Company Overview and Compliance
• Date of submission: July 30, 2024
• Conference call date: July 23, 2024
• Compliance with Securities Exchange Board of India regulations
• Key personnel present:
• Shekhar Ramamurthy (Executive Deputy Chairman)
• Alok Gupta (Managing Director)
• Ramakrishnan Ramaswamy (CFO)
• Moderated by Manoj Menon (ICICI Securities)
• Transcript available on the company's website
Company Performance Highlights
• Third-largest spirits company in India
• 17 IMFL brands and 33 manufacturing facilities
• Distribution network covers 79,000 retail outlets
• Total income for FY24: Rs. 7,675 crores
• Gross margin: 37%
• Return on capital: 16.4%
Brand Portfolio and Market Trends
• Evolution of brand portfolio over 35 years
• Success of flagship brands like Officer’s Choice and growth of ICONiQ
• Premiumization focus: Contribution from premium segments increased from 25% to 37%
• Industry growth projected at 9%, with mass premium and luxury segments growing faster
• Shift towards responsible drinking and in-home experiences post-COVID
Strategic Initiatives
• Improvements in key brands, including packaging changes
• Launch of new premium products like Zoya gin
• Commitment to sustainability through reduced water consumption and new packaging
• Financials: Net revenue of Rs. 3,334 crores and EBITDA of Rs. 248 crores for FY24
Future Growth and Challenges
• Addressing challenges in the Telangana market
• New division focused on luxury brands
• Transition to sustainable packaging positively received
• Focus on profitable growth, cost optimization, and working capital efficiency
Q&A Session Insights
• Top three priorities post-IPO:

Premiumization journey, especially in luxury
Cost optimization in logistics and commodities
Process automation and digitization
• Optimism about new liquor policy in Andhra Pradesh
• Projected reduction in interest costs by over half in FY25
• Initiatives to improve gross margins through increased captive ENA usage and vendor renegotiations
• Future investment strategies to maintain manageable debt levels

Conclusion
• Support for home delivery of liquor as a progressive step
• Emphasis on age and address verification for successful implementation
• Closing remarks expressing gratitude and anticipation for future interactions