Allied Blenders Plans Acquisition of NICOL Distillery Assets in Uttar Pradesh

Allied Blenders and Distillers has announced board approval for the purchase of assets belonging to a non-operational distillery and bottling facility in Uttar Pradesh. 

The transaction involves acquiring infrastructure and licences from National Industrial Corporation Pvt Ltd (NICOL), alongside planned investment for modernisation. 

The move aligns with the company’s operational expansion strategy and aims to strengthen production capabilities in the region.

Details of the Proposed Acquisition

The company plans to acquire land, buildings, plant, machinery and associated licences at the Moradabad facility in Uttar Pradesh. 

The acquisition cost is expected to be up to ₹70 crore, including statutory duties and related charges. 

In addition, Allied Blenders intends to invest approximately ₹40 crore to upgrade infrastructure and establish a new bottling unit at the site.

Strategic Rationale

The Moradabad facility is positioned to support capacity expansion and improve backward integration in production. 

According to the company, the acquisition is intended to enhance Indian Made Foreign Liquor (IMFL) bottling capacity in Uttar Pradesh and support the expansion of distillery operations to increase captive consumption of extra neutral alcohol (ENA).

Investment and Timeline

The total planned outlay for acquisition and infrastructure enhancement is estimated at ₹110 crore. Allied Blenders has entered into definitive agreements for the transaction.

Completion of the acquisition is expected by 31 July 2026, with facility upgrades planned within 12 months thereafter.

Business Expansion Focus

This acquisition forms part of Allied Blenders’ broader growth initiatives to develop manufacturing capabilities and improve operational efficiency. 

The availability of adequate land at the Moradabad site provides scope for further expansion in line with future business requirements.

Read More: Varun Beverages to Acquire Non-Alcoholic Beverage Maker Twizza.

Conclusion

Allied Blenders’ proposed acquisition of NICOL’s distillery assets reflects a planned approach towards strengthening production infrastructure in Uttar Pradesh. The investment is expected to support capacity development and operational integration over the coming years, subject to completion of the transaction and scheduled upgrades.

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