Tilaknagar Industries Acquires Imperial Blue for INR 3442 Crore
Filing Summary
Tilaknagar Industries Limited has completed the acquisition of the Imperial Blue business division from Pernod Ricard India for a lump-sum consideration of INR 3442 crore. The transaction, approved by the Competition Commission of India, includes a deferred payment of €28 million due in 2029. The acquisition is funded through internal cash, equity, and debt, raising INR 2093 crore via equity and INR 2100 crore through loans. The deal includes brand rights, manufacturing units, and a workforce transfer, enhancing Tilaknagar’s presence in the Indian whisky market.
Tilaknagar Industries Limited has finalized the acquisition of the Imperial Blue business division from Pernod Ricard India Private Limited. The transaction was completed for a lump-sum consideration of INR 3442 crore, subject to post-closing adjustments as per the Business Transfer Agreement. This acquisition expands Tilaknagar Industries’ footprint in the Indian whisky market, adding significant volume to its portfolio.
The financial structure of the acquisition includes a deferred payment of €28 million, scheduled for four years post-closure, on November 30, 2029. The acquisition was financed through a combination of internal cash accruals, fresh equity, and external debt. Tilaknagar Industries raised INR 2093 crore through a preferential issue of equity shares and warrants to marquee investors and the Promoter Group. Additionally, the company secured INR 2100 crore through term loans. The transaction received approval from the Competition Commission of India on October 7, 2025.
The acquisition grants Tilaknagar Industries access to the “Imperial Blue” brand and its allied trademarks, including “Imperial Black” and “Imperial Red,” on a global scale. A Trademark License Agreement has been established for the use of “Seagram’s” in connection with Imperial Blue for a defined transition period. The company has also entered into a long-term supply agreement with Chivas Brothers for Concentrated Alcoholic Beverage, a key raw material for manufacturing Imperial Blue products. To facilitate a smooth transition, a Transitional Services and Manufacturing Agreement has been signed with Pernod Ricard India.
The Imperial Blue business division is the third-largest whisky brand in India by volume, with sales of approximately 22.4 million 9-litre cases for the year ending March 2025. The business reported a revenue of INR 3067 crore for the trailing twelve months ending March 2025. The acquisition includes two owned manufacturing units in Punjab and Maharashtra, and two exclusive sub-leased units in Telangana and Punjab. Additionally, Tilaknagar Industries will have access to certain shared units during the transitional period. As part of the transaction, 116 employees are expected to transfer from Pernod Ricard India to Tilaknagar Industries.
The acquisition was facilitated by financial advisors Deutsche Bank and Avendus Capital, with Avendus Capital also serving as the debt financing arranger. Legal counsel was provided by Crawford Bayley & Co. and W.S. Kane & Co., while Deloitte conducted finance and tax diligence. Ernst & Young has been appointed to provide Integration Planning & Execution Advisory for the acquisition.
Tilaknagar Industries is a prominent player in the Indian alcoholic beverage industry, with a history spanning over 90 years. The company, originally founded as Maharashtra Sugar Mills, has evolved into a major entity in the India Made Foreign Liquor sector. Its brand portfolio includes Mansion House and Courrier Napoleon brandies, as well as a strong presence in whisky, rum, and gin. Tilaknagar Industries continues to expand its offerings, recently entering the luxury segment with Monarch Legacy Edition Brandy and Seven Islands Pure Malt Whisky.