Tilaknagar Industries is willing to pursue another major spirits acquisition as consolidation accelerates in India’s liquor market, chairman and managing director Amit Dahanukar says.
Tilaknagar Industries is open to another large acquisition following its nearly $500 million purchase of Imperial Blue from Pernod Ricard, with the company looking to expand its portfolio and strengthen its position in India’s rapidly growing spirits market.
Chairman and managing director Amit Dahanukar told Reuters that Tilaknagar would consider a deal of a similar scale if the right opportunity emerged, marking a shift in the company’s acquisition appetite after the Imperial Blue transaction.
“Definitely we will consider another deal on that scale if the right opportunity emerges, Dahanukar said. He added that before the Imperial Blue acquisition, he would not have considered a target worth roughly twice Tilaknagar’s revenue.
Focus on premium and luxury spirits
Tilaknagar, best known for its Mansion House brandy, is open to acquisitions across spirits categories, Dahanukar said. However, the company remains particularly focused on craft spirits in the high-growth super-premium and luxury segments.
The company has not disclosed a specific budget for future acquisitions. Dahanukar said Tilaknagar would maintain a disciplined approach to financing, similar to the mix of debt and equity used for the Imperial Blue purchase.
The acquisition has already significantly expanded Tilaknagar’s scale. Revenue nearly tripled to Rs 10.26 billion in the quarter ended June 30, while Imperial Blue accounted for almost two-thirds of the company’s total sales volume.
More from BusinessSpirits market consolidation gathers pace
Tilaknagar’s acquisition strategy comes as India’s fragmented liquor industry sees increasing consolidation. United Spirits has acquired Nao Spirits, while Sazerac has taken a stake in John Distilleries, reflecting growing interest in the country’s spirits market.
Industry fragmentation and state-level regulations have made it difficult for liquor companies to build national scale, creating incentives for larger players to consolidate, said Devangshu Dutta, founder of retail consultancy Third Eyesight.
India’s spirits market is also expected to expand rapidly. According to alcohol industry data provider IWSR, India is projected to become the world’s largest spirits market by volume by 2032, overtaking China as millions of consumers reach the legal drinking age each year.
For Tilaknagar, the Imperial Blue deal has therefore provided both greater scale and a platform for further expansion. The company’s next acquisition, however, is likely to depend on finding a target that can add meaningful growth without stretching its balance sheet.
