Tilaknagar Industries'' Subsidiary Prag Distillery Gets Government Nod to Commence Production at the Expanded Capacity in Andhra Pradesh
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Tilaknagar Industries' wholly-owned subsidiary Prag Distillery has received Andhra Pradesh Government approval to commence production at its expanded facility. The expansion increases bottling capacity six-fold from 6 lakh to 36 lakh cases per annum. The company invested INR 59 crore for this expansion, including license fees and interest payments of nearly INR 34 crore. The enhanced capacity will meet nearly 50% of TI's volume requirements in Andhra Pradesh, which is a 40-million case market growing at 15% annually. Following this expansion, TI will realize cost efficiencies and improved margins, strengthening its position as the largest player in the Prestige & Above segment in Andhra Pradesh.
The expansion significantly strengthens Tilaknagar Industries' manufacturing footprint and supply security in a high-growth market. Shareholders can expect improved cost efficiencies and profitability from better capacity utilization and reduced dependency on third-party bottling.