India: Allied Blenders acquires distillery assets

Allied Blenders & Distillers (ABD), the Indian spirits manufacturer best known for its Officer’s Choice whisky, has approved the acquisition of production assets from National Industrial Corporation (NICOL) in a deal valued at up to 110 crore ($12.1 million).

The transaction, cleared by the company’s board on 16th January, involves the purchase of land, buildings, plant, machinery and licences at a non-operational facility in Moradabad, Uttar Pradesh. The total investment comprises 70 crore INR ($7.7 million) for the acquisition of the assets and an additional 40 crore INR ($4.4 million) earmarked for infrastructure upgrades and the installation of a new bottling unit.

The move is designed to secure production capabilities for the recently listed company. In a regulatory filing, the company stated: “The proposed acquisition is in line with the growth strategy and to enhance backward integration capabilities of the company… This acquisition will enhance our IMFL bottling capacity in Uttar Pradesh and also enable us to expand the distillery capacity to increase captive consumption of ENA [Extra Neutral Alcohol]”.

The deal is expected to close by 31st July, with the facility upgrades scheduled for completion within 12 months of the acquisition.

Source: Allied Blenders and Distillers / Economic Times