Tilaknagar Industries purchases Imperial Blue whiskey brand for an astounding Rs 4,150 crores
Tilaknagar Industries, a leading player in the Indian brandy market, has announced its acquisition of the Imperial Blue whisky business from Pernod Ricard India for a reported enterprise value of Rs 4,150 crore. The deal, which includes a deferred payment of Rs 282 crore payable four years after the transaction's closure, is expected to finalize within six months.
This strategic move marks Tilaknagar's entry into the whisky segment, which constitutes about two-thirds of India's spirits market. Imperial Blue, launched in India in 1997 and acquired by Pernod Ricard in 2002, is the third-largest whisky brand in India, with annual sales of 22.4 million cases and a 9% volume share in a market of approximately 79 million cases.
For Tilaknagar, this acquisition offers a strong foothold in both brandy and whisky, allowing the company to tap into the growing premiumisation trend across price points and expand its distribution network significantly. The deal includes two owned units and services from co-manufacturing bottlers across India.
Deloitte served as the diligence advisor to Tilaknagar, while Deutsche Bank and Avendus Capital acted as financial advisors, with Avendus Capital also serving as the exclusive financing arranger. Crawford Bayley & Co. and WS Kane & Co. acted as legal counsels for Tilaknagar.
Pernod Ricard, on the other hand, sees this as an opportunity to sharpen focus on more profitable and faster-growing brands globally and in India. Although Imperial Blue is a significant part of Pernod Ricard’s whisky portfolio, its sales have steadily declined in recent years, prompting the company to divest this asset to focus on other opportunities.
Tilaknagar had been a frontrunner for this acquisition since the previous year, with the deal rumored to be valued around $600-$650 million. Other potential bidders included Japanese liquor major Suntory and Inbrew Beverages, but Tilaknagar eventually reached the agreement.
Financing for Tilaknagar's acquisition will be through a combination of debt and equity, with plans to raise up to Rs 6,500 crore via equity or equity-linked securities and the remainder via debt securities.
Amit Dahanukar, CMD of Tilaknagar Industries, stated, "The acquisition of Imperial Blue whisky business broadens our portfolio and caters to India's diverse consumer base." With this acquisition, Tilaknagar Industries has signed India's largest alcohol beverage deal, which is set to significantly expand its distribution reach in both brandy and whisky segments.
- The acquisition of Imperial Blue whisky business by Tilaknagar Industries will allow them to tap into the growing premiumisation trend across different price points and expand their distribution network significantly in both the brandy and whisky segments.
- Tilaknagar's Financing for the acquisition will be through a combination of debt and equity, with plans to raise up to Rs 6,500 crore via equity or equity-linked securities and the remainder via debt securities.
- Pernod Ricard, current owner of Imperial Blue, sees this deal as an opportunity to sharpen focus on more profitable and faster-growing brands, as sales of Imperial Blue have steadily declined in recent years.
- The deal, which includes two owned units and services from co-manufacturing bottlers across India, is expected to finalize within six months and marks Tilaknagar's entry into the whisky segment.
- With the acquisition of Imperial Blue whisky business, Tilaknagar Industries has broadened their portfolio and catered to India's diverse consumer base, signing India's largest alcohol beverage deal and setting to significantly expand its distribution reach.
