IMFL maker Jagatjit Industries is currently in talks to secure approximately INR 300 crore in an equity deal. This funding is intended to retire its debt and support the company’s expansion plans, as revealed by a top official.
Roshini Sanah Jaiswal, Promoter & Executive Director, Jagatjit Industries said, “We’re looking at raising roughly INR 300 crore. We’ve jumped from massive losses to profits. And now for the next leap, where we focus on premium products and expansion to improve our contribution margins and eventually our bottom line, we need to raise funds.”
She refrained from disclosing details of the current negotiations but mentioned that the deal is anticipated to be finalized in the next few months.
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Jaiswal revealed that the company intends to allocate approximately 50% of the funds, roughly INR 150 crore, to settle its existing debt of around INR 160 crore, which will substantially enhance its cash flows.
The remaining 50% of the new funds will be invested in marketing, branding, enhancing the portfolio’s premium offerings, and expanding into both new and existing markets, including Uttar Pradesh, Delhi, Maharashtra, West Bengal, and Telangana.
Regarding its product portfolio, the IMFL maker intends to introduce a premium single malt either by the end of this year or the beginning of next year. At present, Jagatjit generates the majority of its revenue from its mainstream brands, including Royal Pride Whiskey, AC Black Whiskey, King Henry Damn Good Scotch, and iice Vodka.
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Regarding the company’s performance, she mentioned that the brand is on course to achieve revenue between INR 750 – 760 crore by the end of the fiscal year.
“We are on track to reach INR 750 – 760 crore revenue. Last quarter, there was a hit which came largely from commodity pricing for us. However, this quarter, all our numbers should be back on track.”
For the October-December quarter, the liquor brand experienced an 84.58% decrease in revenue, dropping to INR 0.68 crore from INR 4.02 crore in the September quarter.
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