Pernod Ricard has agreed to the sale of its Imperial Blue whisky business to India's Tilaknagar Industries.  

The deal, announced yesterday (24 July) after weeks of speculation, gives the assets an enterprise value of €412.6m ($485.4m), Tilaknagar Industries said in a stock-exchange filing.  

Tilaknagar Industries said the acquisition was the “largest in the Indian alcoholic beverages space by an Indian company”.

In a statement, Pernod Ricard said the deal “strengthens” its portfolio in the country, “enabling the business to fully tap into premiumisation trends and support sustained, profitable growth”. 

Jean Touboul, the CEO of Pernod Ricard's business in India, said the sale will allow the Absolut vodka owner to “unlock further profitable growth and sharpen its focus on premiumisation and innovation”.

The agreement, which includes a €28m deferred payment due four years after the closing of the deal, covers "two owned units and services from co-manufacturing bottlers across India", Tilaknagar Industries added.

The deal, the business said, “fast-tracks its foray" into India's whisky segment, which it described as "the largest IMFL [Indian-made foreign liquor] category in India".

The group, which markets brands including Mansion House whisky and Madiraa rum, said Imperial Blue is the third largest whisky brand in India by volume.

The business changing hands reported revenue of Rs30.67bn ($355.1m) for the year to the end of March, selling 22.4 million nine-litre cases.

Tilaknagar Industries added the acquisition “significantly expands” its distribution reach, “reinforcing its evolution into a truly pan-India player”, with “strong scale” across both brandy and whisky.

“Having achieved leadership in the brandy segment, it is now time for us to
broaden our portfolio and cater to India’s diverse and evolving consumer base," Tilaknagar Industries chairman and MD Amit Dahanukar said.

"While we continue to grow our business organically, this strategic acquisition allows us to enter the whisky category with one of the country’s most trusted and admired brands.”