Tilaknagar Industries acquires Imperial Blue from Pernod Ricard

Tilaknagar Industries has signed an agreement to acquire the Imperial Blue whisky brand in India from France's Pernod Ricard for about Rs4150 crore in an all-cash deal, entering the whiskey segment which accounts for about two-thirds of India's spirits market.

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Tilaknagar, which sells Mansion House brandy, said the deal includes Rs282 crore which will be paid in four years after completion of the transaction. It also said it will raise upto Rs6500 crore, including upto Rs2,500 crores in equity or equity linked securities and the remaining in debt securities in one or more tranches.

Pernod said the transaction to part with India's third biggest whiskey brand is due to its continuous assessment of its strategic opportunities, and the sale will enable the business to fully tap into premiumization trends and support sustained, profitable growth.

"By exiting the admix value segment, this disposal will allow Pernod Ricard India to unlock further profitable growth and sharpen its focus on premiumization and innovation. It will also enable the company to allocate resources more effectively toward high-growth brands," said Jean Touboul, CEO of Pernod Ricard India.