INDIA – Pernod Ricard India has taken a major step in expanding its footprint in the Indian alcoholic beverages market with the groundbreaking of Asia’s largest malt distillery and maturation facility in Butibori, Nagpur, Maharashtra.
This marks the first phase of the company’s Memorandum of Understanding (MoU) with the Government of Maharashtra, signed on February 23, 2024.
The MoU represents Pernod Ricard’s strong commitment to India, with plans for an investment of up to INR 1785 crore (US$212.9M) over the next 10 years.
As of now, the company has already committed INR 100 crore (US$11.9M), including land acquisition costs, as part of its initial investment to advance the project.
The facility is poised to become the largest malt distillery in Asia, with a projected production capacity of up to 13 million pure alcoholic liters annually.
This distillery is expected to elevate India’s position in the global premium spirits market, fostering the growth of high-quality malt spirits produced locally.
Devendra Fadnavis, Deputy Chief Minister of Maharashtra, said: “This landmark project will significantly contribute to local employment, providing job opportunities for hundreds of individuals while fostering skill development and entrepreneurship. It will drive economic growth, benefiting farmers and various sectors, aligning perfectly with our vision for a dynamic, diversified, and self-reliant economy.”
The project will directly employ between 700 and 800 people, with many more indirect employment opportunities expected across the region.
Additionally, local farmers will benefit from the opportunity to cultivate high-quality barley, further contributing to the region’s agricultural economy.
Jean Touboul, CEO of Pernod Ricard India, emphasized the importance of sustainability and the company’s dedication to premium quality.
“This facility will benefit from Pernod Ricard’s rich heritage in producing premium spirits. We are proud to be at the forefront of this transformation, contributing to the economic and social prosperity of Maharashtra and beyond. Our vision is to shape a sustainable future, where India emerges as a hub for premium malt spirits crafted with global precision and local passion,” Touboul stated.
Sustainability will be at the core of the new facility, which is set to use 100 percent renewable electricity, biomass derived from agricultural waste, and water-positive practices to minimize its environmental footprint.
This project is a part of Pernod Ricard India’s broader strategy to triple its revenue over the next decade by focusing on premiumisation and innovation in the Indian market.
In line with this strategy, the company recently launched two new whiskies: Royal Stag Double Dark Peaty Whisky and Blenders Pride Four Elements Premium Whisky.
According to ICRA, the Indian alcoholic beverages industry is expected to see an 8-10 percent revenue growth in FY25, driven by increased consumer demand for premium products and price hikes granted by several state governments.
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