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Leading distillery Associated Alcohols & Breweries Ltd. (AABL) is set to launch its new premium whiskey Hillfort in markets across Maharashtra, Goa, Uttar Pradesh, Assam, and Tripura in the next six months. The company is also launching a ready-to-drink alcohol called Kultur.
AABL’s operations span five states: Madhya Pradesh, Kerala, Delhi, West Bengal, and Chhattisgarh. Its premium in-house handcrafted gin, Nicobar, launched in January, will be available for sale in around five states across India, including Delhi and Chhattisgarh, by August. Within a year, the company hopes to establish its presence in at least 20 states.
“Our company is balanced. Till recently, we were conservative with a fixed profit source. When Diageo offered us to manufacture their brands on the franchise, they gave us a small quantity, which we doubled. This was a win-win situation. Their brand value went up and we also did well. With this, we also have a market advantage. If I sell their products and then our own whiskeys, we have more muscle in the market to help sell our brands faster. This partnership works well for us,” Anand Kumar Kedia, Chairman of Business Promotion and Development, AABL, told Businessline.
AABL claims to have manufactured its triple-distilled alcohol for Diageo to match its international quality – a first in India. A few years ago, when Europe was short of grains, the company exported triple-distilled ENA, which was bottled as Smirnoff vodka in Europe. Kedia added that the company was heading towards the premiumization of its portfolio, stating, “We mostly get our revenue from contract manufacturing, then franchise brands. Currently, 15 percent of our revenue is from our own brands. In 12 to 18 months, we want to double this to around 30 percent. With the addition of new products, I think we’ll get there.”
The Madhya-Pradesh-based distillery is also setting up a bottling plant and distillery in Uttar Pradesh and establishing bottling tie-ups in Goa. Mount Everest Breweries Ltd. (MEBL), an AABL subsidiary, currently has an Indore-based brewery where the company does contract manufacturing for United Breweries brands. MEBL is looking to set up a brewery in UP and is tying up with breweries in Karnataka and Assam for contract manufacturing. The subsidiary also started selling its proprietary beer brands in Delhi.
AABL’s contract manufacturing portfolio comprises international brands like Vat69, Black & White, Black Dog, Captain Morgan, and Smirnoff. The MP-based distillery manufactures potable alcohol and blended liquor and has a franchise agreement for manufacturing and selling a series of brands under the United Spirits Ltd (USL) umbrella. Its licensed manufacturing portfolio includes brands like Bagpiper Whisky, MC Dowell No. 1 Celebration Rum, White Mischief Vodka, Blue Riband Gin, and Director Special Black.
AABL also exports its triple-distilled Extra Neutral Alcohol (ENA) and ENA to countries like Africa, Europe, and Dubai. Its proprietary products, like coffee-flavored rum, are designed only for the African markets. Other proprietary products include Central Province Whisky, Titanium – Triple Distilled Vodka, Bombay Special Whisky, Desi Madira Masala, Superman Fine Whisky, James McGill Whisky, and Jamaican Magic Rum.
The company delivered a 10-year revenue CAGR of 14 percent, EBITDA CAGR of 15 percent, and PAT CAGR of 24 percent. In FY24, AABL saw an EBITDA margin of 10 percent and a PAT margin of 7 percent. The ROI on foreign sales in the previous fiscal was 12 percent. “This reflects effective management and our shareholders’ equity utilization. Additionally, we maintained a healthy net debt-equity ratio of 0.15x and an interest coverage ratio of 21x, highlighting strong financial stability and our ability to service debt. These financial metrics underscore areas of sustained growth, trajectory, and operational efficiency. We are very confident we’ll have at least 15 percent growth in our revenues. With our new launch and premiumization plans, we see a good future,” added Kedia.
AABL’s portfolio includes various products, including extra neutral alcohol (ENA), potable alcohol, grain spirit (extra fine, triple-distilled), rectified spirit, and IMFL.
