Allied Blenders & Distillers Limited (ABDL), a prominent player in the Indian spirits industry, has received a significant update in its ongoing legal dispute. The Supreme Court of India has disposed of Special Leave Petitions filed by ABDL and other parties, setting a clear path forward for the resolution of the case.

Supreme Court's Directive

The apex court has issued a directive to the trial court, mandating the conclusion of the suit and counter-claim within a six-month timeframe. This decision comes as part of the case involving Herman Jansen Beverages Nederland B.V. and others versus Tilaknagar Industries Ltd.

Key Points of the Order

• Timeline: The trial court is instructed to conclude the trial within six months from the next hearing date.

• Impartiality Ensured: The Supreme Court clarified that observations made in the High Court's interim order should not influence the trial court's decision.

• Merit-Based Judgment: The trial court is directed to decide the suit and counter-claim based solely on the evidence presented and the merits of the case.

• Expedited Process: If necessary, the trial court may conduct hearings on a day-to-day or week-to-week basis to meet the deadline.

• Rectification Applications: The court stated that applications for rectification filed by both parties will be considered separately on their own merits.

Implications for Allied Blenders

This development is crucial for Allied Blenders and Distillers Limited, as it provides a clear timeline for the resolution of the legal dispute. The company will likely be watching the proceedings closely as they unfold over the next six months.

Looking Ahead

As the case moves to the trial court, all eyes will be on the proceedings and their potential impact on Allied Blenders and Distillers Limited. Stakeholders and industry observers will be keenly awaiting the outcome of this legal battle, which could have far-reaching consequences for the company and the broader spirits market in India.

The company has assured its stakeholders that it will keep them informed of any further developments in this matter, in line with its obligations under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Allied Blenders & Distillers (ABD), a leading Indian spirits company, has reported robust financial performance and outlined an ambitious growth strategy in its recent investor presentation. The company, known for its flagship brands Officer's Choice whisky and Sterling Reserve, has demonstrated significant improvements across key financial metrics and revealed plans for expansion and premiumization.

Financial Highlights

ABD reported impressive financial results for the fiscal year:

The company's EBITDA margin expanded significantly from 5.50% to 12.70%, while Profit After Tax surged from ₹2.00 crore to ₹195.00 crore.

Improved Financial Position

ABD has strengthened its financial position considerably:

• Net Debt to EBITDA ratio improved to 1.7x from 3.0x
• Net Debt to Equity ratio declined to 0.5x from 1.8x
• Return on Capital Employed (ROCE) increased to 16.90%, up 20 basis points

Strategic Growth Initiatives

The company has outlined several key strategies to drive future growth:

1. Portfolio Premiumization: ABD aims to increase its presence in premium and luxury segments, with brands like Sterling Reserve, ICONiQ White, and newly launched offerings in the gin and malt whisky categories.

2. Export Expansion: The company plans to expand its global footprint from 27 countries to 35 countries by March 2026, targeting a volume of 1 million cases by FY28.

3. Backward Integration: ABD is investing approximately ₹450.00 crore over the next 2-3 years for capacity expansion, including:

   • ENA distillation capacity increase to 61 MLPA
   • PET bottle manufacturing to meet 70-75% of current annual requirements
   • India's first single malt distillery with a 4 MLPA capacity

4. Distribution Network: The company leverages its extensive distribution network, reaching over 80,000 retail touchpoints across 30+ states in India.

FY28 Targets

Allied Blenders has set ambitious targets for FY28:

• Mid-teen revenue growth
• Gross margins exceeding 45%
• EBITDA margins reaching 17%
• ROCE of 23-25%

Sustainability Initiatives

ABD has also highlighted its commitment to sustainable practices:

• Reduced water consumption per liter of alcohol produced by 23% in FY25
• Increased use of renewable and cleaner energy, with 13% of fuel consumption from biofuels in FY25
• Reduced specific energy consumption by 7% across distillery and owned bottling units

Corporate Governance

The company emphasized its strong governance framework, including a board with seven independent directors and a clear separation of ownership and management roles.

Allied Blenders & Distillers' robust financial performance, coupled with its strategic initiatives in premiumization, export expansion, and operational efficiency, positions the company for sustained growth in the competitive Indian spirits market. As ABD continues to execute its transformation roadmap, investors will be watching closely to see if the company can achieve its ambitious FY28 targets.