Tilaknagar’s deal appetite is still on the rocks

Tilaknagar Industries, a prominent player in India's liquor market, remains open to pursuing another large-scale acquisition, according to its top executive. This stance follows the company's recent $500 million purchase of the Imperial Blue whisky brand from French drinks giant Pernod Ricard. The acquisition, which underscores the growing consolidation within India's spirits industry, has significantly boosted Tilaknagar's scale.

In the first quarter of 2023, the company's revenue nearly tripled to 10.26 billion Indian rupees ($107.46 million), with Imperial Blue accounting for nearly two-thirds of its total sales volume. Chairman and Managing Director Amit Dahanukar emphasized Tilaknagar's openness to considering acquisitions in any spirits category, particularly within the high-growth super premium and luxury segments.

While the company has not disclosed a specific budget for future deals, Dahanukar stressed the importance of maintaining a disciplined approach to financing these acquisitions. The M&A strategy for Tilaknagar is currently focused on the craft spirits space, as the company seeks to broaden its portfolio and gain greater market scale.

Industry experts highlight the challenges faced by liquor makers in building national scale due to industry fragmentation and state-level regulations. However, the outlook for India's spirits market remains optimistic, with projections suggesting the country could become the world's largest spirits market by volume by 2032.