Tilaknagar Industries, a prominent name in the Indian alcobev industry, is looking to acquire the Imperial Blue whisky brand from Pernod Ricard. As per a report by The Economic Times, Tilaknagar Industries, the homegrown company that makes Mansion House and Courrier Napoleon brandy, is leading the race for the popular whisky brand, which the French company is looking to sell.
Imperial Blue is valued at about $600 million. If the deal goes ahead, it will be the largest deal in the alcoholic beverage industry in a decade, as the last big acquisition happened in 2013 when Diageo bought United Spirits for $1.9 billion.
Other companies in the race
Imperial Blue is a prominent brand in the Indian market. The company has a good brand recall and significant market presence. The brand sells about 20 million cases every year in India. Many other alcobev and private equity companies are eyeing the brand since Pernod Ricard announced its plans to sell the brand in September last year.
Inbrew, another leading alcobev company, which has 43 spirit brands, is also looking to buy Imperial Blue. The company is looking at buying the brand at an enterprise valuation of $400 million to $600 million. According to a report by ET, earlier in March, the company is looking to raise $200 million from private equity investors for the same.
Japanese company Suntory Holdings, which makes the Maker’s Mark whiskies, was also interested in buying Imperial Blue. However, the company is not going ahead with the deal.
Why Imperial Blue matters for Tilaknagar industries
Tilaknagar Industries is primarily involved in the brandy segment, as over 90 percent of the company’s revenue comes from the same. The company is trying to diversify its portfolio with the introduction of whisky brands like Mansion House Gold Barrel. The company started the whisky brands in 2012 but has received limited success in capturing the market share.
Tilaknagar Industries is the 5th largest alcobev company in India by market capitalization. A successful acquisition of Imperial Blue, which is the 8th most selling whisky brand in the world, would solidify the company’s position in the whisky segment as well.