Rock & Storm Distilleries To Expand Across India With ₹100-Crore Multi-Year Investment
Date
11/29/2023 2:04:01 PM
(MENAFN- Live Mint) "Delhi-based Rock & Storm Distilleries Pvt. Ltd, which makes alcoholic beverages, is set to expand its presence across the country with an investment of ₹100 crore over the next three to four years. With these internally accrued funds the company plans to enter new markets such as Uttar Pradesh, Karnataka and Rajasthan by 2024, Vinay Khare, its director, told Mint support its growth, the company plans to set up its own malt plant with a capacity of 6,000 litres a day, and a new production unit. It also plans to set up its first-ever ethanol and extra neutral alcohol (ENA) plant. At present, it sells nearly 10 lakh cases annually 2025 it plans to enter Maharashtra, Haryana and Jharkhand. It currently has a presence in Delhi, Punjab, Uttarakhand, Chandigarh and Telangana, and in the CSD canteen services of 21 states. It also exports its products to Rwanda, Kenya and Australia. Khare added that the company, which currently has a portfolio of 11 brands, will look at developing more premium spirits. It has also established a bottling tie-up in Jammu and set up a new plant in Telangana.“We also ventured into the premium whisky domain around 2019 with the introduction of the Barents brand of whisky. Interestingly though, India's whisky market is largely characterised by affordability, with as much as 85% of whisky sales coming from bottles priced under ₹1,000. This indicates a trend towards accessible consumption,” Khare said. Whisky currently accounts for about 80% of the company's production and sales. The remaining 20% comes from rum, vodka, gin and brandy company has clocked cumulative revenue of about ₹2,500 crore in the past five years. After degrowth in FY21 and FY22 amid the pandemic, it reported net revenue from operations of ₹152.9 crore in FY23 and it expects to close FY24 at ₹175 crore, Khare added's alcoholic-beverage industry is growing rapidly and is projected to hit $64 billion over the next five years, according to the International Spirits & Wines Association of India (ISWAI). The industry is currently worth an estimated $52.4 billion, or about 2% of India's GDP. This translates to a market value of ₹3.9 lakh crore, including country liquor. Several factors are driving this growth, including rising disposable incomes, increasing urbanization, better access to products, premiumization trends, and a growing young consumer base.
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