John Distilleries plans to raise Rs. 200 cr from PE investors and is expecting to close the deal in the first quarter of FY10.
Asif Adil, Vice- chairman and CEO of the company has said that many PE firms have expressed interest in investing in the company. The manufacturers of Original choice whiskey, intends to use the funds to overhaul its capital structure, manufacturing capacities and branding. The company is planning to expand its presence to additional 12 states in the next 9-12 months.
In September this year, it was reported that John Distilleries was close to raising Rs 150-200 crore from private equity firms by diluting 20-25% stake and had appointed JM Financial to seek potential buyers.
Established in 1992 by Paul P John, John Distilleries'Original Choice is one of the largest selling whiskeys in India, with a sales of 10 million cases per annum. The company earns 80-85% of its revenues from original choice. The brand has a sales target of Rs 1,000 crore by 2012. It has primarily been a south focused brand, with whiskey and brandy topping its spirit list. JDL's Vodka brand which is expected to be out during the first quarter of 2010, is aiming at 10-15% market share in Vodka.
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