Globus Spirits has received Delhi High Court's approval for the merger of Associated Distillers (ADL) with itself. The merger is expected to result in a stronger footprint in the Country Liquor segment across Haryana & Delhi and also augment the contract manufacturing business.
ADL operates in the country liquor (CL) segment in Haryana and Delhi. The merger takes GSL's capacity to 84.4 million bulk litres from 70 million bulk litres and is expected to translate into a higher market share in the CL segment while further strengthening bottling ties-ups. The company's board in second quarter of FY 2010-11 had proposed to merge ADL into GSL on a going concern basis, with effect from April 1, 2010. GSL currently operates two distilleries at Behror in Rajasthan and Samalkha in Haryana which have a combined capacity of 70 million BL per annum.
