Allied Blenders & Distillers (ABD), which sells some of the largest whisky brands in the country, today said it has acquired Shasta Bio Fuels, a Telangana- based integrated grain spirit distillery for Rs 200 crore.
The distillery is situated at Rangapur village in Mahabubnagar district and has a capacity of 160 kilolitres of alcohol per day and a captive power generation plant of 6.5 Mw, the Kishore Chhabria-led company said in a statement.
The company will make an additional investment of Rs 50 crore to upgrade the distillery by improving efficiency of operation, value-added byproducts and effluent treatment over the next 18 months.
"The acquisition is in line with ABD's long-term strategy of backward integration for security of supply of essential raw materials and strengthening own production capabilities," executive vice chairman Deepak Roy said.
Roy further said being the first grain distillery of the company this acquisition will help ABD extend its presence in Telangana.
Over the last two years, ABD was on an acquisition drive, lapping up two units -Wales Distillers in Bengal and Unokoti Distillers in Tripura.
It is in talks to acquire a few other bottling units.
In fiscal year 2015, it achieved a sales figure of 32 million cases growing at 29 per cent, while the Indian Made Foreign Liquor (IMFL) industry grew by a mere 3 per cent.
ABD sales have grown at a compound annual growth rate (CAGR) of 21 per cent over the last five years, making it one of the fastest-growing spirits companies in the country and also the third largest.
ABD's flagship brand Officer's Choice Whisky is the world's largest selling whisky and its portfolio includes Officer's Choice Blue, Officer's Choice Black, Class 21 Grain Vodka, Wodka Gorbatschow, Jolly Roger Rum, the brandy brands Lord & Master and Kyron.
ABD has 50 manufacturing or bottling units and 15 sales offices across 22 states.
