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Pernod breaks ground on Asia’s largest malt distillery
The Indian arm of Pernod Ricard has invested INR 100 crore (US$11.9 million) into its forthcoming Nagpur distillery and maturation facility, which is anticipated to be the largest of its kind in Asia.
Pernod Ricard India announced in February that it would be constructing the ‘largest malt distillery and maturation facility in Asia’, in the city of Nagpur, Maharashtra.
The company plans to invest up to €200 million (US$217m) in the next 10 years for its development, with this first cash injection going towards land costs and operational and construction planning.
Pernod Ricard said the design and layout have been finalised and a Bhoomi Pujan ceremony has been held, which is a traditional ground-breaking ritual.
Jean Touboul, CEO of Pernod Ricard India, called the ceremony a “significant milestone”.
He continued: “[It] highlights our unwavering dedication to India’s growth story. This facility will benefit from Pernod Ricard’s rich heritage in producing premium spirits. We are proud to be at the forefront of this transformation, contributing to the economic and social prosperity of Maharashtra and beyond.
“Our vision is to shape a sustainable future, where India emerges as a hub for premium malt spirits crafted with global precision and local passion.”
The distillery is expected to have a production capacity of up to 13 million pure alcoholic litres annually and create jobs for 700-800 people, with more indirect employment opportunities throughout the region.
In addition, Pernod noted the project will provide farmers with ‘new avenues to cultivate high-quality barley’, which will improve their livelihoods and contribute to agricultural diversity.
Tying in with the company’s sustainable commitments, the facility will use 100% renewable electricity, biomass from agricultural waste and adopt water-positive measures to reduce its eco-footprint.
Pernod Ricard India worked with the Maharashtra Industrial Development Corporation (MIDC) to find the site, with MIDC providing the regulatory permissions for the project.
Shri Devendra Fadnavis, deputy chief minister of Maharashtra, said the move to establish the distillery and maturation facility “underscores India’s growing stature on the global economic stage”.
He added: “This landmark project will significantly contribute to local employment, providing job opportunities for hundreds of individuals while fostering skill development and entrepreneurship. It will drive economic growth, benefiting farmers and various sectors, aligning perfectly with our vision for a dynamic, diversified, and self-reliant economy.”
According to IWSR Drinks Market Analysis, India is expected to be a leading volume growth market for total beverage alcohol from 2022 to 2027.
Though Pernod Ricard’s organic revenue dropped by 1% in the year ending 30 June 2024, its sales in India rose by 6%.
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