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| John Distilleries aims 30 pc growth |
| BS Reporter / Chennai/ Bangalore Jul 08, 2010, 00:08 IST |
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Bangalore-based John Distilleries Ltd aims to achieve a revenue growth of around 30 per cent, to Rs 600 crore this fiscal on the back of a sound demand for its flagship brands in the domestic market.
The privately-held liquor company with a sales figure of 11.7 million cases last fiscal is hopeful of reaching 13.5 million cases sales’ mark during the present fiscal.
“Our net profit, which was over Rs 2 crore due to a diversion of funds for other capital expenditure, is likely to reach Rs 25-30 crorethis fiscal,” Paul P John, chairman of John Distilleries Ltd said on the sidelines of launching two new wine brands here.
The liquor company has brands like ‘Original Choice’ whisky, ‘Salute’ vodka, ‘Mont Castle’ brandy, ‘Grand Duke’ whisky and ‘Big Banyan’ wines as part of its present spirit portfolio.
In a bid to fuel its further business growth, the company is also looking at raising funds from private equity players.
“We are in discussions to raise around Rs 75 crore from private equity players to fund expansion of our manufacturing facilities,” John said.
There will a dilution of 10 -15 per cent of promoter’s stake after the equity infusion which will be issued as convertible debentures, he added.
The company, which has manufacturing facility in Goa, is also looking at new facilities in Karnataka and Maharashtra.
John said the company was likely to begin operations at its Karnataka facility by 2011 and was investing Rs 15-20 crore on the unit.
The company’s manufacturing facility in Maharashtra will also become operational soon, he added.
John Distilleries, which has a market share of 15-58 per cent in its various brands in Karnataka, is also aggressively pushing its marketing strategy to be a pan-India player.
“We have a presence in 14 states as of now and are looking to be pan-India player with infrastructure development, and increase in malt production facility in near future,” John said.
Export is another major area of focus as the company has received sound response from countries like Angola, Congo, Ghana, UAE and Namibia for its brands.
“Though exports constitute nearly 3-4 per cent of our total portfolio as of now, it’s likely to increase in near future. Barring African nations, we are looking at East Asia and Europe to increase our exports,” John said.
The mid-size liquor company is also planning to launch more than two new products in vodka and whisky category in the current financial year, he added.
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