Empee Distilleries was locked at 10% upper circuit at Rs 36.35 at 14:27 IST on BSE after the company said it has entered into an agreement with United Spirits for manufacture of Indian Made Foreign Liquor for distribution in Karnataka.
The announcement was made during trading hours today, 27 August 2013.
Meanwhile, the S&P BSE Sensex was down 562.28 points or 3.03% at 17,995.85.
On BSE, 16,059 shares were traded in the counter as against average daily volume of 19,628 shares in the past one quarter.
The stock hit a low of Rs 31.35 so far during the day. The stock had hit a 52-week high of Rs 96.25 on 15 November 2012. The stock had hit a record low of Rs 29.80 on 22 August 2013.
The stock had underperformed the market over the past one month till 26 August 2013, sliding 9.82% compared with the Sensex's 6.03% fall. The scrip had also underperformed the market in past one quarter, declining 47.75% as against Sensex's 5.82% fall.
The small-cap liquor maker has equity capital of Rs 19 crore. Face value per share is Rs 10.
Empee Distilleries said that the manufacturing will be undertaken at its unit at Kolar District in Karnataka and will improve the top line and bottom line growth of the company. The agreement entered with United Spirits will initially be for a period of three years.
Commenting on the development, Ms. Nisha Purushothaman, Jt. Managing Director, Empee Distilleries said, "This is an important development in execution of the future growth plans of the company. We view this as a strategic alliance which will enable us to grow our liquor business further in Karnataka. We have more than three decades of experience in this industry and this should augur well for the alliance. The company is also working out a detailed plan for export of IMFL to East Asian countries from this plant."
Empee Distilleries' net profit fell 73% to Rs 1.60 crore on 7.7% decline in net sales to Rs 141.04 crore in the quarter ended 30 June 2013 over the quarter ended 30 June 2012.
Empee Distilleries' principal activity is the manufacture and sale of Indian Made Foreign Liquor (IMFL). The products of the company are developed in-house. The product portfolio includes premium whisky, brandy, rum and vodka for the local market. The company has manufacturing plants spread out over the southern states and they have a combined capacity of around one million cases on an average per month. The company also manufactures industrial alcohol and is engaged in the business of power generation. Empee Distilleries is also actively pursuing emerging technologies in the renewable sector.
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