Allied Blenders Buys UP Distillery for ₹110 Cr Expansion

CONSUMER-PRODUCTS

Overview

Allied Blenders and Distillers (ABD) announced its board approved acquiring a non-operational distillery and bottling facility in Moradabad, Uttar Pradesh. The company will spend ₹70 crore on asset acquisition and an additional ₹40 crore on upgrades and a new bottling unit, totaling ₹110 crore. This move aims to boost IMFL bottling capacity and enhance backward integration by increasing captive ENA consumption, aligning with ABD's growth strategy.

Allied Blenders and Distillers (ABD) is set to expand its operational footprint in Uttar Pradesh with the acquisition of a non-operational distillery and bottling facility. The company's board greenlit the proposal on Friday, earmarking a total investment of up to ₹110 crore for the strategic move.

Financial Outlay

The acquisition involves purchasing assets including land, building, plant, machinery, and licenses from National Industrial Corporation Pvt Ltd (NICOL) in Moradabad. The consideration for these assets is capped at ₹70 crore, plus statutory levies. An additional ₹40 crore will be invested to upgrade the facility's infrastructure and establish a new bottling unit.

Expansion Strategy

This acquisition aligns with ABD's growth strategy, focusing on enhanced backward integration capabilities. The Moradabad facility's strategic location and adequate land parcel offer opportunities for capacity expansion and improved ENA (extra neutral alcohol) production for captive consumption. The company stated the move will increase its Indian Made Foreign Liquor (IMFL) bottling capacity in Uttar Pradesh.

The transaction is anticipated to conclude by July 31, 2026, with facility upgrades expected within 12 months post-acquisition. ABD has already entered into the relevant definitive agreements.

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