Inbrew and Tilaknagar seek private debt to acquire Imperial Blue

New Delhi: Indian liquor makers Inbrew Beverages and Tilaknagar Industries are intensifying their bid to acquire Pernod Ricard’s popular Imperial Blue whiskey brand, scouting private credit markets to raise approximately $500 million each, as per a Reuters report. 

Imperial Blue, India’s third-largest whiskey brand by sales, is valued between $600 million and $650 million, based on recent estimates. The French spirits giant is reportedly divesting the brand as part of a strategic shift toward higher-margin premium labels like Glenlivet and Chivas Regal. 

Both Inbrew and Tilaknagar have reached out to private credit funds to secure the necessary financing, with fund managers indicating that commitments have been made to support the winning bidder.

The competition between the two firms is heating up, with advanced talks suggesting a potential deal closure within the next month. Avendus Capital is advising Tilaknagar, while Standard Chartered Bank is backing Inbrew. 

The acquisition, if successful, would eclipse the last major deal in the sector—Diageo’s $1.9 billion purchase of United Spirits in 2013.

Tilaknagar, known for its Mansion House brandy, sees the acquisition as a chance to diversify into the whiskey segment, where it currently holds a limited presence. Inbrew, led by London-based entrepreneur Ravi Deol and boasting a portfolio that includes Bagpiper Whiskey, aims to solidify its position as a key player in the industry. 

The race has also drawn past interest from Japanese firm Suntory, though it recently withdrew its bid.