Tilaknagar Industries Completes Acquisition of Imperial Blue Business: A Game-Changer in the Indian Whisky Market
Tilaknagar Industries Ltd has announced the completion of its acquisition of Imperial Blue business division from Pernod Ricard India, a step-down unit of the French spirits major, via a slump sale for a lump sum consideration of Rs 3,442 crore.
Deal Details and Financial Considerations
The lump sum consideration paid to Pernod Ricard India is subject to post-closing adjustments in accordance with the terms and conditions set out in the Business Transfer Agreement. In addition to this amount, a deferred payment of 28 million euros will be made after four years from the date of closure of the transaction.
Fair trade regulator Competition Commission of India had already approved this transaction on Oct. 7, 2025. The acquisition will make Tilaknagar Industries among the leading players in the fast-growing Indian whisky market, which is witnessing premiumisation.
Imperial Blue: A Leading Whisky Brand in India
Imperial Blue is the third-largest whisky brand in India by volume, selling approximately 22.4 million nine-litre cases in the year-ended March 2025 across India and other markets. The 25-year-old brand had reported a revenue of Rs 3,067 crore in the trailing twelve months ending March 2025.
For more information on the Indian whisky market, including trends and forecasts, visit our website.
Funding the Acquisition
Tilaknagar Industries has funded the acquisition through a mix of internal cash accruals, fresh equity, and external debt. A preferential issue of equity shares and warrants to marquee investors and the Promoter Group helped raise Rs 2,093 crore, in addition to securing Rs 2,100 crore through term loans.
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Acquisition Benefits and Future Plans
Through this transaction, Tilaknagar Industries gains access to the ‘Imperial Blue’ brand and allied trademarks, including ‘Imperial Black’ and ‘Imperial Red’ globally. Additionally, as part of the acquisition, the company has entered into a Trademark License Agreement 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 (CAB), an essential raw material for manufacturing Imperial Blue products.
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Transition and Manufacturing Arrangements
To ensure a seamless transition, Tilaknagar Industries has entered into a Transitional Services and Manufacturing Agreement with Pernod Ricard India.
The manufacturing footprint, as part of the transaction perimeter, includes two owned units located in Punjab and Maharashtra, as well as two exclusive sub-leased units in Telangana and Punjab. Additionally, Tilaknagar Industries will have access to certain shared units during the TSMA period.
As part of the transaction, 116 employees are expected to be transferred from Pernod Ricard India to Tilaknagar Industries.
Leadership Perspective
Tilaknagar Industries Chairman and Managing Director Amit Dahanukar said: ‘The acquisition of Imperial Blue significantly scales up our business, representing a decisive step in our ambition to build a truly pan-India presence across all IMFL categories. This acquisition also accelerates our premiumisation journey, enabling us to broaden our offerings across Prestige-and-Above price-points and enhance the value we deliver to consumers.’
Shares of Tilaknagar Industries Ltd on Monday settled at Rs 472.05, down 0.61% from the previous close.
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