The Giant of Brandy Tilaknagar Industries is ready to acquire Blue Imperial which should be completed by December of this year while the company awaits the regulatory approval by the competition of India (CCI).”Our acquisition of the Imperial Blue Business Division from Pignod Ricard India is subject to the CCI approval, which we expect to receive within (La) end of the civil year 2025″, Amit Dahanukar, president and CEO, Tilaknagar industrieshe said.
The company enters into a production agreement and transition services (tsma) with Pri to guarantee a regular transition.
Tilaknagar Ind. Firm has signed an agreement to acquire the Whiskey Blue brand brand for about 4,150 RS from Pernord Richard. “With the acquisition, the company will become one of the main actors of Brandy and Whiskey, the two largest IMFL categories. Imperial Blue will have to serve as a basis for the company’s premium portfolio strategy. This acquisition would also have strengthened the company’s distribution network,” said Tilaknagar Industries previously.
The Company has signed definitive agreements for the acquisition of the Blue Imperial Pignod Ricard French Division, marking the largest transaction in the space of Indian alcoholic beverages by an Indian society.
The transaction includes normalized circulating capital of RS 700 CR and deferred consideration of RS 282 CR to be paid after 4 years from the closing date of the transactions, that is, in the tax year. Tilaknagar Industries intends to finance the agreement with a mix of fairness and debt.
On July 29, the Company announced that it will increase 2,296 RS crores through the preferential question of securities to finance the acquisition of the imperial blue company division and the general corporate purpose.
“This share issue, together with the proposed debt fundraising, will guarantee an optimal financing mix for the acquisition of IB,” said Tilaknagar Industries in a note.
The United-India FTA kingdom should be a large tail wind that leads to Ebitda margins potentially expanded for the Imperial Blue Business division, said the company.
The agreement covers imperial blue brands and related goods that also include “Imperial Black” and “Imperial Red” brands globally. The company signs a license agreement for brands for the use of “Seagram’s” in relation to Imperial Blue for a short transition period.
Tilaknagar Industries will also sign a long -term supply agreement with Chivas Brothers for CAB (concentrated alcoholic drink), an essential raw material for the production of IB products, as mentioned in the presentation of the company’s investors.
“The provision of contracts can be extended with mutual discussions between the parties, guaranteeing any interruption of business,” he added.
To meet the growing capacity requirements, Tilaknagar Ind. Recently announced a addition of six times in its bottling unit – Prag Distillery in Andhra Pradesh. The company is intended to invest RS 59 crores to increase the capacity of 6 lakhs to 36 cases of lakh per year.
“We would also like to announce that the Board approved the investments of Inr 59 crores, including license commissions and interest payments of about 34 Inr crores for expansion at the Prag Distillery, increasing the capacity of 6 Lakh to 36 cases Lakh PA,” said the president in a note.
This expansion allows us to safeguard the offer in one of the faster IMFL markets in India, said the company.
The Board of Directors approved an additional capital expenditure of RS 25 Crores for the aforementioned expansion of its existing bottling capacity.
Tilaknagar Industries has a strong portfolio in multiple categories of foreign liqueurs (IMFL) with two brands of Brandy “Millionaire” – Mansion House and Courrier Napoleon. Together with this, the company has a strong presence in whiskey, rum and gin through the whiskey of the Mansion house, the Madiraa rum and the blue gin lagoon. Recently, you have also expanded in the luxury segment with Monarch Legacy Edition Brandy.
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