Shares of Triveni Engineering & Industries saw a notable uptick as the company announced the launch of two premium whisky brands in Uttar Pradesh. Following the news, the company's stock price gained nearly 4%, reflecting a positive market response. This rise has sparked renewed interest among investors as they look to invest in stocks that are leveraging opportunities in emerging markets, like the Indian-made foreign liquor (IMFL) segment.
New premium whisky launch in Uttar Pradesh
Triveni Engineering introduced two new whisky brands: ‘Matsya Triple Reserve Blended Whisky’ and ‘The Crafter’s Stamp Rare Artisan Blended Whisky.’ The launch marks the company’s entry into the IMFL market, targeting both premium and super-premium segments. In a regulatory filing, Triveni Engineering shared its strategy to capture the evolving preferences of India's whisky consumers.
According to Tarun Sawhney, the Vice Chairman and Managing Director of Triveni Engineering, the move underscores their focus on quality and innovation. He highlighted that the premium whisky market is growing at a compound annual growth rate (CAGR) of 5%, while the super-premium segment boasts a CAGR of 9%. With Uttar Pradesh ranking as a significant market for these categories, the company is strategically positioning itself to tap into this growth.
New bottling facility planned to meet demand
To support the launch of its new whisky brands, Triveni Engineering has plans to establish a state-of-the-art bottling plant at its Muzaffarnagar facility. This move is intended to cater to the increasing demand for high-quality IMFL products. Industry estimates reveal that Uttar Pradesh leads in volume for super-premium whisky and ranks third for premium whisky, making it an ideal location for the company’s market expansion.
Triveni Engineering, known for its diverse portfolio, already holds a strong position in sugar, ethanol, and other industrial sectors. With its foray into the whisky market, the company aims to diversify further and strengthen its foothold in the beverage sector.
Stock performance reflects investor optimism
The company's shares increased 3.63%, reaching a high of ₹408.90 on the NSE during intraday trading on Wednesday. Nearly 4.68 lakh shares, valued at ₹18.65 crore, were traded across the BSE and NSE, indicating heightened investor interest. At 12:53 PM, Triveni Engineering's shares were trading at ₹407.60, up 3.37% from the previous closing price of ₹394.30.
Despite recent fluctuations, Triveni's share price is showcasing a steady trend. The company's stocks have experienced a 15% decline over the past month but appreciated by nearly 14.79% over the past six months. Year-to-date, the shares have gained 18%. These figures highlight the company's resilience amidst market volatility.
Analysts weigh in on Triveni's strategy
Analysts noted that Triveni's entry into the IMFL market could provide a new revenue stream, helping diversify its business portfolio. The focus on premium and super-premium categories, backed by a dedicated bottling facility, is seen as a prudent move to capture a young and quality-conscious demographic. This expansion aligns with the company’s broader vision to innovate while catering to emerging trends.
Broader market context
The launch and subsequent stock rise coincided with a positive day in the broader Indian equity markets. The BSE Sensex saw an increase of 318.83 points, trading at 80,539.55, up by 0.40%. Similarly, the NSE Nifty 50 recorded a rise of nearly 100 points, settling at 24,572, marking a 0.41% increase. These indices reflect general investor optimism, bolstered by favourable developments in several key sectors, including Triveni Engineering's latest move.
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