Tilaknagar Industries' Subsidiary Secures Approval for Six-Fold Capacity Boost in Andhra Pradesh
Tilaknagar Industries Limited (TI), a leading Indian-Made Foreign Liquor (IMFL) manufacturer, has announced that its wholly-owned subsidiary, Prag Distillery (P) Ltd, has received the requisite approvals from the Andhra Pradesh Government. This authorization permits the subsidiary to commence production immediately at its expanded facility.The expansion is set to significantly boost the operational scale of the facility. The bottling capacity at Prag will increase six-fold, moving from 6 lakh cases per annum to 36 lakh cases per annum.
Strategic Capacity Enhancement
Last year, the Board of Directors of TI approved an investment of INR 59 crore for the expansion at Prag, which included the licence fees and interest payments of nearly INR 34 crore. TI has since concluded the necessary capital expenditure to expand the capacity and associated infrastructure at Prag.The increased output capacity at Prag is strategically positioned to meet nearly 50 percent of TI's volume requirements within Andhra Pradesh.
The boost in production capacity is expected to yield significant operational benefits. According to Ameya Deshpande, Chief Strategy Officer of Tilaknagar Industries, the expansion will strengthen the company's owned unit footprint and secure supplies for its flagship brands in Andhra Pradesh.
The state of Andhra Pradesh is noted for its rapid growth in the IMFL industry, having emerged as a 40-million case market in FY26, reflecting an annual growth rate of 15 percent. For TI, Andhra Pradesh remains one of the largest and most profitable markets.
"The recent acquisition of Imperial Blue Whisky, supported by our market leading brands like Mansion House Brandy and Courrier Napoleon Brandy, has positioned Tilaknagar Industries as the largest player in the Prestige & Above segment in Andhra Pradesh," Deshpande asserted. He added that following this expansion, the company expects to realize meaningful cost efficiencies and improved margins, leading to enhanced profitability.
Capacity Increase Overview
The enhanced capacity at Prag marks a key milestone in TI's growth strategy, solidifying its commitment to expanding manufacturing capabilities in high-growth alcobev markets across India.| Metric | Previous Capacity | Enhanced Capacity | Increase Factor |
|---|---|---|---|
| Bottling Capacity (Per Annum) | 6 lakh cases | 36 lakh cases | Six-Fold |
About Tilaknagar Industries
Tilaknagar Industries is one of India's leading alcoholic beverage companies, maintaining a legacy spanning over 90 years since its founding in 1933 as Maharashtra Sugar Mills. Under the leadership of Shri Amit Dahanukar, the company has significantly strengthened its presence across various categories.TI's major product lines include 'Millionaire' brands such as Mansion House Brandy, Imperial Blue Whisky, and Courrier Napoleon Brandy. The company also maintains a strong portfolio in Rum and Gin through Madiraa Rum and Blue Lagoon Gin. Furthermore, with a focus on premiumization, the luxury vertical, 'House of TI,' features Monarch Legacy Edition, its first luxury brandy, and Seven Islands Pure Malt Whisky, an Indo-Scottish premium whisky.
TI Stock Price Movement
Shares of Tilaknagar Industries Limited are edging higher to ₹444 as of 1:02 PM today, gaining 1.58% in live trading. The stock maintains strong momentum, with over 387,099 shares traded so far in the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.