"We have our vision for more acquisitions and mergers"
Monoranjan Roy CMD, Pincon Spirit Ltd
What will be the company's macro and micro expansion strategy in the current fiscal?
At the macro level, our expansion strategy is focused on setting up rice bran oil extraction and refining plant in industrial area at Dankuni (West Bengal), for which the Govt. of West Bengal has already granted permission, and C.S. liquor plant at Assam. In the near future, we also propose to set up edible oil refining and packaging plant in Karnataka.
At the micro level, we have streamlined and initiated capacity expansion in all of our IMFL and C.S. liquor plants. In continuation with our efforts for cost control and cost mitigation, backward integration for setting up of PET preform/pet bottle plant in some of our factories have also been scheduled for captive consumption of PET bottles in our IMIL/C.S. liquor, IMFL and edible oil segments. This would enable us to achieve additional contribution to our bottomline by way of reduced input cost in bottles.
In which segment is your company likely to focus ON—IMIL, FMCG, IMFL—IN the coming quarters?
All the segments are good contributors in the topline of our business activity.
In IMIL, i.e. C.S. liquor, we have created our market presence amongst the largest players. We have focus for further market share. We have initiated for business presence in Assam in this segment. Taking all these factors together, the C.S. liquor segment would be the forerunner in topline contribution.
In IMFL, we have continued to achieve expanded business volumes across different states in the country where we are already operating. Entry with brandy and rum in Kerala within Q3 of FY18 should add further business volume in this vertical.
Edible oil in FMCG continues to be substantial participant in the topline. Initiation of institutional supply in this fiscal and volume increase through distribution chain, business penetration in other states should make FMCG a worthy business line.
Considering the above, I feel all the segments need parallel focus, which shall enable Pincon Spirit in business risk mitigation proposition.
Is the company likely to witness more merger and acquisitions in the near future?
In Pincon Spirit, mergers and acquisitions are viewed from regulatorycum-operational convenience and for inorganic expansion–all cumulatively focused at achieving greater business volume. We do have our vision for more acquisitions and mergers, which again would be effected as per the parameters, if so required.
Pincon Spirit is rapidly growing its presence. What will be its distribution strategy in the current fiscal?
In the current fiscal, in IMFL and IMIL, we have focused on greater business volume through state governmentowned alcoholic beverages corporations; West Bengal being one of the new entrants.
In FMCG, we have focused on larger business scale in existing distributor base along with increase in the number of distributor base in new geographies.
❝In IMFL, we have continued to achieve expanded business volumes across different states in the country where we are already operating. Entry with brandy and rum in Kerala within Q3 of FY18 should add further business volume in this vertical❞
What will be the company's growth strategy for FY18?
The growth strategy of the company continues along the following lines:
• Strengthened product mix.
• Deeper market penetration across geographies.
• Deriving benefits from value chain proposition.
• Strengthened distribution chain.
• Strengthening of captive logistics.
• Analytical market approach from the income profile of Indian demography.
How can Pincon Spirit improve its market share?
Pincon Spirit continues to be one of the fastest growing corporates in India. I believe that placing of product range in the untapped segment in the product chain has benefited the company in being a fast growing corporate in India. Each business vertical being managed by people with vast experience in their respective fields, interactive and needbased marketing strategy formulation, 24x7 efforts by a committed team shall enable Pincon Spirit to improve its market share.