Tilaknagar Industries, known for its Mansion House brandies, is reportedly the leading contender to acquire the popular Imperial Blue whisky brand from French giant Pernod Ricard. At 10:05 AM, Tilaknagar Industries share price was up 2.84% and was trading at ₹367.65.
This potential deal, valued at up to US$600 million, could become the largest merger and acquisition (M&A) in India's liquor industry in over a decade, surpassing Diageo's US$1.9 billion acquisition of United Spirits in 2013.
As per ET news reports, Tilaknagar Industries, currently India's fifth-largest alcoholic beverage company by market value, has submitted a more favourable offer than Inbrew Beverages, a company founded by London-based entrepreneur Ravi Deol. Tilaknagar has been asked to submit a final binding bid by June 23, 2025.
This significant acquisition would be funded through a mix of existing company funds, bank loans, and private equity investments. Interestingly, Japan’s Suntory Holdings, makers of Jim Beam and Maker’s Mark whiskies, initially showed interest but decided not to proceed.
For Tilaknagar Industries, led by Amit Dahanukar, acquiring Imperial Blue would be a major step in expanding its brand presence and diversifying its product range beyond brandy. While brandy accounts for over 90% of Tilaknagar's sales, the company ventured into the whisky market in 2012, leveraging its flagship Mansion House brand.
The company continues to maintain its focus on growing its presence in both brandy and other Indian Made Foreign Liquor (IMFL) categories through its own brands and strategic investments. Tilaknagar Industries has a history of acquisitions, including Round The Cocktails, Spaceman Spirits, and Incredible Spirits.
Imperial Blue is a globally recognised whisky brand, ranking as the eighth bestselling whisky worldwide. In 2023, it sold 22.8 million nine-litre cases, although this is a slight decrease from its 2019 sales of 26.3 million cases.
The brand was first introduced in India by Canadian distiller Seagram in 1997. After Seagram sold its global business in 2001, Pernod Ricard took over the Indian operations and relaunched Imperial Blue in 2002 with its iconic "men will be men" advertising slogan. This campaign significantly contributed to its success, making it Pernod Ricard’s largest brand by volume in India.
Pernod Ricard's decision to sell Imperial Blue signals a strategic shift towards focusing on its premium brands, such as Glenlivet, Jameson, and Chivas Regal, in the region. This move mirrors a similar action by UK-based Diageo, which sold 32 of its lower-margin Indian brands, including Haywards and Old Tavern, to Inbrew in 2022 for ₹820 crore.
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The potential acquisition of Imperial Blue by Tilaknagar Industries marks a significant development in India's alcoholic beverage industry. It highlights a trend of major international players streamlining their portfolios while homegrown companies like Tilaknagar aim to expand their market footprint.
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Published on: Jun 4, 2025, 10:17 AM IST
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