Old Monk: A Legend in the Spirits Industry

A spirit that has captivated the taste buds of millions of people and beyond the realm of simple alcohol to become a cultural phenomenon resides in a place where spices dance, colours erupt, and celebrations never end. Yes, of course, I am talking about Apna Desh.

Get ready for an intriguing voyage as we reveal the alluring corporate empire that is the source of Old Monk, the renowned Indian rum that has woven its way into the fabric of the country as a whole. Get ready for a tasty combination of fascinating facts, astounding statistics, and a fair dose of liquid nostalgia. Lift your glasses (not literally😅😉)  because we're about to go on a thrilling adventure that will leave you wanting more! 

From Whiskey to Vodka to... Rum? Alcohol consumption in India has witnessed a notable rise in recent years. By 2024, it is predicted that India will consume 6.21 billion litres of alcohol, which, when divided into shots (30 ml), would equal to 207 billion shots. There would be around 26 barrels left over for each individual on Earth. The idea of that many shots surely increases the standard for spectacular parties and unforgettable evenings out, whether you prefer vodka, whisky or tequila. As the nation's palate expanded beyond whiskey and vodka, rum emerged as a captivating choice for discerning drinkers.

Now, let's take a humorous detour through the realm of drinks:
Vodka, the daring party animal,
Tequila, the wild and adventurous amigo,
Whiskey, the sophisticated gentleman…

And then, there's Rum—the free-spirited pirate, evoking visions of tropical islands, buried treasures, and daring adventures on the high seas. It's this whimsical allure that draws people to rum.

Mohan Meakin’s Distilleries

Few people may be aware that Mohan Meakin Limited is the brains behind this well-liked beverage - Old Monk. This public limited company has its origins in 1855 and has its registered office in the scenic Solan Brewery in Himachal Pradesh.

This extraordinary business has truly withstood the test of time. It was once known by various names, including E. Dyer & Co., Dyer Meakin & Co. Ltd., Dyer Meakin Breweries Ltd., and Mohan Meakin Breweries Ltd. (Dyer naam suna suna laga na? Haa vahi Jallianwala Bagh ka General Dyer!) Can you believe that his father actually owned the factory, and that is why the name.

The Company is listed on the CSE in Calcutta. They are experts at creating a wide range of IMFL (Indian-Made Foreign Liquor) products, including premium rums, whiskies, brandies, vodka, and even gin with three delectable ready-to-drink flavours. But there's more! Additionally, they produce vinegar, canned goods, cornflakes, wheat porridge, and juices.

Mohan Meakin Limited, a pioneer in the booze business, has built breweries and distilleries all over the nation. Their dedication to providing high-quality items has made them well-known in the sector.

The production procedure used by Old Monk is a labour of love that combines traditional methods with contemporary ones. The rum is painstakingly made at a number of distilleries around India to obtain the ideal flavour harmony. Over 2 million cases of Old Monk are reportedly sold each year, which suggests that these plants produce an astounding amount of bottles each year.

Let's explore their production facilities to see how their delectable masterpieces are made:

1. Brewery Solan (H.P.): Here, carefully and precisely produced beer rules supreme. Additionally, a bottling plant is nearby and ready to bottle their outstanding IMFL selections.
2. Kasauli Distillery: This distillery produces the best malt spirits and ensures that every sip captures the enchanting beauty of the foggy hills.
3. Mohan Nagar in Ghaziabad, Uttar Pradesh: A creative powerhouse teeming with energy. Not only are there breweries and distilleries nearby, but there are also factories making breakfast foods and fruit products. It's where scrumptious concepts are brought to life.
4. Mohangram Bhankarpur (Punjab): The flavours of Mohan Meakin's IMFL find their ideal home in this bottling facility in the heart of Punjab, where they are ready to mesmerise with every pour.
5. Lucknow: Although production may be temporarily suspended, the Lucknow distillery's spirit eagerly anticipates its triumphant comeback.

Unveiling the Blueprint: Mohan Meakin’s Business Model

The strategy used by Mohan Meakin Limited is innovative & adaptable, and encompasses all facets of the beverage sector. They are adept at adjusting to consumer demand, seizing new possibilities, and dominating the market. 
Behind its success lies a business model that has stood the test of time; blending tradition, quality, and a touch of nostalgia to captivate consumers across generations.

1. A Heritage of Distinction: Old Monk's business model revolves around its rich heritage and distinctive identity. The brand has mastered the art of storytelling, drawing on its deep-rooted history to create a unique narrative that resonates with consumers. The rum is aged for at least seven years, contributing to its smoothness and flavor. This dedication to quality and craftsmanship has earned Old Monk a reputation as a premium product, setting it apart from its competitors.

2. Nurturing Nostalgia: One of the key factors behind Old Monk's enduring success is its ability to evoke a sense of nostalgia among consumers. The brand's iconic bottle design, resembling the figure of an old monk, has remained virtually unchanged since its inception. This familiar packaging has become a symbol of tradition and reliability, triggering sentimental connections with the past. By tapping into this nostalgia, Old Monk cultivates a loyal customer base that spans generations.

