Tilaknagar Industries Limited announced a follow-on investment of Rs 13.15 crore, to be invested over a period of 18 months, in Spaceman Spirits Lab Private Limited. With this funding, Tilaknagar Industries’ stake in SSL, maker of premium Indian craft gin Samsara and craft rum Sitara, will increase from 10 per cent to 20 per cent on a fully diluted basis.
Further, upon Spaceman Spirits Lab achieving certain pre-agreed milestones, the definitive agreements provide an option for Tilaknagar Industries to invest or acquire further shares held by other shareholders as per a pre-determined valuation methodology.
Tilaknagar Industries has also entered into a usership agreement with SSL to leverage its robust distribution network to sell Samsara Gin and Sitara Rum in certain states in India and abroad. This move will bolster sales of SSL’s premium craft spirits across markets in India and will contribute to additional business for Tilaknagar Industries.
Mr Amit Dahanukar, Chairman and Managing Director, Tilaknagar Industries said, “The premium–end of alco-bev industry in India has been witnessing phenomenal growth over the past few years. While we are already the market leaders in brandy, we will look to cherry-pick every promising opportunity to broad-base our portfolio and boost revenue growth. We feel this investment will open new avenues for profitable participation in the crafts spirits segment.”
Tilaknagar Industries will make the Rs 13.15 crore primary investment in tranches, over a period of 18 months post signing of definitive agreements. In addition, this alliance will give Tilaknagar Industries the right to have a nominee director on the board of SSL.