Tanduay taps PNB Capital for capital-raising program

MANILA, Philippines - Hard liquor maker Tanduay Holdings Inc. has tapped PNB Capital & Investment Corp. as financial advisor for its planned capital-raising program.

Wilson Young, president of Tanduay, said the company may need fresh funds to further expand its operations and improve existing facilities.

The fund-raising activity is also intended to comply with the 10 percent minimum public float rule. Its public float currently stands at 2.9 percent. Errant listed corporations have until November this year to meet the requirement or they face administrative charges.

The company is beefing up the capacity of its nine-hectare distilling plant in Batangas to 150,000 liters from the current 100,000 liters per day.

It is also repairing its plant in Cabuyao, Laguna which had been gutted by fire in October 2008. The facility used to produce 30,000 cases per day.

Tanduay, which reportedly controls over 95 percent of the local rum market in Visayas and Mindanao, plans to double its market share in Luzon to 12 percent over the next three years. It aims to achieve this through the launch of more product offerings.

Among its traditional best sellers include Tanduay Five Years brand, Tanduay ESQ, Rhum G5, Gin Kapitan and Cossack Blue. Newly-launched Boracay Rum, on the other hand, has attracted a good following especially among women and the young generation.

Tanduay is looking at a net income of P1 billion this year, six percent higher than the 2010 level. Revenues are likewise forecast to grow 20 percent to P14 billion as sales volume is seen to rise 15 percent to 20.39 million cases.

Last year, Tanduay reported a net income of P645 million on revenues of P11.5 billion.