Dear Shareholders,
As we mark this important milestone of completion of our inaugural
financial year as a listed entity, we take this opportunity to express our sincere
appreciation to all our stakeholders. Your continued support and enduring association have
played a vital role in enabling us to maintain our position as the largest Indian spirits
company. Our endeavor to create Brands from India, for the World, continues
with an expansion to 23 countries in FY25, up from 14 countries in FY24 while maintaining
a leadership position in exports by volume. With your confidence in our vision, we are
committed to building on this momentum and reaching even greater heights together.
The last financial year has been a relatively controlled inflationary
period with subdued consumer demand in the mass premium category. However, premiumization
continued to play a significant role as consumers expressed strong preferences for high
end products. In this dynamic environment, our Company has delivered a strong financial
performance, achieving three consecutive quarters of profitable growth since the IPO in
July 2024. More specifically, our Company recorded its highest ever EBITDA and PAT during
FY25. This underscores our consistent focus, disciplined execution and commitment to
innovation.
Operational Excellence, Portfolio Build-up and Margin Accretive
Strategic Investments Driving Value Creation
We remain committed to driving operational excellence across all
manufacturing processes and maintaining the momentum of improving efficiencies, which has
enabled us to deliver topline growth with record high profitability. The exponential
growth in ICONiQ White Whisky has reaffirmed our ability to build scalable Millionaire
Brands with agility, becoming the second largest brand in our portfolio within two and a
half years of its launch. During the year, we developed an innovative portfolio of new
brands aimed at capitalizing on the high-growth, high-margin Super-Premium to Luxury
category. We launched new brands such as Zoya Gin with its different flavors and Arthaus,
our first blended Malt Scotch Whisky. In addition, the portfolio was strengthened with the
acquisition of Indian contemporary brands across categories, namely Woodburns Whisky,
Pumori Gin and Segredo Aldeia Rum. Our Company partnered with Roust Corporation to
introduce the world?s largest-selling Russian Vodka in India.
We also established a subsidiary, ABD Maestro Pvt Ltd, in partnership
with Bollywood Superstar Ranveer Singh, being the business and creative partner. With a
dedicated team in place, we are well positioned to expand in the Super-Premium to Luxury
category.
As a reflection of our Company?s success in brand innovation
across categories, we received numerous awards and accolades over the past year for our
new and existing brands. Our flagship brand, Officer?s Choice Whiskey, maintains its
leadership position in the Mass Premium category in India and amongst the top-selling
whisky brands globally. As we continue to expand our capabilities, backward integration
remains a cornerstone of our strategy. Over the past year, we have made targeted
investments in projects that enhance supply chain resilience and drive margin growth. We
remain focused on identifying strategic opportunities that align with our long-term goals.
With manufacturing at our core, we are committed to adopting best operational practises
and enhancing company wide efficiencies.
Sustainability At ABD
While sustainability has always been part of our ethos, it has now
evolved into a central pillar of our operational strategy. Our sustainability efforts are
centered on achieving zero harm, zero waste, and zero discharge. We are committed to
material and emissions efficiency, packaging optimization, water conservation and the use
of renewable energy. At our Rangapur distillery, we invested in a fuel handling system to
enable the increased use of biomass as an energy source. Approximately 13% of fuel
consumption in FY25 came from biofuels, resulting in a substantial reduction in carbon
emissions. Our Company is deeply committed to driving positive social and environmental
impact alongside sustainable business growth. Going forward, focus will be placed on
initiatives that promote sustainable and inclusive development, especially in rural
communities near its manufacturing facilities. These initiatives aim to improve access to
quality education, sanitation, clean drinking water, and essential infrastructure.
Additionally, through social initiatives, efforts continue to empower our workforce with
training in quality control and knowledge management, fostering inclusive participation at
every level.
Looking ahead
The market landscape today presents significant opportunities, driven
by a growing demand for premium offerings. This trend of premiumization is reshaping the
entire value chain from innovative product launches and enhanced retail visibility to
exciting customer experiences. Key factors such as rising disposable incomes, rapid
urbanization, digital influence through social media, favorable demographic shifts, and
improved accessibility are leading this transformation and present a timely opportunity
for brands to elevate and differentiate.
Our Company has adopted a strategy to build, buy and partner enabling
us to Capitalise on these trends and expand our portfolio offerings in the Super-Premium
to Luxury categories. We will continue to broaden our portfolio through this strategy,
enhance consumer experiences and reinforce the Indian brand footprint in export markets.
In an industry shaped by increasingly stringent regulations, strong compliance and sound
corporate governance have become essential foundations for long-term growth. During the
year, we have collaborated with globally acclaimed partners for digitization of compliance
management process, strengthening Enterprise Risk Management framework and ESG
initiatives. Overall, with an established portfolio of brands with international appeal,
we will continue to focus on consumer satisfaction in India and expand globally. I
envision us being recognized as an ‘Indian Multinational?, delivering
world-class brands proudly ‘Made in India?, while creating employment
opportunities that contribute meaningfully to our society and the Indian economy. With a
strengthened balance sheet and a well-defined growth strategy, we are well-positioned to
harness our core strengths, meet evolving consumer needs, and capitalize on favorable
market dynamics, reinforcing our commitment to enhancing long-term shareholder value.
| Kishore R. Chhabria |
| Chairman |