BY THE YEAR 2019-20 WE PROPOSE TO HAVE A PAN-INDIA PRESENCE

Could you elaborate about the company’s business activities?

PSL was incorporated in 1978 and has business lines in Indian made foreign liquor (IMFL), Indian made Indian liquor (IMIL) and fast moving consumer goods (FMCG). In the IMFL segment the company has leading brands such as Pincon in rum, whisky, vodka, brandy and gin. The products have a good market share in various states in India viz. West Bengal, Karnataka, Jharkhand, Odisha, etc. with such sub-brands as Pincon XXX Matured Rum, Pincon No. 1 Select Whisky, Pincon Perfect Vodka, King’s Coin Rum/Whisky/Vodka, Highland Blue Whisky, Ultra Force XXX Jamaican Rum, Pincon Ruby Gold Gin, etc. PSL is also into the wholesale business of IMFL of all the leading brands in West Bengal.

In IMIL i.e. CS liquor, PSL has a popular brand like Pincon Bangla No. 1, which is marketed in West Bengal. In the FMCG segment, PSL has its own brand called Pincon that comprises edible oil viz. mustard oil, soya oil and vegetable oil. The products have a market base in West Bengal and the northeastern states.

What is your current revenue mix for IMFL and FMCG and how do you see it developing in the future?

The revenue mix of IMFL/IMIL and FMCG is 70:30. Going ahead, this is expected to remain the same.

In Q1 FY16, your company’s topline and bottomline almost doubled; what have been the main reasons behind this? Do you see the momentum to continue for the rest of FY16?

The reason for a substantial increase in the topline of PSL is due to increased market share, geographical spread and introduction of new brands supported by a good marketing strategy. This led to an increase in the bottomline too. We expect to retain the same momentum in the coming years.

Please explain the reasons behind margin improvement and how you propose to sustain them?

Effective cost control measures are instrumental to increased margins. We propose to continue to implement cost control measures in the coming years to maintain our increased margins.

What is the strategy you have adopted to increase your presence across India?

Presently PSL has its registered office in Kolkata and corporate office in Bangalore. We propose to spread our business across Andhra Pradesh, Telangana, Tamil Nadu, Delhi, Haryana and Uttar Pradesh from FY15-16 to FY16-17. By the year 2019-20 we propose to have a pan-India presence.

What are the capex plans of the company for the next couple of years?

We propose to set up a greenfield project near Kharagpur (WB) for setting up a fully automated blending and bottling plant for production of our own brand of CS liquor, which is expected to have production capacity of 80,000 cases per 

Is the company planning to raise money through debt or private placements for future expansion?

The company is looking at raising additional debt funds in the future through various debt instruments for supporting the business expansion plan.

How do you see your company growing in the next few years?

We at PSL expect to have a substantial increase in business volume in the next few years with a pan-India presence before 2020.