Tilaknagar Industries has received government approval for its wholly-owned subsidiary, Prag Distillery, to commence production at its expanded facility in Andhra Pradesh. The ₹59 crore investment boosts bottling capacity six-fold — from 6 lakh to 36 lakh cases per annum. Strategic Significance: Market Alignment: Andhra Pradesh is a 40-million-case market (FY26) growing at ~15% annually. The expanded capacity will meet ~50% of Tilaknagar's in-state volume requirements, reducing logistics costs and improving supply reliability. Brand Leadership: Post the acquisition of Imperial Blue Whisky, Tilaknagar is now the largest player in the Prestige & Above segment in AP, with strong performers like Mansion House and Courrier Napoleon Brandy. Margin Upside: Localized manufacturing enables cost efficiencies, better working capital management, and improved realization versus third-party sourcing. Outlook: The operational ramp-up of Prag Distillery strengthens Tilaknagar's infrastructure to support its "Millionaire" brands and high-growth portfolio across South India. With capacity now aligned to demand trajectories, the company is better positioned to capture market share, defend pricing power, and scale profitability in one of India's most dynamic IMFL markets.

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