Indian-Made Foreign Liquor (IMFL) manufacturer Tilaknagar Industries Ltd has announced that the company’s wholly-owned subsidiary, Prag Distillery, has received the requisite approvals from Andhra Pradesh Government to commence production at its expanded facility with immediate effect.
With this expansion, the bottling capacity at Prag will increase from 6 lakh cases per annum to 36 lakh cases per annum, marking a six-fold increase. Last year, the Board of Directors of TI had approved an investment of ₹₹59 crore, including the licence fees and interest payments of nearly ₹34 crore for expansion at Prag. TI has since concluded the capital expenditure to expand the capacity and the associated infrastructure at Prag. The enhanced capacity at Prag would be able to meet nearly 50 per cent of TI’s volume requirements in Andhra Pradesh.
Capacity expansion
“This capacity expansion will strengthen Tilaknagar Industries’ owned unit footprint and secure supplies for our flagship brands in Andhra Pradesh, which is one of the fastest growing States for the IMFL industry”, said Ameya Deshpande, Chief Strategy Officer, Tilaknagar Industries.
Growing at 15 per cent annually, Andhra Pradesh has emerged as a 40-million case market in FY26. For TI, the State is one of the largest contributing markets in terms of volumes and profitability.
“The recent acquisition of Imperial Blue Whisky supported by our market leading brands like Mansion House and Courrier Napoleon Brandy, Tilaknagar Industries has become the largest player in the Prestige & Above segment in Andhra Pradesh”, Deshpande asserted. Following this expansion, TI will realize meaningful cost efficiencies and improved margins leading to enhanced profitability, he added.
Published on May 14, 2026