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Last Updated : Aug 10, 2016 01:24 PM IST | Source: CNBC-TV18

Demand for India-made liquor brands on the rise: Globus Spirits

In an interview with CNBC-TV18, Shekhar Swarup, ED of Globus Spirits said that the company has acquired a market share of 30 percent in Rajasthan and gave credit to value added products for the growth this quarter.


Despite prohibition on alcohol in a few states this year, Globus Spirits posted a healthy set of first quarter earnings for this fiscal where revenue increased 24.5 percent to Rs 196.4 crore year-on-year (YoY) and net profit jumped 82.6 percent to Rs 6.3 crore.


In an interview with CNBC-TV18, Shekhar Swarup, ED of Globus Spirits said that the company has acquired a market share of 30 percent in Rajasthan and gave credit to value added products for the growth this quarter.

He also said that demand for Indian made Indian liquor (IMIL) brands have increased.

Below is the verbatim transcript of Shekhar Swarup's interview to Sonia Shenoy & Anuj Singhal on CNBC-TV18.

Sonia: Good set of numbers coming in. What led to this and are you seeing a further upsides as far as revenues are concerned?

A: We have had a good revenue in the last quarter largely because of our 360 degree story, which is based on manufacturing bulk alcohol and then converting that into value added products such as our own brands of Indian Made Indian Liquor (IMIL) as the demand for IMIL brand increases.

In the state of Rajasthan, we have now achieved closed to 30 percent market share of the IMIL business and in Haryana, we are looking at around 15 percent market share.

Both Haryana and Rajasthan, IMIL industry has performed very well. Not just our market share has improved but the industry has done well and that is the reason our share of IMIL, as a percentage of our overall business, has increased.

Anuj: How is the prohibition in Bihar for example impacted you? Did you have any business in that state, has that impacted your numbers at all? There are some other states moving towards that so do you expect that too maybe hinder your growth going forward?

A: Prohibition is something which is currently or rather has been in the news over the last quarter. Bihar prohibition, yes, so we have a distillery that has been commissioned on August 1st in the state of Bihar. Manufacturing has just about started there. We are not permitted to convert this product to a portable alcohol such as Indian Made Foreign Liquor (IMFL) or IMIL but we are permitted to manufacture raw alcohol and export it to the other states.

Globus Spirits' business is based on converting alcohol to IMIL and IMFL. So that part of the business is affected in Bengal and till such times as prohibition remains, we will not be able to market IMIL or IMFL there. Be that as it may, the profitability is good; the potential for off take of bulk alcohol is very good in the eastern region.

We also have a facility under commissioning in the state of West Bengal. West Bengal on the other hand is a very large market for IMIL and a fairly sized market for IMFL as well. We hope to commission that soon and reap benefits over there.



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First Published on Aug 10, 2016 09:41 am
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