Som Distilleries Expands Footprint with Greenfield Project and Fundraising Initiative

Som Distilleries and Breweries Limited (SDBL) has announced a major expansion move through its subsidiary, Woodpecker Greenagri Nutrients Private Limited. The company is setting up a greenfield project at Khimsepur, Farrukhabad in Uttar Pradesh, comprising a brewery, distillery, and other manufacturing facilities. The project, with an estimated investment of ₹600 crore, is expected to strengthen the company’s market presence across India.

The share price of Som Distilleries was trading 1.70% lower as of 10:59 AM on March 3, 2025

Strategic Location and Market Potential

The project will be built on a 40-acre land parcel allocated by the Uttar Pradesh State Industrial Development Authority (UPSIDA). Uttar Pradesh, being one of the largest consumer markets in the country, offers a promising opportunity for expansion. The state’s favourable industrial policies and vast customer base make it an attractive destination for the company’s next phase of growth.

Regulatory Approvals and Project Timeline

While the company has secured land for the project, construction will commence following necessary regulatory approvals from the Uttar Pradesh government. The move is aligned with Som Distilleries’ broader vision of becoming a truly pan-India player in the alcoholic beverages industry.

Board Approves Preferential Issue for Fundraising

In a parallel development, the Board of Directors of Som Distilleries has approved a preferential issue to raise capital. The company will issue up to 20 lakh equity shares at ₹112 per share (including a premium of ₹110) to its identified promoter group. This fundraising initiative is aimed at meeting the company’s operational and expansion needs.

Objectives of the Fundraising Initiative

The funds raised through this preferential issue will primarily be used for:

• Working Capital: To support the increasing demand for capital as the company expands its geographical reach, especially during peak seasons.
• Operational Expenditure: Covering costs related to marketing, salaries, utilities, maintenance, commissions, and other recurring expenses.
• General Corporate Purposes: Ensuring financial stability and positioning the company for further growth opportunities.

Conclusion 

With its ambitious expansion strategy and fresh capital infusion, Som Distilleries is reinforcing its presence in the Indian market. The greenfield project in Uttar Pradesh is a significant step towards tapping into a high-consumption region, while the preferential issue aims to strengthen the company’s financial position.

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