Allied Blenders and Distillers (ABD), a Kishore Chhabria promoted company and India’s third largest manufacturer of alcoholic beverages has announced the acquisition of 100% share of Wales Distilleries Pvt Ltd in West Bengal. The distillery is located in Kalyani, off the Barrackpore-Kalyani Expressway, approximately 60 km from the airport. Wales Distilleries also has blending and bottling plant.
ABD’s association with Wales Distilleries was formed two years ago when it commissioned Wales Distillery to bottle ABD brands. The association has culminated into a 100% share acquisition. ABD, now plans to further modernise the plant and start producing its entire portfolio of brands. The bottling plant has a capacity of 100,000 cases per month and ABD plans to upscale it to 150,000 cases a month shortly.
Speaking on the development, Deepak Roy Executive Vice Chairman & CEO - Allied Blenders and Distillers Pvt. Ltd said, “ABD is delighted with the acquisition of Wales Distilleries Pvt Ltd. This association will further strengthen our presence in the East India and is a first in a series of moves that will fuel our expansion plans.”
ABD is in the market to raise close to Rs 500 crore through debt and equity to fuel its expansion plans and has mandated boutique Ambit Capital to find an investor. It is learnt that while ABD is aggresively engaging with financial investors, it has also opened up conversations with strategic players, both from India and as well as from overseas.
Wales Distilleries will be ABD’s first company owned unit in Eastern India. ABD, which is on a high growth trajectory, is also scouting for other such acquisitions to expand its presence across India and ensure significant presence in all key segments within the liquor industry. West Bengal as a market is of strategic importance to ABD. Last year, the company sold over 1.5 million cases with a growth of over 50% over the previous fiscal. ABD has a 21% market share in the West Bengal market and its flagship brand Officers Choice has an 80% share in its respective segment
ABD for the last fiscal sold a total of 20 million cases growing at a CAGR of 24% over the last 5 years making it the fastest growing spirits company in India. ABD possesses strong National sales and distribution network and a Pan-India scale manufacturing base that includes 38 manufacturing / bottling units in 19 States with 14 sales offices across the country.
