Tilaknagar Industries to raise Rs 6,500 crore to fund Imperial Blue acquisition from Pernod Ricard

New Delhi: Tilaknagar Industries (TIL), which is acquiring Imperial Blue from Pernod Ricard in an all-cash deal, plans to raise Rs 6,500 crore from the market through equity or equity-linked instruments.

Besides, the board of the home-grown achoBev firm TIL has also increased the "limits for borrowings and creation of encumbrances" to Rs 5,000 crore, while approving a deal worth approximately EUR 412.6 million (approx. Rs 4,150 crore) with French liquor giant Pernod Ricard.

The board approved to raise up to Rs 6,500 crore through a follow-on public offer, a rights issue, or a combination thereof, to any eligible investors.

This amount will comprise up to Rs 2,500 crore in equity and/or equity-linked securities, and up to Rs 4,000 crore in debt securities, in one or more tranches." It is also increasing the limits for investments and guarantees under provisions of the Companies Act, up to an amount of Rs 500 crore, according to a late-night regulatory filing on Wednesday by TIL, which owns brands such as Mansion House Brandy, Courrier Napoleon Brandy and Blue Lagoon Gin.

TIL, through its newly incorporated subsidiary Grain & Grape Works Private Ltd (GGWPL) has signed Business Transfer Agreement to acquire Imperial Blue business from Pernod Ricard India as a going concern on a slump sale basis along with its business of production, bottling, marketing and sale of alcoholic and other beverages under the brands for an enterprise value of EUR 412.6 million.

This is a major step for TIL, which had reported a revenue of Rs 1,405 crore for the year ended March 2025.

Moreover, TIL had become a net debt-free company last fiscal only in the September quarter, after successfully restructuring its debt.

Acquisition of Imperial Blue will place TIL among the leading players in the growing whisky market in the country.

Imperial Blue is the third-largest whisky brand in India by volume.

It has reported a revenue of Rs 3,067 crore for the year ended March 2025 and contributed nearly 10 per cent of Pernod Ricard India, which had reported a consolidated sales revenue of Rs 26,773.22 crore in FY24.

"The proposed transaction includes the acquisition of Imperial Blue, which sold 22.4 million 9-litre cases in the year ended March 2025 across India and other markets. The brand is supported by two owned units and co-manufacturing bottlers across India," said TIL, the second-largest player in the brandy segment.

One of the primary objectives with regard to the acquisition of Imperial Blue Business Undertaking is to "create a pan India IMFL business," said TIL "The acquisition marks the company's foray into Indian whisky segment," it said.

The transaction is expected to be completed in a six-month period. However, it remains subject to regulatory approvals, such as from the Competition Commission of India.

According to TIL, the acquisition of Imperial Blue will act as a "launchpad for a significant whisky premiumisation journey", enabling it to build a strong whisky portfolio across premium price-points.

"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," said TIL Chairman and Managing Director Amit Dahanukar.

Pernod Ricard said the sale of the Imperial Blue whisky business will strengthen its portfolio, enabling its focus on "premiumisation trends and support sustained, profitable growth".

"As Pernod Ricard's second-largest market, India is a strategic priority, and this realignment improves the ability to capitalise on the country's strong macroeconomic fundamentals and long-term potential. Upon closing, the transaction is expected to be immediately and meaningfully accretive to Pernod Ricard India's operating margin and net sales growth rate," said the French spirits maker.

Pernod Ricard chairman and CEO Alexandre Ricard said the sale of the Imperial Blue business division is a strategic move to sharpen focus on more profitable and faster-growing brands in India.

"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," he said.

India is the second-largest market of Pernod Ricard, whose global portfolio comprises over 200 premium brands, including 100 Pipers, Chivas Regal, The Glenlivet, Absolut, Havana Club and Jacob's Creek.