Millennium Beer Industries Ltd merged Company Summary

Millennium Beer Industries Ltd merged Summary

Incorporated in Oct.89, Inertia Industries (IIL) was promoted by S K Tandon and Sanjay Tandon. The company exports readymade garments. It diversified into the manufacture of beer (inst. cap. : 1,46,250 hlpa) and malt (8235 tpa). The company came out with a public issue in Mar.94 to part-finance a brewery and a malt project.Malt is an enzymatic product prepared from selected barley. The malting process induces the formation of diastase in the barley and thus begins the process of starch steeping, flooring and kilning. Steeping is the process of soaking the grain; it precedes the breakdown of the cell walls and the hydrolysis of stored food. The process of flooring comprises draining off the water and spreading the grain. The final treatment is kilning, in which the barley is dried by currents of hot air.The malt and other dry ingredients that compose the brewers grist are mixed with hot water in a large vessel, the mash tun, where diastase acts on the starch and malt and the resulting malt sugar and soluble dextrine are extracted. From the mash tun, the liquid extracts (wort) are passed to the coppu (wort kettle) where it is boiled. Hops are added at this stage to add flavour. After boiling, the wort is chilled to a suitable temperature and passed into the ferment vessel, where yeast is added. This process is known as pitching. In the fermentor, the main part of the process of converting sugar into alcohol, by the action of enzymes present in the yeast cell, is carried out.The companys beer is to be marketed under 3 brand names Sandpiper, a premium lager with a low alcohol content (5%), which is a highly matured aromatic brand for the elite; Golden Glow, a special deluxe lager with an alcohol content below 5%, for the masses; and Turbo, a super strong beer with an alcohol content below 8%, for drinkers who value a higher degree of intoxication. During 1996-97, the company acquired a new brewery unit at Aurangabad, Maharashtra having installed capacity of 60,000 HL. The cost of the project is Rs 4039 lacs which will be completed into two phases. The company has entered into a bottling agreement with Blossom Industries, Daman for bottling of companys premium brand Sandpiper. During the same period the company earned foreign exchange worth Rs 1.05 cr.The companys brewery plant at Dharuhera, Haryana remained closed for about 19 months due to prohibition policy of the state government but operations were resumed from April 1998 when the ban was revoked.On review of the accumulated losses for the period 1999-2000, the company has become a potentially sick company and has made a reference to the BIFR.