Liquor industry growth has slowed down in last two years: Vijay Rekhi, Tilaknagar Industries

In an interview with ET Now, Vijay Rekhi, chairman of board of advisor, Tilaknagar Industries, shares views on the company, his outlook on the sector and what lies ahead for the entire liquire market. Excerpts:

ET Now: Could you walk us through the dynamics of the entire liquor market?
Vijay Rekhi: The industry growth has slowed down in the last two years. But the prospects are always good because more and more youth are coming into the drinking age. There is potential in terms of being able to enjoy beverage alcohol, including the spirits, responsibly.

ET Now: Could you tell us more about your role as the chairman of board of advisor at Tilaknagar Industries? What are the key challenges ahead of you?
Vijay Rekhi: There are many firms which are looking at ways to grow their market share and profitability, which essentially will be my focus. I will try and help out Tilaknagar because they are poised to take off in many flavours of the spirits industry. They are strong in premium products, particularly brandy. So, let us see.
ET Now: What would be the immediate focus of the company – to raise more money or to buy more brands?
Vijay Rekhi: These things will eventually emerge as I am able to engage with them. The chairman of the company, Amit Dahanukar, will be able to clarify pertaining to this question.

ET Now: Many experts believe Tilaknagar Industries has a great brandy brand and strong distribution network, but they are really not monetising on that. What do you have to say about that?
Vijay Rekhi: I can play a critical role as an advisor. A product can be leveraged in many ways. More products can be added to sweat the assets both on the manufacturing as well as the distribution side. There is a great potential not only with Tilaknagar, whom I am advising, but many other companies who have got similar portfolio. There is room for growth for all of them.

ET Now: Would you at all be in favour to sell stake in Tilaknagar to a foreign player at any given point?

Vijay Rekhi: This question should be asked to Amit Dahanukar.

ET Now: Can the company grow on this balance sheet?

Vijay Rekhi: I will attend their first meeting today. So, I will be better equipped to answer such questions in the future.