Allied Blenders Buys Telangana State based Distillery for Rs 200 Crore

HYDERABAD/MUMBAI:  Allied Blenders & Distillers (ABD) has acquired Shasta Bio Fuels, a Telangana-based integrated grain spirit distillery for about Rs 200 crore.

The Kishore Chhabria-led Allied Blenders has been on an acquisition spree and has bought two units - Wales Distillers in Bengal and Unokoti Distillers in Tripura - over the last two years.

According to the company, it was in dialogue with few other bottling units for a potential acquisition.

Currently, Allied Blenders operates 50 manufacturing or bottling units and 15 sales offices across 22 states.

“The acquisition is in line with Allied Blenders’s long-term strategy of backward integration for security of supply of essential raw materials and strengthening own production capabilities,” said Deepak Roy, Executive Vice-Chairman, Allied Blenders.

He added that Shasta Bio Fuels, was the first grain distillery for the company and the acquisition will help them extend their presence in Telangana.

Shasta’s distillery located at Rangapur village, TS has a production capacity of 160 kilolitres of alcohol per day and a captive power generation plant of 6.5 mw.

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, Allied Blenders said.

In FY15, Allied Blenders clocked sales of 32 million cases registering 29 per cent growth, while the Indian Made Foreign Liquor (IMFL) industry grew by a mere three per cent.

Allied Blenders sales have grown at a compounded 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.

Allied Blenders sells some of the largest whisky brands including its flagship brand Officer’s Choice Whisky, the world’s largest selling whisky, besides brands like Officer’s Choice Blue, Officer’s Choice Black, Class 21 Grain Vodka, Wodka Gorbatschow, Jolly Roger Rum, the brandy brands Lord & Master and Kyron.

http://www.newindianexpress.com/business/news/Allied-Blenders-Buys-Telangana-based-Distillery-for-Rs-200-Crore/2015/07/17/article2924261.ece