Latest News | John Distilleries Expects Rs 2,500 Cr Revenue in Next 5 Yrs; to Invest Rs 600 Cr for New Plant
Get latest articles and stories on Latest News at LatestLY. John Distilleries Ltd, a Bengaluru-based liquor maker, expects around Rs 2,500 crore net revenue in the next five years, led by the expansion of its product portfolio, premiumisation and capacity expansion, said its Chairman Paul P John on Thursday.
Concolim (Goa), Nov 7 (PTI) John Distilleries Ltd, a Bengaluru-based liquor maker, expects around Rs 2,500 crore net revenue in the next five years, led by the expansion of its product portfolio, premiumisation and capacity expansion, said its Chairman Paul P John on Thursday.
The owner of popular single malt whiskey Paul John is also planning to set up a green field manufacturing unit in Karnataka to double its production capacity by investing around Rs 600 crore, which will be funded through a mix of debt and cash from internal accruals.
John Distilleries Ltd (JDL) has identified a land parcel in Karnataka and expects the proposed green field unit to be operational by 2030, he said.
"Now, we have already reached 10,000 litres production capacity per day. But this will suffice for the next four or five years. So, we need to expand. At the pace that we are growing and the focus that we have, we need another 12,000-litre capacity plant somewhere, and we are looking at Karnataka for that," John told PTI in an interaction here.
As per the data sourced through RoC, JDL's total income for the financial year 2023-23 was Rs 1,151.20 crore.
According to John, in FY 2023-24, JDL's revenue stood at around Rs 1,250 crore on the back of a 15 per cent CAGR growth over the last few years.
JDL is exporting its Paul John single malt whiskey to over 45 countries and 40 per cent of its revenue comes from exports and the rest from the domestic market.
Currently, Sazerac, a US-based privately owned liquor major, owns around 40 per cent stake in JDL and according to industry observers, it will increase its stake by infusing more money to fund the growth of the Indian premium liquor maker.
Sazerac has been investing in JDL since 2017 after it acquired a minority stake.
JDL has plans to manufacture and sell some of the brands owned by Sazerac.
"We have some plans like that," John said, adding that "in South Africa, Sazerac has acquired an RTD brand called BuzzBallz and that we will probably be launching very soon in India".
JDL, also known for its Officers Choice Whiskey, is also considering having a manufacturing footprint in North India for its single malts and premium offerings.
When asked about any plans for IPO and subsequent listing of JDL on bourses, John said a decision would be taken on this after some years.
JDL is quite encouraged by the trend of premiumisation happening in the alchoBev market, where single malts are having a high double-digit growth of above 30 per cent led by a rise in disposable income across the country.
When asked whether JDL expects any disruption in its single malt business if a free trade agreement is signed between India and the UK, John said for the initial years, it would be there.
John said he has suggested the government ensure that Indian whiskey makers like JDL also get a level playing field in the UK market and their single malts, which have recently received global acclaim, are not blocked on flimsy grounds.
"I personally believe that the quality of my brand will stand us in good strength," he said, adding that "maybe in the initial stages, for the first few years, there will be some kind of a slight disruption, because, people will start getting excited that they are able to get some international brands".
But just because it's an international brand, it doesn't mean that it has better quality.
"We have proved it, even in their own home markets. We are winning awards compared to that. So, I welcome that. I don't have a choice anyway," he added.
John also informed that the government has sought their feedback through their associations.
"Our only request has been that is just make sure that we are also allowed to enter with our brands into their markets," he said.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)