Saturday, July 24, 2010


Globus Spirits is a leading North Indian player engaged in manufacturing, marketing, and sale of country Liquor, IMFL and industrial alcohol comprising rectified spirit and ENA apart from taking contract bottling to cater to renowned Indian players.

GSL has two modern distilleries, one at Behror, Rajasthan and the other at Samalkha, Haryana. Both are spread out in an area of around 17 acres each and have a combined capacity of 28.8 million bulk liters of alcohol on an annual basis. Both of them are state-of-the-art plants capable of distilling alcohol from grain or molasses.

These units are currently operating at 100% capacity and to meet the current demand, the Company also has to procure alcohol from various other distillers. To fill this demand-supply gap, GSL is implementing expansion projects to almost double the capacities of both plants which will require a capex of INR 705 million.

The capex for this project will be funded from the IPO proceeds, term loans, and internal accruals. The total capacity of these units post-expansion will add up to 48.6 million bulk liters and is estimated to be completed by July 2010.

Apart from the planned expansion for doubling distillation capacity in each unit, the Company has also planned to expand its boiler capacities to 20 metric tons per hour at 42 kg pressure, and install a 2-MW turbine at each of its distillery.

In fact, Company’s project teams have successfully been able to re-engineer and place orders for 25 Metric tonne boilers at higher pressure of 67 kg/cm2 and also up the power generation to 3 MW at each distillery.

To read the full report: GLOBUS SPIRIT LIMITED