Khoday India, the Rs 150 crore Bangalore-based spirits' player, is trying to catch up in the rapidly-growing Indian Made Foreign Liquor (IMFL) market with a concerted effort.
The company, which sells around 6 lakh cases of the estimated market size of 148 million cases, aims to sell around 1 million cases by end of the present fiscal. A topline of Rs 240 crore is being targeted by end of the present year.
The company is launching a slew of products with this objective in mind and is planning to bring in global brands in the brandy and liqueur segments.
The company as part of this initiative launched 'Red Knight' whisky in Bangalore after a relative success in North India.
Satpal Chaudhry, COO, Khodays said, "It will be a product that will be in priced appropriately to expand out market reach. We are planning more launches during the year."
To fuel this growth, on an immediate basis, Khoday is raising around 62 crore by issuing additional securities.
The company is facilitating this by increasing the authorised capital to Rs 100 crore from the present Rs 45 crore. According to company officials, Rs 150 crore is expected to be invested to beef up its operations and marketing over the next two years.
Market information indicate that resources will be generated internally by selling some land parcels and also by relying on debt to an extent.
It is also learnt that Khodays are giving more thrust to its marketing and sales network after a marketing arrangement with the Bagga family in Hyderabad for national marketing of its brands fell through. In addition to this, the company is also starting to export to the European countries.
Khoday's currently has capacity to distill close to 2.5 million cases across 15 locations, but due to lack of adequate marketing, the capacity is not being optimally utilised.
The company which has business interests in engineering, construction, glass and bottle manufacture, biotechnology, agriculture and power is also looking at leveraging is land bank to foray into hospitality.
According to company officials, they are in talks with a few global brands in this segment to build a luxury hotel in Bangalore.