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In a realignment aimed at enhancing its focus on premium brands, Pernod Ricard India has entered into a definitive agreement to divest its Imperial Blue business division to Tilaknagar Industries.

Pernod Ricard says the move is aimed at capitalising on the burgeoning premiumisation trend within India's fast-growing spirits market.

The transaction positions Pernod Ricard India to strengthen its portfolio, allowing for a sharper concentration on higher-margin brands. As the second-largest market for Pernod Ricard globally, India's evolving consumer preferences and strong economic fundamentals make it a focal point for the company's growth strategy.

The sale is expected to be immediately accretive to Pernod Ricard India's operating margins and net sales growth upon completion.

Alexandre Ricard, chairman and CEO of Pernod Ricard, highlighted the strategic nature of the sale: "This transaction represents a win-win for all stakeholders involved, both at the global and local level. It fuels our ambition to succeed even further in one of our top markets. This will further streamline our operations as we continue to invest in India’s outstanding growth.”

Jean Touboul, CEO of Pernod Ricard India, elaborated on the implications of the sale, indicating that exiting the Admix Value segment will enable the company to allocate resources more effectively towards its premium offerings, such as Royal Stag, Blenders Pride and renowned international labels like Chivas Regal and Jameson.

Touboul noted: “We are entering an exciting new chapter that will see bold innovations and an expanded premium portfolio tailored specifically for the evolving Indian consumer”.

Tilaknagar Industries, a prominent player in the Indian alcoholic beverage sector with over 90 years of experience, is poised to benefit from the acquisition. The company has a diverse portfolio that includes established brands in whisky, rum and gin, alongside its luxury segment offerings.

The acquisition of Imperial Blue aligns with Tilaknagar's strategy to enhance its market presence and expand its brand portfolio.

The transaction is pending approval from the Competition Commission of India and is anticipated to close within the coming months.

Image credit: ©Pernod Ricard