Pincon charts Rs 300 cr capex, to issue $30mn masala bonds

Kolkata: City based brewer and distiller, Pincon Spirit Ltd has charted out a capex of Rs 300 crore during the current fiscal in enhancing distilleries capacity, increasing retail chain and expanding footprint.

To part finance the expansion of distilleries, it has mooted upto USD 30 million masala bond issue at the London Stock Exchange.

“We have drawn aggressive expansion in distilleries, company owned liquor off-shops to 100 from 33, foraying into packaging bottle manufacturing for captive consumption and entering into new states,” Pincon CMD Monoranjan Roy told PTI in an interview.

He said exercise for issuing USD 30 million masala bonds (FCCB) in London Stock Exchange has already started.

“The board has already approved and we are working with bankers on the proposed issue. We hope to complete the issue around October-November to raise funds for part funding of our capex plans,” Roy said.

Along with masala bonds a Rs 75 crore rights issue is also been proposed by the company and soon the company will approach SEBI for its approval, he said.

Recently, a preferential issue of 5,706,128 equity share warrants was carried out.

The spirits maker also plans to expand its footprint to four new southern markets of Kerala, Puducherry, Goa and Tamil Nadu. Currently, it has presence in Karnataka, Jharkhand, Odhisa, Haryana and Uttarakhand beside West Bengal with eight company owned units and four contract suppliers.

“In IMFL segment we are now focusing in south which offers least restrictions with immense scope,” Roy said.

Currently, country liquor contribute around 60 per cent of the revenue of Rs 1420 crore in FY17′ but the company was trying to focus more on IMFL.

Acquisition of bottling plants had been a core strategy for aggressive growth.

“In Bengal, we have acquired three bottling units of two local companies that contributed Rs 350 crore to our topline in 2016-17,” Roy said.

“In order to improve margins we have decided to foray into bottle making also,” he said.

In the current fiscal, Pincon was targeting a turnover of Rs 1,800 crore with focus in IMFL and edible oils.

Pincon is the only liquor company having edible oils and shares the same brand ‘Pincon’.