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Time of India
2 days ago
- Business
- Time of India
ABD plans margin growth through backward integration and premiumisation
Kolkata: Allied Blenders and Distillers Ltd (ABD), one of India's leading Indian spirits companies, is hoping for a 3% improvement in EBITDA in 2-3 years following its investment in backward integration and premiumisation. ABD MD Alok Gupta said that the company was investing Rs 527 crore in extra neutral alcohol production, malt production, and PET, which would result in a 300 basis points improvement in margin. According to Gupta, the company was focusing on raw material. Currently, ABD produces one-third of its ENA requirement. In the next 3 years, the company wants to produce 100% of its ENA requirements and for this, it is setting up a unit in Maharashtra. The company is also setting up a malt distillery in Telangana. "Reduced availability risks will enable higher growth of Prestige whisky, and the company is gearing up for a single malt product," he said. ABD is planning margin enhancement through in-house capabilities like a PET bottle facility, this too in said that the EBITDA was 7.5% in FY24, and it went up to 12.5% in FY25, and it is hoping that in the next 2-3 years it would be over 15%. You Can Also Check: Kolkata AQI | Weather in Kolkata | Bank Holidays in Kolkata | Public Holidays in Kolkata For ABD, which used to be a predominantly mass-market company with Officer's Choice, there is now a major thrust towards prestige-and-above segment. The segment contributes 42% of the company's production volume, while 58% comes from the mass segment. However, going forward in the next 2-3 years, it would be 50:50, he added. The company has recently introduced premium offerings like Arthaus Blended Malt Whisky, Zoya Gin, Russian Standard Vodka, Woodburns Whisky, and Rock Paper Rum, among others.
Hans India
29-05-2025
- Business
- Hans India
Allied Blenders shares down over 8 pc so far in 2025 amid Q4 revenue dip
Mumbai: Shares of domestic spirits company Allied Blenders and Distillers Limited have fallen over 8 per cent so far in 2025, according to the latest data available on the National Stock Exchange (NSE). The stock closed at Rs 394.10 on Wednesday on NSE, down 0.48 per cent for the day. While it has gained around 25 per cent in the past month and 17 per cent over the last six months, it remains in the red for the year-to-date. Since the beginning of the year, the stock has dropped by 8.18 per cent, or Rs 35.10. The decline comes just days after the company announced its fourth-quarter financial results, which showed a sequential drop in revenue despite a strong improvement in net profit. According to its stock exchange filing earlier this month, the maker of Officer's Choice whisky, has reported a drop of 17.41 per cent in consolidated revenue on sequential basis at Rs 1,934.72 crore for the quarter ended March 31 (Q4 FY25), compared to Rs 2,342.38 crore in the previous quarter (Q3 FY25). Total income for the quarter also fell by 16.91 per cent on a quarter-on-quarter (QoQ) basis to Rs 1,948.99 crore from Rs 2,345.63 crore in Q3. However, net profit surged to Rs 78.62 crore in Q4, up 36.82 per cent from Rs 57.46 crore in the previous quarter. This is a sharp turnaround from the same period last year (Q4 FY24) when the company posted a net loss of Rs 2.4 crore. The profit growth was driven by strong consumer demand. The company sold 8.5 million cases during the quarter, marking a 20.8 per cent increase compared to 7.1 million cases in Q4 last year. Growth was strong across both the mass premium and prestige segments, the company said in its regulatory filing earlier this month. Commenting on the results, Allied Blenders Managing Director Alok Gupta said: "We are pleased to report a third consecutive quarter of robust performance following our IPO." "These results reflect the consistent execution of our four-point transformation strategy focused on premiumisation, supply chain security, margin improvement, and stronger governance," Gupta stated. The company's board has approved a final dividend of Rs 3.6 per share for FY25, subject to shareholder approval at the upcoming annual general meeting (AGM). 'If approved, the dividend will be paid within 30 days of the meeting. June 27 has been set as the record date to determine eligible shareholders,' the company said in its exchange filing. In addition, Allied Blenders plans to raise up to Rs 1,000 crore through various funding routes, including public or private offerings, preferential allotments, or qualified institutional placements. The proposed fundraising will also require shareholder and regulatory approvals. Allied Blenders' portfolio includes leading whisky brands like Officer's Choice, Sterling Reserve, and ICONiQ, along with brandy, rum, vodka, and gin.
Hindustan Times
27-05-2025
- General
- Hindustan Times
Thickening Lko green canopy: Poori-sabzi, sure. Do take a seed ball too!
