Tilaknagar Industries to Increase its Stake in Spaceman Spirits Lab with ₹13.15 Crore Investment

On September 9, 2024, Tilaknagar Industries Ltd announced a follow-on investment of ₹13.15 crore in Spaceman Spirits Lab Private Limited (SSL) over the next 18 months. This investment will increase Tilaknagar’s stake in SSL, the producer of the premium Indian craft gin Samsara and craft rum Sitara, from 10% to 20% on a fully diluted basis. 

Additionally, the definitive agreements include provisions for Tilaknagar to potentially invest further or acquire additional shares from existing shareholders upon SSL achieving specific pre-agreed milestones, based on a predetermined valuation methodology. 

Tilaknagar Industries, known for its popular brandy Mansion House, has also signed a usership agreement with SSL. Under this agreement, Tilaknagar will use its extensive distribution network to market and sell Samsara Gin and Sitara Rum in select states in India and internationally, boosting SSL’s sales and generating additional business for Tilaknagar. 

The ₹13.15 crore investment will be made in instalments over 18 months following the finalisation of agreements. This partnership will also grant Tilaknagar the right to appoint a nominee director to SSL’s board.

Commenting on this development, the Chairman and Managing Director of Tilaknagar Industries said, Mr Amit Dahanukar, “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.”

The President of Strategy and Corporate Development at Tilaknagar Industries, Mr Ameya Deshpande, said, “This investment is in line with our shared vision of promoting brands which are made in India, for the world. This partnership contributes to Tilaknagar Industries’ efforts of building its own bouquet of disruptive luxury products that will enhance the market appeal of its premium offerings, including for the institutional segment.”

Spaceman Spirits Lab, founded in 2020, is renowned for introducing India’s first Pink Gin under the Samsara brand and has quickly become a leading name in the craft spirits sector. SSL has expanded its presence to over 10 states in India and several international markets including the UAE, Canada, the UK, Bahrain, Nepal, and Singapore.

Mr Aditya Aggarwal, Founder and Managing Director of Spaceman Spirits Lab Private Limited said, “We are committed to creating premium craft spirits and elevating Indian spirits on the global stage. This association would enable us to further expand our portfolio, increase our geographic reach in India and in international markets and boost our sales significantly.”

Tilaknagar’s previous investment of ₹9.75 crore for a 10% stake in SSL has supported significant growth, with SSL’s revenue and volumes increasing by 164% and 86%, respectively, in FY24. The new investment will be funded through Tilaknagar’s internal cash reserves.

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