Allied Blenders and Distillers (ABD) is looking to raise around Rs 200-250 crore for further brand building and company's expansion needs, the company's executive vice-chairman & CEO, Deepak Roy, told Business Standard. He also ruled out IPO plans for ABD.
“We have been approached by some PE players, but are yet to put a finger on the final one. We need to finalize some details and the requirements of the firm and accordingly we will decide. It will be to the tune of Rs 200-250 crore,” he said.
According to Roy, the firm has unveiled two products-—Officer's Choice Blue (a semi premium whiskey) & Kyron (premium brandy)—-which are yet to be rolled out nationwide. The funding will be used for brand building of these new products and in modification of existing ones. A part of it is expected to scale up distribution network He indicated that the promoters may also bring in some additional funds.
Roy said ABD will be looking to reposition its vodka strategy as it has not done well for the past two years. “Vodka is a segment where we have gone wrong, based on our performance in the last two years. So we have to make some necessary changes and reposition it,” he added.
On Thursday, the company made an announcement here that it is set to sell one million cases of Officers' Choice Blue (OCB) in the eastern region only by FY13.
According to Roy, this segment will be one of the key growth drivers in the coming years.
“The lower segment has slowed down due to steep price increases and the gap between the lower and semi premium segment is narrowing down so people want to upgrade to the next level,” said Roy.
ABD plans to clock sales of 1.5 million units of OCB in the current fiscal and aiming for another million cases in FY14.The semi premium whiskey market is around 15% of the total whiskey market expected to grow close to 12-14%. The company's other brand include Gorbatschow vodka, Jolly Roger rum and Kyron brandy.
The industry, according to Roy, has seen quite a dry time in the current fiscal with a muted growth of 5%. The next fiscal is expected to be better and witness a growth of close to 10%.
