Restaurant India News: AABL Acquires Kerala Distillery for Rs 30.85 Crore to Boost Supply Chain Control

Associated Alcohols & Breweries Limited (AABL), listed on BSE and NSE, has received approval from the National Company Law Tribunal, Kochi Bench, for its resolution plan to acquire SDF Industries Ltd. The approval, granted via an order dated April 16, 2026, covers the acquisition of a distillery-cum-bottling unit in Thrissur at a cost of Rs 30.85 crore. Upon completion, SDF Industries Ltd. will become a wholly owned subsidiary of AABL.

The acquisition is aimed at strengthening AABL’s operational presence in Kerala, a market it entered in 2018 and where it has since become one of the top three private players, with sales of approximately 1.5 lakh cases per month. For the hospitality sector, the move signals a shift toward tighter supply chain control and improved product availability in a high-consumption state.

Prasann Kedia, Managing Director – AABL, said, "We are extremely encouraged with the strong success achieved in Keralam, particularly with our White Brandy, the world’s first of its kind, which has been well accepted in Keralam and nearby states. We aim to further solidify this position with the help of this acquisition, thereby enhancing operational control and efficiency. This acquisition will also aid in the launch of new product offerings in Keralam, nearby states, and overseas exports. Over time, we expect operating leverage benefits to flow through, supporting improved margins and long-term value creation for all stakeholders as we continue our journey towards becoming a pan-India player.”

Currently, brands such as Lemount White Brandy, Lemount Black Rum, Jamaican Magic Rum, Mood Maker Brandy, and Mood Maker Orange Vodka are bottled through third-party arrangements. Post-acquisition, these operations will be shifted in-house within Kerala, which is expected to improve efficiency, ensure consistent quality, and support expansion plans across retail and on-premise consumption channels.

The company also plans to utilise surplus bottling capacity to generate additional revenue streams. Following the acquisition, AABL intends to upgrade the facility with new technology to meet its production standards, with operations expected to begin by September 2026.

Including bars, restaurants, and hotels, the development could lead to more stable supply, faster distribution cycles, and a broader product portfolio within the region, as alco-bev companies increasingly invest in localised production infrastructure to support demand growth.