Monika Alcobev

• Monika Alcobev is coming out with an initial public offering (IPO) of 57,91,200 equity shares in a price band Rs 271-286 per equity share.
• The issue will open on July 16, 2025 and will close on July 18, 2025.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 27.10 times of its face value on the lower side and 28.60 times on the higher side.
• Book running lead manager to the issue is Marwadi Chandarana Intermediaries Brokers.
• Compliance Officer for the issue is Kalpesh Himmatram Ramina.

Profile of the company

Monika Alcobev is a leading player in the imported liquor sector, offering a diverse portfolio of premium and luxury alcoholic beverages. The company specialises in importing, sales, distribution, and marketing for luxury spirits, wines, and liqueurs throughout India and the Indian Subcontinent including Travel Retail Duty Free Shop. It provides complete supply chain solution through its robust distribution network. Founded by Bhimji Nanji Patel and under the leadership of its Managing Director, Kunal Bhimji Patel, the company has consistently worked towards reshaping the alcoholic beverage landscape.

The company holds exclusive selling rights to more than 70 renowned global brands for India and Indian Subcontinent countries and is responsible for their strategic brand development and market expansion. The company offers a comprehensive operational framework to its partner brands, which includes managing the entire supply chain process, starting with import, followed by sales & distribution across the region. Additionally, the company handles pricing, strategic planning, brand development, and marketing to ensure that each brand effectively reaches its target audience and achieves growth in the Indian market and Indian subcontinent market. Its diversified product portfolio includes iconic names such as Jose Cuervo (Tequila), Bushmills (Irish Whisky), Remy Martin (Cognac), Cointreau (Liqueur), Choya (Liqueur) and Belenkaya (Vodka), all brands with a legacy of excellence.

The company operates both domestically within India and internationally across countries in Indian Subcontinent region, including Nepal, Sri Lanka and the Maldives. Domestically, the company has an extensive reach, with distribution capabilities across more than 20 states and Union Territories in India. This broad distribution network allows the company to cater to a diverse and expansive customer base, ensuring that premium alcoholic beverages are accessible in various markets across the country. Internationally, the company leverages its infrastructure to serve key Indian Subcontinent markets, bringing world-class products to regions with rapidly growing demands for luxury spirits and wines.

Proceed is being used for:

• Funding working capital requirements of the company
• Pre-payment or repayment of certain outstanding borrowings availed by the company from Banks/ Financial Institutions
• General corporate purposes

Industry Overview

India remains a predominantly distilled alcohol market, with over 82% of recorded pure alcohol consumption attributed to distilled spirits. This contrasts sharply with developed nations, where undistilled alcoholic beverages such as beer and wine collectively hold a larger market share than spirits. Despite the rising acceptance of beer and wine in India, distilled spirits continue to dominate overall alcohol consumption. In the beer category, strong beer maintains a significant share of total consumption, while in the wine segment, fortified wines with higher alcohol content account for a substantial portion of the market. The Indian alcoholic beverage market has experienced steady growth, expanding at a CAGR of 8.0% since FY 2019 and reaching a valuation of Rs 3,25,500 crore. in FY 2024. This market is projected to grow at a CAGR of 9.2%, reaching Rs 5,04,900 crore by FY 2029. The distilled alcohol segment, which has grown at a CAGR of 7.8% since FY 2019, stands at Rs 2,66,910 crore in FY 2024 and is anticipated to expand at a CAGR of 8.4% to reach Rs 3,98,871 crore by FY 2029.

The Indian alco-beverage market is categorized into four key segments: popular, prestige, premium, and luxury. As of FY 2024, the value segment comprising popular and prestige categories dominates the market, contributing 91% of total sales, while the premium and luxury segments account for the remaining 9%. However, the market is witnessing a gradual shift towards premiumization, driven by factors such as a growing legal drinking-age population which stands at 951 mn., rising disposable incomes, and increasing urbanization. By FY 2029, the share of the premium and luxury segments is expected to rise to 10%, outpacing the growth of the value segment. These high-end categories are projected to expand at CAGRs of 16.7% and 11.5%, respectively, reaching a combined market size of Rs 50,000 crore.

The Indian alco-beverage market has exhibited steady volume growth, expanding at a CAGR of 2.7% since FY 2019 to reach 1,157 million cases in FY 2024. This growth trajectory is expected to accelerate, with the market projected to expand at a CAGR of 4.3%, reaching approximately 1,429 million cases by FY 2029. The distilled segment remains the dominant contributor, accounting for 66% of total alco-beverage consumption in FY 2024. However, its growth has been relatively moderate, with a CAGR of 1.5% from FY 2019. Over the next five years, this segment is anticipated to grow at an improved CAGR of 3.7%. Conversely, the undistilled segment has outpaced the growth of distilled beverages, recording a CAGR of 5.3% from FY 2019. This trend is expected to continue, with the undistilled segment projected to expand at a CAGR of 5.5% until FY 2029, surpassing the growth rate of distilled spirits. The increasing acceptance of beer and wine, along with evolving consumer preferences and premiumization trends, is expected to drive this accelerated expansion. 

