Allied Blenders Approves Rs 115 Crore Investment for Malt Distillery in Maharashtra

Allied Blenders and Distillers Ltd has approved an additional capital contribution or financial assistance of up to Rs 115 crore to its subsidiary Minakshi Agro Industries LLP to establish a malt distillery in Aurangabad, Maharashtra.

The proposed facility will have a capacity of around 3 million bulk litres per year and will include a maturation warehouse. The project is targeted for completion by Q3 FY28 and will be funded through additional capital contribution or financial assistance, including external debt supported by a corporate guarantee through banking channels, where required. The investment is part of Allied Blenders and Distillers’ strategy to expand its premium spirits portfolio and enter the provenance-led Single Malt Whisky segment.

The company’s Management Committee also approved an additional Rs 10 crore for Minakshi Agro Industries LLP to cover cost overruns related to previously approved projects. These include a bottling unit and distillery, with the bottling project scheduled for completion by Q3 FY27 and the distillery by Q3 FY28.

The additional funding is primarily linked to higher prices of key metals and a marginal expansion of the bottling hall and mezzanine area to accommodate longer automated bottling lines.

The investment comes as Allied Blenders and Distillers looks to improve growth and profitability through premium brands and backward integration. In July, Managing Director Amar Sinha said the company was targeting mid-teen volume growth and around 18% revenue growth in FY27, with EBITDA margins expected to remain in the mid-teens before improving over the following two years.

The company had earlier guided for a 17% EBITDA margin by FY28, while Sinha indicated that the company could exceed that target. In Q1 FY27, Allied Blenders and Distillers reported revenue of Rs 978 crore, profit after tax of Rs 45 crore and an EBITDA margin of 11.8%. Shares of Allied Blenders and Distillers Ltd ended at Rs 631.85 on the BSE, up Rs 20.45, or 3.34%.