The Tilaknagar Industries (TI) stock had fallen 3.55% to settle at Rs 50.20 on Wednesday, 28 March 2012 in a weak market.

Meanwhile, the BSE Sensex was down 112 points, or 0.65% to 17,009.62.

On BSE, 1.42 lakh shares were traded in the counter as against average daily volume of 3.56 lakh shares in the past one quarter.

The stock hit a high of Rs 53.50 and a low of Rs 50 so far during the day. The stock had hit a 52-week high of Rs 70.65 on 7 April 2011. The stock had hit a 52-week low of Rs 27.50 on 3 October 2011.

The stock had underperformed the market over the past one month till 28 March 2012, falling 15.42% as compared to the Sensex's 3.44% fall. The scrip had, however, outperformed the market in the past one quarter, surging 51.66% as compared to the Sensex's 8.86% gain.

The small-cap liquor maker has an equity capital of Rs 115.47 crore. Face value per share is Rs 10.

Commenting on the acquisition of P P Caps, Mr Amit Dahunakar, CMD, Tilaknagar Industries (TI) said, "The acquisition allows us to strengthen our operations by way of reduction of the raw material costs related to bottle caps, which is an important component of our packaging expenditure. P P Caps is in the process of setting up a plant in Shrirampur, Maharashtra to manufacture 25 mm and 29/35 mm caps having a capacity of 6 lakh and 50,000 caps respectively per day. The acquisition will offer cost and quality advantages to TI, besides making the company self-reliant in respect to our bottle cap requirements".

Commenting on the acquisition of P P Caps, Mr Lalit Sethi, President & Chief Financial Officer, Tilaknagar Industries said, "This acquisition will ensure lower costs with respect to our bottling and packaging processes and positions us for long term success in the industry with significant growth potential".

Commenting on the acquisition of Srirampur Grains, Mr Amit Dahunakar, CMD, Tilaknagar Industries said, "TI's grain based distillery currently operates at more than 60% capacity and requires significant supply of grains as raw materials. At present, TI sources its grain requirements from various local traders and farmers. The acquisition will thus enable TI to consolidate its raw material sourcing and create strategic advantages. This acquisition will further fortify our business model thereby contributing to our endeavor to achieve accelerated growth".

Commenting on the acquisition of Srirampur Grains, Mr Lalit Sethi, President & Chief Financial Officer, Tilaknagar Industries said, "We believe that by acquiring Srirampur Grains, TI will be able to strengthen its raw material supply chain, which is one of our key strategic focus areas. This initiative will contribute to improving the quality of our earnings and resultantly create value for our stakeholders".

Srirampur Grains is currently engaged in the business of agricultural products, and is expected to enable TI to not only procure grains directly from the farmers, but also generate higher yields, TI said in a statement.

Mr Dahanukar further said, "The recent acquisitions are expected to help TI's future plan of consolidating its production and augment its manufacturing capabilities for producing superior quality alcohol".

On a consolidated basis, Tilaknagar Industries' net profit rose 50.9% to Rs 16.63 crore on 16.5% growth in net sales to Rs 148.81 crore in Q3 December 2011 over Q3 December 2010.

Tilaknagar Industries (TI) is one of the renowned Indian Made Foreign Liquor players (including whisky, brandy, gin, rum and vodka) with presence across India. The company manufactures, markets and sells more than 40 brands across all price points. The company exports its products to Western Africa, the Middle East, the Far East and Caribbean countries.