Tilaknagar shares 3% off day's low on entry into tequila segment via Black Tiger

Tilaknagar Industries Ltd,  a liquor maker, on Wednesday saw its shares recovering 3 per cent from day's low, after announcing entry into the tequila market through a Rs 22-crore strategic investment in Black Tiger Distilleries, the maker of Bodega Suprema No. 5.

The stock opened at Rs 541.25 over its previous close of Rs 546.20 on BSE. IT slipped to a low of Rs 531 apiece, before trimming losses. From the day's low, the stock recovered to Rs 546.85, up around 2.98 per cent. It also touched a high of Rs 548 so far.

Under the deal, Tilaknagar Industries will invest a total of Rs 22 crore in Black Tiger Distilleries for a 30 per cent shareholding on a fully diluted basis. The investment will be made in two tranches - Rs 6 crore initially, followed by Rs 16 crore on or before 12 months from the first tranche.

Bodega Suprema No. 5, recently launched in India, comprises 100 per cent Blue Weber Agave tequilas crafted and bottled in Jalisco, Mexico. The range is positioned at Rs 4,200-5,500 per bottle in India.

Tilaknagar Industries said the investment marks its third strategic investment in an emerging beverage business and its first foray into tequila. Besides capital, the company will provide strategic support across distribution, sales, marketing, supply chain, finance and regulatory functions.

The company also highlighted the growth opportunity in the category. According to IWSR data cited in the release, India was the fastest-growing major tequila market globally, with volumes growing at approximately 60 per cent compounded annually between 2020 and 2025. Growth was around 34 per cent in the last year, while the market is forecast to grow at 13 per cent compounded annually through 2030.