Pernod Ricard India finds buyer for Imperial Blue
Tilaknagar Industries Limited has purchased Imperial Blue whisky from Pernod Ricard’s Indian subsidiary, despite rumoured interest from Japan’s Suntory Group.
Pernod Ricard has announced the sale of Indian whisky brand Imperial Blue to Tilaknagar Industries, one of India’s largest alcohol companies.
The news, announced on 23 July, comes one month after it was rumoured that Japanese multinational Suntory had renewed its bid to buy the brand from Pernod Ricard.
Suntory refused to confirm whether rumours of its renewed bid were true, telling db that the company does not comment on speculation as a matter of policy. However, it did not deny the claims made by local media over its interest in Imperial Blue.
Suntory’s rumoured bid came just days after it was reported that Tilaknagar Industries, which has been the frontrunner in the race to purchase Imperial Blue, was suffering from funding woes.
Tilaknagar Industries was reportedly looking to raise US$500 million to acquire the brand from Pernod Ricard, with a financing strategy expected to involve a mix of debt and equity, with a larger portion coming from debt.
The Indian firm has now purchased Imperial Blue for €412.6 million (US$486m), Reuters reported today (24 July).
Tilaknagar Industries is a dominant player in India’s brandy market with its Mansion House brand.
chairman and MD Amit Dahanukar said of the newly-penned deal: “Having achieved leadership in the brandy segment, it is now time for us to broaden our portfolio and cater to India’s diverse and evolving consumer base.”
The agreement includes a €28m deferred payment due four years after the closing of the deal. It also covers “two owned units and services from co-manufacturing bottlers across India”, Tilaknagar Industries said.
The company said its purchase “fast tracks its foray” into domestic whisky, “the largest IMFL [Indian-made foreign liquor] category in India”.
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“While we continue to grow our business organically, this strategic acquisition allows us to enter the whisky category with one of the country’s most trusted and admired brands.”
Tilaknagar Industries added that the acquisition will reinforce its “evolution into a truly pan-India player”.
Imperial Blue, launched in 1997, is a blend of Indian grain spirits with imported Scotch malts. The whisky brand is currently the third largest in India, but its performance over the past few years has been lacklustre. Overall volumes of Imperial Blue, which holds an 8.6% share of the market, have declined by 4% over the last five years. The brand recorded sales of 22.2 million cases in 2024, showing minimal growth compared to the previous year. Its falling sales coincide with the premiumisation trend which has evolved among Indian consumers in recent years.
Pernod’s premiumisation plans
Pernod Ricard sees India, the group’s second-largest market after the United States, as key to future growth.
The French multinational initially announced plans to sell Imperial Blue in September 2024, saying it wanted to focus its attention on premiumisation in India.
Alexandre Ricard, the company’s chairman and CEO, said yesterday that the sale marks a “strategic move to sharpen our focus on more profitable and faster growing brands in India, like in the rest of the world”.
He said: “This transaction represents a win-win for all stakeholders involved, both at the global and local level. It fuels our ambition to succeed even further in one of our top markets. This will further streamline our operations as we continue to invest in India’s outstanding growth.”
Jean Touboul, CEO of Pernod Ricard India added: “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 such as Royal Stag, which has already surpassed the 30-million cases milestone, Blenders Pride, and international brands like Chivas, Jameson, Absolut, and Ballantine’s.
“Driving the next phase of growth, we are entering an exciting new chapter, one that will see bold innovations and an expanded premium portfolio tailored specifically for the evolving Indian consumer.”
The transaction remains subject to the approval from the Competition Commission of India, and closing is expected to occur within the coming months.
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