Tilaknagar Industries Limited (TI), a leading Indian-Made Foreign Liquor (IMFL) manufacturer, has completed the acquisition of the Imperial Blue business division (IB) from Pernod Ricard India (PRI) via a slump sale for a lump-sum consideration of `3,442 crore. The Competition Commission of India had earlier approved the transaction on October 7, 2025.
In addition to this amount, a deferred payment of €28 million will be made after four years from the date of closure of the transaction.
The acquisition has been funded through a mix of internal cash accruals, fresh equity and external debt. A preferential issue of equity shares and warrants to marquee investors and the Promoter Group helped raise `2,093 crore, in addition to securing `2,100 crore through term loans.
Imperial Blue is the third-largest whisky brand in India by volume, selling approximately 22.4 million nine-litre cases for the year-ended March 2025 across India and other markets. With over 25 years of brand heritage, the business reported a revenue of `3,067 crore for the trailing twelve months ending March 2025.
Through this transaction, TI gains access to the “Imperial Blue” brand and allied trademarks, including “Imperial Black” and “Imperial Red” globally. Additionally, TI has entered into a Trademark License Agreement for the use of “Seagram’s” in connection with IB for a defined transition period.
The company has also entered into a long-term supply agreement with Chivas Brothers for Concentrated Alcoholic Beverage (CAB), an essential raw material for manufacturing IB products. To ensure a seamless transition, TI has entered into a Transitional Services and Manufacturing Agreement (TSMA) with PRI.
The manufacturing footprint, as part of the transaction perimeter, includes two owned units located in Punjab and Maharashtra, as well as two exclusive sub-leased units in Telangana and Punjab. Additionally, TI will have access to certain shared units during the TSMA period. As part of the transaction, 116 employees are expected to be transferred from PRI to TI.
Amit Dahanukar, Chairman and Managing Director, TI 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 Prestige-and-Above price-points and enhance the value we deliver to consumers.”
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.
