Allied Blenders acquires 50% stake in Kion

Allied Blenders and Distillers (ABD) is set to snap up a 50% stake in Kion Blenders Industries Private Limited for up to ₹45 crore, in a strategic move to lock in long term supply and enhance its distillation capacity.

The deal will support a new ₹300 dual-mode crore distillery in Andhra Pradesh, significantly boosting ABD’s distillation capacity and supply chain security. The 200 KLPD dual-mode distillery in Vizianagaram is forecasted to be commissioned by Q4 FY28, subject to regulatory approvals.

Kion, incorporated in August 2025, is an alcohol value chain business that deals with the distilling, rectifying, refining, fermenting and blending of extra neutral alcohol, ethanol, industrial and potable alcohol.

ABD is India’s third-largest spirits company. It focuses on building an integrated supply chain for extra neutral alcohol to support its branded liquor portfolio and increase capacity in key markets.

Strategic step

Through the acquisition, with the initial stages expected to be completed by June 2026, Kion will become a subsidiary of the Mumbai-based liquor giant. 

The strategic investment marks a major step in ABD’s strategy to expand its manufacturing footprint and secure its raw material supply chain, reflecting broader industry trends of premiumisation and burgeoning demand for alcohol-based products in India.

ABD’s portfolio includes Indian whiskies Officer’s Choice, Iconiq White Whisky and Sterling Reserve Premium Whiskies.

Plans in the works

In 2024, the volume sales for each whisky in respective order were 21.3 million nine-litre cases, 4.5m cases and 3.9m cases.

The spirits company currently has its fingers in many pies. At the start of the year, the drinks company announced it was set to acquire a non-operational distillery and bottling facility in India from liquor producer National Industrial Corporation (NICOL), located in Moradabad, Uttar Pradesh.

Furthermore, the construction of a single-malt distillery in Rangapur, Telangana is currently in the works, with a separate PET bottle manufacturing facility commissioned in the region last year.

Last August, the spirits business axed plans to acquire a 51% majority stake in drinks producer Good Barrel Distillery.

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