal with unique twist in Madira Rum. The rum is developed from best quality sugarcane juice and has a rich caramel flavour with taste of sweetness, grabbing the essence of history. The name Madeira gives respect to combination of Madeira’s history and the Sanskrit word “Madira” which shows its daily essence.
Blue Lagoon Gin – It is filled with spirit of joy and crafted to improve mood, Blue Lagoon is Gin is far better than beverage and has delivered amazing experience. Each bottle celebrates best moments of life from attractive design showing characters wearing sunglasses flavoured packed contents. The fresh flavours bring joy in every sip. Blue lagoon Gin is available in Orange, Plain, lime invites you to jump in the world of fun.
Mansion House Gold Whisky – This product gives perfect example of refinement with Mansion House Gold Whisky. The amazing combination of rare malts and handpicked Indian grains, aged in oak casks provides deep texture and taste, best flavour. The golden combination provides smooth palate with subtle fruitiness.
Revenue and net profit
Particulars
FY-24 (Rs. in crores)
Sales
1,394
Expenses
1,208
Operating profit
185
Other income
11
Interest
27
Depreciation
32
Profit before tax
138
-Tax (%)
0%
Net profit
138
EPS in Rs.
7.16
Balance sheet
Liabilities
Rs
Assets
Rs
Equity Capital
193
Fixed assets
396
Reserves
461
CWIP
0
Borrowings
121
Investments
12
Other liabilities
258
Other assets
625
Total liabilities
1,033
Total assets
1,033
Shareholding Pattern
Promoters
40%
FIIs
13.96%
DIIs
1.35%
Public
44.70%
Tilaknagar Industries Ltd – Watch full Video
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Tilaknagar Industries Ltd Share Price Target – 2025 to 2040
If market observes downward sentiments, the minimum projected price is anticipated to hit Rs 244. The average trading price is forecasted to reach Rs 259 at the mid of the year. If market observes bullish sentiments, the maximum projected price is anticipated to hit Rs 273. The company’s financial journey shows smart move towards financial stability and consistence showing India’s profile as worldwide economic force.
If market experiences downward signals, the minimum projected price is anticipated to hit Rs 278. The average trading price is projected to hit Rs 297 at the mid of the year. If market observes bullish sentiments, the maximum projected price is expected to hit Rs 315. The company has reduced its debt through smart move and consistent efforts, assuring strong base for development in future. The company has reduced its gross debt from 658 crores in March 2020 to 119 crores by March 2024.
If market observes bearish sentiments, the minimum projected price is anticipated to hit Rs 320. The average trading price is projected to hit Rs 345 at the mid of the year. If market observes bullish sentiments, the maximum forecasted price is anticipated to reach Rs 369. The company has repaid 500 crores debt in four years journey to Net Debt Zero. The annual finance cost is reduced by 100 crores in last four years.
If market faces bearish sentiments, the minimum projected price is estimated to hit Rs371. The average trading price is projected to hit Rs 405 at the mid of the year. If market observes bullish sentiments, the maximum projected price is expected to reach Rs 438. The company repaid EARC loan of Rs 184 crores, refinanced by Kotak Mahindra Bank of Rs 130 crores and Rs 50 crores from internal accruals. The company paid fully restructured debt of 3 EARC Trusts as per Master Restructuring agreement on 6th February, 2020 by paying all liabilities.
If market observes bearish signals, the minimum projected price is anticipated to reach Rs 442. The average trading price is projected to hit Rs 484 at the mid of the year. If market observes bullish sentiments, the maximum forecasted price is anticipated to reach Rs 525. The company is one of the top player in each main state not only in terms of market share of brandy but overall IMFL industry. The company has strong supply chain in Southern states like Telangana and Karnataka both of which are whisky consumtion states.
If market faces bearish sentiments, the minimum forecasted price is expected to hit Rs530. The average trading price is projected to hit Rs 583 at the mid of the year. If market observes bullish signals, the maximum forecasted price is estimated to reach Rs 635. The Indian alcohol business is highly controlled and every state has its own rules regarding its own rules about indirect tax and duties which can affect business of company. The company has take rapid steps to adopt sustainability approach. The company improved its commitment to protect environment by increasing the use of recycled bottles.
If market observes bearish sentiments, the minimum projected price is anticipated to hit Rs 1060. The average trading price is projected to hit Rs 1148 at the mid of the year. If market observes bullish sentiments, the maximum projected price is expected to hit Rs 1235. The company has made efficient distribution channel by reducing the weight of glass bottles and removing monocartons in selected regions, by minimizing paper consumption and waste creation. The company has increased the consumption of recycled glass bottles to 24% of total consumtion in south markets improving efficiency in operations of business.
If market faces downwad trends, the minimum projected price is estimated to reach Rs 2220. The average trading price is forecasted to hit Rs 2392 at the mid of the year. If market observes bullish sentiments, the maximum projected price is expected to hit Rs 2564. The company has organized deep training for more than 50 frontline sales person. The training focuses on improving skills such as Effective communication, Teamwork and collaboration, Self confidence and personality growth.
FAQs
Q1) Which sector is Tilaknagar Industries Ltd involved?
Ans – The company is primarily involed in production and sale of Indian made Foreign Liquor. The company is manufacturer of India’s highest selling premium brandy, Mansion House Brandy.
Q2) What is share code of Tilaknagar Industries Ltd?
Ans – Theshare code of Tilaknagar Industries Ltd is : BSE – 507205, NSE-TI.
Q3) What is the Stock PE ratio of Tilaknagar Industries Ltd?
Ans – TheStock PE ratio of Tilaknagar Industries Ltd is 24.6.
Q4) Is Tilaknagar Industries Ltd a debt free company?
Ans – No, Tilaknagar Industries Ltd is not a debt free company. The Long-term borrowings of company Rs 45.09 crores and Short-term borrowings is Rs 47.27 crores.
Q5) What are the brands of Tilaknagar Industries Ltd?
Ans – The portfolio of company includes two brands – Mansion House and Courrier Napoleon with strong footprint in whisky, gin, rum through Madeira rum and Blue Lagoon Gin.
Q6) Is Tilaknagar Industries Ltd a good stock to buy?
Ans –Yes,Tilaknagar Industries Ltd is a good stock to buy for long-term purpose. The net profit of company in FY-13 was Rs 61 crores which has increased to Rs138 crores in FY-24. The share prce of company in 2010 was Rs 56 which has increased to Rs 244 in FY-25. The company has generated return of 334% in past 14 years.
