INDIA – Allied Blenders & Distillers Ltd (ABD), India’s third-largest Indian-made foreign liquor (IMFL) company by annual sales volumes, has filed for an initial public offering (IPO) aiming to raise up to 15 billion rupees (US$180 million).
This move comes as competition in the country’s estimated US$33 billion spirits market intensifies.
ABD, known for its popular whisky brands such as Officer’s Choice and Sterling Reserve, plans to issue new shares worth up to 10 billion rupees (US$120M) as part of the IPO.
The company stated that the proceeds from this sale will be used to reduce some of its outstanding borrowings. Additionally, existing shareholders will sell shares worth up to 5 billion rupees, contributing to the total IPO offering.
As of the end of March 2023, ABD’s total liabilities had increased by approximately 13 percent year-over-year. During the same period, its consolidated revenue saw a slight dip of 1.3 percent, while profit after tax rose by 8.5 percent.
In the IPO document, ABD highlighted its position as the largest Indian-owned company in the IMFL category based on annual sales.
Officer’s Choice Whisky, a flagship brand for ABD, was noted as the market leader in the mass premium segment with a market share of 20.9 percent in terms of annual sales volumes for fiscal 2023.
The company believes it is well-positioned to benefit from the ongoing shift towards premiumization in the spirits market, thanks to its extensive portfolio.
According to The Brand Champions 2024 report, Officer’s Choice was the world’s third-best-selling Indian whisky in 2023, with case sales of 23.4 million, despite a 6 percent decline from 2022.
The IPO announcement follows ABD’s recent expansion of its gin portfolio with the introduction of Zoya Special Batch Premium Gin (“Zoya”) in India.
According to ABDL, Zoya is crafted from 100 percent grain and natural spirits and incorporaties juniper and 12 botanicals.
The gin won the “Campaign Innovator of the Year” award at Icons of Gin India 2024 and the “New Product of the Year” award at the Ambrosia Awards INDSPIRIT 2024.
Zoya Special Batch Premium Gin, priced at Rs 2200 for a 750ml bottle, will be available in top hotels, restaurants, and liquor retail stores across Maharashtra, offering consumers a premium gin experience.
