Tilaknagar Industries seals ₹3,442-cr deal for Imperial Blue; aims to build pan-India IMFL powerhouse

Tilaknagar Industries Limited (TI), one of India’s leading Indian-Made Foreign Liquor (IMFL) manufacturers, has completed the acquisition of the Imperial Blue (IB) business division from Pernod Ricard India through a slump sale valued at ₹3,442 crore.

The closing of this landmark deal, among the largest in the Indian alcoholic beverages sector, marks a major milestone in TI’s plan to scale aggressively across the country and strengthen its premium whisky portfolio. An additional deferred payment of €28 million will be made in November 2029.

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The acquisition was financed through internal accruals, fresh equity infusion and external debt. TI raised ₹2,093 crore through preferential allotment of shares and warrants to marquee investors and promoter group entities, alongside ₹2,100 crore secured through term loans.

The Competition Commission of India approved the transaction on October 7, 2025.

Imperial Blue is India’s third-largest whisky brand by volume, selling around 22.4 million 9-litre cases annually. With a heritage of more than 25 years, the brand reported revenues of ₹3,067 crore for the twelve months ended March 2025. TI will gain access to the Imperial Blue brand and its associated trademarks globally, including Imperial Black and Imperial Red.

It has also entered into a temporary Trademark License Agreement for the continued use of the “Seagram’s” name during the transition phase.

The acquisition structure includes a long-term supply agreement with Chivas Brothers for Concentrated Alcoholic Beverage (CAB), a key raw material, as well as a Transitional Services and Manufacturing Agreement (TSMA) with Pernod Ricard India to ensure seamless operational continuity. TI will also acquire manufacturing facilities in Punjab and Maharashtra, two exclusive sub-leased units in Telangana and Punjab, and access select shared units during the transition. Around 116 employees will move from Pernod Ricard India to TI as part of the agreement.

Amit Dahanukar, Chairman and Managing Director, Tilaknagar Industries Limited, 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 P&A price-points and enhance the value we deliver to consumers.”

CCI approves Tilaknagar's acquisition of Pernod Ricard's Imperial Blue whisky

This transaction reflects TI’s continued focus on assessing and pursuing strategic opportunities aligned with its commitment to delivering sustainable value for its shareholders, employees,partners and other stakeholders.

Deutsche Bank and Avendus Capital acted as financial advisors for the transaction, with Avendus Capital also serving as the debt financing arranger to TI. Crawford Bayley & Co. and W.S. Kane & Co. acted as legal counsels, while Deloitte served as the finance and tax diligence advisor to TI. Additionally, TI has appointed Ernst & Young to provide Integration Planning & Execution Advisory for the acquisition.