In a unique initiative to promote greenery and a love for the environment, a bhandara organised in the Bazarkhala area of the city distributed seed balls made of cow dung and soil, alongside the traditional offerings of poori-sabzi, during Bada Mangal on Tuesday. Devotees were seen collecting seed balls that contained seeds of various tree species such as neem, banyan, and gular, near the Bazarkhala police station. Alok Gupta, the organiser of the bhandara, said that he has distributed over 10,000 seed balls during the three Bada Mangal celebrations this year. 'We are distributing seed balls of Banyan, Neem, and Gular, among others,' he said. Gupta explained that earlier he used to distribute saplings, but this method proved costlier and less convenient for devotees to carry. 'That's why I switched to seed balls. They are inexpensive, easy to carry, and anyone can use them to contribute to greener surroundings,' he said. The seed balls are packed in small polybags so that they can be carried easily. He also added that the seed balls are prepared in his house with the help of his entire family.
Time of India
19-05-2025
- Business
- Time of India
Spirits market loses its zing in FY25
Demand for spirits across categories slowed down to 1.6% in FY25, falling from 4.2% a year ago, after distribution changes in a few states, higher taxes and tipplers cutting back on most discretionary spends including alcobev. With sales improving in the December quarter, most companies had expected gradual recovery, which was belied by a tepid 0.5% January-March sales performance. Volume sales of whiskey, which accounts for roughly two-thirds of the market, saw a muted 1.5% increase in volume last fiscal while brandy and vodka sales were flat, according to latest excise department data. Brandy grew less than 1% while gin sales increased 3.6% on a lower base. "We are seeing some moderation especially in Gen Z consumers, who choose quality over quantity, and in time to come, we should start looking at value growth as a better measure instead of volume," said Alok Gupta, MD at Allied Blenders & Distillers. Despite being the world's most populous nation with more than 1.4 billion inhabitants, India's drinking consumer base is estimated at around 300 million-of whom nearly half rely on cheap, unbranded liquor. In categories including whiskey, rum and brandy, consumption in the mass-premium segment declined, which impacted the overall market demand. "The previous year's first two quarters were bad, and there is a low base. So the growth in the next two quarters would be healthy. And there were many issues, relating to specific states, with regard to the industry, that is also normalising," said Amar Sinha, chief operating officer at Radico Khaitan . There were temporary disruptions in Telangana, a key state, which slowed down sales growth for most companies while Delhi excise policy reversal has led to low distribution by national brands. "A softer third quarter sales was impacted due to the implementation of new Customs clearance procedures affecting sales of imported spirits, and a temporary production interruption in a major state, which is now resolved," Pernod Ricard chief financial officer Helene de Tissot told analysts last month after posting a 1% sales growth in India. However, there have been favourable policy changes too. Karnataka, for instance, reduced state duties by 10-15% across various alcoholic beverages while Andhra Pradesh opened the retail alcohol market to private players. Globally too, liquor sales fell 1% by volume in 2024, according to alcohol market researcher IWSR, which attributed this to large markets such as China and India failing to live up to growth projections. The world's top 20 markets fell short of growth estimates by 1-2% in 2024, equating to more than 300 million nine-litre cases.
Time of India
18-05-2025
- Business
- Time of India
Spirits market loses its zing in FY25
Demand for spirits across categories slowed down to 1.6% in FY25, falling from 4.2% a year ago, after distribution changes in a few states, higher taxes and tipplers cutting back on most discretionary spends including alcobev. With sales improving in the December quarter, most companies had expected gradual recovery, which was belied by a tepid 0.5% January-March sales performance. Volume sales of whiskey, which accounts for roughly two-thirds of the market, saw a muted 1.5% increase in volume last fiscal while brandy and vodka sales were flat, according to latest excise department data. Brandy grew less than 1% while gin sales increased 3.6% on a lower base. "We are seeing some moderation especially in Gen Z consumers, who choose quality over quantity, and in time to come, we should start looking at value growth as a better measure instead of volume," said Alok Gupta, MD at Allied Blenders & Distillers. Despite being the world's most populous nation with more than 1.4 billion inhabitants, India's drinking consumer base is estimated at around 300 million-of whom nearly half rely on cheap, unbranded liquor. In categories including whiskey, rum and brandy, consumption in the mass-premium segment declined, which impacted the overall market demand. Live Events "The previous year's first two quarters were bad, and there is a low base. So the growth in the next two quarters would be healthy. And there were many issues, relating to specific states, with regard to the industry, that is also normalising," said Amar Sinha, chief operating officer at Radico Khaitan . There were temporary disruptions in Telangana, a key state, which slowed down sales growth for most companies while Delhi excise policy reversal has led to low distribution by national brands. "A softer third quarter sales was impacted due to the implementation of new Customs clearance procedures affecting sales of imported spirits, and a temporary production interruption in a major state, which is now resolved," Pernod Ricard chief financial officer Helene de Tissot told analysts last month after posting a 1% sales growth in India. However, there have been favourable policy changes too. Karnataka, for instance, reduced state duties by 10-15% across various alcoholic beverages while Andhra Pradesh opened the retail alcohol market to private players. Globally too, liquor sales fell 1% by volume in 2024, according to alcohol market researcher IWSR, which attributed this to large markets such as China and India failing to live up to growth projections. The world's top 20 markets fell short of growth estimates by 1-2% in 2024, equating to more than 300 million nine-litre cases.
