Tilaknagar Industries, which makes the top-selling Mansion House brandy, and Inbrew Beverages which is behind Bagpiper Whiskey and White Mischief Vodka, are amongst suitors gearing up to enter the final round of the ongoing sale process of Imperial Blue whiskey by French liquor giant Pernod Ricard, multiple industry sources in the know told Moneycontrol.
"Post the submission of non-binding bids, due diligence is going on currently on the proposed transaction, which was initiated by Pernod Ricard. The binding bids are expected by late December or may slip into January," said one of the persons above.
Via the Imperial Blue sale process, Pernod Ricard can focus on higher-margin, premium brands like Chivas Regal, Glenlivet and Jameson.
A second person told Moneycontrol that investment bank Goldman Sachs was acting as the sell-side advisor on the deal.
"Tilaknagar Industries is keen on expanding in the whiskey segment and Inbrew Beverages has struck a deal in the sector a few years back following a strategic review of select popular brands of United Spirits," this person added.
The two persons above spoke on the condition of anonymity.
Moneycontrol could not independently verify the deal valuations or if there are any other bidders in the race.
Mansion House Gold Barrel whiskey, Blue Lagoon gin, Madira Gold Dark XXX rum also form part of the Tilaknagar Industries portfolio.
On other hand, brands like Green Label whiskey, Old Tavern whiskey, Diplomat whiskey, Blue Riband Gin, Romanov Vodka, Doctor's Brandy and Miller Beer fall under the Inbrew Beverages umbrella in India.
In response to an email query from Moneycontrol, a spokesperson for Pernod Ricard said, "Pernod Ricard regularly reviews strategic options for its development, including the evaluation of its business portfolio. As a matter of company policy, the company does not comment on market rumours or speculations."
Multiple emails and reminders to Tilaknagar Industries remained unanswered at the time of publishing this article. Text messages to the Chairman and MD Amit Dahanukar were also left unanswered. This article will be updated as soon as we hear from the firm.
When contacted, Inbrew Beverages said, "We do not respond to speculation and therefore cannot comment on the issue." Goldman Sachs couldn't be reached for an immediate comment.
Mint was the first to report the sale plans of Imperial Blue on September 4.
In May 2022, in a similar move, aimed at focusing on brands like Johnnie Walker whiskey, Pernod Ricard's global rival Diageo's arm United Spirits sold 32 low-margin, locally produced brands like Haywards, Old Tavern and Green Label to Inbrew Beverages for $106 million.
During the Q2 FY25 earnings call, Ameya Deshpande, President (Strategy and Corporate), Tilaknagar Industries said, "Our vision 2030 would be more like an 80:20 saliency whereby 80 percent of our business is still driven by brandy, but non-brandy kind of expands to 20 percent from the current 6 percent."
In the past, Tilaknagar Industries has made investments in the alco-bev segment, including ready-to-pour -beverage company Bartisans and Spaceman Spirits, which owns Samsara Gin. The firm's consolidated net profit rose sharply by 55.7 percent to Rs 40.09 crore in Q1 FY25 as against 25.75 crore posted in Q1 FY24.
Imperial Blue and the Pernod Ricard India strategy
Imperial Blue was launched in India in 1997. Since it became part of Pernod Ricard in 2002, "its success has grown year on year, and today it is the group’s largest brand by volume," as per the firm's website.
It is Pernod Ricard's second bestselling Indian whisky, behind Royal Stag, having sold 22.8 million nine-litre cases in 2023 according to the Drinks International Millionaires’ Club.
In 2024, Pernod Ricard announced investment plans of up to €200 million in India – including the creation of one of India’s biggest malt distilleries. To set the foundations, the firm signed a Memorandum of Understanding with the Government of Maharashtra. The distillery, planned for construction in Nagpur, will be capable of producing up to 60,000 litres of fresh malt spirit per day.
Pernod Ricard's India focus is highlighted in its 2023-2024 annual report.
"India is poised to become a hub for authentic luxury and heritage craft. As the industry leader, Pernod Ricard is committed to playing a key role in accelerating the country’s growth in the luxury sector. In line with the growing trend of premiumisation in India, our strategic focus is on offering quality over quantity – a paradigm shift that resonates with the evolving aspirations of this market’s consumers," the annual report says.
The annual report also adds that with over 500,000 9L cases sold in FY24, India has become Jameson’s second-largest market globally.
In other deals in the sector, Nikhil Kamath revealed he had a small minority stake in Magic Moments Vodka and 8 PM whiskey maker Radico Khaitan earlier in the year. Japan's Kirin Holdings invested $25 million and increased its stake in B9 beverages, the maker of Bira 91 and owner of the Beer Cafe chain.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
