An Indian whiskey has made its own identity in the whole world. Indri Single Malt Whiskey, made in the small town of Indri in Haryana, received the title of the world’s best single malt whiskey in the year 2023. This whiskey had left behind many famous whiskey brands of Scotland, Japan and America.
The name behind this spectacular achievement is Piccadilly Agro Industries Limited (PAIL). The interesting thing is that this company was not a whiskey manufacturing company from the beginning. It was started in 1994 as a sugar mill in Karnal, Haryana. Later the company entered the liquor manufacturing business. Branded spirits business was launched in 2017 and Indri single malt whiskey was launched in 2022.
One whiskey changed the fortunes of the company
The impact of the success of Indri Whiskey was clearly visible on the company’s shares as well. The company’s stock grew rapidly in the last years. The share which was once available for around Rs 15 has now reached around Rs 730. That means investors got manifold returns. The biggest reason for this growth was the whiskey business of the company.
Now the company took a big decision
Piccadilly Agro took a big decision. The company has decided that it will split its sugar business into a separate company. That means now sugar business and whiskey business will work as separate companies. This process is called demerger. This means that a company divides its different businesses into independent companies so that both businesses can grow on their own.
Why can demerger be beneficial?
Experts believe that when there are two completely different types of businesses in the same company, the stock market is often unable to value them correctly. In the case of Piccadilly, on one side is the fast-growing premium whiskey business, while on the other side is the fluctuating sugar business. The business model, profit and pace of growth of both are different. In such a situation, many investors want to invest only in whiskey business, while some investors are interested in the sugar sector. Since both the businesses are in the same company, the real value of the company is not fully revealed.
What will happen after separation?
After demerger, both the companies will be listed in separate stock markets. Both will have their own separate management, investment plan and business. This will give investors an opportunity to invest in the business of their choice. Besides, analysts will also be able to evaluate both the companies separately. This increases the possibility of revealing the real value of both the companies.
Leave a Reply