Tilaknagar Industries Share Price: Tilaknagar Industries is buying the famous brand Imperial Blue Whiskey. It has signed a definitive agreement from the Indian unit of French liquor company Pernod Ricard to buy Imperial Blue Whiskey Division for Rs 4,150 crore.
The Mansion House makes brandy brandy. This brandy is the best -selling brand in India and is considered the second largest brandy brand globally.
What is Tilaknagar’s strategy?
Tilaknagar Industries said that the acquisition of Imperial Blue is a big step towards setting up the business of its Pan India IMFL (Indian Made Foreign Liquor).
The company said, ‘Buying Imperial Blue is our entry in the Indian whiskey segment. Through this, we will become the lead players in both Brandi and Whiskey- the major IMFL categories. The company also added that this acquisition would strengthen its premium portfolio and distribution network.
What did Pernod Ricard say?
Pernod Ricard described the deal as an important strategic step towards restructuring its portfolio. The company said, “This sales will give us an opportunity to focus more on premium brands in a fast growing market like India. This step will also improve our operating margin and net sales growth.
Pernod Ricard Chairman and CEO Alexandre Ricard said, “This deal is in line with our global strategy, focusing on rapidly growing and more profitable brands. It will further strengthen the success in the major market like India for us.”
There are still some approval left
This acquisition is currently subject to the approval of the Competition Commission of India (CCI). It is expected to be fully completed in the next few months. It was also reported in December 2023 that Tilaknagar and Inbrew Beverages were in the last race of this deal. In this deal, Goldman Sachs played the role of a cell-side advisor from Pernod Ricard.
Tilaknagar shares huge jump
Amidst the news of this deal, the shares of Tilaknagar Industries have climbed about 31% in the last one month. The company’s portfolio includes brands like Mansion House Gold Barrel Whiskey, Blue Lagoon Gin and Madira Gold Dark XXX Rum.
One of the big deals in the Indian liquor industry
Earlier, in 2022, United Spirits (Indian Branch of DIEGO) sold 32 brands such as Haywards, Old Tavern, and Green Label for $ 106 million to Inbrew Beverages. Earlier, the biggest deal was done in 2014 as the acquisition of United Spirits by DIEGEO, priced around $ 1.9 billion.
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