Assoc.Alcohols Management Discussions


Overview: The global economic growth was estimated at a slower 3.2% in 2022, compared to 6% in 2021 (which was on a smaller base of 2020 on account of the pandemic effect). The relatively slow global growth of 2022 was marked by the Russian invasion of Ukraine, unprecedented inflation, pandemic-induced slowdown in China, higher interest rates, global liquidity squeeze and quantitative tightening by the US Federal Reserve.

The challenges of 2022 translated into moderated spending, disrupted trade and increased energy costs. Global inflation was 8.7% in 2022, among the highest in decades. US consumer prices decreased about 6.5% in 2022, the highest in four decades. The Federal Reserve raised its benchmark interest rate to its highest in 15 years. The result is that the world ended in 2022 concerned that the following year would be slower. The global equities, bonds and crypto assets reported an aggregated value drawdown of US$ 26 trillion from peak, equivalent to 26% of the global gross domestic product (GDP). In 2022, there was a concurrently unique decline in bond and equity markets; 2022 was the only year when the S&P 500 and 10-year US treasuries delivered negative returns of more than 10%.

Gross FDI inflows – equity, reinvested earnings and other capital – declined 8.4% to US$ 55.3 bn in April-December.

The decline was even sharper in the case of FDI inflows as equity: these fell 15% to US$ 36.75 bn between April and December 2022. Global trade expanded by 2.7% in 2022 (expected to slow to 1.7% in 2023).

The S&P GSCI TR (Global benchmark for commodity performance) fell from a peak of 4,319.55 in June 2022 to 3,495.76 in December 2022. There was a decline in crude oil, natural gas, coal, lithium, lumber, cobalt, nickel and urea realisations. Brent crude oil dropped from a peak of around US$ 120 per barrel in June 2022 to US$ 80 per barrel at the end of the calendar year following the enhanced availability of low-cost Russian oil.

Regional growth (%) 2022 2021
World output 3.2 6.1
Advanced economies 2.5 5
Emerging and developing economies 3.8 6.3

Performance of major economies

United States:

China: GDP United Kingdom: Japan: GDP grew Germany:
Reported GDP growth of 2.1% compared to 5.9% in 2021 growth was 3% in 2022 compared to 8.1% in 2021 GDP grew by 4.1% in 2022 compared to 7.6% in 2021 1.7% in 2022 compared to 1.6% in 2021 GDP grew 1.8% compared to 2.6% in 2021


The global economy is expected to grow 2.8% in 2023, influenced by the ongoing Russia-Ukraine conflict. Concurrently, global inflation is projected to fall marginally to 7%. Despite these challenges, there are positive elements within the global economic landscape. The largest economies like China, the US, the European Union, India, Japan, the UK and South Korea are not in a recession. Approximately 70% of the global economy demonstrates resilience, with no major financial distress observed in large emerging economies. The energy shock in Europe did not result in a recession and significant developments, including Chinas progressive departure from its strict zero-covid policy and the resolution of the European energy crisis, fostered optimism for an improved global trade performance. Despite high inflation, the US economy demonstrated robust consumer demand in 2022. Driven by these positive factors, global inflation is likely to be still relatively high at 4.9% in 2024. Interestingly, even as the global economy is projected to grow less than 3% for the next five years, India and China are projected to account for half the global growth (Source: IMF).


Overview: Even as the global conflict remained geographically distant from India, ripples comprised increased oil import bills, inflation, cautious government and a sluggish equity market. Indias economic growth is at 7.2% in FY 2022-23. India emerged as the second fastest-growing G20 economy in FY 2022-23. India overtook UK to become the fifth-largest global economy. India surpassed China to become the worlds most populous nation (Source: IMF, World Bank)

Growth of the Indian economy

Regional growth (%) FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Real GDP growth(%) 3.7 -6.6% 8.7 7.2

Growth of the Indian economy quarter by quarter, FY 2022-23

Regional growth (%) Q1 FY 2022-23 Q2 FY 2022-23 Q3 FY 2022-23 Q4 FY 2022-23
Real GDP growth (%) 13.1 6.3 4.4 6.1

