Tilaknagar Industries To Acquire Imperial Blue for Rs 4,150 Crore

Mumbai, 24 July 2025: Tilaknagar Industries Ltd (BSE: 507205 | NSE: TI) has announced the acquisition of Imperial Blue whisky from Pernod Ricard India in a deal valued at approximately ₹4,150 crore (€412.6 million), making it one of the most significant Indian-led takeovers in the country’s alcoholic beverage sector.

 The move marks Tilaknagar’s strategic entry into the whisky segment and a major shift from its traditional brandy-focused portfolio. On 24 July 2025, at 9:50 AM IST, Tilaknagar Industries Ltd’s share price was trading at ₹478.50, up by ₹5.25 or 1.11% from the previous close. The stock opened at ₹480.80 and touched an intraday high of ₹496.50, which also marks its new 52-week high, before slipping to a low of ₹473.25. The market capitalisation stood at approximately ₹9,300 crore, with a P/E ratio of 40.52. The positive market response follows the announcement of the ₹4,150 crore Imperial Blue acquisition.

Whisky Acquisition Gives Tilaknagar a Powerful Edge Over Rivals

The acquisition is structured as a slump sale and will give Tilaknagar complete control over the Imperial Blue brand – India’s third-largest whisky label by volume, which clocked revenue of ₹3,067 crore in FY25 and sold 22.4 million 9-litre cases during the same period. The company expects the deal to close within six months, pending approval from the Competition Commission of India (CCI).

Tilaknagar’s Transformation from Brandy Leader to IMFL Powerhouse

This acquisition will significantly alter the company’s brand architecture. Known for popular products like Mansion House Brandy and Courrier Napoleon, Tilaknagar Industries will now expand its footprint into the whisky segment – a category it had previously not dominated. With the addition of Imperial Blue, the combined brandy and whisky portfolio will reach 34 million 9-litre cases, making Tilaknagar a stronger and broader Indian-made foreign liquor (IMFL) player across India.

Strategic Deal Structure Ensures Balanced Growth Through Debt and Equity

The deal’s financial structure includes a mix of debt and equity funding. It also features a deferred payment component of €28 million (approx. ₹282 crore), payable after four years. Financial and legal due diligence was managed by Deutsche Bank, Avendus Capital, Deloitte, Crawford Bayley & Co., and W.S. Kane & Co.

Top Executive Confirms Focused Expansion and Premiumisation Strategy

Amit Dahanukar, Chairman and Managing Director of Tilaknagar Industries, stated that the acquisition marks a deliberate move to widen the company’s product offering and address India’s evolving consumer preferences. He added that Imperial Blue will act as a cornerstone for the company’s premiumisation journey within the whisky space.

Acquisition Snapshot

• Acquirer: Tilaknagar Industries Ltd
• Seller: Pernod Ricard India Pvt Ltd
• Deal Value (Enterprise Value): €412.6 million (~₹4,150 crore)
• Deferred Payment: €28 million (~₹282 crore) after 4 years
• Brand Acquired: Imperial Blue
• FY25 Revenue of Imperial Blue: ₹3,067 crore
• Volume Sold (FY25): 22.4 million 9-litre cases
• Expected Deal Closure: Within 6 months (subject to CCI approval)
• Financing Structure: Debt and equity mix

Financial Strength Backed by Consistent Growth and Profitability

For FY25, Tilaknagar Industries reported standalone revenue of ₹414 crore, registering a 14.2% YoY growth. Net profit for the quarter stood at ₹77 crore, a 145.9% jump from the previous year, showcasing strong profitability momentum. The operating profit margin reached 19.33%, up from 17.73% in the previous quarter, indicating improved cost efficiency and operating leverage.

On a full-year basis, the company clocked consolidated revenue of ₹1,405 crore and EBITDA of ₹226 crore, reflecting a solid performance across segments.

Key Financial Metrics Reflect Tilaknagar’s Strong Market Standing

Tilaknagar Industries Ltd outperforms many of its peers across key financial metrics. Its market capitalisation of ₹9,408.7 crore is notably higher than the industry median, reflecting strong investor trust. The PE ratio of 41 surpasses the sector average, while a low PEG ratio of 0.6 suggests better value for growth.

Though operating revenue growth (TTM) at 2.9% is modest, its quarterly net profit growth of 145.9% is among the highest in the industry. With an operating profit margin of 19.3%, ROE of 26%, and ROA of 18.9%, Tilaknagar remains a market standout in returns and profitability.

About Tilaknagar Industries Limited

Established in 1933 as Maharashtra Sugar Mills by Shri Mahadev L. Dahanukar, Tilaknagar Industries Ltd has grown into a leading name in India’s IMFL space. Operating 21 manufacturing units across 12 states, the company boasts an expanding product portfolio across whisky, brandy, rum, and gin segments – including Mansion House Whisky, Madiraa Rum, and Blue Lagoon Gin.

About Pernod Ricard India

Pernod Ricard is a globally renowned spirits and wine group headquartered in France. With iconic brands such as Absolut, Chivas Regal, The Glenlivet, and Jameson, the company recorded consolidated sales of €11.6 billion in FY24. The group continues to focus on premiumisation, sustainability, and responsible consumption globally.

This landmark acquisition marks a defining moment in the Indian IMFL industry. With Imperial Blue now under its umbrella, Tilaknagar Industries is poised to emerge as a formidable player across multiple liquor categories. The strategic synergy, robust financial base, and diversified brand portfolio signal a new growth era for the 90-year-old company.

REF:https://www.bseindia.com/xml-data/corpfiling/AttachLive/77334493-f4ae-4b8e-bae4-c49341d8340c.pdf

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