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Tilaknagar Industries Ltd.

BSE: 507205 Sector: Consumer
NSE: TI ISIN Code: INE133E01013
BSE 00:00 | 24 Jun 68.65 0.55
(0.81%)
OPEN

69.00

HIGH

69.35

LOW

67.95

NSE 00:00 | 24 Jun 68.25 0.20
(0.29%)
OPEN

69.45

HIGH

69.45

LOW

67.85

OPEN 69.00
PREVIOUS CLOSE 68.10
VOLUME 5196
52-Week high 103.80
52-Week low 37.20
P/E 37.51
Mkt Cap.(Rs cr) 1,089
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 69.00
CLOSE 68.10
VOLUME 5196
52-Week high 103.80
52-Week low 37.20
P/E 37.51
Mkt Cap.(Rs cr) 1,089
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Tilaknagar Industries Ltd. (TI) - Chairman Speech

Company chairman speech

Dear Stakeholders

"It always seems impossible until it is done." - NelsonMandela

I write this message at a time when India is still very much in themiddle of the 2nd wave of the Covid-19 pandemic and with constant speculation of animpending 3rd wave. We do not know how and what shape and form this pandemic will takeover the course of the next 12-18 months but what we do know is the resilience andperseverance that we at Tilaknagar Industries are capable of. While the first wave verymuch shook our way of operating with bottling operations completely suspended for a littleover a month and the after-effects felt for still a few more months after we were betterprepared during the second wave. And for that I have my fellow colleagues to thank; forshowing a tremendous zeal to keep going and fighting against adversity. And while one eyewas on stabilising our business the other was on looking after the well-being of ourstakeholders i.e. our employees our suppliers and our customers.

Our HR Team took various steps to ensure our employees remained safeduring the pandemic and also to ensure minimum productivity loss during this period byfollowing complete safety protocols and also prescribed goverment guidelines.

Business recovery:

The year started on the back of a comprehensive restructuring agreementwith Edelweiss ARC. There were huge disruptions on account of the restrictions imposed dueto onset of the COVID 19 pandemic which did affect sales in the early part of the year.States like Andhra Pradesh and Puducherry imposed heavy COVID tax which acutely impacteddemand. However with the gradual removal of restrictions we did see a strong rebound inthe second half of the year. Despite a significant impact on operations during thebeginning of FY21 we were able to smartly recover in the 2nd half of the year. Thisrecovery was higher than the industry average and in line with our peers growthdemonstrating the underlying fundamental strength of our brands and customer loyalty.

Your Company has emerged as a leading player in the brandy segmentwhich is the second largest category after whisky.

The brands Mansion House and Courrier Napoleon have grown and yourCompany wants to continuously invest behind these brands.

In addition our focus on margin expansion and cash-flow generationremained intact with EBITDA margins at 10% and improvement in net working capital daysfrom 36 days for FY20 to 33 days for FY21. Margins were positively impacted on account ofa combination of price increase received in few states along with stringent cost controlincluding value engineering and reduction in overheads. The restructuring of the debtwhich was completed during FY20 has also continually helped to improve the cash-flows ofthe Company.

The Company signed a long term manufacturing agreement with Frenchmultinational Pernod Ricard India private limited to manufacture their products at ourShrirampur facility. The agreement is valid for ten years and the production is expectedto commence in September 2021.

You will be pleased to know that after several quarters Ti has shownprofits in the first quarter of FY 22.

Focus on premium brandy:

As a part of our strategy we continued focussing on selling premiumbrands where the margins are robust. In addition we re-channelised our focus towardsbrandy sales. We leveraged our brand's brand strength of rich aroma taste and qualitycombined with their already existing huge and loyal consumer base. We decided to promotebrandy as a social drink and focused to popularize this category amongst younger audienceand make it an aspirational and a mainstream drink. In addition we are also looking atintroducing new products within the brandy space which we expect would have a significantpositive impact on the growth of the Company.

World Brandy Day:

Being the largest premium brandy manufacturer in India we believe theonus and responsibility is on us to create a more aspirational positioning for brandywithin the IMFL space. With that in mind we have decided to launch World Brandy Day whichwould be celebrated every year on the second Friday of December. I am very excited to betaking a lead in this and will share more details with you all at the opportune moment.

Marketing & Distribution:

The pandemic enhanced our emphasis on Social Media marketing andpromotions with strategies to broaden the target audiences creating increased brandawareness and change their perception about the brands by explicit targeting. We arefurther planning to strengthen our distribution network by entering new fast growingmarkets within India.

Way ahead:

The alcobev industry while having faced significant short-termchallenges looks ripe for disruption owing to rising disposable income growing youngpopulation with aspirational needs and a much more inclusive drinking culture. Within thebrandy space we are seeing an increasing trend of youngsters taking up brandy as a drinkof choice; and we believe this will only grow further with new product offerings withinthe brandy space which we will play a pivotal role in.

I would once again like to thank all our shareholders for yourcontinued support.

Best Wishes
Amit Dahanukar
Chairman & Managing Director

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