Indian made foreign liquor (IMFL) manufacturer Tilaknagar Industries Ltd (TIL) has sold its entire stake in Solapur-based sugar manufacturing arm Shivprabha Sugars Ltd to an undisclosed buyer for an undisclosed amount, as per a stock market disclosure.
In March 2012, TIL acquired Shivprabha Sugars with the strategic agenda of strengthening its supply side security and improving operating efficiencies. Shivprabha had the necessary permissions for setting up sugar plant, distillery and co-gen power plant.
“This transaction illustrates TIL’s commitment to strengthen its core business foundation while aiming for higher growth. The company retains the right of first refusal in molasses produced as and when this plant becomes operational,” said Amit Dahanukar, chairman and MD of the firm.
Pact with Mohan Breweries and Distilleries
According to a separate disclosure, TIL has also signed an agreement with Chennai-based Mohan Breweries and Distilleries Ltd (MBDL) to manufacture and sell its two brands – Brigadier’s No. 1 Brandy and Vorion No. 1 – for 25 years. This agreement will help the firm meet its ambition to expand and enables TIL to increase penetration in Tamil Nadu through enhanced brand presence and geographical reach.
As per the agreement, the company will be utilising MBDL’s manufacturing and bottling facilities, and will also leverage and further build upon its existing sales & distribution expertise to grow and tap the opportunities present in the region.
Commenting on the agreement, Dahanukar said, “This is a truly exciting opportunity that will help us enhance our exposure to high-growth markets such as Tamil Nadu. Given TIL’s distinctive knowhow, proven business strategies and experience, we are confident of creating a winning combination with MBDL to unlock the potential in the region.”
Mumbai-based Tilaknagar Distilleries & Industries Ltd was initially promoted as a fully owned subsidiary of Maharashtra Sugar Mills Ltd. In August 1993, Maharashtra Sugar Mills and Tilaknagar Distilleries & Industries were merged to form Tilaknagar Industries Ltd.
TIL manufactures and markets more than 40 brands of whisky, brandy, gin, rum and vodka across various domestic and international markets including Western Africa and the Middle East. The firm’s subsidiaries include Prag Distillery Pvt Ltd, Vahni Distilleries Pvt Ltd, Kesarval Springs Distillers Pvt Ltd and Punjab Expo Breweries Pvt Ltd.
Last year, the firm acquired two more companies – Srirampur Grains Pvt Ltd and Mykingdom Ventures Pvt Ltd. It also acquired 26 per cent stake in Bangalore-based Mason and Summers Marketing Service Pvt Ltd.
(Edited by Sanghamitra Mandal)