 "Tilaknagar Industries shares tank 14% on heavy volumes; here's why")
Shares of Tilaknagar Industries, the maker of Mansion House Brandy, India’s largest and the world’s second largest selling brandy brand, tanked 14 per cent to Rs 314.35 on the BSE in Monday’s intra-day trade amid heavy volumes. The run on the stock came after the Bombay High Court dismissed the company’s plea in a trademark dispute over the Mansion House brand.
“The status quo as of this date remains with the company continuing its uninterrupted use and sale of the brand MANSION HOUSE whilst preparing for filing an appeal against the concerned order before the Division Bench of Bombay High Court,” Tilaknagar Industries said in an exchange filing on Saturday, February 8, 2025.
At 10:33 AM, Tilaknagar Industries was quoting 13 per cent lower at Rs 318, as compared to the 0.74 per cent decline in the BSE Sensex. The average trading volumes on the counter jumped nearly three-fold, with a combined 2 million equity shares changing hands on the NSE and BSE. With today’s decline, the stock of the breweries & distilleries company has corrected 31 per cent from its 52-week high level of Rs 457.30 touched on January 3, 2025.
Tilaknagar Industries’ brand portfolio includes multiple categories, featuring two ‘Millionaire’ brandy brands – Mansion House and Courrier Napoleon – along with a strong presence in the whisky, rum, and gin segments through Mansion House Whisky, Madiraa Rum and Blue Lagoon Gin. Recently, Tilaknagar has expanded into the luxury segment with Monarch Legacy Edition Brandy.
Meanwhile, the ruling allows Allied Blenders & Distillers (ABD) to introduce Mansion House-branded products in West Bengal.
“The financial implication cannot be ascertained at this point in time. By virtue of the present Court order, the Company’s application has been allowed and the Defendant’s Notice of Motion has been dismissed resulting in grant of leave to the Company to introduce its product in the State of West Bengal under the trademark MANSION HOUSE in terms of the label registration secured by the company from the West Bengal State Excise Department,” ABD said in the exchange filing.
Shares of ABD were quoting 3 per cent lower at Rs 378.60 on the BSE. The stock had hit a 52-week high of Rs 444.95 on January 3, 2025.
ABD is the third largest spirits marker in India, in terms of annual sales volumes between FY14 and FY24. ABD has a presence in five main flavors, i.e., whisky, brandy, rum, vodka, and gin, with ‘millionaire’ brands like Officer’s Choice Whisky, Officer’s Choice Blue Whisky, Sterling Reserve Premium Whiskies and ICONiQ White Whisky, among others.