Officer's Choice Whiskey maker's shares rally after JV with Ranveer Singh

Shares of Allied Blenders and Distillers moved up by 2.77 per cent at Rs 359.55 per share on the BSE in Thursday's intraday deals. The Allied Blenders and Distillers share price surged after the company disclosed that it plans to acquire a majority stake in new company and set up joint venture with Bollywood actor Ranveer Singh. 

“Allied Blenders and Distillers Limited (ABDL)proposes to acquire a majority stake (not less than 80 per cent) of a new company to be formed in collaboration with well known film celebrity Mr. Ranveer Singh (represented by Oh Five Oh Talent Limited Liability Partnership) for undertaking manufacturing, distribution, licensing and marketing of various types of luxury and premium spirits comprising owned and third party brands,” the company said in an exchange filing on Wednesday. 

The investment of up to Rs 70 crore in the proposed entity will result in ABDL acquiring 80 per cent ownership, while Oh Five Oh Talent LLP will hold 20 per cent.

ABDL's new venture with Ranveer Singh focuses on luxury spirits, allowing ABDL to retain its core brands while enhancing decision-making and market adaptation for luxury segments. This separation of mass-market and luxury products aims to elevate the value of each, the company said in a statement on Thursday. 

“This venture is not just about creating and offering premium and luxury spirits, but equally about realising the aspirations of the Indian consumer. We're blending world class products, sourcing and craftsmanship with the rich, vibrant flavours of India, creating experiences that speak to people” said Ranveer Singh, business and creative partner. 

The entity will launch its own brands, partner with promising Indian start-ups, work with major international brands, and use the strong ABDL sales and manufacturing networks with clear go-to-market strategies, the company said. 

ABDL, offers a range of flavours including whisky, brandy, rum, vodka, and gin. Notable brands include Officer’s Choice Whisky and Sterling Reserve Premium Whiskies. ABDL operates 33 manufacturing units, including 9 owned bottling units, 1 owned distillery, and 23 non-owned units.

The company’s share price has surged by nearly 6 per cent in the last two weeks, while soaring 23.5 per cent since its listing on the Indian bourses on July 2, 2024.

The company has a total market capitalisation of Rs 28,112.19 crore. At 11:46 AM; the share price of the company was trading 1 per cent higher at Rs 353.35 . By comparison, the BSE Sensex was trading 0.10 per cent lower at 82,270 levels.