Pernod to offload Imperial Blue whisky
French firm Pernod Ricard has agreed to sell Indian whisky Imperial Blue to Tilaknagar Industries for €412.6 million (US$485m).
The deal, made through Pernod Ricard’s Indian arm, includes the Imperial Blue business and two units and services from co-manufacturing bottlers across the country.
Furthermore, the agreement includes a deferred payment of €28m (US$32.9m) to be paid four years after the transaction has closed.
Imperial Blue is the world’s third biggest-selling Indian whisky, with case sales of 22.9m last year (an uptick of 0.4% on 2023), according to The Brand Champions 2025 report.
Pernod Ricard said this divestment would enable the business to ‘fully tap into premiumisation trends and support sustained, profitable growth’.
It would also enable the company to capitalise on India’s ‘strong macroeconomic fundamentals and long-term potential’.
The sale of Imperial Blue is also part of the group’s strategy of assessing strategic opportunities to drive sustainable value.
Alexandre Ricard, chairman and CEO of Pernod Ricard, described the deal as a “strategic move to sharpen our focus on more profitable and faster-growing brands in India, like in the rest of the world”.
He continued: “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.”
Over the past 12 months, the Paris-based group has sold its portfolio of Nordic brands and international wines.
There has been speculation for months regarding the sale of Imperial Blue with reports naming Indian spirits group Tilaknagar as the front-runner. Japanese firm Suntory has also been linked as a potential buyer for the brand.
First move into whisky
Headquartered in Maharashtra, Tilaknagar is known for its Mansion House brand – the world’s biggest-selling brandy with case sales of 7.8m.
The deal is said to fast-track Tilaknagar’s move into the whisky segment, the largest Indian-made foreign liquor (IMFL) category in India. The company produces a whisky under its Mansion House brand, which is a blend of Scotch malts and Indian grain spirits.
The Indian company believes the acquisition will serve as a ‘launchpad for a significant whisky premiumisation journey’ as it looks to build a portfolio across higher price points.
This deal would also help Tilaknagar become a ‘pan-Indian player’ with a strong presence in both brandy and whisky, holding a combined volume of 34m nine-litre cases for the year ending March 2025.
Amit Dahanukar, chairman and managing director, Tilaknagar Industries, added: “Having achieved leadership in the brandy segment, it is now time for us to broaden our portfolio and cater to India’s diverse and evolving consumer base.
“While we continue to grow our business organically, this strategic acquisition allows us to enter the whisky category with one of the country’s most trusted and admired brands.”
The Imperial Blue business sold 22.4m nine-litre cases in the year ending March 2025, Tilaknagar highlighted.
Focus on ‘high-growth brands’
India is the second-largest market for Pernod, where it reported growth of 5% in the nine months to March 2025.
Pernod Ricard’s Indian whisky portfolio includes Royal Stag (which rose by 11.1% to 31m cases in 2024) and Blenders Pride (up by 5% to 10.1m cases).
Jean Touboul, CEO of Pernod Ricard India, added: “By exiting the admix value segment, this disposal will allow Pernod Ricard India to unlock further profitable growth and sharpen its focus on premiumisation and innovation.
“It will also enable the company to allocate resources more effectively toward high-growth brands such as Royal Stag, which has already surpassed the 30m cases milestone, Blenders Pride, and international brands like Chivas, Jameson, Absolut and Ballantine’s.
“Driving the next phase of growth, we are entering an exciting new chapter, one that will see bold innovations and an expanded premium portfolio tailored specifically for the evolving Indian consumer.”
The deal is subject to approval from the Competition Commission of India and is expected to close in approximately six months.
Last month, Pernod Ricard announced it would restructure into a “more agile and simplified organisation”, resulting in job cuts.
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