Tilaknagar Industries Limited (TI), a leading Indian-Made Foreign Liquor (IMFL) manufacturer, has announced a series of strategic moves that are set to transform the company's position in the Indian alcoholic beverage market.

Acquisition of Imperial Blue

In a landmark deal, TI has entered into a definitive agreement to acquire the Imperial Blue business division from Pernod Ricard India Private Limited. The acquisition, valued at €412.60 million (approximately INR 4,150.00 crore), will be executed via a slump sale. This deal includes a deferred payment of €28.00 million (about INR 282.00 crore) to be paid four years after the transaction's closure.

Imperial Blue, with sales of 22.40 million 9-litre cases in the year ended March 2025, is the third-largest whisky brand in India by volume. The brand reported a revenue of INR 3,067.00 crore for the same period.

Strategic Rationale

This acquisition marks TI's significant entry into the whisky segment, the largest IMFL category in India. It complements TI's existing leadership in the brandy segment, creating a strong portfolio across two major IMFL categories.

Amit Dahanukar, Chairman and Managing Director of Tilaknagar Industries Limited, stated, "Having achieved leadership in the brandy segment, it is now time for us to broaden our portfolio and cater to India's diverse and evolving consumer base. This strategic acquisition allows us to enter the whisky category with one of the country's most trusted and admired brands."

Expansion of Distribution Network

The deal is expected to significantly expand TI's distribution reach, transforming it into a pan-India player with a combined volume of 34.00 million 9-litre cases for the year ended March 2025.

Fund Raising Plans

To finance this acquisition and support future growth, TI's Board of Directors has approved a fundraising plan of up to INR 6,500.00 crore. This includes:

• Up to INR 2,500.00 crore in equity or equity-linked securities
• Up to INR 4,000.00 crore in debt securities

The company plans to raise these funds through various means, including private placement, Qualified Institutions Placement (QIP), follow-on public offer, or rights issue.

Increased Borrowing Limits

The Board has also approved increasing the company's borrowing limits to INR 5,000.00 crore, subject to shareholder approval. This includes up to INR 400.00 crore from promoters.

New Subsidiary

In preparation for future expansion, TI has incorporated a new wholly-owned subsidiary, Grain & Grape Works Private Limited (GGWPL). This entity will focus on manufacturing and marketing alcoholic and non-alcoholic beverages.

Outlook

The acquisition of Imperial Blue is expected to act as TI's launchpad for a significant whisky premiumization journey. The company aims to build a strong whisky portfolio across premium price points, leveraging Imperial Blue's strong foundation.

The transaction is subject to approval from the Competition Commission of India, with closure anticipated in about 6 months from signing the definitive agreement.

As Tilaknagar Industries embarks on this transformative journey, it is poised to become a major player in the Indian alcoholic beverage market, with a diverse portfolio and expanded national presence.

Tilaknagar Industries Limited (TI), a leading Indian-Made Foreign Liquor (IMFL) manufacturer, has announced a landmark acquisition that could reshape its position in the Indian alcoholic beverage market. The company has entered into a definitive agreement to acquire the Imperial Blue business division from Pernod Ricard India Private Limited for €412.6 million (approximately ₹4,150.00 crore).

Strategic Acquisition

The acquisition includes the Imperial Blue brand, which is the third-largest whisky brand in India by volume, with over 25 years of brand heritage. Imperial Blue reported sales of 22.4 million 9-litre cases across India and other markets, with a revenue of ₹3,067.00 crore.

Expanding Portfolio and Reach

This strategic move marks Tilaknagar Industries' foray into the whisky segment, the largest IMFL category in India. The acquisition is expected to significantly expand TI's distribution reach, reinforcing its evolution into a truly pan-India player with strong scale across both brandy and whisky.

Amit Dahanukar, Chairman and Managing Director of Tilaknagar Industries Limited, stated, "Having achieved leadership in the brandy segment, it is now time for us to broaden our portfolio and cater to India's diverse and evolving consumer base. This strategic acquisition allows us to enter the whisky category with one of the country's most trusted and admired brands."

Combined Strength

The combined entity is projected to have a volume of 34 million 9-litre cases. This acquisition positions Tilaknagar Industries as a major player in both the brandy and whisky segments, the two largest IMFL categories.

Financial Implications

To finance the transaction, Tilaknagar Industries plans to raise a mix of debt and equity. The company's board has approved raising funds up to ₹6,500.00 crore, comprising up to ₹2,500.00 crore in equity or equity-linked securities and up to ₹4,000.00 crore in debt securities.

Future Plans

Tilaknagar Industries aims to use Imperial Blue as a launchpad for a significant whisky premiumization journey, enabling the company to build a strong whisky portfolio across premium price points.

Regulatory Approval

The proposed transaction is subject to approval from the Competition Commission of India, with closure anticipated in about 6 months from signing the definitive agreement.

New Subsidiary

In a related development, Tilaknagar Industries has incorporated a wholly-owned subsidiary, "Grain & Grape Works Private Limited." This new entity will carry out the business of manufacturing and marketing alcoholic and non-alcoholic beverages.

Market Impact

This acquisition, the largest in the Indian alcoholic beverages space by an Indian company, is set to fast-track Tilaknagar Industries' whisky foray and strengthen its leadership with leading brands across Whisky and Brandy. It represents a significant step in the company's ambition to become a major player in the Indian alcoholic beverage market and potentially reshape the competitive landscape of the industry.

As Tilaknagar Industries embarks on this transformative journey, the Indian alcoholic beverage market is poised for an interesting phase of competition and innovation.