On September 19, 2024, Tilaknagar Industries Ltd. made a significant move by approving an investment of ₹8.03 crores in Round the Cocktails Private Limited, commonly known as Bartisans. This decision was made during a Finance Committee meeting that commenced at 10:00 A.M. and concluded at 10:25 A.M. The company aims to strengthen its position in the rapidly growing cocktail market in India, driven by an increasing trend toward convenient, high-quality beverage options.

Bartisans operates in the ready to pour beverage segment, focusing on non-alcoholic mixers that can be combined with spirits to create cocktails or enjoyed as mocktails. This unique approach is set to complement Tilaknagar's existing brandy and Indian Made Foreign Liquor (IMFL) offerings. The investment was formalized through three key agreements:

Share Subscription Agreement with Bartisans and their Promoters

Share Purchase Agreement with Bartisans, their Promoters, and Early Investors

Shareholders’ Agreement with Bartisans and their Promoters

As part of the investment, Tilaknagar will acquire:

2,352 Compulsory Convertible Preference Shares (CCPS) and 1 equity share of Bartisans, representing 13.52% of the share capital on a fully diluted basis for ₹3 crores.

Additionally, it will purchase 163 equity shares and 3,781 CCPS from existing shareholders, accounting for 22.65% of the share capital on a fully diluted basis for ₹5.03 crores.

Upon completion of this transaction, Tilaknagar will hold a 36.17% stake in Bartisans. This acquisition is strategic, allowing Tilaknagar to participate in the burgeoning cocktail culture in India. With the rising popularity of cocktails, Bartisans presents a valuable opportunity for the company to develop new products and enhance its beverage portfolio.

Bartisans, founded on August 19, 2021, has seen impressive growth, with its turnover jumping from ₹0.16 crore in FY 21-22 to ₹3.5 crore in FY 23-24. This growth is attributed to its innovative range of 17 unique flavours, crafted using high-quality ingredients and all-natural flavours, making it a popular choice among consumers. Their product line includes both classic cocktail mixers and unique creations that reflect local tastes, appealing to a diverse audience.

The proposed acquisition does not fall under the definition of related party transactions, as neither the promoters nor their group companies have any interest in Bartisans. The entire investment is structured to be at arms length, ensuring compliance with all regulatory norms under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

This investment marks a pivotal step for Tilaknagar Industries as it seeks to expand its footprint in the beverage industry. The company anticipates completing the acquisition on or before November 15, 2024, with all financial dealings to be settled in cash.

In conclusion, this strategic investment in Bartisans aligns with Tilaknagar's vision of tapping into the evolving preferences of consumers in the beverage sector. For further details about this investment, readers can explore our Best IPO to Apply Now and stay updated with the Top News Headlines.

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