MUMBAI, Dec 16: City-based Octaga Green Power & Sugar Co Ltd, engaged in distillery products manufacturing, plans to raise USD 50 million to fund its expansion plans.
“Currently, we have mandated to Delloitte to raise private equity of USD 20 million in the first round by diluting 22-24 per cent equity stake. We are also looking at raising USD 30 million by diluting another 25 per cent in the next three-year period. The capex will help in expanding the present capacity of 3 lakh cases a month to 5 lakh cases per month,” Octaga Green Power & Sugar Co Managing Director Basab Paul told PTI here.
The company also plans to set up bottling units at Himachal Pradesh, Tamil Nadu and Rajasthan, Paul said.
Octaga has its bottling plant in Kolhapur, Maharashtra with an annual capacity of three lakh cases of vodka/whiskey/ brandy/rum and has a state of the art distillery with the rated capacity of 40,000 litres per day. Now its prime focus is marketing and brand building on a national and international level.
The company has presence in the states of Maharashtra, Daman, Goa, Chandigarh and Puducherry, and also supplies to Border Security Force, Para Military Force in Madhya Pradesh, Haryana and Jammu & Kashmir.
“We are looking at markets such as Haryana, Delhi, Punjab, West Bengal, Andhra Pradesh, Tamil Nadu, in the months to come,” Paul said, adding it is also looking at entering UAE, Africa and Vietnam for exports.
The company manufacture the finest grain based spirit through a 8-column distillation process. Also its captive power plant is bio-mass based and solely renewable energy. It is also a signatory to the United Nations Global Compact with an endeavour and promise to a carbon neutral environment.
Commenting on the outlook of the liquor industry, Paul said there is a huge growth potential in the premium category specially in the vodka segment. Our product is positioned with Smirnoff (Diageo); Absolute; Russian Standard Vodka. We are very confident of sharing a sizable market in the years ahead.
The industry is growing at 18 per cent year-on-year. We look at a yearly growth of 22 to 24 per cent.
The company’s product namely Invincible Vodka, Master’s Imperial, Blended Scotch Whisky, which are in the premium and lifestyle spirit segment.
With an in-built power plant of 4 MW co-generation power, an additional co-generation power plant of 8 +8 MW and value additions such as a 20,000 liters per day Malt extraction plant as well as a back-end sugar plant for raw material feed, the distillery has an immense growth potential.
In coming months, the company is looking at launching Grenade XXX Reserve Rum and also its 8 years older Blended Scotch Malt Whisky – Enigma Gold, flavoured Vodka and liquors, Paul said. (PTI)
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