Pros and strengths

Bonded Warehouses ensuring supply-chain efficiencies: The company’s strategic Bonded Warehouses across four India states i.e. Maharashtra, Delhi, Haryana and Karnataka offers a range of key advantages that significantly boost the company’s operational efficiency and competitive edge. Being part of Bonded Warehouses gives it access to speedy delivery of cargo, one-stop for customs clearance capability; integrated solutions, such as packing management, sorting, inspection, re-invoicing, strapping and kitting, assembly of complete and semi-knocked down kits, and certain taxation benefits.

Offers a diverse portfolio of premium and luxury alcoholic beverages: The company has diverse and strategically curated portfolio of alcoholic beverages of over 70 brands in its portfolio across various categories. Some of its products include Jose Cuervo (Tequila), Bushmills (Irish Whisky), Remy Martin (Cognac), Cointreau (Liqueur), Choya (Liqueur), Laurent-Perrier (Champagne) and Belenkaya (Vodka) all brands with a legacy of excellence spanning centuries. The company is one of the key players in India's imported spirits market present across multiple categories. It is the top importer in the rum segment with a commanding 12.3% market share. It holds a 19.0% share in tequila imports, marking its strong position amid growing demand for premium agave-based spirits. It also commands a 7.5% share in liqueurs imports, underscoring its rising influence in niche and indulgent segments.

Exclusive selling rights for various premium and luxury spirits: The company is a leading player in the imported liquor sector, offering a diverse portfolio of premium and luxury alcoholic beverages. The company holds exclusive selling rights for over 70 global brands in India and Indian Subcontinent regions and is responsible for strategic brand development and market expansion. The company provides its partner brands with a comprehensive operational framework, encompassing import, distribution, pricing, strategy, sales, and marketing. Its collaborations support it in driving higher consumption, tapping into underserved urban and affluent segments, and achieving accelerated, sustainable growth in both domestic and regional markets.

Risks and concerns

Maximum revenue comes from few customers: The company generates a significant portion of its revenue from, and are therefore dependent on, certain key customers for a substantial portion of its business. The company has garnered 64.16%, 63.09% and 79.37% revenue from top 10 customers in FY25, FY24 and FY23 respectively. Since, the company significantly dependent on certain key customers for a significant portion of its sales, the loss of any one of its key customers, a significant reduction in demand from such customers or the downturn in business by such customers could have an adverse effect on its business, results of operations and financial condition. It may continue to remain dependent upon its key customers for a substantial portion of its revenues.

Substantial revenue comes from sales of whisky and tequila: The company is substantially dependent on the sales of its whisky and tequila which generated 71.97%, 65.77% and 59.33% of its revenue from operations, Fiscals 2025, 2024 and 2023. Its ability to further grow its business will depend on various factors, many of which are beyond its control. Further, since launching new products is a continuous process which its management evaluates on a regular basis for which no Board approval is sought or required under applicable laws. Any reduction in sales of whisky and tequila could have material adverse effect on its business, financial condition, results of operations and prospects.

Business operations require significant working capital: The company’s business operation requires significant working capital specifically for fulfilling procurement obligations of its products, payment of tax and duties levied by statutory bodies, extensive credit terms with the customers and strict credit terms of the suppliers. The working capital was funded through from internal accruals and external borrowings. However, it cannot assure that its bankers will not implement new credit policies, adopt new pre-qualification criteria or procedures, raise interest rates or add restrictive covenants in loan agreements, some or all of which may significantly increase its financing costs, or prevent it from obtaining financings totally. All of these factors may increase in working capital requirements and if it experiences insufficient cash flows to meet required payments on its working capital requirements, there may have an adverse effect on its financial condition, cash flows and results of operations.

Outlook

Monika Alcobev is an importer and distributor of luxury alcoholic beverages in India and the Indian Subcontinent. With a portfolio exceeding 70 premium brands, Monika Alcobev offers a comprehensive range of spirits, wines, and liqueurs, including renowned names like Jose Cuervo, Bushmills, and Onegin Vodka. It is one of the leading player in the imported liquor sector, offering a diverse portfolio of premium and luxury alcoholic beverages. On the concern side, the company is substantially dependent on the sales of its whisky and tequila and any reduction in sales of these products could have material adverse effect on its business, financial condition, results of operations and prospects. Moreover, the company generates a significant portion of its revenue from, and are therefore dependent on, certain key customers for a substantial portion of its business. The loss of its key customers or significant reduction in sales of, or demand for its products from its significant customers may adversely affect its business, results of operations and financial condition.

The company is coming out with a maiden IPO of 57,91,200 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 271-286 per equity share. The aggregate size of the offer is around Rs 156.94 crore to Rs 165.63 crore based on lower and upper price band respectively. On performance front, the net revenue from operation of the company increased to Rs 23,614.87 lakh in FY25 as against Rs 18,920 lakh in the FY24 representing an increase of 24.81%. This was due to increase in net sales. Moreover, the company’s profit after tax for the year increased by 39.27% to Rs 2,311.35 lakh in FY25 from Rs 1,659.63 lakh in FY24.

Expanding into new product categories is a fundamental component of the company’s growth plan. By forming partnerships with both established international brands and emerging brands, the company can continuously introduce a diverse range of products to the Indian and Indian Sub-continent markets. These partnerships open avenues for it to launch products across various segments, which is crucial in addressing the wide array of consumer preferences found in these regions. Each new collaboration allows it to extend its reach by bringing in unique products that align with current market trends, whether it be premium, luxury, or emerging categories within the alcohol beverage sector.