3. Word-of-Mouth Marketing: Prepare to be amazed! Would you believe that Mohan Meakin Limited has achieved remarkable success without uttering a single word through advertisements? Yes, you heard it right! This captivating company has defied conventional marketing tactics and relied solely on their outstanding products and word-of-mouth buzz to capture the hearts and livers of consumers. It's a tale of organic growth that will leave you spellbound. Old Monk's enthusiasts have become brand ambassadors, sharing their love for the rum through personal recommendations and social media, creating a buzz that money can't buy.

4. Diversification and Adaptation: While Old Monk's iconic dark rum remains its flagship product, the brand has also ventured into diversifying its offerings to cater to evolving consumer preferences. Old Monk has expanded its product range to include variations such as white rum, XXX rum, and flavored options, allowing the brand to tap into different market segments and attract new audiences without diluting its core identity.

5. Strong Distribution Network: A crucial aspect of Old Monk's business model is its well-established distribution network. The brand has focused on establishing a widespread presence in both domestic and international markets. By ensuring its availability across various channels, including retail stores, bars, and online platforms, Old Monk has made it convenient for consumers to access its products, further fueling its popularity.

6. Community Building: Old Monk understands the importance of fostering a sense of community around its brand. The company actively engages with its customers through social media platforms, organizing events, and sponsoring cultural festivals. This community-driven approach allows Old Monk to connect with its consumers on a deeper level, creating brand loyalty and a sense of belonging.

Key Financials

Do not be alarmed, for I have rescued you in the area of financial statements! Let me highlight a few crucial metrics that are a must-have. These essential signs will breathe life into those seemingly lifeless pages and provide you with the information you need to make your way through the financial maze.

The total income has shown an uptrend in the past five years and has gone up from ₹660.36 crore to ₹1379.38 crore in 2022.
The PAT has gone up from ₹15.33 crore to ₹51.45 crore.

The figures for five years can be seen in the table below:

The information provided depicts the total number of shareholders for Mohan Meakin during a five-year period, from 2018 to 2022. The changes in the number of stockholders over this time are as follows:

From 2018 to 2022, there appears to be a general trend of rising shareholder engagement, with a notable increase in shareholders in 2022. This shows potential growth and investment interest in the company at this time.

The Managing Director, who is the Chief Operating Decision Maker, is a key player in assessing Mohan Meakin Limited's performance. Based on his  analysis, the company has determined that there are two reportable segments: 

• Non-alcoholic products, which include juices, vinegar, breakfast foods, and more
• Alcoholic products, include premium rums, whiskies, brandies, beer, and gin, among other things.

The chart below depicts the revenue break up for the above two categories.

Clearly and as it should be, a major part of the revenue comes from alcoholic products. And a small portion is contributed by the non-alcoholic products.

Let’s look at the details of shareholders who hold more than 5% stake in the company:

1. Trade Links Pvt. Ltd: They make quite the splash, holding a substantial 27.84% stake in the company. They clearly know a good investment when they see one!

2. Mr Hemant Mohan: With an impressive 11.96% stake, Mr. Hemant Mohan has secured his place as a notable shareholder. He's definitely got a taste for success!

3. Life Insurance Corporation of India: You wouldn't expect a life insurance company to have a stake in an alcoholic beverage manufacturer, but this intriguing twist of fate sees them holding a surprising 8.38% stake in Mohan Meakin Limited. Life meets spirits in an unexpected partnership!

4. Mr. Vinay Mohan: It seems success runs in the Mohan family, as Mr. Vinay Mohan holds a noteworthy 8.22% stake in the company. Cheers to keeping it in the family!

Graphical representation of the same for better understanding:

The Tale Behind the Name and the Bottle

Have you ever wondered why this beloved rum is called "Old Monk"? Legend has it that the name pays homage to an old monk who resided near the Mohan Meakin distillery, overseeing the production process with a watchful eye. This mysterious figure became the inspiration for the brand's iconic bottle design, featuring a depiction of the monk himself. Thus, every sip of Old Monk becomes a journey back in time, a tribute to the spirit of resilience and dedication.

From Listing to Delisting: Company’s Stock Exchange Voyage 

The BSE IndoNext segment, which was designed especially for SMEs listed on Regional Stock Exchanges (RSE), was introduced to Mohan Meakin Limited, which is traded on the Delhi Stock Exchange (DSE). But the company made it clear in a letter to the DSE that it had never really applied to trade its shares on the Bombay Stock Exchange (BSE). The business further claimed that it lacked the support and consent of its shareholders to have its shares listed on the BSE. As a result, Mohan Meakin's equity shares were no longer traded on the BSE.

The Bottom Line

It’s incredible to think that a simple rum has evolved into a beloved companion for people from over the world. The journey of Mohan Meakin Limited and its iconic brand, Old Monk, is proof of effectiveness, passion and authenticity. From its humble beginnings to becoming a beloved brand, the journey is a testament to the power of enthusiasm, innovation, and devotion to quality. Kudos to Mohan Meakin Limited for creating not just a rum but a fantastic experience that draws people together. 
Let's toast to their incredible adventure as the article comes to an end, here's to Old Monk's fascinating tale, treasured memories, enduring legacy and their timeless spirit and the remarkable journey of Mohan Meakin Limited. Cheers!
May their story continue to inspire us, embrace our heritage, and craft something truly extraordinary.