Empee Distilleries Ltd.

Our Company is part of Empee Group promoted by Mr. M P Purushothaman 
 and his family members engaged in the manufacture of Indian Made
 Foreign 
 Liquor (IMFL) which is our core business. We, Empee Distilleries
 Limited, 
 entered into the Beverages and Distillery Industry in the year 1984
 by 
 starting manufacture of IMFL products by means of setting up of our
 first 
 distillery unit at Mevaloorkuppam, Tamil Nadu with an installed
 capacity of 
 2000 cases/day with initial production running off on 2 semi auto
 lines. We 
 are one of the major suppliers of IMFL products to the Tamil Nadu
 State 
 Marketing Corporation Limited (TASMAC) and one of the top ten selling
 
 brands of IMFL 180 ML Pack (Source: http://tasmac.tn.gov.in). We are
 
 presently engaged into manufacturing of Indian Made Foreign Liquor
 (IMFL) 
 products under our own brand portfolio as well as under tieup
 arrangements 
 with other companies. The brands under our portfolio are Old Secret
 XXX Rum,  
 Power XXX Rum, Power Brandy, Mc Lene Ordinary Brandy, Mclene XXX
 Ordinary 
 Rum, Power Whisky, Empee Napoleon Premium Brandy, Empee Fine Brandy,
 
 Commando XXX Rum, Club Polo Dry Gin, Club Royal Whisky, Elcanso Dark
 XXX Rum 
 and Old Secret Brandy. The brands under tie up arrangement are
 Brihans Napoleon 
 Premium Brandy, Brihans Premium Whisky.
 
 Our Company was originally incorporated on September 15, 1983 as a
 Private Limited 
 Company and was converted into a Public Limited Company with effect
 from December 
 1, 1983. The Registered Office of our Company is situated at 693,
 Mount Road, 
 Chennai,  Tamil Nadu since incorporation. We, Empee Distilleries
 Limited entered into 
 the Beverages  and Distillery Industry in the year 1984 by starting
 manufacture of IMFL 
 products by means  of setting up of our first distillery unit at
 Mevaloorkuppam, Tamil 
 Nadu with an installed  capacity of 2000 cases/day with initial
 production running off 
 on 2 semi auto lines. The first  brands launched by us were Marcopolo
 and Victoria 
 (Marcopolo in 4 flavours of Brandy, Rum, Whisky and Gin & Victoria in
 2 flavours of 
 Rum and Brandy). These were immediately followed by Golden Bell
 Brandy, McLene 
 Brandy, etc. All these products were developed at our in-house
 facility and with 
 production in the beginning running off on two semi automatic lines.
 
 In the year 1985-86 we entered into a strategic tie up with Brihans
 Maharashtra Sugar 
 Syndicate Limited, Pune, for bottling their premium brands namely
 Brihans Napoleon 
 Brandy and Brihans Premium Whisky, besides Golden Bell Brandy,
 Whisky, Gin and 
 Rum in the other segments.
 
 In the year 1986-87 the production facility at Mevaloorkuppam was
 augmented by 
 additional four semi automatic lines which resulted in production
 touching 4,000 
 cases per day in January 1987 and 6,000 cases in the following year.
 With a view 
 to enhance the quality of the spirit that goes into production, we
 decided to set up 
 our own distillation columns and commenced work. These distillation
 columns were 
 commissioned during March 1988 with a capacity of 9KLPD.
 
 During the year 1991-93 we acquired a brewery unit from the
 Government of Tamil 
 Nadu at Kutumbakkam Village, near Chennai and began production and
 sales under 
 the labels Marcopolo Strong and Lager Beer and during the year
 1993-94, we further 
 expanded our brand portfolio along with expanding capacity of our
 distillery unit.
 
 In 1994-95 our Company's brewery capacity was doubled, while on the
 IMFL front 
 we entered into bottling tieups with various Companies in Kerala for
 marketing our 
 products.
 
 In the year 1995-96 the production capacity of our IMFL Unit was
 further expanded 
 to 10,080 cases per day / 2,52,000 cases per month. Concurrently the
 capacity of 
 the secondary distillation was also increased to 20 KLPD by setting
 up a modern 
 Re-Distillation Unit to meet the in house ENA requirements. We also
 entered into
 tie-up arrangements in Pondicherry, Kerala and New Delhi for
 manufacture and 
 sale of our brands.
 
 Considering the high energy needs of the brewery and distillery units
 of our Company 
 we drew up plans for captive generation of power by Wind Energy
 Generators (WEGs). 
 Eight WEGs with a capacity of 2 MW each were commissioned during the
 year 
 1996-97. We entered into a Power Purchase Agreement (PPA) on March
 29, 1997 
 with the Tamil Nadu Electricity Board (TNEB), under which the Board
 granted 
 permission to install 8 Wind Mills of 250 KW capacity each, for power
 generation 
 and to export Power to the grid with remaining power being adjusted
 with our 
 liquor divisions. We also have executed an Operation and Maintenance
 
 Agreement on December 25, 2002 with M/s. Sastha Engineers &
 Consultants, 
 Coimbatore for operation and maintenance of Windmills, which has been
 renewed 
 from time to time and is presently renewed till March 31, 2008.
 
