Following listing, beer maker Kati Patang plans to acquire and incubate small alcohol businesses to expand

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Subscribe to enjoy similar stories. Kati Patang Lifestyle, a maker of craft beer that recently listed on the exchanges through a share swap, plans to scale up operations and become an incubator by adding small alcohol businesses to its portfolio. The New Delhi-based company will expand its business, both organically and inorganically, in the next two years, co-founder Shantanu Upadhyay toldMint.

The company acquired a stake in the owner of a UK brewery last month and will look to acquire and incubate domestic and international brands to foster the expansion while also growing its own brands. Kati Patang Lifestyle has raised ₹25 crore year to date and an additional ₹10 crore from existing investors from a share-swap deal. "In India, we've noted that the route to market for beer companies is primarily through selling strong beer.

While we sell that, our focus has been primarily on creating brands. We too have a strong beer, but that is also on the premium end of the market," Upadhyay said. “Generally, beer brands end up burning a lot of cash because of high excise duties coupled with heavy discounting.

But we started our craft beer retail journey in 2018 and generally want to remain at the most premium end of the market with our beers priced around ₹150-180 a pint in a state like Delhi," he said. About 75% of the company's business comes from retail sales and the remaining is from hotels and restaurants. The company expects to cross ₹15 crore of net revenue by the end of FY25.

Its beers are available in Delhi, Punjab and Himachal Pradesh. It has just started in Haryana and will enter Chhattisgarh and Daman and Diu in the coming months. "This fiscal, we will cross 150,000 beer case volumes and will look to double this by