John Distilleries expects a revenue of Rs 2,500 crore in the next 5 years; investing Rs 600 crore in the new plant
John Distilleries Ltd, a Bengaluru-based distiller, expects revenue of around Rs 2,500 crore in the next five years, led by expansion of its product portfolio, premiumisation and capacity expansion, its Chairman Paul P John said on Thursday.
The owner of popular malt whiskey Paul John is also planning to set up a greenfield production unit in Karnataka to double its production capacity with an investment of around Rs 600 crore, which will be financed through a combination of debt and cash from internal fundraising.
John Distilleries Ltd (JDL) has identified a piece of land in Karnataka and expects the proposed green field unit to be operational by 2030, he said. “Now, we have already reached a production capacity of 10,000 liters per day.
But this will be enough for the next four or five years. So, we need to expand. With the pace at which we are growing and our focus, we need another 12,000 liter capacity plant somewhere, and we are looking at Karnataka for that,” John told PTI while speaking here.
As per the data obtained through the RoC, the total revenue of JDL for the financial year 2023-23 was Rs 1,151.20 crore. According to John, in FY 2023-24, JDL’s revenue stands at around Rs 1,250 crore after growing at a CAGR of 15 percent in the last few years.
JDL exports its Paul John malt whiskey to more than 45 countries and 40 percent of its revenue comes from exports and the rest from the domestic market.
Currently, Sazerac, the US-based private brewer, owns nearly 40 percent of JDL and according to industry observers, it will increase its stake by infusing more capital to finance the growth of India’s top brewer.
Sazerac has been investing in JDL since 2017 after acquiring a minority stake. JDL has plans to manufacture and sell other Sazerac brands. “We have plans like that,” said John, adding that “in South Africa, Sazerac has acquired a brand of RTD called BuzzBallz and we will probably launch it soon in India”.
JDL, also known for its Officers Choice Whisky, is considering having a manufacturing facility in North India for its single brands and premium offerings. When asked about any plans for an IPO and subsequent listing of JDL on the bourses, John said a decision would be made on this after some years.
JDL is strongly encouraged by the premiumisation trend taking place in the alchoBev market, where single malts have a high double-digit growth of more than 30 percent led by an increase in disposable income across the country.
When asked if JDL expects any disruption to its single malt business if a free trade agreement is signed between India and the UK, John said in the early years there would be.
John said he suggested that the government ensure that Indian whiskey makers such as JDL also find a place to play in the UK market and that their malts, which have recently gained international popularity, are not blocked for inferior reasons.
“I personally believe that the quality of my product will put us in a good position,” he said, adding that “perhaps in the first stages, in the first few years, there will be little disruption, because, people start to be happy that they can find some international brands”.
But just because it’s an international brand, doesn’t mean it has better quality. “We have shown that, even in the domestic market. We are winning awards compared to that. So, I accept that. I have no choice,” he added.
John also informed that the government has asked for their response about their association. “What we are asking is that we make sure that we are also allowed to enter their markets with our products,” he said.
