India's Tilaknagar open to another large deal after Imperial Blue buyout, chairman says

• Imperial Blue acquisition transformed Tilaknagar's scale, with revenue nearly tripling to $107.46 million in Q1 and the whisky brand accounting for nearly two-thirds of total sales volume
• Chairman Amit Dahanukar said the company would consider deals of similar scale (around twice their previous revenue) and is focused on craft spirits in the high-growth super premium and luxury segments
• India's fragmented market and state-level regulations create consolidation incentives, with the country expected to become the world's largest spirits market by volume by 2032 as millions reach legal drinking age annually

Summary

Key Transaction: India's Tilaknagar Industries completed a nearly $500 million acquisition of Imperial Blue whisky brand from Pernod Ricard and is now pursuing additional large-scale acquisitions in the spirits sector.

Financial Performance: The Imperial Blue deal significantly transformed Tilaknagar's operations, with Q1 revenue nearly tripling to 10.26 billion rupees ($107.46 million) for the quarter ended June 30. Imperial Blue now accounts for approximately two-thirds of total sales volume.

Strategic Direction: Chairman and Managing Director Amit Dahanukar confirmed the company remains open to deals of similar magnitude, with no minimum revenue threshold for acquisition targets. The focus is on craft spirits within the high-growth super premium and luxury segments, though all spirits categories are under consideration. The company will maintain a disciplined approach using a debt-equity mix similar to the Imperial Blue purchase.

Market Context: India's spirits market is experiencing accelerated consolidation, with recent deals including United Spirits' acquisition of Nao Spirits and Sazerac's stake in John Distilleries. This consolidation is driven by industry fragmentation and challenging state-level regulations that make building national scale difficult.

Market Outlook: According to IWSR data, India is projected to surpass China as the world's largest spirits market by volume by 2032, fueled by millions of consumers reaching legal drinking age annually. This growth potential is driving significant investor interest in India's spirits industry.

Companies Mentioned: Tilaknagar Industries, Pernod Ricard, United Spirits, Nao Spirits, Sazerac, John Distilleries.