homebusiness Newscompanies NewsSom Distilleries looks to expand Maharashtra footprint with Rs 300 cr investment
Som Distilleries looks to expand Maharashtra footprint with Rs 300 cr investment
Som Distilleries and Breweries Limited (SDBL) is set to invest around Rs 300 crore in a new unit in Maharashtra. The company is based in Bhopal and is primarily engaged in the production of beer and the blending and bottling of Indian-made foreign liquor (IMFL). It has three key millionaire brands - Hunter, Black Fort and Power Coo.
Som Distilleries and Breweries Limited (SDBL) is set to invest around Rs 300 crore in a new unit in Maharashtra. The company is based in Bhopal and is primarily engaged in the production of beer and the blending and bottling of Indian-made foreign liquor (IMFL). It has three key millionaire brands - Hunter, Black Fort and Power Coo.
This investment is a significant move for the company, as Maharashtra is one of the key markets for alcoholic beverages in India. In addition to this investment, Arora also mentioned that the company is in talks with some units for a takeover in Maharashtra. This acquisition could help Som Distilleries and Breweries to expand its presence in the state and strengthen its market position.
In an interview with CNBC-TV18, JK Arora, Chairman of an alcoholic beverages company said that it will invest around Rs 300 crore for a unit in Maharashtra.
He said, “We are not there (in Maharashtra) in a substantial way. So, unless we have the manufacturing setup there either by way of tying up with someone or maybe our own manufacturing unit, we cannot grow in a bigger way. Therefore, we are in talks with 2-3 units for a takeover, if that gets through fine otherwise, the option of putting a greenfield is always there. So, the amount that we will have to invest is Rs 300 crore; about Rs 200 crore for the unit and Rs 100 crore for the working capital.”
Arora also highlighted one of the main challenges the company is facing in Maharashtra – the high import cost. He explained that the state currently has an import cost of 40%, which is significantly limiting the company's expansion plans. However, with the new investment in a local unit and the potential takeover of other units, Som Distilleries and Breweries is looking to overcome this challenge and expand its presence in Maharashtra.
He also stated that the company is eyeing other states such as Telangana, Tamil Nadu, and Uttar Pradesh for further expansion. These states are also major markets for alcoholic beverages and could provide significant growth opportunities for Som Distilleries and Breweries.
Therefore, with the new investment in Maharashtra, the potential takeover of other units, and the company's focus on other key markets, Som Distilleries and Breweries is poised for further growth and success in the Indian alcohol industry.
For more details, watch the accompanying video
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