According to the India Meteorological Department, the year 2022 delivered 8% higher rainfall over the long-period average. Due to unseasonal rains, Indias wheat harvest was expected to fall to around 102 mn metric tons (MMT) in 2022-23 from 107 MMT in the preceding year. Rice production at 132 mn metric tons (MMT) was almost at par with the previous year. Pulses average grew to 31 mn hectares from 28 mn hectares. Due to a renewed focus, oilseeds area increased 7.31% from 102.36 Lakh hectares in 2021-22 to 109.84 Lakh hectares in 2022-23. Indias auto industry grew 21% in FY 2022-23; passenger vehicle (UVs, cars and vans) retail sales touched a record 3.9 mn units in FY 2022-23, crossing 3.2 mn units in FY 2018-19. The commercial vehicles segment grew 33%. Two-wheeler sales fell to a seven-year low; the three-wheeler category grew 84%.

Till the end of Q3 FY 2022-23, total gross non-performing assets (NPAs) of the banking system fell to 4.5% from 6.5% a year ago. Gross NPA for FY 2022-23 was expected to be 4.2% and a further drop is predicted to 3.8% in FY 2023-24.

As Indias domestic demand remained steady amidst a global slowdown, import growth in FY 2022-23 was estimated at 16.5% to US$ 714 bn as against US$ 613 bn in FY 2021-22.

Indias merchandise exports were up 6% to US$ 447 bn in FY 2022-23. Indias total exports (merchandise and services) in FY 2022-23 grew 14% to a record of US$ 775 bn in FY 2022-23 and is expected to touch US$ 900 bn in FY 2023-24. Till Q3 FY 2022-23, Indias current account deficit, a crucial indicator of the countrys balance of payments position, decreased to US$ 18.2 bn, or 2.2% of GDP. Indias fiscal deficit was estimated in nominal terms at Rs17.55 Lakh Crore and 6.4% of GDP for the year ending 31st March, 2023. (Source: Ministry of Trade & Commerce) Indias headline foreign direct investment (FDI) numbers rose from US$ 74.01 bn in 2021 to a record US$ 84.8 bn in 2021-22, a 14% Y-o-Y increase, till Q3 FY 2022-23. India recorded a robust US$ 36.75 bn of FDI. In 2022-23, the government was estimated to have addressed 77% of its disinvestment target (H50,000 Crore against a target of H65,000 Crore).

Indias foreign exchange reserves, which had witnessed three consecutive years of growth, experienced a decline of approximately US$ 70 bn in 2022, primarily influenced by rising inflation and interest rates. Starting from US$ 606.47 bn on 1st April, 2022, reserves decreased to US$ 578.44 bn by 31st March, 2023. The Indian currency also weakened during this period, with the exchange rate weakening from H75.91 to a US dollar to H82.34 by 31st March, 2023, driven by a stronger dollar and increasing current account deficit. Despite these factors, India continued to attract investable capital.

The countrys retail inflation, measured by the consumer price index (CPI), eased to 5.66% in March 2023. Inflation data on the Wholesale Price Index, WPI (calculates the overall price of goods before retail) eased to 1.3% during the period. In 2022, CPI hit its highest of 7.79% in April; WPI reached its highest of 15.88% in May 2022. By the close of the year under review, inflation had begun trending down and in April 2023 declined below 5%, its lowest in months. Indias total industrial output for FY 2022-23, as measured by the Index of Industrial Production or IIP, grew 5.1% year-on-year as against a growth of 11.4% in FY 2021-22.

India moved up in the Ease of Doing Business (EoDB) rankings from 100th in 2017 to 63rd in 2022. As of March 2023, Indias unemployment rate was 7.8%.

In 2022-23, total receipts (other than borrowings) were estimated at 6.5% higher than the Budget estimates. Tax-GDP ratio was estimated to have improved by 11.1% Y-o-Y in RE 2022-23.

The total gross collection for FY 2022-23 was Rs18.10 Lakh Crore, an average of Rs1.51 Lakh a month and up 22% from FY 2021-22, Indias monthly goods and services tax (GST) collections hit the second highest ever in March 2023 to Rs1.6 Lakh Crore. For 2022–23, the government collected Rs16.61 Lakh Crore in direct taxes, according to data from the Finance Ministry. This amount was 17.6% more than what was collected in the previous fiscal.

Per capita income almost doubled in nine years to H172,000 during the year under review, a rise of 15.8% over the previous year. Indias GDP per capita was 2,320 US$ (March 2023), close to the magic figure of US$ 2,500 when consumption spikes across countries. Despite headline inflation, private consumption in India witnessed continued momentum and was estimated to have grown 7.3% in FY 2022-23.


