Tilaknagar Industries said its wholly owned subsidiary Prag Distillery has received government approval to commence production at an expanded facility in Andhra Pradesh, increasing bottling capacity from zero point six million (mn) cases per annum to three point six mn cases per annum, a six-fold rise. The company stated that the approval allows immediate commencement of operations at the enlarged unit and forms part of its wider capacity enhancement plan.

Last year the board approved an investment of Rs 590 mn, which included licence fees and interest payments of nearly Rs 340 mn, and the company has completed the associated capital expenditure at Prag. The capital expenditure covered expansion works and the associated infrastructure at Prag. Tilaknagar said the enhanced facility would be able to meet nearly 50 per cent of its volume requirements in Andhra Pradesh and secure supplies for its flagship brands in the state.

Tilaknagar noted that Andhra Pradesh is one of the fastest growing states for the India Made Foreign Liquor industry, growing at 15 per cent annually and emerging as a 40 mn case market in fiscal 2026. The firm indicated that the recent acquisition of Imperial Blue Whisky, together with established names such as Mansion House Brandy and Courrier Napoleon Brandy, has strengthened its position in the prestige and above segment in the state. The company added that its portfolio spans whisky, brandy, rum and gin, and that a luxury vertical supports its premiumisation strategy.

The company said the six-fold expansion at Prag will deliver meaningful cost efficiencies and improved margins, reinforcing profitability. The move was characterised as a key milestone in the group's growth strategy and a reinforcement of its commitment to strengthen manufacturing capabilities in fast growing alcobev markets across India. The development was framed as consistent with a legacy spanning over 90 years and with the group's focus on expanding owned manufacturing capacity.