Restaurant India News: Tilaknagar to Acquire Pernod Ricard’s Imperial Blue Business in Rs 4,150 Crore Deal

Leading Indian-Made Foreign Liquor (IMFL) manufacturer Tilaknagar Industries Limited (TI) has signed a definitive agreement to acquire the Imperial Blue (IB) business division from Pernod Ricard India Private Limited. The deal is being executed as a slump sale for a lump sum consideration based on an enterprise value of €412.6 million, equivalent to approximately Rs 4,150 crore at current exchange rates.

The transaction includes a deferred payment of €28 million (around Rs 282 crore), which will be paid four years post-closure, as per the terms outlined in the Business Transfer Agreement.

As part of the deal, TI will take over Imperial Blue’s operations, which reported 22.4 million 9-litre cases sold in the financial year ending March 2025. The brand’s operations span across India and other markets and include two company-owned units and services from several co-manufacturing bottlers across the country.

Imperial Blue is currently the third-largest whisky brand in India by volume, with a brand history exceeding 25 years. For FY25, the business reported revenue of Rs 3,067 crore.

Tilaknagar Industries is already a major player in India’s IMFL market, especially in the brandy segment, the second-largest IMFL category. The company’s flagship product, Mansion House Brandy, ranks among the highest-selling in India and globally.

This deal marks the largest acquisition in the Indian alcoholic beverages sector by an Indian company and accelerates TI’s entry into the whisky category, which remains the largest IMFL segment in the country. Post-acquisition, TI will have a combined volume of 34 million 9-litre cases as of March 2025, expanding its national footprint across both brandy and whisky.

Amit Dahanukar, Chairman and Managing Director, TI, stated, “Having achieved leadership in the brandy segment, it is now time for us to broaden our portfolio and cater to India’s diverse and evolving consumer base. While we continue to grow our business organically, this strategic acquisition allows us to enter the whisky category with one of the country’s most trusted and admired brands.”

Dahanukar also noted that the acquisition will support TI’s plans for premiumisation in the whisky category, with Imperial Blue serving as the cornerstone. “We’re excited to build on Imperial Blue’s strong foundation and take it to new heights,” he added.

The transaction is subject to regulatory clearance from the Competition Commission of India, with completion expected within six months from the signing date. TI plans to fund the deal through a mix of debt and equity. Deutsche Bank and Avendus Capital advised on the financial aspects of the deal, with Avendus Capital also acting as the exclusive financing arranger. Crawford Bayley & Co. and W.S. Kane & Co. provided legal counsel, and Deloitte served as the diligence advisor.

For the year ending March 2025, Tilaknagar Industries reported revenue of Rs 1,405 crore and EBITDA of Rs 226 crore. The acquisition reflects TI’s ongoing strategy to identify and execute growth opportunities that align with its long-term value creation goals for shareholders and stakeholders.