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

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

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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. 73

As the Company is increasing its Industrial Alcohol production capacity (license) from 144 lakh BL per annum to 249 lakh BL per annum at its Behror facility, the above plant will facilitate in utilizing the licensed capacity to 100% levels. Salient features of the same as under: The Distillation plant capacity shall be 35,000 LPD Extra Neutral Alcohol and is based on Fermented wash from Grain-based Fermentation and an alcohol concentration of minimum 8% v/v in Wash. Multi-Pressure Distillation scheme offered with minimum steam consumption of just 3.25 kg/litre Total Spirit. Reboilers have been provided alongside the main columns to avoid direct steam sparging, in order to reduce the effluent volumes and better quality output. This also helps in Steam condensate recovery. Higher level of instrumentation has been offered based on PLC-SCADA system. The Extra Neutral Alcohol coming out of the plant is of superior quality and is acceptable to all the major IMFL manufacturers. Multi Pressure Distillation: This process utilizes Distillation Columns namely Analyzer, Degasifying, Pre-Rectifier, Rectifier-Exhaust, Extractive Distillation (ED), Recovery and Simmering Column. The Analyzer and Degasifying columns are operated under vacuum whereas Simmering Column, Extractive Distillation Column and, Recovery Column are operated under atmospheric conditions. The Rectifier-Exhaust Column and Pre-Rectifier Column shall be operated under pressure. The energy requirement for Analyzer Column is met by Rectifier Column top vapours. The Rectifier Column top vapours are condensed in a thermo-siphon re-boiler connected to a flash tank and then flash vapours are injected into Analyzer Column. The Fermented Wash is fed to the Degasifying column after preheating. Rectified Spirit is drawn from Pre-rectifier column and fed to Extractive Distillation Column with suitable dilution with De-Mineralised Water. Extractive Distillation bottom is fed to the Rectifier Column. ENA is drawn from the top of the Rectifier column. ENA is then fed to the Simmering Column, where low boiling impurities including Methanol are cut by operating the column under high reflux. Final ENA product is taken from the bottom of the Simmering Column. Apart from the above, in order to increase the efficiency and production of alcohol at low cost, the Company is adding a 15 KLPD Total Spirit-based Starch Liquefaction section plant to process Grain Flour from all available grain like Rice, Wheat, Maize, Jowar, etc at the same premises in Behror. Slurry Preparation / Liquefaction: Processing Flour from all available grain like Rice, Wheat, Maize, Jowar and Bajra: Grain flour and process water (preferred hot streams) are fed at controlled rate to Slurry Tank. Mixed slurry is taken to the Initial Liquefaction Tank where additional quantity of slops could be added as per requirement. Viscosity controlling Enzymes and stabilizing chemicals as per requirement and a portion of liquefying enzymes are also added at this stage. This slurry is then “cooked” in the Jet cooker. The Slurry is continuously pumped through a Steam Jet cooker where high-pressure steam at 7 kg/cm2 (g) rapidly raises the slurry temperature. The mixture of slurry and steam is then passed through the Retention Loop. This retention loop has several “U” bends in series with sufficient capacity to provide the desired retention time at the given flow rate. The cooked mash is discharged into a Flash Tank. 74

As the Company is increasing its Industrial Alcohol production capacity (license) from 144<br />

lakh BL per annum to <strong>24</strong>9 lakh BL per annum at its Behror facility, the above plant will<br />

facilitate in utilizing the licensed capacity to 100% levels.<br />

Salient features of the same as under:<br />

The Distillation plant capacity shall be 35,000 LPD Extra Neutral Alcohol and is based on<br />

Fermented wash from Grain-based Fermentation and an alcohol concentration of minimum<br />

8% v/v in Wash.<br />

Multi-Pressure Distillation scheme offered with minimum steam consumption of just 3.25<br />

kg/litre Total Spirit. Reboilers have been provided alongside the main columns to avoid<br />

direct steam sparging, in order to reduce the effluent volumes and better quality output.<br />

This also helps in Steam condensate recovery.<br />

Higher level of instrumentation has been offered based on PLC-SCADA system. The Extra<br />

Neutral Alcohol coming out of the plant is of superior quality and is acceptable to all the<br />

major IMFL manufacturers.<br />

Multi Pressure Distillation:<br />

This process utilizes Distillation Columns namely Analyzer, Degasifying, Pre-Rectifier,<br />

Rectifier-Exhaust, Extractive Distillation (ED), Recovery and Simmering Column.<br />

The Analyzer and Degasifying columns are operated under vacuum whereas Simmering<br />

Column, Extractive Distillation Column and, Recovery Column are operated under<br />

atmospheric conditions. The Rectifier-Exhaust Column and Pre-Rectifier Column shall be<br />

operated under pressure.<br />

The energy requirement for Analyzer Column is met by Rectifier Column top vapours. The<br />

Rectifier Column top vapours are condensed in a thermo-siphon re-boiler connected to a<br />

flash tank and then flash vapours are injected into Analyzer Column.<br />

The Fermented Wash is fed to the Degasifying column after preheating. Rectified Spirit is<br />

drawn from Pre-rectifier column and fed to Extractive Distillation Column with suitable<br />

dilution with De-Mineralised Water. Extractive Distillation bottom is fed to the Rectifier<br />

Column. ENA is drawn from the top of the Rectifier column. ENA is then fed to the<br />

Simmering Column, where low boiling impurities including Methanol are cut by operating<br />

the column under high reflux. Final ENA product is taken from the bottom of the Simmering<br />

Column.<br />

Apart from the above, in order to increase the efficiency and production of alcohol at low<br />

cost, the Company is adding a 15 KLPD Total Spirit-based Starch Liquefaction section plant<br />

to process Grain Flour from all available grain like Rice, Wheat, Maize, Jowar, etc at the<br />

same premises in Behror.<br />

Slurry Preparation / Liquefaction:<br />

Processing Flour from all available grain like Rice, Wheat, Maize, Jowar and Bajra: Grain<br />

flour and process water (preferred hot streams) are fed at controlled rate to Slurry Tank.<br />

Mixed slurry is taken to the Initial Liquefaction Tank where additional quantity of slops could<br />

be added as per requirement. Viscosity controlling Enzymes and stabilizing chemicals as per<br />

requirement and a portion of liquefying enzymes are also added at this stage. This slurry is<br />

then “cooked” in the Jet cooker.<br />

The Slurry is continuously pumped through a Steam Jet cooker where high-pressure steam<br />

at 7 kg/cm2 (g) rapidly raises the slurry temperature. The mixture of slurry and steam is<br />

then passed through the Retention Loop. This retention loop has several “U” bends in series<br />

with sufficient capacity to provide the desired retention time at the given flow rate. The<br />

cooked mash is discharged into a Flash Tank.<br />

74

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