Tilaknagar open to another large deal after $500M Imperial Blue buyout

Tilaknagar Industries is open to another acquisition on the scale of its nearly $500 million purchase of the Imperial Blue whisky brand from Pernod Ricard, Chairman Amit Dahanukar said, as consolidation accelerates in India's fragmented liquor market.

"Definitely we will consider another deal on that scale if the right opportunity emerges," Dahanukar said. "Before Imperial Blue, I would have never given a target number which had two times our revenue."

Revenue nearly tripled to 10.26 billion Indian rupees ($107.46 million) in the quarter ended June 30, with Imperial Blue accounting for nearly two-thirds of total sales volume. The maker of Mansion House brandy is open to any spirits category on acquisitions, with a focus on craft spirits in the super premium and luxury segments.

India is projected to become the world's largest spirits market by volume by 2032, surpassing China as millions of consumers reach legal drinking age each year, according to alcohol industry data provider IWSR. That growth trajectory, combined with state-level regulatory fragmentation, is driving a wave of consolidation as liquor makers seek national scale.

Consolidation Accelerates as Liquor Makers Seek National Scale

United Spirits' purchase of Nao Spirits and Sazerac's stake in John Distilleries show growing investor interest in India's spirits industry as liquor makers broaden portfolios and gain scale. Industry fragmentation and state-level regulations make it difficult for liquor makers to build national scale, creating incentives for consolidation, said Devangshu Dutta, founder of retail consultancy Third Eyesight.

Each Indian state sets its own excise duties and distribution rules, creating a patchwork of regulatory regimes that complicates national expansion. This fragmentation has historically favored regional players with deep local relationships, but it also creates opportunities for well-capitalized acquirers to consolidate brands and distribution networks across multiple states.

Dahanukar did not disclose how much the company had set aside for potential deals. He said Tilaknagar would be "disciplined" in financing future acquisitions, citing the mix of debt and equity used for the Imperial Blue purchase. The company's willingness to consider deals at two times its pre-acquisition revenue marks a significant shift in its M&A appetite, reflecting the scale transformation delivered by the Imperial Blue deal.

The Imperial Blue acquisition, announced in July 2025, gave Tilaknagar a flagship whisky brand to complement its Mansion House brandy portfolio. The deal was financed through a combination of debt and equity, a structure Dahanukar said the company would replicate for future acquisitions.

Revenue Triples to 10.26 Billion Rupees on Imperial Blue

The acquisition has already transformed Tilaknagar's financial profile. Revenue nearly tripled to 10.26 billion Indian rupees ($107.46 million) in the quarter ended June 30, with Imperial Blue accounting for nearly two-thirds of total sales volume. At the current exchange rate of 95.48 rupees per dollar, the quarterly revenue run-rate positions Tilaknagar as a more significant player in India's premium whisky segment.

For Pernod Ricard, the divestiture reflects a strategic portfolio rebalancing as the French spirits group focuses on its premium and luxury brands in India. The nearly $500 million sale price ranks among the largest brand acquisitions in India's spirits industry.

The consolidation trend is likely to continue as India's spirits market expands. IWSR projects India will overtake China as the world's largest spirits market by volume by 2032, driven by a young demographic reaching legal drinking age. That growth is attracting both domestic players seeking scale and international groups looking to enter or expand in the market.

For investors, the key question is whether Tilaknagar can sustain the growth momentum from the Imperial Blue acquisition and execute additional deals without overleveraging. The company's stated focus on craft spirits in the super premium and luxury segments suggests it is targeting higher-margin categories where brand equity commands pricing power. If Tilaknagar can replicate the Imperial Blue playbook — acquiring established brands at scale and integrating them efficiently — it could emerge as one of the top three spirits companies in India by the end of the decade.

This article is for informational purposes only and does not constitute investment advice.