Pernod Ricard India has announced a significant strategic move with the signing of a definitive agreement to sell its Imperial Blue business division to Tilaknagar Industries (TI), a prominent player in India's spirits market.
This transaction underscores Pernod Ricard's commitment to optimizing its portfolio and focusing on high-growth, premium brands across global markets.
Strategic Realignment for Growth
India, as Pernod Ricard's second-largest market, holds strategic importance. The sale of the Imperial Blue division will enable Pernod Ricard India to concentrate on premiumization strategies, leveraging the country's robust economic fundamentals and long-term growth potential. This strategic realignment aims to bolster profitability and drive sustainable growth, aligning with Pernod Ricard's broader global portfolio management strategy.
Enhancing Operational Efficiency
The divestiture is expected to be immediately accretive to Pernod Ricard India's operating margins and net sales growth rate upon completion. It reflects the company's proactive approach to enhancing operational efficiency and reallocating resources towards accelerating growth in key brands like Royal Stag, Blenders Pride, and international labels such as Chivas Regal, Jameson, Absolut, and Ballantine’s.
Leadership Statements
Alexandre Ricard, Chairman and CEO of Pernod Ricard, highlighted the strategic benefits of the transaction, emphasizing its role in reinforcing the company's market leadership and profitability in India and globally. Jean Touboul, CEO of Pernod Ricard India, echoed this sentiment, noting that the sale will unlock new opportunities for innovation and premiumization in response to evolving consumer preferences in India.
About Tilaknagar Industries Ltd
Founded in 1933, Tilaknagar Industries Ltd has emerged as a key player in India's alcoholic beverage industry, boasting a diverse brand portfolio spanning whisky, rum, gin, and brandy. With a manufacturing footprint across 21 units in 12 states, Tilaknagar Industries is renowned for brands like Mansion House Whisky, Madiraa Rum, and Blue Lagoon Gin. The acquisition of Imperial Blue marks a strategic expansion into new segments, including the luxury category with Monarch Legacy Edition Brandy.
Regulatory Approval and Closing
The transaction is subject to approval from the Competition Commission of India and is anticipated to conclude in the coming months, pending regulatory clearance.
Source: Pernod Ricard