Thursday, January 18, 2007

Amruth IMFL brands attract attention from Radico Khaitan, Mason & Summers’ Vangal

Radico Khaitan and serial entrepreneur Ramesh Vangal seem interested in buying some liquor assets of the South-based Amruth Group. E&Y has been mandated by the Jagdale family-owned Amruth Distilleries to find suitors for its three IMFL brands and a bottling plant in Kerala which has a valuation of around Rs. 100-150 crores.

Amruth may offload Old Port Rum, Bejois Brandy and Prestige Whisky along with its plant as part of a re-structuring exercise. E&Y has opened talks with several potential buyers in recent weeks. The three brands together sold over a million cases with net revenues of Rs. 68 crores in FY 2006. Old Port Rum is the largest amongst the three brands that sell mainly in the southern markets. Old Port Rum and Bejois Brandy hold respectable share in their respective segments with Kerala being a key market.

Radico Khaitan, the second largest domestic liquor company, has made a slew of mid-sized acquisitions in recent years including the takeover of the IMFL portfolio of Brihans Maharashtra Sugar Syndicate. Ramesh Vangal, who steered Pepsi and Seagram into the country, returned to the liquor space two years back with a start-up entity Mason & Summers. He has been on the prowl for acquisitions to strengthen the operations.

Read the article in The Economic Times.

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