There are green shoots of economic revival, marked by an increase in rural growth during the last quarter and appreciable decline in consumer price index inflation to less than 5% in April 2023. India is expected to grow around 6-6.5% (as per various sources) in FY 2023-24, catalysed in no small measure by the governments 35% capital expenditure growth by the government. The growth could also be driven by broad-based credit expansion, better capacity utilisation and improving trade deficit. Headline and core inflation could trend down. Private sector investments could revive. What provides optimism is that even as the global structural shifts are creating a wider berth for Indias exports, the country is making its largest infrastructure investment. This unprecedented investment is expected to translate into a robust building block that, going ahead, moderates logistics costs, facilitates a quicker transfer of products and empowers the country to become increasingly competitive. This can benefit Indias exports in general, benefiting several sectors. The construction of national highways in 2022-23 was 10,993 kilometres; the Ministry of Road Transport and Highways awarded highway contracts of 12,375 km in the last financial year (Source: IMF).

The global landscape favours India: Europe is moving towards a probable recession, the US economy is slowing, Chinas GDP growth forecast of 4.4% is less than Indias GDP estimate of 6.8% and America and Europe are experiencing its highest inflation in 40 years.

Indias production-linked incentive appears to catalyse the downstream sectors. Inflation is steady. India is at the cusp of making significant investments in renewable energy and other sectors and emerging as a suitable industrial supplement to China. India is poised to outpace Germany and Japan and emerge as the third-largest economy by the end of the decade. The outlook for private business investment remains positive despite an increase in interest rates. India is less exposed to Chinese economic weakness, with much less direct trade with China than many Asian peers.

Broad-based credit growth, improving capacity utilisation, governments thrust on capital spending and infrastructure should bolster investment activity. According to our surveys, manufacturing, services and infrastructure sector firms are optimistic about the business outlook. The downside risks are protracted geopolitical tensions, tightening global financial conditions and slowing external demand.

Union Budget FY 2023-24 provisions

The Budget 2022-23 sought to lay the foundation for the future of the Indian economy by raising capital investment outlay by 33% to H10 Lakh Crore, equivalent to 3.3% of GDP and almost three times the 2019-20 outlay, through various projects like PM Gatishakti, Inclusive Development, Productivity Enhancement & Investment, Sunrise Opportunities, Energy Transition and Climate Action, as well as Financing of Investments. An outlay of H5.94 Lakh Crore was made to the Ministry of Defence (13.18% of the total Budget outlay). An announcement of nearly Rs 20,000 Crore was made for the PM Gati Shakti National Master Plan to catalyse the infrastructure sector. An outlay of Rs1.97 Lakh Crore was announced for Production Linked Incentive schemes across 13 sectors. The Indian government intends to accelerate road construction in FY 2023-24 by 16-21% to 12,000-12,500 km. The overall road construction project pipeline remains robust at 55,000 km across various execution stages. These realities indicate that a structural shift is underway that could strengthen Indias positioning as a long-term provider of manufactured products and its emergence as a credible global supplier of goods and services


The global alcoholic beverage is estimated to reach a value of US$ 1,978.69 bn by the year 2030. This is an increase from its value of US$ 1,561.99 bn in 2022 and represents a Compound Annual Growth Rate (CAGR) of 3.00% by 2023 to 2030.

Beer constitutes the largest segment of the market, with a market volume of US$ 610.00 bn in 2023. China generates the most revenue in the market, accounting for US$ 336.40 bn in 2023.

On a per-person basis, the market is expected to generate revenues of US$ 209.40 in 2023. The alcoholic drinks market is predicted to have 6.6% of its total revenue coming from online sales by 2023. Out-of-home consumption, such as in bars and restaurants, is expected to contribute to 42% of spending and 25% of volume consumption by 2027. Volume is estimated to reach 306.40 bn litres by 2027, with an anticipated growth rate of 2.2% in 2024. The average volume per person in the alcoholic drinks market is expected to be 36.73 litres in 2023. The global alcoholic beverages market is experiencing a rapid increase in demand due to various factors such as a growing youth population, rising middle-class income and a robust economy. Consumers are seeking new and innovative alcoholic beverage options, leading to a surge in craft beer production and formulation. As a result, breweries around the world are expanding their craft beer offerings to meet this demand.

