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New Delhi: IMFL maker Jagatjit Industries is in talks to raise around Rs 300 crore in an equity deal to retire its debt and fuel its expansion plans, shared a top official of the company.
Talking to ETRetail, Roshini Sanah Jaiswal, Promoter & Executive Director, Jagatjit Industries said, “We’re looking at raising roughly Rs 300 crore. We’ve jumped from massive losses to profits. And now for the next leap, where we focus on premium products and expansion to improve our contribution margins and eventually our bottom line, we need to raise funds.”
Without sharing details of the ongoing talks, she said that the deal is expected to close in the coming few months.
Jaiswal shared that the company plans to use about 50 per cent of the funds, that is around Rs 150 crore, to repay its existing debt (around Rs 160 crore) and thus significantly improve its cash flows.
The remaining 50 per cent of the new funds will be deployed towards marketing, branding, premiumization of the portfolio, and expanding into new and existing states such as Uttar Pradesh, Delhi, Maharashtra, West Bengal, and Telangana.
In terms of portfolio, the IMFL maker is planning to launch a premium single malt by the end of this year or early next year. Currently, Jagatjit drives the majority of its revenues from its mass brands such as Royal Pride Whiskey, AC Black Whiskey, King Henry Damn Good Scotch, and iice Vodka.
Commenting on company performance, she stated that the brand is on track to close the fiscal at Rs 750 – 760 crore revenue.
“We are on track to reach Rs 750 – 760 crore revenue. Last quarter, there was a hit which came largely from commodity pricing for us. However, this quarter, all our numbers should be back on track.”
For the October- December quarter, the liquor brand saw its revenues decline by 84.58 per cent to Rs 0.68 crore, against Rs 4.02 crore in the September quarter.
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