Mohan Meakin Limited, established in 1855 and listed on the Calcutta Stock Exchange, is a storied institution in India’s beverage and food industries. Over its long history, the company has built a robust legacy through both its manufacturing operations and its royalty income from numerous bottling collaborations across the country.

The brand is best known for creating legendary beverages like Old Monk, yet its business interests span far beyond liquor. It has diversified into fruit juices, breakfast foods, mineral water, and even glass manufacturing. This strategic diversification has not only reinforced its market presence but also enabled it to transform foresight into tangible growth.

Mohan Meakin is celebrated for its deep-rooted heritage and multifaceted business approach. The company takes pride in its ability to preserve time-honored recipes while also expanding into new sectors. Its operations now cover a wide array of products that cater to different consumer needs, from premium alcoholic beverages to everyday essentials. This balanced approach underlines its commitment to innovation without losing sight of its traditional values. The company’s enduring success is built on decades of experience combined with a forward-looking strategy that embraces both legacy and modernity.

Business Segments

Mohan Meakin’s operations are divided into two main segments that together form a comprehensive portfolio. The alcoholic products segment stands as the flagship, generating the bulk of revenue and profit, while the non-alcoholic products segment provides strategic diversification to balance the business portfolio.

Alcoholic Products

Mohan Meakin’s alcoholic products segment is the heart of the company. It produces a wide range of premium spirits such as rums, whiskies, brandy, vodka, and gin, along with ready-to-drink beverages offered in four distinct flavors. The production is supported by modern manufacturing centers and localized bottling arrangements that guarantee consistent quality for both domestic and international markets.

In 2024, this segment achieved revenue of ₹1911.67 crore, up from about ₹1752.40 crore in 2023, while profits increased from ₹107.90 crore to ₹130.08 crore. This remarkable performance underscores the enduring appeal and market position of its iconic brands.

Non-Alcoholic Products

The non-alcoholic products division is a strategic move to diversify the company’s offerings. It includes an assortment of everyday food and beverage items such as juices, canned products, corn flakes, wheat porridge, vinegars, and other cereals.

Although its revenue is significantly lower, around ₹18.25 crore in 2024, this segment is crucial for reducing the overall risk by offering products that cater to daily nutritional needs. The segment has faced profitability challenges, incurring a loss of ₹1.88 crore in 2024, which, though an improvement over the previous year's loss of about ₹3.92 crore, indicates the need for further operational improvements and strategic realignment.

Growth Drivers of Mohan Meakin

1. India's Growing Consumer Base: India, with over 1.44 billion people, represents a substantial market for alcoholic beverages, especially as more individuals reach the legal drinking age. The country's demographic advantage, characterised by a large and expanding youth population, positions it as a key consumer market. This demographic is known to influence consumption trends, including the demand for alcoholic beverages.

2. The Pace of Urbanisation and Evolving Lifestyles: Rapid urbanisation leads to increased demand for diverse dining and entertainment options. Urban populations are more likely to visit restaurants, cafes, and pubs, boosting the market for alcoholic beverages. Rising disposable incomes enable consumers to spend more on premium and luxury alcoholic beverages. As lifestyles evolve, there is a growing preference for diverse and high-quality drinking experiences, driving demand for both traditional and innovative alcoholic beverages.

3. The Rise of Dining Establishments: The growing number of dining establishments, including restaurants, cafes and pubs, creates ample opportunities for alcoholic beverage brands to establish a presence and expand their market share.

4. Leveraging Brand Popularity in International Markets: Mohan Meakins products, such as Old Monk Rum, are recognised as leading brands, offering a strong foundation for export growth. The company exports to 14 countries and sees opportunities to increase exports as its products are popular overseas. Continuing to add new markets to the export list year after year will drive revenues.

5. Strategic Collaborations and Bottling Arrangements: To overcome logistical issues and varying state regulations, Mohan Meakin uses collaborations, technical know-how, and bottling arrangements in different states. This approach helps in reaching markets efficiently and maintaining competitiveness.

Potential Headwinds of Mohan Meakin

➢ Regulatory Risks: The alcoholic beverage industry is heavily regulated, particularly concerning state taxes, manufacturing processes, and operational procedures. These regulations impact marketing, advertising, distribution, and product pricing. State governments impose strict rules on the production, transportation, and sale of spirits, influencing business operations and expansion. Dependence on state governments for price increase approvals affects profit margins and revenue streams if adjustments are delayed or not approved.

➢ Market Risks: These include fluctuations in market prices that can affect the company’s income or the value of its financial assets and liabilities. To mitigate the risk from market volatility, the company actively secures its short to medium-term cash flows. The company doesn't engage in speculative trading of financial assets or write options. They monitor cash flows in foreign currencies and manage net cash flows according to risk management policies. Amounts to be paid and received in a specific currency are offset where possible. The company also invests in highly rated securities or invests only in accordance with the limits set by the Company.

➢ Commodity Cost Inflation: Fluctuations in commodity costs, such as raw materials, can severely impact profit margins. Without corresponding price adjustments approved by regulators, cost inflation can squeeze profitability.

➢ Liquidity Risk: Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. Mohan Meakin ensures sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

Financial Performance of Mohan Meakin

Mohan Meakin has shown consistent financial growth, reflecting its effective strategies and expanding market presence. The company’s financial indicators demonstrate its ability to reinvest in innovation while maintaining robust operational performance.

➢Revenue and Profit Growth

In the fiscal year 2023-24, the company’s revenue increased from ₹1771.21 crore to ₹1929.92 crore, a clear indicator of its expanding market reach. Profit after tax also surged, rising from about ₹68.40 crore to ₹84.70 crore, while earnings per share improved from ₹80.38 to ₹99.55. This growth likely reflects a successful expansion into new geographic markets, leveraging the established brand recognition of key products like Old Monk Rum. The increased profitability may point to a strategic shift towards higher-margin premium offerings within their alcoholic beverage portfolio, coupled with effective raw material sourcing and optimized distillery operations. Furthermore, a reduction in finance costs from ₹95.85 lacs to ₹78.63 lacs further boosted the profits.

→ Asset Growth and Liquidity Management

Mohan Meakin has consistently invested in modernizing its production capabilities, with net fixed assets and investments growing from approximately ₹86.41 crore in 2023 to about ₹103.93 crore in 2024. Although net current assets saw a slight decline from around ₹190.99 crore to roughly ₹184.91 crore, the company maintains a healthy current ratio.

Despite a reduction in cash and bank balances from roughly ₹90.18 crore to about ₹65.68 crore, the minimal debt and strong liquidity management allow the company to meet its financial obligations and invest in future growth.

Mohan Meakin Limited

is a legacy brand that continues to evolve by blending its rich heritage with modern innovation. From its inception in 1855 and the pioneering legacy of

Kapil Mohan

, who created iconic brands like Old Monk, the company has diversified into fruit juices, breakfast foods, mineral water, and glass manufacturing. Looking ahead, the company's ability to leverage its established brand equity, particularly in the face of evolving consumer preferences in the beverage industry, will be critical for

Mohan Meakin Unlisted Shares [View Current Market Price]

. Continued focus on optimizing its existing distillery operations, while exploring strategic partnerships to enhance its distribution network, will determine its success in capturing future growth opportunities both domestically and on the global stage.