The liquor sector went, into the last weekend, on a high with all stocks strong lead by United Spirits. In an interview to CNBC-TV18, Shekhar Swarup, Joint MD of Globus Spirits spoke about the latest happenings in the company.
The liquor sector went, into the last weekend, on a high with all stocks strong led by United Spirits. In an interview to CNBC-TV18, Shekhar Swarup, Joint MD of Globus Spirits spoke about the latest happenings in the company.
Swarup said that the market factored big impact of liquor ban on highways in consumption and sales.
However, there was a softening of that and a clarification was received that in municipal limits the liquor stores would be permitted to operate even if the highway is passing through the city, he added.
He further said that consumption has been good so far despite headwinds.
Talking about business, he said 40 percent capacity has increased due to the West Bengal facility.
On sales front, he said we expect Indian Made Indian Liquor (IMIL) sales to grow at 15-20 percent per annum.
"Globus Spirits is grain based neutral alcohol manufacturer. We do not make any alcohol from molasses and all of our products - the neutral alcohol - are sold to customers who have a demand for grain neutral alcohol. So we do not see too much impact from the molasses alcohol manufacturers," he said.
According to him, extra neutral alcohol (ENA) prices have been strong and leading to better margins.Watch accompanying video for more details.