Dear Friends and Fellow Shareholders,
This year has been truly remarkable, characterized by achievements and milestones,
coupled with robust financial performance. I am delighted to share that our financial
performance in FY2023 has exceeded expectations, showcasing our continued focus on growth
and resiliency in the face of challenges. Our total income for FY2023 stood at an
impressive Rs. 8,080 million, a growth of 121.1% Y-o-Y and, our Profit After Tax (PAT)
stood at Rs. 603 million, thus signalling our efficiency of operations and our strategic
direction. Throughout the year, we witnessed several pivotal developments that have
propelled our company to new heights. Market performance of our Genius Prestige whiskey in
the Karnataka segment has been a notable achievement, garnering 46% market share within
three months of its launch showcasing the remarkable reception and demand for our product.
In another significant development, both our Legend Brandy and Pentagon whisky have
been approved for nationwide distribution by the Canteen Stores Department (CSD), thus
opening up opportunities for our brands to reach a wider customer base & geography.
To support our growth and expansion plans, we have successfully executed a
comprehensive capital expenditure program. As part of this initiative, we have established
a state-of-the-art canning facility at our Bhopal Plant and also enhanced our production
capacity at Hassan Plant in Karnataka, to meet the growing demand for our products at a
cost of Rs. 850 million.
Another crucial milestone was the ongoing expansion of our Odisha Plant, which was
completed in June 2023. This expansion, with a capex outlay of Rs. 350 million, will
enable us to cater to the rising demand in the region and further strengthen our market
position. Our commitment to excellence and customer satisfaction has yielded exceptional
results. In January, our Karnataka unit achieved the highest sales ever recorded in a
single month.
On the contract manufacturing side, during Q3 FY2023, Radico Khaitan has signed an
agreement to manufacture their IMFL and Ready-to-Drink brands at our plant in Hassan. This
contract while enhancing our capacity utilization of the IMFL facility will also reinforce
our reputation as a trusted and reliable partner.
I am also delighted to share that our beer volumes have witnessed remarkable growth.
SOM beer volumes have grown at an annual rate of 2.1x, Power Cool by 2.8x, while Hunter's
volume nearly doubled from the previous fiscal year. This growth indicated a strong market
demand for our products. It is noteworthy that beer accounted for 94% of our total volumes
and 91% of the revenue during FY23, underscoring the strength and dominance of our beer
portfolio in the market.
As we reflect on the achievements of the past year, we recognize that our success would
not have been possible without the unwavering support and trust of our stakeholders. I
extend my deepest gratitude to each one of you for your continued belief in our company's
potential and strategic intent. Looking ahead, we are confident that the foundation we
have laid and the strategic initiatives we have undertaken will fuel our future growth.
Our strong market presence, production capabilities, and product portfolio, have
positioned us well to capitalize on emerging opportunities and deliver value to our
customers and shareholders.
Thank you for your support and belief in our potential. Here is our promise to another
year of growth and prosperity.
J.K. Arora
Chairman & Managing Director