Officer’s Choice maker buys Telangana spirit firm Shasta Bio Fuels for Rs 200 cr

By: | Published: July 17, 2015 1:00 AM

Allied Blenders and Distillers (ABD), the country’s third largest spirits company, has acquired Shasta Bio Fuels, a Telangana-based...

Allied Blenders and Distillers (ABD), the country’s third largest spirits company, has acquired Shasta Bio Fuels, a Telangana-based integrated grain spirit distillery, for Rs200 crore. The distillery can produce 160 kilolitre alcohol a day.

Allied Blenders and Distillers (formerly BDA Limited) is a Kishore Chhabria-promoted company. Its flagship brand is the famous Officer’s Choice Whisky and the portfolio includes Officer’s Choice Blue Whisky, Officer’s Choice Black Whisky, Class 21 Grain Vodka, Wodka Gorbatschow (Germany’s No. 1 Vodka), Jolly Roger Premium Rum, Lord & Master Brandy and Kyron Premium Brandy.

In a release, the company said it is making an additional investment of Rs 50 crore to upgrade the distillery by introducing modern technology to improve efficiency of operation, value-added by-products and effluent treatment in next 18 months. The acquisition is in line with ABD’s long-term strategy of backward integration for security of supply of essential raw material and strengthening own production capabilities. Besides, Shasta Bio Fuels has a captive power generation plant of 6.5 MW, which has surplus power for exports to state grid after meeting its own power needs.

“This is the first grain distillery of the company and with this acquisition, we will be extending our presence in Telangana,” Deepak Roy, executive vice-chairman, Allied Blenders and Distillers, said in the release.

In last two years, ABD has acquired two units, Wales Distillers in West Bengal and Unokoti Distillers in Tripura. It is currently in talks to acquire a few other bottling units. For the next five years, the company has earmarked a capex of Rs 1,000 crore for both acquisitions and other growth-related activities.

ABD achieved sales of 32 million cases in FY14-15. Its sales grew at an exponential rate of 29% in FY15 while the IMFL industry grew 3% over the same period. ABD sales have grown at a CAGR of 21% over the last five years, which makes it one of the fastest-growing spirits companies in India.

ABD has evolved from being a single-brand, Officers Choice, company to one with an enviable portfolio of brands, targeting diverse consumer segments. The company has 50 manufacturing/bottling units and 15 sales offices in 22 states across the country.

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