Allied Blenders & Distillers Limited commenced commercial operations at its bottling facility in Moradabad, Uttar Pradesh, on October 19, 2026. The unit has an initial capacity of 6 million cases per annum, marking a key step in the company's integrated manufacturing strategy to serve growing spirits demand in the state.

The facility was acquired in January 2026 for approximately ₹70 crore and subsequently upgraded by ABD with an additional investment of ₹40 crore. This commissioning enhances bottling capacity in Uttar Pradesh and is expected to improve service efficiency while delivering cost benefits through increased in-house bottling and savings on franchise fees.

Strategic footprint in Uttar Pradesh

Uttar Pradesh is central to ABD's growth plans, with the company having announced an investment of over ₹600 crore in the state. This capital allocation includes the acquisition and upgradation of the Moradabad unit, as well as the development of an integrated facility comprising a dual-mode distillery and additional bottling capacity.

Amar Sinha, Managing Director of ABD, stated that the commencement of operations strengthens the company's manufacturing base and presence in the region. He noted that backward integration is a key pillar of their strategy, enabling greater control over the value chain, improved supply chain agility, and stronger cost efficiencies. The unit will also provide a platform for further integration, including increased captive ENA (Extra Neutral Alcohol) capacity.

What the Numbers Show

The total capital outlay for the Moradabad project stands at ₹110 crore (₹70 crore acquisition + ₹40 crore upgrade), representing roughly 18% of the total ₹600 crore investment announced for Uttar Pradesh. This indicates that while the immediate operational bottleneck is addressed through this specific asset, the majority of the committed capital remains allocated to broader infrastructure projects like the dual-mode distillery, suggesting a phased rollout of ABD's full integration capabilities in the region.

Company profile

ABD is one of India's leading spirits companies and the largest exporter by volume, with presence in 39 international markets. The company operates across five main categories: whisky, brandy, rum, vodka, and gin. Its portfolio includes flagship brands such as Officer's Choice, Sterling Reserve, and ICONiQ White. ABD maintains a robust manufacturing footprint of 40 units, including 10 owned bottling facilities and 2 owned distilleries, supported by a pan-India distribution network.

Allied Blenders & Distillers Limited informed stock exchanges that an arbitrator has terminated proceedings against the Canteen Stores Department (CSD) due to a lack of jurisdiction. The Sole Arbitrator ruled that no valid arbitration agreement existed between the parties, halting the dispute over recoveries related to Officer's Choice Prestige Whisky supplies.

The development follows an oral order dated September 26, 2026, with the written order received by the company on September 30, 2026. The ruling was passed under Section 16 of the Arbitration and Conciliation Act, 1996, following an application by CSD challenging the tribunal's jurisdiction.

Background of the Dispute

The company had initiated arbitration proceedings against CSD, under the Ministry of Defence, regarding disputes arising from debit notes and recoveries pertaining to whisky supplies. A Sole Arbitrator was previously appointed by the Bombay High Court under Section 11 of the Act. After the company filed its Statement of Claim, CSD challenged the tribunal's authority, arguing that no valid arbitration agreement existed between the two entities.

Legal Status and Next Steps

The Arbitrator's order is limited strictly to the issue of jurisdiction and does not adjudicate the merits of Allied Blenders' claims. Consequently, the company stated it intends to pursue appropriate legal remedies against this order to protect its interests. Furthermore, it plans to initiate separate proceedings for the recovery of the disputed claim amount.

What the Numbers Show

While specific financial values for the disputed recoveries are not disclosed in this filing, the termination of arbitration signifies a procedural setback rather than a final judgment on liability. The distinction between procedural dismissal and merit-based adjudication remains critical, as the company retains the right to litigate the underlying commercial dispute through other legal avenues.