Further, consumers are becoming more aware of the potential negative effects of consuming low-alcohol beverages, which is leading to an increased demand for higher-alcohol content beverages. This shift in consumer preferences is driving the growth of high-performance and high-quality alcoholic beverage manufacturers, who are experiencing significant commercial success. (Source:,


The alcoholic drinks market is poised for significant growth, with an expected revenue of US$ 49,580.00 mn in 2023. The Spirits segment is the largest in the market, accounting for US$ 34,470 mn of the total revenue in 2023.

On a per capita basis, the alcoholic drinks market is expected to generate US$ 34.92 in revenue in 2023. Online sales are expected to contribute 0.5% of total revenue in the market by 2023. Out-of-home consumption, such as in bars and restaurants, is expected to drive 11% of spending and 8% of volume consumption in the market by 2027. The overall volume of the alcoholic drinks market is expected to reach 14,100 mn litres by 2027, with a projected growth rate of 3.9% in 2024.

On average, each person is expected to consume 8.58 litres of alcoholic beverages in 2023.

The emergence of reasonably priced premium brands and peoples evolving drinking habits, especially among the younger generation, have brought about major changes in the Indian subcontinents liquor market. A significant proportion of the alcohol industry is largely made up of Indian-made or -manufactured foreign liquor (IMFL), Indian-made Indian liquor (IMIL), wine, beer and imported alcohol. Whiskey trumps the IMFL category in India. Moreover, vodka is flourishing as a consequence of a rise in pubs, hotels and restaurants, in addition to emerging nightlife and consumer choices.

The alcohol industry contributes significantly to the Indian economy. It not only generates up to 2 Lakh Crore in revenue to the states, but it also effectively assists nearly 40 Lakh farmers. (Source:,,


India is primarily a market for brown spirits, with whisky holding the lions share. In fact, we are the worlds largest whisky market by consumption, accounting for 10% of global liquor consumption.

The whisky segment is a significant contributor to the alcoholic drinks market, with a revenue of US$ 18.38 bn expected in 2023 and an estimated annual growth rate of 5.34% from 2023 to 2027. The United States is the biggest revenue-generating market for whisky, with an estimated revenue of US$ 18,570 mn in 2023.

On a per capita basis, the revenue generated in the whisky segment is expected to be US$ 12.95 in 2023. The volume of whisky is projected to reach 3.93 bn litres by 2027, with a growth rate of 2.6% in 2024.

On average, each person is expected to consume 2.51 litres of whisky in 2023. Whisky consumption is expected to reach 289.49 mn cases by 2027-28, generating revenue of more than H2,87,000 Crore. In 2021, India consumed 237.22 mn cases of whisky. North and East India represent approximately 27% of total whisky consumption in India. Prestige whisky enjoys a substantial market share since it is the best economical whisky on the market. Consumers preference for quality whisky, on the other hand, is witnessing rapid growth for premium whisky at a CAGR of 15.66% over the projected timeframe. The super-premium range of whisky is expensive and in short supply because it is exclusively available to the countrys elite class.

(Source:, businesstoday. com,


The global beer market has been experiencing tremendous growth, with the market size reaching US$ 711 bn in 2022 and projected to reach US$ 1,222.8 bn by 2032, growing at a CAGR of 23.7%. The popularity of beer as an alcoholic drink for social events and gatherings has contributed to the markets growth.

China generates the highest revenue in the global comparison, with an expected revenue of US$ 125.60 bn in 2023.

On average, each person is expected to generate US$ 79.42 in revenue in 2023. Out-of-home consumption, such as in bars and restaurants, is responsible for over half of spending and a third of volume consumption in the beer segment by 2027. Volume is expected to increase to 189.30 bn litres by 2027, with a growth rate of 2.1% in 2024. The average volume per person is expected to be 22.67 litres in 2023.

