Tilaknagar Industries Acquires Imperial Blue Whiskey for Rs 4,150 Crore
Tilaknagar Industries Ltd (TIL), a business known for its flagship Mansion House Brandy, has entered the Indian whiskey space by acquiring the Imperial Blue business from Pernod Ricard India. The acquisition is an all-cash deal worth Rs 4,150 crore and is one of the largest liquor transactions in India since Diageo's acquisition of United Spirits in 2014.
The acquisition firmly establishes Tilaknagar as a viable player in India's whiskey market, which the company had not aspired to, despite being among the leading players in India's IMFL (Indian-Made Foreign Liquor) brandy market.
Deal Terms and What’s Included
According to a statement released by Tilaknagar, the company has signed definitive agreements with Pernod Ricard India for the full acquisition of the Imperial Blue business unit. The transaction covers:
- Imperial Blue’s brand rights and product portfolio
- Operational and distribution infrastructure across India
- Certain production and bottling assets (pending disclosure)
- Associated commercial contracts and licenses
The financing plan will consist of both debt and equity, with Avendus Capital serving as exclusive financial advisor and financing arranger to Tilaknagar. Legal support was provided by Crawford Bayley & Co. and W.S. Kane & Co. with diligence being facilitated by Deloitte.
The transaction is subject to the approval of the Competition Commission of India (CCI) and will take several months to close.
Strategic Shift for Tilaknagar
This isn't merely a category extension for Tilaknagar- it is a strategic pivot. By entering whiskey, the manager is moving into the most competitive and largest-volume spirits category in India.
“Having attained a leadership position in the brandy segment, it is now time for us to diversify and go wider in the portfolio to cater to the increasingly diverse and evolving consumer base in India,” said Amit Dahanukar, Chairman and Managing Director of Tilaknagar Industries Ltd. “This acquisition allows us to enter the whiskey category with one of the most trusted and loved brands while we continue to grow organically."
Brandy makes up a small part of the company's business, even though Mansion House is the top-selling brandy in India and second-largest in the world. However, whiskey is a much larger part of India's IMFL market, so it was a logical acquisition.
Why Imperial Blue?
Imperial Blue is India’s third-largest whiskey brand, with strong brand recall, deep distribution reach, and a loyal consumer base in the mid-price segment. It’s a volume-driven brand that has consistently held its ground against rivals like McDowell’s No. 1 and Royal Stag.
Industry experts say the deal gives Tilaknagar instant credibility in a segment where organic growth can take years.
The buyout also creates a platform for Tilaknagar to create a more diversified IMFL portfolio beyond its currently existing products of Mansion House, Blue Lagoon gin, and Madira Gold rum.
Pernod Ricard’s Focus on Premiumisation
The sale fits into a global strategy for Pernod Ricard, looking to move away from high-volume, low-margin brands and lean into more premium and luxury brands.
"This sale reinforces the portfolio of Pernod Ricard India, allowing the business to fully capture premiumisation trends and support profitable and sustainable growth," the company said in a statement.
India is Pernod Ricard's second-largest market after the US, and the group intends to concentrate on its premium portfolio such as Chivas Regal, Ballantine's, Jameson, and Absolut Vodka.
Straight from the company's CEO, Alexandre Ricard: "We are pleased to announce, the Imperial Blue business division—we see this as strategic in terms of sharpening focus on more profitable and faster growth brands in India, as we do in the rest of the world."
Market Reaction
The deal has already affected Tilaknagar's stock. Shares have increased almost 31% over the past month, and investors are excited about the high demand category the company is entering.
On July 24, Tilaknagar stock traded at Rs 491 on the NSE, up 3.75% intraday, with volumes over 13 million shares by 3 PM.
Market participants view the acquisition as providing the company with earnings visibility over the next few years. However, it is unclear how well the integration process goes, and if the company can return Imperial Blue’s market share after the handover.
A Look at India’s IMFL Market Landscape
India’s liquor market is one of the largest globally, and whiskey dominates the IMFL space by a large margin.
Market Share by Segment – IMFL India (2025 Estimate)
| Category | Share (%) | Leading Brands |
| Whiskey | 59% | McDowell’s No.1, Royal Stag, Imperial Blue |
| Brandy | 19% | Mansion House, Old Admiral |
| Rum | 13% | Old Monk, Contessa |
| Others | 9% | Magic Moments (vodka), Blue Lagoon (gin) |
While Tilaknagar has historically focused on brandy and rum, entering the whiskey category puts it in direct competition with legacy players like Diageo’s United Spirits, Radico Khaitan, and Allied Blenders & Distillers.
Past Deals Offer Clues
This is not the first United Spirits, owned by spirits major Diageo, and profits from mass-market brands. In particular, in May 2022, United Spirits sold 32 brands—in particular, Haywards, White Mischief, and Old Tavern—to Inbrew Beverages for $106 million in a recent portfolio relaunch.
When Diageo bought United Spirits for approximately $1.9 billion in 2014, it opened the doors to large-scale consolidation in India's liquor sector. The Imperial Blue acquisition by Tilaknagar may not reach that level; however, the intent is similar - to take the lead through acquisition rather than slowly by organic means.
What Lies Ahead
The months following deal closure will be critical. For Tilaknagar, key priorities will include:
- Retaining existing consumer base of Imperial Blue
- Managing distribution overlaps with existing products
- Ensuring smooth brand transition without disrupting volumes
- Handling debt repayment without stressing margins
Analysts also expect Tilaknagar to leverage Imperial Blue to introduce premium variants, potentially capturing more affluent whiskey drinkers down the line.
Meanwhile, the success of this deal may inspire other regional players to consider similar growth-through-acquisition strategies as competition intensifies in the post-COVID liquor market.
Final Word
With this acquisition, Tilaknagar Industries has emerged from being a brandy specialist to a multi-category player in the IMFL (Indian Made Foreign Liquor) category. The gain of Imperial Blue not only gives it immediate access to India's largest spirits segment - but it will also provide Tilaknagar Industries the opportunity to broadly diversify its portfolio in the future.
The next few quarters should indicate whether Tilaknagar can convert this audacious wager into a long-term market gain or if the transition is more complicated than anticipated.
Read also: How Rum Is Made: From Sugar Cane to Spiced and Aged Rums
