Globus Spirits has reported a significant operational disruption at its Samalkha unit in Haryana due to severe flooding, resulting in a revenue impact of Rs 13.50 crore. The company disclosed this information in a regulatory filing to the National Stock Exchange of India and the BSE Limited.

Operational Disruption Details

• Duration: The flooding affected operations for 23 days, starting from August 15.
• Cause: Heavy rains in the vicinity of the factory led to flooding, causing road blockages and extreme supply chain disturbances.
• Impact on Production: The Samalkha plant was forced to operate at 50% capacity during this period.
• Financial Impact: The company reported a revenue impact of Rs 13.50 crore for the affected period.

Mitigating Factors

Despite the significant disruption, Globus Spirits has reported some positive aspects:

1. No Asset Damage: The company confirmed that there was no destruction of stocks or assets due to the flooding.
2. Insurance Coverage: The revenue impact is covered under insurance, which should help mitigate the financial consequences of the disruption.

Company's Response

Globus Spirits has been proactive in its communication with stakeholders:

• The company promptly informed the stock exchanges about the operational disruption, in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
• Santosh Kumar Pattanayak, Company Secretary of Globus Spirits, signed the regulatory filing, ensuring transparency in their disclosure.

Investor Relations

In a separate announcement, Globus Spirits has also scheduled an analyst/institutional investor meeting:

• Date: September 17
• Organizer: Dolat Capital
• Location: Delhi
• Format: One-to-One meeting
• Time: 11:00 AM – 12:00 PM

The company plans to use its Q1FY26 Investor Presentation from August during this meeting, which is available on the company's and stock exchanges' websites.

As Globus Spirits navigates through this operational challenge, investors and market observers will likely keep a close watch on the company's recovery efforts and the potential impact on its upcoming financial results.

Globus Spirits is at the forefront of a significant shift in consumer preferences within the Indian alcoholic beverages industry. According to company executives, the market is experiencing a dual-track growth pattern, necessitating strategic adaptations and innovative approaches from industry players.

Premium and Value Segments Thrive as Mid-Market Shrinks

Consumers are increasingly gravitating towards either premium luxury products or affordable value brands, leaving the traditional mid-market segment in a state of contraction. This shift reflects a more nuanced approach to alcohol consumption, where consumers are making choices based on specific occasions rather than adhering to rigid price barriers.

Global Ambitions for Indian Spirits

Indian companies, including Globus Spirits, are setting their sights on international markets with a focus on building premium portfolios. Target markets include Europe, the United States, the Middle East, Africa, and Australia. This strategic move represents a departure from the traditional mass-market exports to African nations, signaling a more sophisticated approach to global expansion.

Rising Confidence in Homegrown Labels

A notable trend in the domestic market is the increasing confidence Indian consumers are showing in homegrown labels, often preferring them over multinational brands. This shift presents a significant opportunity for local companies like Globus Spirits to strengthen their market position.

Globus Spirits' Expansion Strategy

Globus Spirits is actively expanding its presence across India:

• Already entered western markets including Mumbai and Goa
• Plans to expand into Odisha, Assam, and southern India
• Launching luxury label Doaab India Craft Whisky, aimed at reimagining indigenous Indian spirits

Innovation and Diversification

Looking ahead, Globus Spirits has ambitious plans for product diversification:

• Intends to enter at least two new categories beyond whisky and rum in the coming year
• Leveraging their family legacy in distilling, which dates back to 1958

The company's strategy of reviving indigenous spirits that were marginalized during colonial times through its Doaab India Craft Whisky label demonstrates a commitment to both innovation and cultural heritage.

As the Indian alcohol market continues to evolve, Globus Spirits appears well-positioned to capitalize on changing consumer preferences and expand its footprint both domestically and internationally. The company's focus on premium offerings, coupled with its plans for category expansion, suggests a forward-thinking approach in a dynamic and competitive industry.