Tilaknagar Industries Ltd (TI), one of India's leading distillers with major focus in brandy segment, plans to launch a range of new brands and it wants these new products to contribute at least 20 percent of its revenue in another five years' time.

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Amit Dahanukar, Chairman and Managing Director of Tilaknagar Industries, who shared the company’s ambitious expansion plans and financial prospects in an interview with CNBC-TV18, said that one its current strategic focuses is to introduce new products. He emphasised that these new additions to their product portfolio are expected to make a substantial contribution to the company's revenue in the next 4-5 years.

“Going forward in next four-five years, we would see the newer products contributing around 20-25 percent of the revenue, and these new brands will mostly come from the company's non-brandy portfolio,” he said.

This move, in a way, highlights TI's commitment to staying ahead of the curve in the spirits industry, which is fast evolving, by continually innovating and meeting changing consumer preferences.

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By introducing new products, TI aims to capture a larger share of the market and cater to a broader customer base, said Dahanukar.

He also expressed a keen interest in exploring more growth opportunities within the brandy space itself. But, in the near-term the company will remain focused on brandy, he mentioned.

The decision to focus on brandy aligns with market trends, as this segment is experiencing renewed interest among consumers who are looking for premium and aged spirits. Tilaknagar Industries' commitment to expand within this segment shows its adaptability and market awareness.

A significant financial milestone that was discussed in the interview was Tilaknagar Industries' aspiration to become a net debt-free company by the fiscal year 2025.

“As of June 30, we had Rs 176 crore of debt from the Edelweiss Asset Reconstruction Company (EARC), which has now been totally extinguished. We intend to become net-debt free by March 2025. We are on track for that,” he said.

This is a testament to the company's financial prudence and commitment to sustainable growth. Eliminating debt will not only enhance TI's financial stability but also provide more flexibility for future investments and expansion.

Becoming debt-free is a strategic move that reflects the company's confidence in its revenue streams, which are expected to be boosted by new product launches as well as growth in the existing brandy portfolio.

For more details, watch the accompanying video

(Edited by : C H Unnikrishnan)