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December 26, 2024

Pure Spirits

From Local IML Manufacturer to Leading IMFL Producer

Case Study

Client Overview: Pure Spirits, formerly KD Liquor & Fertilizers Private Limited, has undergone a transformative journey, turning it into one of the most successful players in the Indian liquor market. What started as an IML (Indian Made Liquor) manufacturing concern has now expanded to the IMFL (Indian Made Foreign Liquor) division, with more than 13 in-house IMFL brands catering to a diverse and growing market. With the guidance and vision provided by VD Business Labs (VDBL), Pure Spirits has evolved into a modern, dynamic company ready to take on the global market.

Challenge: KD Liquor had succeeded in the IML market, but the company needed to scale and adapt to the industry’s changing demands. The shift from a private manufacturer to a broader, more forward-looking company required a rebranding and a complete overhaul of corporate governance, operational efficiency, and business strategy. The company faced limitations in market reach, compliance standards, and capital access for further expansion.

Solution by VDBL: In 2021, VD Business Labs (VDBL) partnered with KD Liquor to help the company become a leading name in the Indian and global liquor industry. Through a carefully planned strategy, VDBL guided KD Liquor through the following key steps of transformation:

· Rebranding and Company Name Change:

To align with the evolving market trends and capture the spirit of the next-generation consumer, KD Liquor was rebranded to Pure Spirits. The name change reflected the company’s new vision, focusing on premium IMFL brands and positioning the company as a contemporary, innovative brand in the market.

· Transition from Private to Public Limited Entity:

With VDBL’s strategic guidance, KD Liquor was successfully transformed into Pure Spirits Limited, a Public Limited entity. This change was crucial for gaining access to larger capital markets, expanding its operations, and attracting private equity investors.

· Human Resource Management and Technology Adoption:

With VDBL’s strategic guidance, KD Liquor was successfully transformed into Pure Spirits Limited, a Public Limited entity. This change was crucial for gaining access to larger capital markets, expanding its operations, and attracting private equity investors.

· Private Equity Investment and IPO Readiness:

Pure Spirits successfully raised private equity investment, which provided the necessary capital for expansion. With the expertise of VDBL, the company is now IPO-ready and set to launch a Big Bang IPO in the next 12 months on the main board.

Results and Impact:

The transformation has been remarkable, with Pure Spirits experiencing massive growth and gaining a solid foothold in the Indian and global liquor markets.

· Revenue Growth

Pure Spirits’ topline has grown multiple folds, with the company now achieving revenue of ₹800 Crore annually, a testament to the strategic changes implemented by VDBL. The company’s growth trajectory shows no signs of slowing down, with projections indicating even further expansion in the coming years.

· Profitability:

The PAT (Profit After Tax) has similarly skyrocketed, with Pure Spirits now achieving profitability levels comparable to industry leaders. This success can be attributed to the improved operational efficiencies, brand portfolio expansion, and market positioning under VDBL’s guidance.

· Infrastructure and IT Systems:

The company’s office infrastructure has been transformed, and it is now equipped with the latest IT systems and software, enabling seamless operations, data management, and communication across departments.

· Expansion Plans:

Pure Spirits is set to expand into two new states in India and is exploring export opportunities. Initial plans are already in motion to break into Russia and Africa, with discussions ongoing to establish a strong presence in these high-potential markets.

· Branding and Market Positioning:

The entire branding of Pure Spirits has been revamped with a fresh, modern image that resonates with today’s consumers. Their 13 in-house IMFL brands are now well-established in the market, with growing consumer demand.

· Private Equity Support and Investor Interest:

With the backing of top-tier private equity investors, Pure Spirits has gained significant traction in the market. The company is now flooded with proposals for expansion and growth, a clear indication of its successful transformation. Investors have shown tremendous confidence in the company’s future, further supporting its IPO readiness.

Looking Ahead:

VDBL’s strategic expertise has guided Pure Spirits’ transformation from a regional IML manufacturer to a national and international IMFL powerhouse. With an IPO on the horizon and an expanding portfolio of premium IMFL brands, Pure Spirits is poised to achieve new heights in the global liquor industry. The company’s vision for the future is clear: to lead the way in innovation, quality, and sustainability in the alcohol sector.

The partnership with VD Business Labs has empowered Pure Spirits to embrace change, create value, and position itself for the next phase of its remarkable journey.

Key Achievements:

  • Rebranded and repositioned as Pure Spirits, focusing on premium IMFL brands.
  • Revenue growth to over ₹800 crore annually.
  • Private equity investment secured, with IPO readiness for the next 12 months.
  • Expansion into two new states and exploring export markets in Russia and Africa.
  • Industry-leading corporate governance and compliance, adopted with the help of VDBL.
  • HR transformation through the adoption of cutting-edge HR software.
  • 13 in-house IMFL brands now well-established in the market.

This case study captures how Pure Spirits has transformed from a local IML manufacturer to a national leader in the IMFL market, thanks to strategic guidance and vision from VD.

Business Labs.