Tilaknagar Industries Expands Stake in Spaceman Spirits Lab

Tilaknagar Industries Limited has announced an additional investment of Rs 13.15 crore in Spaceman Spirits Lab Private Limited (SSL), which will be spread over 18 months. This funding will increase Tilaknagar’s stake in SSL, the producer of premium Indian craft gin Samsara and craft rum Sitara, from 10 percent to 20 percent on a fully diluted basis.

The investment is part of a broader strategy that includes an option for Tilaknagar Industries to further invest or acquire additional shares in SSL based on the achievement of specific milestones and a pre-determined valuation.

In conjunction with this investment, Tilaknagar Industries, known for its top-selling brandy Mansion House, has entered into a usership agreement with SSL. This agreement will leverage Tilaknagar’s distribution network to market Samsara Gin and Sitara Rum in various states across India and internationally, enhancing SSL’s market reach and contributing additional business to Tilaknagar Industries.

Amit Dahanukar, Chairman and Managing Director of Tilaknagar Industries, stated, “The premium segment of the alco-bev industry in India has been growing significantly. We are already a market leader in brandy and are looking to expand our portfolio to include promising opportunities in the craft spirits segment. This investment is expected to open new revenue streams and growth avenues.”

The Rs 13.15 crore investment will be made in tranches over the 18-month period following the signing of definitive agreements. This partnership will also grant Tilaknagar Industries the right to appoint a nominee director to the board of SSL.

Ameya Deshpande, President of Strategy and Corporate Development at Tilaknagar Industries commented, “This investment aligns with our goal of promoting Indian brands globally. The partnership supports our strategy of developing a portfolio of luxury products that appeal to both the consumer and institutional markets.”

Spaceman Spirits Lab, founded in 2020, has established itself as a fast-growing craft spirits brand in India, with its Samsara Pink Gin gaining recognition. SSL’s products are now available in over 10 Indian states and international markets including the UAE, Canada, the UK, Bahrain, Nepal, and Singapore.

Aditya Aggarwal, Founder and Managing Director of Spaceman Spirits Lab said, “We are dedicated to creating premium craft spirits and enhancing the global presence of Indian spirits. This partnership will enable us to expand our portfolio, increase our market reach, and boost sales.”

Previously, Tilaknagar Industries had invested Rs 9.75 crore for a 10 percent stake in SSL. In FY24, SSL reported a 164 percent increase in revenue and an 86 percent increase in volumes year-on-year. The new investment will be funded through Tilaknagar Industries' internal cash reserves.