RED HERRING PROSPECTUS Dated August 24 ... - Globus Spirits

BUSINESS OVERVIEW
Globus Spirits Limited is engaged in the business of manufacture, marketing and sale of
Industrial Alcohol comprising Rectified Spirit and Extra-Neutral Alcohol, Country Liquor, and
Indian Made Foreign Liquor (IMFL). The Company has established its identity in Country Liquor
and IMFL business with steady growth and production of high quality liquor. The Company has a
brand portfolio of its own in the Country Liquor segment such as Rana, Rajasthan No.1,
Ghoomar, Samalkha No.1, Samalkha Ki Saunfi, Kinnu etc; and in IMFL segment such as White
Lace Duet Gin, Samurai Premium Whisky, 20-20 Premium Whisky, GR 8 Times Whisky, Hannibal
Legendry Rum etc. The Company also caters to reputed Indian brands in the IMFL segment such
as Officer’s Choice Prestige Whisky, Officer’s Choice Classic Whisky, Officer’s Choice No.1 Brandy
and Officer’s Choice XXX Rum. The Company has already launched its own IMFL brands in
Haryana, Rajasthan, Chandigarh, Uttar Pradesh, Kerala, Andhra Pradesh and Karnataka. It
proposes to launch the brands further in two states/Union territory in North India and one
state/Union Territory in South India.
The Company was incorporated vide Registration No. 55-52177 of 1993 on February 16, 1993
with the Registrar of Companies, Delhi & Haryana, as a limited liability company. The registered
office of the Company is situated at C-631, New Friends Colony, New Delhi – 110065. The main
business of the Company is to carry on business as manufacturers, fermentators, distillers,
refiners etc of liquor, and dealers of acids, alkalies, inorganic and organic compounds, gases,
chemicals etc.
The Company has two distilleries at the following locations:
a. Behror, District Alwar, Rajasthan: The facility is built on an area admeasuring
17.97 acres of land. The unit has its own captive supply of water and power.
b. Samalkha, District Panipat, Haryana: The facility is built on an area admeasuring
16.575 acres of land. The unit has its own captive supply of water and power.
At present both the Units are capable of manufacturing Alcohol from both Molasses and Grain.
Both the Units have licensed and installed capacity of 144 lakh Bulk Litres (BL) per annum each
aggregating to 288 lakh BL.
The plants are currently engaged in the manufacturing of Industrial Alcohol (comprising Rectified
Spirit, and Extra Neutral Alcohol (ENA); Country Liquor (CL); and Indian Made Foreign Liquor
(IMFL).
Both the distilleries have modern bottling facilities equipped with bottling machines, which caters
to its own production of Country Liquor and IMFL brands. Also, the Company has tie-ups for
bottling IMFL products for other brand owners.
The Company is now gearing up for modernization and expansion of its production facilities,
along with setting up latest facilities in utility management to enable it to lower the cost of
production while continuing with its production of high quality spirit.
Notwithstanding its above plans, the Company also intends to further penetrate the IMFL market
by marketing its own brands in more States/Union Territories and/or acquiring existing brands.
The Company has also engaged Ernst & Young as Advisors regarding matters related to Kyoto
Protocol under United Nations Framework Convention on Climate Change (UNFCCC). The
Company is in the process of implementing greenhouse gas abatement project by utilizing
biomass and biogas for steam and power generation that would reduce emission of Green House
gases from fossil fuel combustions for equivalent energy generation.
Ernst & Young will assist the Company in getting the potential benefits of the Green House Gases
abatement project under the Clean Development Mechanism (CDM) of the Kyoto Protocol.
The brief details of the project of the Company are as mentioned herein below:
1. Installation of a Multi-Pressure Distillation Plant to produce quality Extra Neutral Alcohol
(ENA) of 35,000 Litres per day from both Molasses and Grain at Behror Unit.
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