The agreement is for engaging GSL's services to upgrade and operate (for a service fee) the company's grain-based ENA Plant in Shrirampur, Maharashtra.

GSL shall provide the company with necessary technical expertise and support for the upgradation and operations of the Plant at optimal efficiencies. The upgradation of the plant is expected to be completed in H2 FY23.

The project management fee for upgradation and the service fee for operations will be a share of the EBITDA generated by the plant.

With the upgradation and operations of this Plant at optimal efficiencies, the company stands to gain through backward integration. The company expects meaningful EBITDA contribution from FY24 onwards on the back of the full year's operations. The company will be able to better utilize its fixed assets at a lower incremental investment.

Tilaknagar Industries is a leading alcoholic beverage company in India. The company has built a strong and diverse portfolio of brands in various liquor categories including brandy, whisky, vodka, gin, and rum.

The company reported a consolidated net profit of Rs 23.25 crore in the quarter ended March 2022 as against net loss of Rs 9.02 crore during the previous quarter ended March 2021. Sales rose 25.33% YoY to Rs 241.06 crore in Q4 FY22.