Brandy giant Tilaknagar Industries is all set to acquire Imperial Blue which is expected to be completed by December this year as the company awaits regulatory approval from Competition Commission of India (CCI).
“Our acquisition of the Imperial Blue business division from Pernod Ricard India is subject to CCI approval, which we expect to receive by (the) end of calendar year 2025,” Amit Dahanukar, Chairman & Managing Director, Tilaknagar Industries, said.
The company will enter into a Transition Manufacturing and Services Agreement (TSMA) with PRI to ensure a smooth transition.
Tilaknagar Ind. signed an agreement to acquire the whiskey brand Imperial Blue for about Rs 4,150 crore from Pernord Richard.
"With the acquisition, the company will become one of the leading players in brandy and whiskey, the two largest IMFL categories. Imperial Blue shall serve as a base for the company’s premium portfolio strategy. This acquisition would also strengthen the distribution network of the company," Tilaknagar Industries said in a statement earlier.
The company has signed definitive agreements for the acquisition of Imperial Blue division of France’s Pernod Ricard, marking the largest transaction in the Indian alcoholic beverage space by an Indian company.
The transaction includes normalized working capital of Rs 700 cr and deferred consideration of Rs 282 cr to be paid after 4 years from the transaction closing date, i.e., in FY30. Tilaknagar Industries intends to finance the deal with a mix of equity and debt.
On July 29, the company announced that it will raise Rs 2,296 crore through preferential issue of securities to fund acquisition of Imperial Blue business division and general corporate purpose.
“This equity issue, along with the proposed debt fundraise, will ensure an optimal financing mix for the acquisition of IB,” Tilaknagar Industries said in a statement.
UK-India FTA is expected to be a major tailwind leading to potentially expanded EBITDA margins for the Imperial Blue business division, the company said.
The deal covers trademarks of Imperial Blue and related assets that also include ‘ Imperial Black’ and ‘Imperial Red’ brands globally. The company will enter into a trademark license agreement for the use of “Seagram’s” in connection with Imperial Blue for a short transition period.
Tilaknagar Industries will also sign a long-term supply agreement with Chivas Brothers for CAB (Concentrated Alcoholic Beverage), an essential raw material for manufacturing IB products, as mentioned in the company’s investor presentation.
“Procurement arrangement can be extended with mutual discussions between the parties, ensuring no disruption in business,” it added.
To meet the growing capacity requirements, Tilaknagar Ind. recently announced a six-fold capacity addition in its bottling unit - Prag Distillery in Andhra Pradesh. The company is set to invest Rs 59 crore to increase the capacity from 6 lakh to 36 lakh cases annually.
“We would also like to announce that the Board has approved investment of INR 59 crore, including the license fees and interest payments of around INR 34 crore for expansion at Prag Distillery, increasing the capacity from 6 lakh to 36 lakh cases p.a.,” the chairman said in a statement.
This expansion enables us to safeguard supply in one of the fastest growing IMFL markets in India, the company said.
The Board of Directors approved an additional capital expenditure of Rs 25 crores for the above expansion of its existing bottling capacity.
Tilaknagar Industries has a strong portfolio across multiple India Made Foreign Liquor (IMFL) categories with two ‘Millionaire’ brandy brands - Mansion House and Courrier Napoleon. Along with this, the company has a strong presence in whisky, rum, and gin through Mansion House Whisky, Madiraa Rum and Blue Lagoon Gin. Recently, it also expanded into the luxury segment with Monarch Legacy Edition Brandy.
“Our acquisition of the Imperial Blue business division from Pernod Ricard India is subject to CCI approval, which we expect to receive by (the) end of calendar year 2025,” Amit Dahanukar, Chairman & Managing Director, Tilaknagar Industries, said.
The company will enter into a Transition Manufacturing and Services Agreement (TSMA) with PRI to ensure a smooth transition.
Tilaknagar Ind. signed an agreement to acquire the whiskey brand Imperial Blue for about Rs 4,150 crore from Pernord Richard.
"With the acquisition, the company will become one of the leading players in brandy and whiskey, the two largest IMFL categories. Imperial Blue shall serve as a base for the company’s premium portfolio strategy. This acquisition would also strengthen the distribution network of the company," Tilaknagar Industries said in a statement earlier.
The company has signed definitive agreements for the acquisition of Imperial Blue division of France’s Pernod Ricard, marking the largest transaction in the Indian alcoholic beverage space by an Indian company.
The transaction includes normalized working capital of Rs 700 cr and deferred consideration of Rs 282 cr to be paid after 4 years from the transaction closing date, i.e., in FY30. Tilaknagar Industries intends to finance the deal with a mix of equity and debt.
On July 29, the company announced that it will raise Rs 2,296 crore through preferential issue of securities to fund acquisition of Imperial Blue business division and general corporate purpose.
“This equity issue, along with the proposed debt fundraise, will ensure an optimal financing mix for the acquisition of IB,” Tilaknagar Industries said in a statement.
UK-India FTA is expected to be a major tailwind leading to potentially expanded EBITDA margins for the Imperial Blue business division, the company said.
The deal covers trademarks of Imperial Blue and related assets that also include ‘ Imperial Black’ and ‘Imperial Red’ brands globally. The company will enter into a trademark license agreement for the use of “Seagram’s” in connection with Imperial Blue for a short transition period.
Tilaknagar Industries will also sign a long-term supply agreement with Chivas Brothers for CAB (Concentrated Alcoholic Beverage), an essential raw material for manufacturing IB products, as mentioned in the company’s investor presentation.
“Procurement arrangement can be extended with mutual discussions between the parties, ensuring no disruption in business,” it added.
To meet the growing capacity requirements, Tilaknagar Ind. recently announced a six-fold capacity addition in its bottling unit - Prag Distillery in Andhra Pradesh. The company is set to invest Rs 59 crore to increase the capacity from 6 lakh to 36 lakh cases annually.
“We would also like to announce that the Board has approved investment of INR 59 crore, including the license fees and interest payments of around INR 34 crore for expansion at Prag Distillery, increasing the capacity from 6 lakh to 36 lakh cases p.a.,” the chairman said in a statement.
This expansion enables us to safeguard supply in one of the fastest growing IMFL markets in India, the company said.
The Board of Directors approved an additional capital expenditure of Rs 25 crores for the above expansion of its existing bottling capacity.
Tilaknagar Industries has a strong portfolio across multiple India Made Foreign Liquor (IMFL) categories with two ‘Millionaire’ brandy brands - Mansion House and Courrier Napoleon. Along with this, the company has a strong presence in whisky, rum, and gin through Mansion House Whisky, Madiraa Rum and Blue Lagoon Gin. Recently, it also expanded into the luxury segment with Monarch Legacy Edition Brandy.
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