CCI Approves Tilaknagar Industries’ Acquisition of Pernod Ricard’s Imperial Brands

The Competition Commission of India (CCI) has approved the proposed acquisition of the production, bottling, marketing, and sale business of alcoholic and other beverages under the ‘Imperial Brands’ from Pernod Ricard India Private Limited (PRIPL) by Tilaknagar Industries Limited (TIL). The transaction marks a major realignment within India’s Indian Made Foreign Liquor (IMFL) market, as TIL expands its premium portfolio through one of the country’s most recognizable whisky labels — Imperial Blue.

Details of the Approved Transaction

The Proposed Combination involves Tilaknagar Industries acquiring the entire Target Business operated under the Imperial Brands portfolio, currently owned by Pernod Ricard India, one of India’s leading international spirits companies.

The Target Business includes the production, bottling, marketing, and sale operations related to alcoholic beverages under the Imperial Blue and associated brand lines. The transaction also extends to select export markets where Imperial Blue is distributed.

In its regulatory filing, the CCI confirmed that it has no competition concerns arising from the acquisition and approved the transaction under Section 31(1) of the Competition Act, 2002. The Commission’s detailed order will be issued separately.

Tilaknagar Industries’ Growing Footprint in the IMFL Market

Tilaknagar Industries Limited (TIL), based in Maharashtra, is one of India’s leading homegrown liquor manufacturers. It is widely recognized for its strong presence in the brandy, whisky, rum, vodka, and gin segments, under brands such as Mansion House Brandy, Courrier Napoleon Brandy, and Madira Rum.

Founded in 1933, TIL has steadily built a reputation for premium and semi-premium IMFL products, catering to both domestic and export markets. The company operates state-of-the-art distilleries and bottling facilities, supported by a robust distribution network across India and parts of Africa and Southeast Asia.

With the acquisition of the Imperial Brands business, TIL is set to strengthen its market position, particularly in the whisky segment, which accounts for nearly 60% of India’s total IMFL consumption.

“This acquisition is a natural progression for Tilaknagar Industries as we pursue our strategy to build a diversified and premium-led brand portfolio,” a senior industry source said. “The Imperial Blue brand’s strong recall and loyal consumer base make it an attractive addition.”

About Pernod Ricard India and the Imperial Blue Brand

Pernod Ricard India Private Limited (PRIPL), a subsidiary of Pernod Ricard SA, is one of the largest global producers of wines and spirits, headquartered in France. Its Indian operations feature a mix of globally recognized brands — including Chivas Regal, Ballantine’s, Royal Stag, Blenders Pride, 100 Pipers, and Absolut Vodka — as well as locally developed labels.

The Imperial Blue whisky brand, launched in 1997, has grown into one of the top-selling whiskies in India, known for its smooth taste and affordability. The brand also enjoys a strong presence in export markets such as Africa, the Middle East, and Southeast Asia.

Under the acquisition, the business of Imperial Brands, which includes all related assets, licenses, and marketing rights, will now transition to Tilaknagar Industries, allowing PRIPL to focus on its premium and luxury portfolio within India.

Strategic Importance of the Deal

Industry analysts view the CCI-approved transaction as part of a broader trend of consolidation and diversification within India’s IMFL industry, where domestic companies are expanding portfolios to capture a greater share of the country’s fast-growing alcoholic beverage market.

The Indian spirits industry is valued at over $35 billion, with whisky alone contributing more than half of total sales. As consumer preferences evolve, companies are increasingly focusing on brand-driven growth, premiumisation, and geographical diversification.

“The acquisition allows Tilaknagar to enter the mainstream whisky category at scale, leveraging a brand with deep market penetration,” said a Mumbai-based beverage sector analyst. “This will help the company balance its brandy-dominated portfolio and drive revenue growth in North and West India.”

Regulatory Oversight and Competition Assessment

The Competition Commission of India evaluated the proposed combination to determine whether it would lead to any appreciable adverse effect on competition (AAEC) in India’s IMFL market. Given that TIL and PRIPL primarily operate in complementary product segments — TIL being dominant in brandy and PRIPL in whisky — the CCI found no significant overlap that could distort market competition.

The Commission’s approval signifies India’s increasing openness to mergers and acquisitions in consumer sectors, provided they contribute to market efficiency and consumer choice.

Market Implications and Future Outlook

The acquisition of Imperial Brands marks a turning point for Tilaknagar Industries, which has undergone a successful turnaround in recent years following debt restructuring and operational consolidation. The company’s renewed focus on expanding its product portfolio, improving profitability, and scaling exports is expected to drive double-digit growth over the next five years.

In the medium term, the deal will likely:

• Expand TIL’s distribution footprint in northern and western India, where Imperial Blue is a strong player;

• Diversify product offerings beyond brandy, making the company a more balanced IMFL player;

• Boost export potential, leveraging Imperial Blue’s established international presence; and

• Enhance margins through better capacity utilization and integration of bottling facilities.

The move also reflects Pernod Ricard’s global strategy of focusing on high-value premium brands and divesting select mainstream labels to strategic partners in emerging markets.

The Changing Landscape of India’s Spirits Industry

India is one of the largest alcoholic beverage markets in the world, accounting for nearly one in every eight bottles of spirits sold globally. The market is led by Indian whisky, rum, and brandy brands, followed by a growing demand for premium and craft spirits.

Domestic producers like Tilaknagar Industries, Radico Khaitan, and Allied Blenders & Distillers are increasingly competing with global players by investing in innovation, sustainability, and digital marketing.

With India’s young demographic, rising disposable income, and urban lifestyle changes, the IMFL industry is poised for sustained growth over the next decade.

Looking Ahead

The CCI’s approval of Tilaknagar Industries’ acquisition of Imperial Brands marks a strategic milestone in India’s beverage sector, strengthening domestic participation in a market historically dominated by multinational players.

As TIL integrates the Imperial Blue operations, the company is expected to ramp up production, marketing, and export expansion over the next two years, positioning itself as one of India’s leading liquor manufacturers.

The CCI’s detailed order on the combination will be released in the coming weeks.