Allied Blenders and Distillers Limited is the largest Indian-owned company in the Indian-made foreign liquor (IMFL) sector and ranked the third largest IMFL company in India by annual sales volume from Fiscal 2014 to Fiscal 2022, according to the Technopak Report. It stands out as one of the four spirits companies in India with a comprehensive pan-India sales and distribution network. In the Indian whisky market, the company had an estimated 11.8% market share by sales volume in Fiscal 2023.
The company launched its flagship brand, Officer’s Choice Whisky, in 1988, targeting the mass premium whisky segment. Between 2016 and 2019, Officer’s Choice Whisky was one of the top-selling whisky brands globally. As of August 31, 2023, the company's product portfolio included 17 major IMFL brands across whisky, brandy, rum, and vodka. Some of its notable brands, such as Officer’s Choice Whisky, Sterling Reserve, Officer’s Choice Blue, and ICONiQ Whisky, have sold over a million 9-liter cases annually.
Allied Blenders and Distillers Limited operates a distillery in Rangapur, Telangana, with an in-house distillation capacity of 54.75 million liters per year of extra neutral alcohol (ENA). The company also relies on 32 bottling facilities across India, including nine owned by the company. This extensive network allows flexibility in production and helps keep product prices competitive.
As of August 31, 2023, Allied Blenders and Distillers products were sold in 79,329 outlets across 30 states and union territories in India and exported to 14 international markets. The company has also invested significantly in brand building, leveraging partnerships with sports teams and celebrity endorsements to enhance brand awareness and consumer engagement.
With a diverse product range, extensive distribution network, and strong brand recognition, Allied Blenders and Distillers Limited has solidified its position in the Indian alcoholic beverages market, driving significant business growth and financial performance.
Industry Outlook:
- India’s domestic consumption, measured by PFCE, is expected to grow at a CAGR of 10.4% from Fiscal 2023 to Fiscal 2028, reaching USD 3.4 trillion. This growth indicates a strong increase in consumer demand, providing more opportunities for Allied Blenders and Distillers Limited (ABD) to expand sales and market penetration.
- Recorded alcohol per capita consumption in India grew from 1.3 litres in 2005 to 3.1 litres in 2022, with the market size projected to grow at a CAGR of 2.2% by volume from 2022 to 2027. The dominance of spirits, which account for over 92% of recorded alcohol consumption, suggests a healthy growth environment for the alcohol industry. Allied Blenders and Distillers can capitalise on this by introducing new products and expanding its reach in both urban and rural markets.
- India’s regulatory framework favors domestic players with high customs duties on imported alcohol. This protectionism helps Allied Blenders and Distillers Limited maintain a competitive edge against foreign brands. The trend towards premiumisation and the growing base of new consumers offer a substantial market for ABD's premium and mid-range products.
Allied Blenders and Distillers Ltd. IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- Allocate ₹7,200 million from the Net Proceeds to prepay or repay certain loans to reduce overall debt and debt servicing costs.
- Deploy the remaining Net Proceeds for general corporate purposes, not exceeding 25% of the Gross Proceeds.
Peer Details
The following are the listed industry peers of Allied Blenders and Distillers Limited:
- United Spirits Limited
- Radico Khaitan Limited
- Globus Spirits Limited
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Contact Details of Allied Blenders and Distillers Limited
Registered office: 394-C Lamington Chambers, Lamington Road, Mumbai– 400 004, Maharashtra, India
Email: Complianceofficer@abdindia.com
Phone: +91 22 43001111
IPO Financials
| Particulars | Year ending on March 31, 2023 | Year ending on March 31, 2022 |
|---|---|---|
| Revenue from Operations (in ₹ lakh) | 71,056.80 | 71,969.20 |
| Profit After Tax (PAT) (in ₹ lakh) | 16.01 | 14.76 |
| Cash & Cash Equivalents (in ₹ lakh) | 275.45 | 196.70 |
| Return on Net Worth (%) | 0.39 | 0.37 |
| Earnings Per Share (“EPS”) (%) | 0.07 | 0.06 |
| EBITDA(in ₹ lakh) | 1,960.61 | 2,075.51 |
| Return On Capital Employed (%) | 25.87 | 25.13 |
Know before investing
Strengths
5The company is one of the premier liquor companies in India, with an 8.2% market share in the IMFL category 2021 in sales volume.
Four Allied Blenders and Distillers Limited brands are 'Millionaire Brands.'
Allied Blenders and Distillers Limited excel in the premium segment with strong marketing.
Allied Blenders and Distillers Limited boasts advanced manufacturing and R&D facilities.
It has developed an extensive pan-India presence, serving all permitted states and Union Territories through 12 regional sales service offices.
Risks
5Allied Blenders and Distillers Limited's heavy reliance on whisky sales poses financial risks.
Any decline in the popularity of Allied Blenders and Distillers Limited's brands could harm profits.
Allied Blenders and Distillers Limited faces price control challenges across different states.
Supply chain disruptions could impact Allied Blenders and Distillers Limited's production stability.
Allied Blenders and Distillers Limited's participation in tenders exposes them to compliance risks.
