Ravi Kumar Distilleries (RKDL), a Chennai-based maker of Indian-made foreign liquor (IMFL), has signed a share purchase agreement for acquisition of 51% of the equity shares of S V Distilleries, based in Karnataka. The financial details of the deal were not disclosed. By this share buy, RKDL will become subsidiary of the RKDL.
?Through this acquisition, the company will be able to double its business by the end of the current financial year. S V Distilleries has the capacity of producing 60,000 cases of IMFL per month and 40 KL of spirit per day. The company will be going in for expansion at the facility, which will see scaling up of spirit capacity to 100 KL per day and the total investment outlay for the sharebuy and subsequent expansion will be somewhere near R86 crore,? company sources told FE.
S V Distilleries has facilities such as RS plant, ethanol project, IMFL bottling plant, ENA plant at its factory at Bidar in Karnataka. The expansion will see setting up a 4.5 mw power plant at the premises,? the sources said adding ?the committment made with regards to expanding to states like Kerala and Andhra Pradhesh as well, will be honoured.?
The company had said it has plans to expand to new territories such as Kerala and Andhra Pradesh markets. Besides, it had firmed up plans to scale up the installed capacity at its Puducherry facility from 14 lakh cases per annum to 36 lakh cases per annum for which it had earnarked close to R80 crore.
RKDL manufacturers liquor brands under its own brand portfolio as well as under tie-up arrangements with other liquor companies. It had tied up with Radico Khaitan, Shashi Distilleries, John Distilleries, Gemini Distilleries and Mandovi Distilleries & Breweries for manufacturing and marketing their popular brands.
The company had chalked out plans to become a major player in South India first and gradually spread it wings to North, ultimately to become a pan-India entity.
RKDL which currently operates through its production facility at Puducherry, had already developed quality control and in-house R&D department along with a developed technology in the field of manufacturing a wide range of IMFL products.