Allied Blenders approves ₹125 crore for Aurangabad distillery and cost overruns
- Allied Blenders approves ₹125 crore total capital contribution for subsidiary Minakshi Agro
- ₹115 crore allocated for new 3 MN BL malt distillery in Aurangabad, Maharashtra
- Additional ₹10 crore approved to cover cost overruns in existing bottling and distillery projects
- New distillery completion targeted for Q3 FY28

*this image is generated using AI for illustrative purposes only.
Allied Blenders & Distillers has approved a total capital contribution of ₹125 crore for its subsidiary Minakshi Agro Industries LLP. The funding covers a new 3 million litre malt distillery in Aurangabad and addresses cost overruns in ongoing projects.
The Management Committee of the Board of Directors approved the investment on September 11, 2026. The funding is structured as additional capital contribution or financial assistance, potentially supported by external debt with a corporate guarantee.
Investment overview
The approved funding is directed toward establishing a new malt distillery facility through Minakshi Agro Industries LLP, a subsidiary of the company. The project is located in Aurangabad, Maharashtra. The sanctioned amount of ₹115 crore covers the core construction costs for the distillery and maturation warehouse.
Project details
The following table summarises the key parameters of the approved investment:
| Parameter | Details |
|---|---|
| Investment amount | ₹115 crore |
| Beneficiary entity | Minakshi Agro Industries LLP |
| Facility type | Malt distillery cum maturation warehouse |
| Planned capacity | ~3 MN BL per year |
| Location | Aurangabad, Maharashtra |
| Completion timeline | Q3 FY28 |
| Scope | Setting up distillery and warehouse |
Additional funding for cost overruns
The committee also approved an additional capital contribution of up to ₹10 crore to meet cost overruns in previously approved projects, including a bottling unit and distillery. These overruns are attributed to increased prices of key metals and marginal expansions to accommodate longer automated bottling lines.
| Parameter | Details |
|---|---|
| Investment amount | ₹10 crore |
| Purpose | Meeting cost overruns in ongoing projects |
| Completion timeline | Q3 FY27 (Bottling) & Q3 FY28 (Distillery) |
Strategic rationale
The proposed investment aligns with the company's long-term strategic vision of expanding its premium spirits portfolio through entry into the provenance-led Single Malt Whisky segment. The additional investment for cost overruns aims to strengthen the manufacturing footprint and support long-term volume growth.
Historical Stock Returns for Allied Blenders & Distillers
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -5.49% | +3.51% | +11.39% | +68.16% | +33.83% | +113.73% |
How will the entry into the provenance-led Single Malt Whisky segment impact Allied Blenders' gross margins compared to its existing portfolio?
What is the projected payback period for the ₹115 crore Aurangabad distillery, and how does it compare to industry benchmarks for similar capacity expansions?
How might the reliance on external debt with corporate guarantees affect Allied Blenders' leverage ratios and credit ratings in the medium term?


































