Pernod signals Indian ambition

Pernod Ricard’s Indian subsidiary has extended its borrowing limit to Rs1,500 crore (£161.5 million), a sign that the group is keen to tackle rival Diageo’s current dominance of this market.

Layout 1According to a report in the Economic Times, Pernod Ricard gave no indication of when it might use these extra funds, although a spokesperson told the paper: “A resolution was passed by the board of directors to increase the aggregate borrowing limit for ongoing business operations and working capital requirements.”

The move follows an earlier Rs900 crore (£96.9m) borrowing by Pernod Ricard in June 2014 as the company moved to maintain the 18% profit rise it enjoyed in the Indian market during the 2013/14 financial year.

With the help of leading domestic brands Imperial Blue, Royal Stag, Blenders Pride and 100 Pipers, as well as distribution rights for other Pernod brands such as The Glenlivet and Absolut Vodka, the group will no doubt be hoping to take advantage of recent turmoil at United Spirits which, together with its major shareholder Diageo, holds a combined 36% volume share of the Indian spirits market.

Boasting annual sales of 15m cases, Royal Stag is the biggest seller by volume of all Pernod’s brands, with Imperial Blue not far behind at 12m sales.

Pernod Ricard’s new CEO Alexandre Ricard has made no secret of his wider ambition to steal Diageo’s position as the world’s biggest spirits company, although he indicated that the growing African drinks market was the group’s prime target. However, as part of this drive the company announced last year that it was taking steps to produce its Imperial Blue and Royal Stag Indian whisky brands on this continent as well.

Leave a Reply

Your email address will not be published. Required fields are marked *

Please note that comments are subject to our posting guidelines in accordance with the Defamation Act 2013. Posts containing swear words, discrimination, offensive language and libellous or defamatory comments will not be approved.

Subscribe to our newsletters

Sale & Operations Manager

Marussia Beverages
Marylebone, London, UK

PRESTIGE ACCOUNT MANAGER – EUROPE

Jackson Family Wines
London, UK

Sales Executive

MAISON SASSY
London, GB

Head of Supplier Management - Group

Matthew Clark
London and Bristol, UK

Brand Manager – Whisky

ATOM Brands
Tunbridge Wells, UK

Brand Manager - Gin

ATOM Brands
Tunbridge Wells, UK

International Business Development Assistant

iDealwine
Paris, France with frequent trips to London office

Events Assistant

Speciality Drinks
London, UK

Sales Administrator

Les Caves de Pyrène
Guildford, UK

Pink Rosé Festival

Cannes,France
7th Feb 2018

VinoVision Paris

Paris,France
12th Feb 2018

Vinisud

Montpellier,France
18th Feb 2018
Click to view more

Champagne Masters 2017

The only Champagne blind tasting in the UK, the competition will reward the best wines in the following categories:

The Global Rosé Masters 2017

With wines from the palest of pink to almost ruby red, bone dry to almost cloyingly sweet, reductively handled to barrel-aged, as well as gently spritzy to fully sparkling.

Click to view more