'Premiumisation may accelerate with tax cuts'

Allied Blenders & Distillers (ABD), best known for its Officer’s Choice liquor brand, is rapidly premiumising its portfolio as Indian consumers opt for quality over quantity.

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The company, which sells close to 35-40 million cases annually, on Tuesday inaugurated a new PET bottle manufacturing facility at its integrated plant in Rangapur, Telangana. In an interview with Viveat Susan Pinto, Alok Gupta, MD, ABD, highlighted the significance of the move, investment into the project, the company’s festive outlook and its legal dispute with Tilaknagar Industries. Excerpts:

How will the PET bottle manufacturing facility help the company?

It will allow us to meet 70-75% of our captive requirements. With an annual capacity of 615 million bottles, the facility, built at an investment of ₹115 crore, will lower logistics costs and enhance supply-chain efficiencies. It is also margin-accretive as we will cut reliance on external suppliers. We will make 90 ml, 180 ml, 375 ml and 750 ml PET bottles for Officer’s Choice and, over time, may add two-litre bottles depending on demand and how the market evolves.

What are your capital expenditure plans for the current financial year?