India: Viiking Beverages in talks with investors to expand product portfolio and open new breweries
Viiking Beverages, owner of Goa Kings beer, is in talks with investors to raise up to 200 crore by the end of this quarter to help expand its product portfolio and open two new production units, the Economic Times reported on July 5 citing a company top executive.
The company has also planned its initial public offering (IPO) by the end of 2019 or early 2020 to fund its ambitious expansion plan, Manoj Asrani, the newly appointed chief executive officer of Viiking Beverages, told ET. It has already roped in Grant Thornton to prepare for the IPO.
"We are in the final leg of discussion with an investor to raise between 150-200 crore," said Asrani, who is also chief marketing officer of Viiking Ventures, the holding company of Viiking Beverages, owned by film actor and producer Sachiin Joshi.
Asrani said there is great demand for Goa Kings Beer, which cannot be fulfilled by the firm's two existing breweries in Goa and Jammu.
"From 30,000-40,000 cases last year, we are already doing 3 lakh cases a month now, but the demand is for over 5 lakh cases," he said.
Once we get the funds, we will open two production units, which will cost us at least 45-60 crore each only in capital expenditure," Asrani said.
Viiking Beverages is also looking to tie up with existing breweries under sub-lease model to boost production in the meantime. "There are lots of sick breweries, or units where they are not producing up to their potential. We have finalised one in Rajasthan and we have proposals from Telangana, Kerala and Tamil Nadu, where we will finalise one," Asrani said.
"The South Indian brewery will take care of the entire market and will cut our cost and increase profit margins by almost Rs 110 per case," he said.
The company is looking at a demand of over 1 million cases per month across the country, with five south Indian states accounting for 40% of it.
The company also plans to implement software-based selling systems, which has analytical tools to update on daily changing market dynamics.
Asrani said the company grew 300% in 2017-18 when it expanded its presence to more than 15 states in India and to about seven other countries. "I have been overlooking the sales and distribution area of Viiking Beverages for the past six months, as I strongly believe that the right distribution network is the key for the growth for any beverage company," he said. "Our recently launched Kings Goa Maxx, the strong lager beer has seen a significant growth in its first month of being Delhi by absorbing close to 10% market share," he said.
Outside India, the company plans to expand into the UAE, US, UK and Timor-Leste.
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