The two Indian firms are said to be in talks over a merger

The two Indian firms are said to be in talks over a merger

India's Allied Blenders & Distillers (ABD) is in talks with its rival, Tilaknagar Industries, over a possible merger, according to local reports.

ABD, owner of India’s top-selling whisky brand, Officer’s Choice, has discussed creating a combined US$1bn entity with Tilaknagar, unnamed sources have told The Times of India this week. Last month ABD said it was looking to raise $100m through a private equity tie-up

The company is 95%-controlled by Kishore Chhabria, with the rest owned by the company’s executive vice-chairman & CEO, Deepak Roy. 

Publicly-listed Tilaknagar is 56%-owned by The Dahanukar family. Its Mansion House brand is the world's second-largest selling brand behind McDowell's.

The talks are preliminary and there is no certainty of a deal, the source was reported as saying.

Both companies have yet to respond to an emailed request for comment from just-drinks. 

Separately, Diageo this week kicked-off a public share offer for 26% of United Spirits, as it seeks to gain majority-control of the Vijay Mallya-headed firm.