The increasing demand for premium and craft beers is boosting the expansion of the beer market. The growing penetration of home-brewing and microbreweries is projected to grow to market share. The industry is also distinguished by high fixed costs, low marginal costs and a limited number of brands. As a consequence, new entrants find it challenging to establish a presence in the market. The European region holds the largest market share for beer, while Asia Pacific is the fastest-growing region in the beer market. In 2025, the Asia Pacific region is predicted to be the biggest beer market, representing for more than 40% of worldwide demand. (Source:,,


In 2022, the beer market in India was worth Rs 383.6 bn, but it is expected to grow at a CAGR of 8.1% from 2023 to 2028, reaching Rs. 622.4 bn by 2028. The beer segment generates US$ 10.19 per person in 2023 when considering the total population figures. In 2027, it is projected that 24% of spending and 16% of volume consumption in the beer segment will be from out-of-home consumption, such as bars and restaurants. The beer segment is expected to reach a volume of 5.81 bn litres by 2027, with an estimated volume growth of 5.1% in 2024. The average volume per person in the beer segment is expected to be 3.39 litres in 2023. This growth can be attributed to the increasing demand for alcoholic beverages among millennials during social gatherings and celebrations, growing urbanisation, an increase in disposable income as well as the changing lifestyle of consumers. The market is benefiting from the ease of access to products through online platforms. India is one of the countries with the most progression and the least degree of infiltration, making it an ideal possibility for massive brewing companies.



The Indian market for extra neutral alcohol (ENA) was valued at Rs 97.7 bn in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 4.21% during 2022-2028 to reach Rs 125.1 bn.

In India, almost 90% of ENA is used overview for potable alcohol, which accounts for an annual production capacity of nearly 2.7 bn litres. Increased consumer disposable incomes, rapidly growing Western influence, cultural views toward drinking and a fundamental change from country liquor to Indian-made foreign liquor (IMFL) are driving the increased production and consumption of potable alcohol made from ENA in India.



The spirits segment is expected to generate US$ 34.47 bn in revenue in 2023, with an estimated annual growth rate of 5.18% from 2023-2027. On a per-person basis, the expected revenue in 2023 is US$ 24.28. Out-of-home consumption is expected to account for 4% of spending and 2% of volume consumption in the spirits segment by 2027. Volume is expected to reach 8,033 mn litres by 2027, with an expected growth rate of 2.6% in 2024. The average volume per person in the spirits segment is expected to be 5.13 litres in 2023.

The Indian spirits market has considerable scope for premium sales growth, with approximately 20 mn cases (nine litres each) of liquor products sold throughout India on an annual basis, with yields ranging between 7% and 10% over the last five years.



The Indian made foreign liquor (IMFL) market in India was valued at approximately US$ 20 mn in fiscal year 2021. Moreover, the market is expected to grow to more than US$ 32 mn by the fiscal year 2025.

The market for IMFL increased by 13% to 353 mn cases in 2022. Sales volumes of IMFL rose 24% to 120 mn cases during April-July, with demand increasing for all key segments - whisky, brandy, rum and vodka.

Characterised by a high base, whisky, which dominates two-thirds of the entire market, grew 17%, while brandy, the second largest category, grew 37%. Rum and vodka revenues rose by 41% and 55%, respectively, whereas gin sales increased by 129%, albeit from a low base.

(Source:, economictimes. com,


Indian made Indian liquor (IMIL) had a market size of approximately 290 mn cases in India in fiscal year 2021. Additionally, this is expected to rise to 350 mn cases by fiscal year 2025. Indian made, Indian liquor, also known as ‘country liquor, is a variant of alcoholic beverage that is produced domestically and includes approximately 30% alcohol. Arrack is a type of Indian liquor manufactured from sugarcane and coconut that is popular among blue-collar and lower-middle-class workers. Another type of Indian liquor is Feni, which is primarily produced in Goa and consists 42-45% alcohol and is made from cashew fruit and coconut. Toddy, another type of Indian liquor, is produced in Kerala from the sap of coconut palm trees.



The wine market in India is expected to grow by US$ 274 mn from 2021 to 2026, with a projected CAGR of 19.78%. The market is expected to experience a significant increase of 29.30% year-on-year in 2022.

Red wine dominates the market, capturing more than half of the market share, while rose wine represents only 4%. West India consumes the most wine, while East India consumes the least. In India, the urban population consumes the most wine. Imported wines endure 150% customs duties, curtailing foreign wine market availability.

Price is still the most important indicator of consumer wine selection, followed by a brand recall and the originating country.


Rising urbanisation: Indias urban population is forecasted to reach 675 mn by 2035, ranking second only to Chinas one bn. Rapidly increasing urbanisation, greater accessibility and advertising have all resulted in a higher consumption of alcohol.

