Chennai-based Empee Distilleries (EDL), part of the diversified Empee Group, has entered into an agreement with Vijay Mallya’s United Spirits to contract manufacture Indian Made Foreign Liquor (IMFL) for the latter’s distribution in Karnataka.
The manufacturing will be undertaken at its unit in Arabhikothanur Village, Kolar district, Karnataka, and the company feels that the agreement will improve both its topline and bottomline going forward. The agreement will initially be for a period of three years, said a statement here on Tuesday.
Empee Distilleries joint MD Nisha Purushothaman said, “The agreement with United Spirits will add a minimum of 10% growth in our topline and bottlomline and it would go up further based on the increased sourcing from United Spirits.”
The company, for the 18-month period ended September 2012, reported a revenue of close to R1,000 crore with a net profit of around R23 crore.
“We have been manufacturing our own brand products on whiskey and brandy like Napoleon in this plant in different sizes, including in 180 ml, 375 ml and 750 ml, however, at a minimum level. We had earlier also contract manufactured for another leading IMFL company,” she said.
She said, “We will make all the brands as per United Spirits’ choice, and to start with we will contract manufacture 70,000 cases per month, which will be ramped up to 1.5 lakh cases per month. The company will be making a minor investment in the plant to spruce up the capacity further to 2 lakh cases a month if demand from United Spirits rises.