Tilaknagar Industries Acquires Imperial Blue Whisky Business from Pernod Ricard for Rs 4,150 Crore

Tilaknagar Industries Ltd (TIL), an Indian alcoholic beverage producer, has announced its acquisition of the Imperial Blue whisky business from Pernod Ricard's Indian division. The deal is valued at 412.6 million Euros, approximately Rs 4,150 crore. This acquisition positions TIL, known for brands like Mansion House Brandy and Blue Lagoon Gin, as a significant player in the whisky market.

The agreement between TIL and Pernod Ricard India involves a slump sale of the Imperial Blue business. The transaction includes a deferred payment of 28 million Euros (Rs 282 crore) to be made four years after the deal closes. Imperial Blue ranks as India's third-largest whisky brand by volume, with sales of 22.4 million 9-litre cases in the year ending March 2025.

Strategic Acquisition for Growth

TIL aims to establish a nationwide Indian-Made Foreign Liquor (IMFL) business through this acquisition. The company plans to expand its presence in the Indian whisky segment, leveraging Imperial Blue's established market position. The transaction is expected to conclude within six months, pending regulatory approvals from bodies like the Competition Commission of India.

Pernod Ricard views this sale as a strategic move to enhance its focus on premiumisation trends and support sustained growth. "The sale of the Imperial Blue business division is a strategic move to sharpen focus on more profitable and faster-growing brands in India," stated Alexandre Ricard, Pernod Ricard's chairman and CEO.

Impact on Pernod Ricard's Portfolio

India remains a strategic priority for Pernod Ricard as its second-largest market. The realignment allows the company to capitalise on India's strong economic fundamentals and long-term potential. Upon completion, the transaction is anticipated to positively impact Pernod Ricard India's operating margin and net sales growth rate.

Pernod Ricard India reported consolidated sales revenue of Rs 26,773.22 crore in FY24, making it India's largest spirit maker. This sale enables resource allocation towards high-growth brands like Royal Stag and Blenders Pride, along with international names such as Chivas and Jameson.

TIL's Expansion Plans

TIL's chairman and managing director Amit Dahanukar expressed enthusiasm about broadening their portfolio to cater to India's evolving consumer base. "Having achieved leadership in the brandy segment, it is now time for us to broaden our portfolio," he said.

For TIL, acquiring Imperial Blue serves as a launchpad for building a strong whisky portfolio across premium price points. The company reported a revenue of Rs 1,405 crore and an EBITDA of Rs 226 crore for the year ending March 2025. In the September quarter, TIL became net debt-free after restructuring its debt successfully.

This acquisition represents a win-win situation for both companies involved. It allows TIL to enter the whisky market while enabling Pernod Ricard to focus on more profitable ventures in India.

With inputs from PTI