Tilaknagar tops $600 mn race for Imperial Blue, to expand whisky portfolio

Tilaknagar Industries leads the race to acquire Pernod Ricard's Imperial Blue whisky brand for an estimated $600 million; deal could mark the largest deal in India's liquor industry in over a decade

Tilaknagar Industries, known for its Mansion House and Courrier Napoleon brandies, is emerging as the front-runner to buy the popular Imperial Blue whisky from French alcohol giant Pernod Ricard, according to a report by The Economic Times. 

The Imperial Blue brand is estimated to be worth up to $600 million. If the deal goes through, it will be the largest acquisition in India’s liquor sector in over a decade — after Diageo’s $1.9 billion buyout of United Spirits in 2013, the news report said. 

Inbrew Beverages, founded by London-based entrepreneur Ravi Deol, is also interested in acquiring Imperial Blue. However, Pernod Ricard found Tilaknagar’s offer more attractive, though Inbrew has not been completely ruled out, The Economic Times mentioned. Tilaknagar, India’s fifth-largest alcohol company by market value, has been asked to submit a binding bid by June 23.   

 

 

Funding the deal

If the deal goes through, it will be funded through a mix of internal resources, bank loans, and private equity investment. Japan’s Suntory Holdings, which owns brands like Jim Beam and Maker’s Mark, initially considered bidding for Imperial Blue but later decided not to move forward. 

For Tilaknagar, led by chairman Amit Dahanukar, buying Imperial Blue would be a big step in diversifying its portfolio. While the company entered the whisky segment in 2012 using its flagship Mansion House brand, over 90 per cent of its sales still come from brandy. 

During its earnings call on May 21, Dahanukar said the company plans to grow its presence in brandy and other Indian-made foreign liquor segments through its own brands and strategic acquisitions. Tilaknagar has previously acquired Round The Cocktails, Spaceman Spirits, and Incredible Spirits.     

 

Imperial Blue’s journey

Imperial Blue was first introduced in India in 1997 by Canadian distiller Seagram. In 2001, Seagram sold its global business to Pernod Ricard and Diageo, with Pernod Ricard taking over the Indian business. The following year, Imperial Blue was relaunched with the memorable slogan, “Men will be men”, which helped build a strong following. 

Today, Imperial Blue is the world’s eighth best-selling whisky, selling 22.8 million nine-litre cases in 2023, according to Drinks International’s Millionaires’ Club. However, this is down from its 2019 sales of 26.3 million cases, the news report said.

This potential sale echoes Diageo’s decision in 2022 to sell 32 low-margin Indian brands — including Haywards, Old Tavern, White Mischief, Honey Bee, Green Label, and Romanov — for ₹820 crore to Inbrew. 

Deol, who started Barista Coffee in 1999 and earned a reputation as India’s “coffee man”, aims to make Inbrew a leading player in the alcohol industry by acquiring Imperial Blue.