Banganga Paper Rebrands to Asgard Alcobev, Pivots to Beer Market

A New Chapter for Banganga Paper Industries

Banganga Paper Industries Limited (BPIL) has undergone a complete corporate transformation, rebranding to Asgard Alcobev Limited. This change follows shareholder approval at an Extraordinary General Meeting (EGM) on January 14, 2026, and marks the company's decisive exit from the paper industry to enter India's rapidly expanding alcoholic beverages market. The cornerstone of this strategic pivot is the acquisition of a controlling 78.90% stake in CMJ Breweries Private Limited, one of Northeast India's largest and most advanced brewing facilities.

The Strategic Overhaul

The shift was set in motion during a board meeting on December 17, 2025, where the acquisition was first approved. The company is divesting from its legacy operations by selling its 99.96% stake in Banganga Paper Mills Limited for ₹11.21 crore. This move clears the path for a focused entry into the alcobev sector, leveraging the operational expertise and established market presence of CMJ Breweries. The management team from CMJ Breweries is now set to lead the newly formed Asgard Alcobev, ensuring a seamless transition and bringing deep industry knowledge to the forefront.

Key Corporate Restructuring

To support its new strategic direction, the company has implemented several significant structural changes. Shareholders approved an increase in the authorized share capital from ₹12 crore to ₹36 crore. This expansion provides the financial flexibility needed for future growth initiatives and strategic investments in the capital-intensive alcobev industry. In another strategic move, the company's registered office has been relocated from Nashik, Maharashtra, to Shillong, Meghalaya, aligning its administrative base with the operational headquarters of CMJ Breweries and improving administrative efficiency.

Transaction Details and Open Offer

The acquisition of CMJ Breweries was primarily executed through a share swap. BPIL will issue up to 15,10,64,917 equity shares at a price of ₹1.45 per share to the shareholders of CMJ Breweries. This preferential allotment triggered an open offer by Mr. Ronak Jain and associates for the remaining public shares of BPIL, as per regulatory requirements. The board also approved the issuance of 6,00,00,000 equity shares for cash and 2,20,00,000 convertible warrants to further strengthen its capital base.

Tapping into India's Growing Beer Market

Asgard Alcobev's entry into the alcoholic beverages sector is timed to capitalize on strong market growth. The Indian beer market was valued at approximately ₹48,310 crore in 2024. Industry projections indicate a robust compound annual growth rate (CAGR) of around 10% between 2025 and 2034, with the market size expected to reach an estimated ₹1.24 lakh crore by 2034. This sustained demand provides a significant growth runway for the company as it establishes its presence in the sector.

Profile of CMJ Breweries

Founded in 2011, CMJ Breweries has established itself as the largest and one of the most technologically advanced breweries in Northeast India. The company operates as a key contract brewing partner for several leading domestic and international brands, including Kingfisher (United Breweries), Carlsberg, Tuborg (Carlsberg India), and Asia 72 (Mohan Meakin). Its modern, high-capacity facility is equipped with German and European machinery, ensuring high-quality production, operational excellence, and strict compliance standards.

New Leadership and Governance Structure

With the strategic shift, the company has also strengthened its corporate governance framework. The board has appointed Venkatesh Prabhu and Ravindranathan M as new independent directors, bringing valuable experience to guide the company's new ventures. Additionally, M/s. Batliboi & Purohit, a firm of Chartered Accountants, has been appointed as the statutory auditor, reinforcing financial oversight and transparency.

Future Outlook

By rebranding as Asgard Alcobev and acquiring a dominant player in a key regional market, the company has fundamentally repositioned itself for long-term growth. The combination of CMJ Breweries' operational capabilities, an experienced management team, and favorable industry tailwinds creates a strong foundation. The company is now focused on integrating its new acquisition and leveraging its enhanced production capacity to capture a larger share of India's booming beer market. The stock has seen some volatility following the announcements, reflecting the market's adjustment to this major corporate transformation.