Tilaknagar Industries announced that its wholly-owned subsidiary, Prag Distillery, has received the requisite approvals from the Andhra Pradesh Government to commence production at its expanded facility with immediate effect. According to the latest regulatory filing dated May 14, 2026, this approval marks a significant milestone in the company's capacity expansion plans, positioning the subsidiary to capitalize on the rapidly growing Andhra Pradesh market. As reported by multiple sources, this development represents a key milestone in the company's growth strategy and reinforces its commitment to strengthening manufacturing capabilities in fast-growing alcobev markets across India.
The expansion will result in a six-fold increase in bottling capacity at Prag Distillery, with capacity rising from 6 lakh cases per annum to 36 lakh cases per annum. As reported in the regulatory filing, this substantial increase in production capability positions the facility to handle significantly higher volumes compared to its previous capacity. The upgraded facility is expected to cater to nearly half of Tilaknagar Industries' total volume requirement in Andhra Pradesh, as highlighted in the company's latest disclosure. The enhanced capacity is strategically designed to significantly boost cost efficiencies and improve profit margins for Tilaknagar Industries. Following this expansion, the company will realize meaningful cost efficiencies and improved margins leading to enhanced profitability, as emphasized by Ameya Deshpande, Chief Strategy Officer at Tilaknagar Industries.
The Board of Directors of Tilaknagar Industries had previously approved an investment of ₹59 crore for the expansion at Prag Distillery, including licence fees and interest payments of nearly ₹34 crore. According to the latest company statement, the company has since completed the capital expenditure and infrastructure work linked to the expansion project. This investment focuses on enhancing operational efficiencies and securing market share in a key growth region, with the company having successfully concluded all capital expenditure requirements for the expansion project.
The enhanced capacity at Prag Distillery would be able to meet nearly 50 per cent of Tilaknagar Industries' volume requirements in Andhra Pradesh, as reported in the regulatory filing. Ameya Deshpande, Chief Strategy Officer at Tilaknagar Industries, emphasized that "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." The company highlighted that Andhra Pradesh grew into a 40-million-case market in FY26, expanding at an annual rate of 15 per cent. For Tilaknagar Industries, the state is one of the largest contributing markets in terms of volumes and profitability. The recent acquisition of Imperial Blue Whisky, supported by the company's market leading brands like Mansion House and Courrier Napoleon Brandy, has positioned Tilaknagar Industries as the largest player in the Prestige & Above segment in Andhra Pradesh, according to Deshpande. The expanded capacity is strategically positioned to support supply requirements for the company's existing product portfolio in the state, which includes multiple alcoholic beverage categories including brandy, whisky, rum and gin.
