Globus Spirits Ltd

• Globus Spirits Limited is engaged in the manufacture and sale of Indian Made Indian Liquor (IMIL), Indian Made Foreign Liquor (IMFL), Bulk Alcohol hand sanitizer, and Franchise Bottling.
• The company operates a unique 360-degree model that spans the entire alcohol value chain and was the first to set up a grain distillery and launch branded Distillers Dried Grains with Solubles (DDGS) in India.
• The bulk alcohol division is the backbone of the company's integrated model and provides high-quality Extra Neutral Alcohol to the other divisions.
• The company has bottling contracts with ABD India and United Spirits to manufacture their flagship brands.
• The company has been working on building a strong portfolio of brands under its Premium Liquor segment and serves eight countries in Africa and Japan.
• The company has five manufacturing units with a total capacity of 285 million+ bulk liters and a bottling capacity that exceeds 24 Million cases per annum.
• The company plans to undertake a Brownfield expansion of 140-kiloliter per day capacity at West Bengal, operationalize a new capacity of 140 KLPD with bottling plants in Jharkhand, and enhance the capacity by 60 KLPD at each of its locations in West Bengal and Jharkhand.
• The company is undertaking a Greenfield project in Odisha and has approved a Greenfield project in Uttar Pradesh with a capacity of 200 KLPD for Ethanol and ENA with bottling capacity, and the process of land acquisition is currently underway.

Globus Spirits Ltd

ABOUT:

Established in 1992, Globus Spirits Limited is primarily engaged in the manufacture and sale of Indian Made Indian Liquor (IMIL), Indian Made Foreign Liquor (IMFL), Bulk Alcohol hand sanitizer, and Franchise Bottling. It operates a unique 360-degree model that spans the entire alcohol value chain. It was the first to set up a grain distillery and launch branded DDGS in India.

KEY POINTS:

Milestones:

Globus Spirits was the first to set up a grain distillery and launch branded Distillers Dried Grains with Solubles (DDGS) in India. It is the largest grain-based Extra Neutral Alcohol (ENA) manufacturer in India. It pioneered IMIL branding with the launch of India’s first ENA-based country liquor NIMBOO.

Manufacturing Business (59% of revenue):

Bulk Spirits:

The bulk alcohol division is the backbone of the company's integrated model and provides high-quality Extra Neutral Alcohol to the other divisions. Reputed IMFL players are major customers for Bulk Alcohol. The company has a presence in Rajasthan, Haryana, Bihar, and West Bengal, with a capacity utilization of 83% during FY22.

Franchisee Bottling:

The company has bottling contracts with ABD India in the state of Rajasthan and with United Spirits in the states of Haryana and West Bengal to manufacture their flagship brands.

By-Products:

These include Animal Feed Supplements (AFS), CO2, and Hand Sanitizers and have been a strong focus area for the Company. This segment contributed about 15% to the Total Income in FY22.

Consumer Business (41% of revenue):

IMIL:

In Rajasthan, the Company's market share increased to almost 32% on the back of strong performance of the Value Plus segment. Haryana volumes picked up and helped the company to gain a market share of 10%. Recent expansion at the West Bengal facility is about to give the company an added impetus to not only expand its portfolio of offerings, but this will also allow it to capture certain market surges in that geography.

Premium Segment:

The company has been working on building a strong portfolio of brands under its Premium Liquor segment. It has an established presence in Pondicherry, Karnataka, Telangana, Andhra in the South and West Bengal, Chhattisgarh, Odisha in the Middle and the East, and Maharashtra, Goa in the West. It is focusing on organic and inorganic growth opportunities.

Exports:

The company serves eight countries in Africa and Japan. The contribution of exports as a percentage of the total turnover of the entity for FY22 is 2%.

Manufacturing Facilities:

The company has five manufacturing units spread across West Bengal, Bihar, Haryana, and Rajasthan. It produces a total capacity of 285 million+ bulk liters and a bottling capacity that exceeds 24 Million cases per annum.

Recent Developments:

The State of Rajasthan has announced a price hike of Rs. 39 per case for Value Plus segment liquor and Rs. 19 per case for Value segment liquor effective 1st Apr 22. The company's IMFL brands are now available at over 50% salience-contributing outlets in the key markets of Uttar Pradesh, Delhi, and West Bengal. By the end of FY23, the brands will be introduced in Haryana and Telangana, thereby will be available at 75% of the salience-contributing outlets.

Expansion Plans:

Globus Spirits Limited is currently engaged in expanding its business operations. The company plans to undertake a Brownfield expansion of 140-kiloliter per day capacity at West Bengal. In Jharkhand, the company plans to operationalize a new capacity of 140 KLPD with bottling plants, which is likely to be done by Q2 FY23. The company is also enhancing the capacity by 60 KLPD at each of its locations in West Bengal and Jharkhand, which is expected to be commissioned by the end of 2022. Furthermore, Globus Spirits Limited is undertaking a Greenfield project in Odisha, where it plans to set up a new capacity of 200 KLPD for Ethanol and ENA with bottling plants. In addition, the company's Board of Directors has approved a Greenfield project in Uttar Pradesh with a capacity of 200 KLPD for Ethanol and ENA with bottling capacity, and the process of land acquisition is currently underway.