"We have our vi­sion for more ac­qui­si­tions and merg­ers"

Mono­ran­jan Roy CMD, Pin­con Spirit Ltd

Dalal Street Investment Journal - - COMMUNICATION FEATURE -

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.

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