Young population: More than 88% of Indians under the age of 25 purchase or consume liquor. India has one of the worlds largest young populations, with 67.45% of the population aged 15 to 64.

Rise in alcohol consumption in rural areas: According to the National family health survey-5 (NFHS-5), 2019-21, alcohol consumption is higher in rural India than in urban India. Broadly speaking, 1% of women aged 15 and up consume alcohol, especially in comparison to 19% of men of the same age. This breaks down to 1.6% (rural) and 0.6% (urban) for women and 19.9% and 16.5% for men.


Increasing acceptance as a social beverage: Wine and beer have been considered as a social beverage as the younger population grows, significantly increasing consumption of alcoholic beverages.

Consumption by women: The reality of today is far from the stereotypes. Womens tastes are more open to new experiences and they are eager to try newer cocktails, along with stronger drinks, depending on the day of the week and the social event. Potential female drinking participation in India is as high as 45%, with an actual penetration of around 18% (according to their internal workings) in 2021.

Premiumisation: Indias alcohol market is currently among the fastest-growing in the global beverage industry. This growth is attributed to the rising urban population and disposable income, which are expected to drive the expansion of the market. Additionally, the trend towards premium products and growth in consumption outside of home are driving revenue growth in the liquor market.

Per capita consumption: Indias per capita alcohol consumption of 5.5 litres is low compared to the global average of 6.2 litres, which could potentially result in growth opportunities for the sector (Source:

Increased alcohol accessibility and availability: The availability of various alcohol brands and types has increased and they are now easily accessible through government-licensed outlets, government-run monopolies, private licensed retail chains (which have been permitted in recent years), as well as in restaurants and bars.


For detailed information about the Companys business overview, please refer pages 01 to 48 of this annual report for comprehensive insights into the Companys operations, market positioning, and growth strategies.


The Company reported full-year revenue of H70,276 Lakh in FY 2022-23 compared to H51,422 Lakh in FY 2021-22, a growth of 37%. The growth was reported across all products of the Company.

Operating EBITDA in FY 2022-23 decreased by 714 bps to 8.9% translating H6,237 Lakh for the following reasons:

- Sharp rise in the cost of key raw materials and packing materials like grain, coal and glass bottle

- The combined effect of the raw material price inflation and supply chain disruptions led to an adverse impact of ~900 bps

- An ongoing cost optimisation initiative partially offset the inflation of inputs prices

Profit before tax (PBT) decreased by 32% from 8,116 Lakh in FY 2021-22 to Rs. 5,548 Lakh in FY 2022-23

Finance cost stood at Rs142 Lakh in FY 2022-23 compared to Rs. 93 Lakh in FY 2021-22.

Depreciation amounted to Rs1,439 Lakh compared to Rs. 1,428 Lakh recorded in FY 2021-22.

Tax expense stood at Rs 1,392 Lakh compared to Rs 2,035 Lakh in FY 2021-22.

Consequently, the net profit year stood at Rs. 4,156 Lakh decreasing by 32% from Rs 6,081 Lakh in FY 2021-22.

The basic and diluted earnings per share stood at Rs. 23 in FY 2022-23.

The Board recommended a final dividend of Rs. 1 per share (Face value H10) for FY 2022-23.

Net worth as of 31st March, 2023, stood at Rs. 36,340 Lakh compared to Rs. 31,284 Lakh on 31st March, 2022.

Free cash stood at Rs. 426 Lakh.

Details of significant changes in key financial ratios

Ratios FY 2021- 22 FY 2022- 23 Change Remarks
Net profit margin % 11.9 5.9 600 bps Reduction in operating profit margin has resulted in a decrease in the ratio
Operating profit margin % 16.0 8.9 710 bps An increase in raw material and packing material prices has resulted in a decrease in the ratio
Debtors turnover times 16.4 33.4 51% A decrease in trade receivables has resulted in an increase in the ratio.
Stock turnover times 8.4 9.4 11% No significant change
Debt-equity ratio % 0.0 0.2 2000 bps Augmentation in debt to equity ratio is attributable to the new term loans taken for the ethanol project.
Current ratio times 2.4 2.5 2% No significant change
Interest service coverage ratio times 103.4 50.2 -106% The lower debt service coverage ratio is on account of a reduction in profit after tax during the year.
Return on net worth % 0.2 0.1 - 1000 bps A decrease in profit for the year due to a reduction in margins has resulted in a decrease in the ratio.