 In the year 1997-98 we received Licence from the Government of Kerala
 for our 
 setting up of IMFL Unit at Palakkad with an initial capacity of
 50,000 cases per month. 
 In the year 1999-2000, in order to achieve economies of scale and
 full capacity 
 utilization, in respect of our Brewery Division, we entered into a
 tie up with Shaw
 Wallace & Co. Limited for bottling its Haywards 5000 Beer. Further we
 also entered 
 into a manufacturing agreement with Jagatjit Industries Limited for
 bottling Aristocrat 
 White Rum at our Palakkad unit in Kerala.
 
 In the year 2001-2002 with a view to concentrate mainly on IMFL, we
 hived off our 
 Brewery Division to Empee Breweries Limited. We also entered into a
 non-compete 
 agreement with McDowell Alcobhev Limited, which acquired Empee
 Breweries 
 Limited under which we agreed not to manufacture and sell beer
 products in the
 territory of Tamil Nadu and Kerala for a period of seven years i.e.
 upto March, 2009.
 
 In the year 2002-03, we entered into tie-ups in the nature of
 manufacturing, licensing, 
 marketing, technical & marketing, registered user agreements etc to
 expand our brands 
 and operations, particularly in Andhra Pradesh. We were also
 accredited as an 
 ISO:9001:2000 in this year.
 
 In the year 2003-04, we launched our brand namely Old Secret Rum in
 Tamil Nadu. 
 During the year 2005-06 we sold approx. one million Old Secret Rum
 cases since its 
 launch in Tamil Nadu.
 
 In order to diversify and expand our business activities by means of
 both backward 
 and horizontal integration and to achieve economies of scale in our
 existing business 
 activities, we have now decided to expand our existing distillery
 unit at Tamil Nadu by 
 augmenting the capacity of our Extra Neutral Alcohol Plant from
 20KLPD to 70KLPD 
 and augmenting the capacity of the distillery to handle 5.00 Lakh
 cases per month 
 from the present 3.20 Lakh cases per month, set up a 60 KLPD Grain
 Based Distillery 
 Unit at Nellore District, Naidupet Sub- District, Pellakuru Mandal,
 Pellakuru Village, 
 Andhra Pradesh, set up Blending & Bottling IMFL Plant at Village
 Pellakuru Mitta, 
 Panchayat, Pellakuru, Mandal-Pellakuru, District Nellore with a
 installed capacity of 
 0.70 Lakh cases per month, Andhra Pradesh and set up a 7.5 MW
 Bio-mass based 
 power plant at Aranthangi Taluk, Pudukottai District, Tamil Nadu
 along with diversifying 
 into the real estate sector by development of 2.00 Lakhs sq.ft. of
 residential space in 
 Mevaloorkuppam, Sriperumbudur Taluk, Kancheepuram, District Tamil
 Nadu.
 We have also acquired from Appollo Alchobev Limited, one of our
 Promoter Group 
 Companies engaged in the business of manufacture and sale of IMFL at
 White field, 
 Bangalore and having an operating IMFL manufacturing Unit, Operating
 Assets 
 together with the benefits and obligations of all current and valid
 licenses, permits and
 sanctions pertaining to the said assets and the manufacture of IMFL
 and sale thereof 
 and the benefits of all pending contracts related thereto for the
 purchase of any materials 
 and sales of IMFL for a consideration of Rs. 800.00 Lakhs vide Asset
 Purchase Agreement 
 dated March 22, 2007 (For details of the terms and conditions of the
 Asset Purchase 
 Agreement, refer page no. 125 of this Red Herring Prospectus).
 Accordingly we propose to
 relocate Plant & Machinery as purchased from Appollo Alchobev Limited
 to Village 
 Arabikothanur, Panchayat- Vokkaleri Hobli, District Kolar, Karnataka
 along with expanding 
 the existing capacity from 0.50 Lakh cases per month to 1.00 Lakh
 cases per month.
 
 
 2009
 
 - Empee Distilleries Limited has informed regarding the appointment
 of Compliance Officer of the Company :- Name: Mr. S. Kalyanaraman;
 Designation: Sr. General Manager (F & A) & Company Secretary; w.e.f.
 February 18, 2009.
 
 2010
 
 -Empee Distilleries have recommended Dividend of Rs. 6/- per share on
 equity shares of Rs. 10/- each
 
 2011
 
 -Empee Distilleries has acquired 99.79% of the Paidup Share Capital
 of M/s. APPOLLO DISTILLERIES PVT LTD and has become a Subsidiary of
 this Company.
 
 2012
 
 -Ms. Nisha Purushothaman has been appointed as Vice Chairperson of
 the Company
 
 -Empee Distilleries have recommended Dividend of Re. 1/- per equity
 shares of Rs. 10/- each
 
 2013
 -Empee Distilleries Ltd has recommended Dividend of Re. 1/- per
 equity shares of Rs. 10/- each
 -Empee Distilleries inks agreement with United Spirits
 
 2014
 -Empee Distilleries Ltd has informed that the Company has invested
 and acquired 89.85% in equity shares capital of M/s. Empee Power and
 Infrastructure Private Limited on October 30, 2014 and has become a
 Subsidiary of the Company.