Andhra Pradesh clears expanded production at Prag Distillery under Tilaknagar Industries

Tilaknagar Industries has announced that its wholly-owned subsidiary, Prag Distillery, has received approvals from the Andhra Pradesh government to commence production at its expanded manufacturing facility with immediate effect.

Following the expansion, Prag Distillery’s bottling capacity will increase six-fold from 6 lakh cases per annum to 36 lakh cases annually. Last year, the board of Tilaknagar Industries approved an investment of ₹59 crore for the expansion project, including nearly ₹34 crore towards licence fees and interest payments. The company has since completed the capital expenditure and associated infrastructure development at the facility.

Tilaknagar Industries said the enhanced capacity at Prag will be able to meet nearly 50 per cent of its volume requirements in Andhra Pradesh, a key market for the Indian-Made Foreign Liquor (IMFL) industry.

Commenting on the development, Ameya Deshpande, Chief Strategy Officer of Tilaknagar Industries, said the capacity expansion would strengthen the company’s owned manufacturing footprint and secure supplies for its flagship brands in Andhra Pradesh, which he described as one of the fastest-growing states for the IMFL sector.