A significant development has surfaced in the Indian liquor market. Pernod Ricard, the French company that owns popular brands like Imperial Blue in India, is reportedly preparing to sell this brand. Tilaknagar Industries is said to be leading the race in this deal, and an official announcement could be made soon.
Tilaknagar Industries' Interest Confirmed
Tilaknagar Industries, known for its 'Mansion House' brandy, is now preparing for a major entry into the whiskey market. The company is working to raise the necessary capital for this deal. A crucial meeting of its Board of Directors was held on Wednesday to discuss options for raising funds, including options like equity, debentures, warrants, and bonds.
Impact Seen in the Stock Market
As soon as the news broke, Tilaknagar Industries' shares witnessed activity. The company's stock rose by nearly 12 percent on Tuesday. Although a slight dip was observed on Wednesday, investor interest remained. The company's share has risen by about 28 percent in the past five days, reflecting investor expectations in this deal.
Imperial Blue is India's Third Largest Whiskey Brand
Imperial Blue is the third largest brand in the 'Deluxe Whiskey' category in India. Its popularity lies among those who neither buy very expensive liquor nor cheap liquor. The brand's sales, however, have remained stable in recent years. In 2024, its sales were 22.2 million cases, only 0.5 percent more than in 2023.
Brand's Inception and Journey
Imperial Blue was launched in 1997 by Seagram Company. Later, in 2002, France's Pernod Ricard acquired Seagram's global operations. Since then, this brand has been part of Pernod Ricard's portfolio. This whiskey is made from a blend of Indian grain and Scotch malt, which gives it a unique taste.
Why Pernod Ricard is Selling This Brand
In recent times, sales of Pernod Ricard's premium brands have been increasing, but the growth of mid-range products like Imperial Blue has been limited. The company now wants to focus on high-end products. This is why Pernod Ricard has decided to sell Imperial Blue.
Goldman Sachs is Facilitating the Deal
The responsibility for executing this deal has been assigned to Goldman Sachs. In addition, Ravi Deol's company Inbrew Beverages and Japanese company Suntory Global were also in the race to buy this brand. However, the bids made by both of them were lower than the bid of Tilaknagar Industries. In this situation, Tilaknagar is now considered to be the frontrunner.
What is the Market Share
According to an IWSR report, Imperial Blue had a market share of 8.6 percent in 2024. It ranks third in India after McDowell's and Royal Stag. However, due to slower sales growth, its graph has become somewhat stable.
Why This Opportunity is Important for the Company
This deal could be very important for Tilaknagar Industries. Until now, the company was mainly active in the brandy market. But if Imperial Blue falls into its hands, it will directly and bly place it in the Indian whiskey market. In addition, Tilaknagar already has a distribution network, which will make it easier for it to further expand this brand.
Company Has Already Prepared a Growth Plan
Tilaknagar Industries has been working to strengthen its operations in the past few months. The company aims to double its brand value in the next two years. In such a situation, the entry of Imperial Blue can prove to be a big step in the company's plans.
Major Change is Visible in the Liquor Market
A wave of change is running in the Indian liquor market. Consumers' preference is gradually moving towards the premium segment. Companies like Pernod Ricard now want to capitalize on this opportunity, and are focusing on the premium portfolio by selling mid-segment brands. Domestic players like Tilaknagar are now making new plans regarding these brands.
