According to a formal announcement, Tilaknagar Industries, the company behind Mansion House, the best-selling brandy brand in India and the second-best-selling brand worldwide, has finalised the agreement to purchase the Imperial Blue whisky business division from the Indian branch of the French liquor giant Pernod Ricard for INR 4,150 crore.
Moneycontrol was the first to disclose on 7 July that a listed spirits company located in Mumbai had beaten out other bidders and started exclusive talks with Pernod Ricard to acquire Imperial Blue whisky. According to the article, a final agreement between the parties might be reached later this month provided the negotiations continue according to plan. Moneycontrol has reported that Tilaknagar Industries intends to use a mix of loan and equity to finance the planned deal.
Imperial Blue: A Top Contender in India’s IMFL Sector
Tilaknagar gave an explanation of its acquisition strategy, stating that it aims to establish a nationwide Indian-made foreign liquor (IMFL) industry. The establishment of a pan-India IMFL business is one of the company’s main goals in relation to the acquisition of the Imperial Blue business venture, according to its official statement.
The purchase represents the company’s entry into the Indian whisky market. With the acquisition, Imperial Blue, which is now the third-largest brand in the Indian-made foreign liquor (IMFL) market, will rise to prominence in the brandy and whisky markets, which are the two biggest IMFL markets, according to the business.
Imperial Blue will be the foundation of Tilaknagar Industries’ premium portfolio approach, the business announced. Additionally, this acquisition would improve the company’s distribution network.
What this Acquisition Means for the Indian Liquor Industry?
Having established supremacy in the brandy market, it is now time to diversify the company’s product line and serve India’s varied and changing customer base, according to Amit Dahanukar, chairman and managing director of Tilaknagar Industries Ltd.
He further added that the company can now join the whisky market with one of the most reputable and well-liked brands in the nation thanks to this smart acquisition, even though the brand is still expanding organically. According to Pernod Ricard, the deal will allow it to promote sustainable growth and fully capitalise on premiumization trends.
The deal, as per Pernod Ricard, enhances the company’s portfolio in India, allowing it to capitalise on premiumization trends and foster steady, sustainable growth. India is a strategic priority for Pernod Ricard as its second-largest market, and this reorganisation enhances the capacity to leverage the nation’s solid macroeconomic foundation and long-term prospects.
It is anticipated that the purchase will instantly and significantly increase Pernod Ricard India’s operating profit and net sales growth rate after it closes.
Leave a Reply