Tilaknagar Industries has invested in expanding its Prag Distillery, one of its subsidiaries located in Andhra Pradesh, India.
According to the Indian spirits major, its board has approved a capital investment of Rs250m ($2.9m) to expand the distillery. Including license fees an interest payments, the total expense amounts to Rs590m.
Tilaknagar currently bottles Mansion House Brandy and Mansion House Flavoured Brandy at the site, the business told Just Drinks.
The planned expansion will increase Prag’s existing bottling capacity from 600,000 cases to 3.6m cases per year, the business said in a statement alongside an announcement on its first quarter results for its fiscal 2026.
The project is expected to be completed in 12 months, the Blue Lagoon Gin maker told this publication.
Chairman and managing director of Tilaknagar Industries, Amit Dahanukar added in the statement: “The upcoming expansion marks a significant step in our journey to strengthen our manufacturing capabilities and meet the growing demand of our globally acclaimed brands such as Mansion House Brandy and Courrier Napoleon Brandy in the state.”
The company also told Just Drinks that, due to the increased capacity and its other growth plans for Andhra Pradesh, it will bottle more brands at the unit. "In essence, Prag will act as our backbone for bottling in the state," it said.
When asked how the distillery would be expanded, Tilaknagar said the upcoming project "will involve a mix of new installations for augmenting capacity as well as adding space for warehousing. All possible technology interventions will be considered during the expansion."
The investment was announced alongside Tilaknagar's first quarter results for the period ended 30 June, in which it reported net revenue of Rs4m, up 30.6% on the year prior. Adjusted for subsidy income, this figure rose 20.5%.
Profit after tax excluding exceptional items was up 120.8% at Rs8.9m, adjusted for subsidy, this figure was up 44.5%.
EBITDA also increased 88% to Rs945m. Adjusted for subsidy income, this income measure grew 25% year on year to Rs55.8m.
Tilaknagar told Just Drinks it expected the expansion "to generate significant value to our growth going ahead. Not only in terms of positive financial impact but also to safeguard supply in one of the fastest growing Indian-made foreign liquor markets in India."
The company added that it expects to generate a “good amount of job opportunities at the unit" following the construction.
In July, Tilaknagar struck a deal with Pernod Ricard to acquire its Imperial Blue whisky business following weeks of speculation.
The deal gave the assets an enterprise value of €412.6m (then $485.4m), Tilaknagar Industries said in a stock-exchange filing at the time.
