Tilaknagar Industries has announced that its wholly-owned subsidiary, Prag Distillery, has received government approval to start production at its expanded facility in Andhra Pradesh. The expansion significantly increases the unit’s bottling capacity from 6 lakh cases to 36 lakh cases per annum. This six-fold increase represents a strategic move to secure supplies for flagship brands and meet nearly 50 percent of the company’s volume requirements within the state.
Boosting Manufacturing Capacity
As part of a strategic growth initiative, Tilaknagar Industries has completed a six-fold expansion of its Prag Distillery operations. The company invested INR 59 crore into the project, which included necessary licence fees and interest payments. With these new capacities now operational, the facility is positioned to play a critical role in the company’s regional supply chain.
Strategic Significance in Andhra Pradesh
The Andhra Pradesh market, which is currently growing at 15 percent annually, has become a 40-million case market in FY26. For Tilaknagar Industries, this region is a primary driver of both volume and profitability. Following the recent acquisition of Imperial Blue Whisky and the continued strong performance of brands like Mansion House and Courrier Napoleon Brandy, the company has secured the position of the largest player in the Prestige & Above segment within the state.
Future Outlook and Efficiencies
Management noted that this expansion will generate meaningful cost efficiencies and improve overall margins. By bolstering its local manufacturing footprint, Tilaknagar Industries aims to streamline its supply chain and enhance profitability. This milestone reinforces the company’s commitment to scaling its infrastructure to support its ‘Millionaire’ brands and broader portfolio across high-growth markets in India.
Source: BSE