Increasing purchasing power

Rising urbanisation

Demographic advantages

Dynamic lifestyles and enhancing brand awareness

Fresh product launches and innovations

Expansion into new territories

Establishing brand value through mergers and acquisitions


Inflation of raw material prices

Availability and procurement of inputs

Intense competition

Regulatory shifts

Growing health awareness among individuals, resulting in dietary shifts

Any adverse impact on brand reputation



Input cost inflation risk: The Companys key input basket is dominated by key grain, coal, glass bottle and PET resin. Any supply chain interruptions, shortages, or price increases could influence costs, affecting margins.

Mitigation: The Company has built long-term relationships with suppliers over the years to ensure the continuous raw materials availability. To reduce risk, the Company enters into long-term contracts for all inputs to the extent available.

Competition risk: The Company faces competition, which could influence its overall growth and earnings trajectories.

Mitigation: The Company possesses a diverse product portfolio and is investing in a strong innovation pipeline. As a specialised player, the Company enjoys a thorough insight into consumer preferences and is positioned to capitalise. AABL is positioned for continued growth and expansion, thanks to its extensive distribution network, use of strategically located manufacturing facilities and diverse product portfolio.

Regulatory risk: The Company is in a highly regulated industry with constant changes in marketing regulations and duties on the products.

Mitigation: AABL possesses a diverse business portfolio that includes the production and sales of ENA, IMIL, IMFL, IMFL licensed brand, and contract manufacturing for Diageo-USL, and is not dependent on a single revenue stream. Further, with the experience of more than four decades, the Company has seen all possible market cycles and has been able to navigate successfully; this demonstrates the capability of the leadership team and the Company.

Cyber security: The Company is using various softwares for day-to-day operation; any unauthorised personnel can access the Companys server from a remote location through hacking or a virus attack; this could lead to a financial loss.

Mitigation: The Company implemented a robust cybersecurity strategy to mitigate the risk of unauthorised access and potential financial and operational losses. This includes the deployment of a firewall system to create a secure barrier against external threats. Genuine software applications, regular hardware updates, up-to-date anti-virus solutions, and ongoing employee training enhance the awareness of cybersecurity best practices. The Company put in place a disaster recovery mechanism and Digital Rights Management system. These measures ensure that the Companys digital infrastructure remains resilient and safeguarded against cyber threats.


AABL acknowledges that its employees are integral to driving business success. The Company emphasises a skilled workforce. AABL fostered a culture that encourages employee retention and performance through effective personnel management practices, development initiatives, productivity enhancement efforts, and rewards programs. The team comprises a diverse and dynamic group of professionals, spanning different generations and backgrounds, who bring a wealth of experience and a keen desire to learn. AABL remains committed to enhancing employee capabilities, equipping them with the necessary tools to thrive in a rapidly evolving industry and adapt to future challenges.

It is worth noting that the Companys industrial facilities operate smoothly without the presence of labour unions, ensuring uninterrupted operations and minimal disruption. AABLs HR policies contribute to employee satisfaction, unwavering motivation, and a high retention rate. As of 31st March, 2023, the Companys workforce comprised 1,400 employees, including permanent staff and contract labour, supporting its efficiency and growth objectives.


The Company has a strong internal control policy that is equivalent to its size and operations. The Board of Directors, in charge of the internal control system, puts down the guidelines and authenticates its sufficiency, efficacy and implementation. The Companys internal control system is outlined to secure management productivity, measurability and verifiability, compliance with all applicable laws and regulations, trustworthiness of accounting and management information and the preservation of the Companys assets, to immediately recognise and control the Companys operational, compliance related, economic and financial risks.


The statements made in this section, in relation to AABL, describe the Companys objectives, projections, expectations, and estimations, which may be considered forward-looking statements under applicable securities laws and regulations. It is important to note that these statements are subject to certain risks and uncertainties, such as regulatory changes, local political or economic developments, and other factors, which could potentially cause the actual results of AABL to differ materially from the expectations expressed in the forward-looking statements. AABL assumes no responsibility for any actions taken based on these statements and undertakes no obligation to publicly update or revise them to reflect subsequent events or circumstances.•