Shares of Allied Blenders and Distillers Ltd are likely to be in focus on Wednesday after the company received a licence from the Commissioner of Prohibition and Excise, Telangana, Hyderabad, to manufacture malt spirits for potable purposes at its facility in Rangapur Village, Pebbair Mandal, Wanaparthy District, Telangana.
The development gains significance as the licence allows Allied Blenders and Distillers to manufacture around 4.4 million BL of malt spirits per annum, subject to the prescribed terms and conditions and applicable Telangana excise laws and rules.
Until now, the company has sourced malt spirit from third-party distillers to meet its production requirements. With the new licence, it will be able to manufacture malt spirit in-house, supporting its raw material requirements and improving operational efficiencies.
The licence will also allow the company to produce and develop its own single malt whisky products, expanding its premium product portfolio and creating opportunities for future growth. The licence will remain valid in accordance with applicable law, subject to the company complying with the terms and conditions specified under it, the company said in a regulatory filing on Tuesday.
Allied Blenders launches premium whisky
The development comes shortly after Allied Blenders and Distillers launched its new premium whisky, ‘The Indian Edit’, last week. The brand is aimed at contemporary and global Indian consumers and is positioned as a premium whisky offering.
Amar Sinha, Managing Director of the company, said, “India's spirits industry is at an inflection point, and premium whisky sits right at the centre of it. Consumers today are moving beyond scale and price, seeking quality, distinctiveness and a more evolved drinking experience, and this shift is only accelerating.”
“‘The Indian Edit’ is a strong articulation of where we see this category going, reflecting our belief and reinforcing ABD's ambition to lead rather than simply participate in India’s premiumisation journey as it begins to unfold. We look forward to being an integral part of this next phase of growth.”
The company said the launch comes amid sustained growth momentum in India’s premium whisky segment, with consumers increasingly seeking quality, distinctiveness and a more evolved drinking experience. The Indian Edit will be available in 750 ml, 500 ml and 180 ml formats across key markets.
Allied Blenders and Distillers Q1 results
The company reported a 13% year-on-year decline in consolidated net profit for the first quarter, even as revenue and operating profit posted modest growth. Net profit stood at Rs 49.2 crore, compared with Rs 56.6 crore in the corresponding quarter last year, according to an exchange filing on Thursday.
Revenue from operations increased 6% year-on-year to Rs 979 crore from Rs 923 crore in the year-ago period, supported by steady demand across the company’s portfolio. Earnings before interest, tax, depreciation and amortisation rose 3.5% to Rs 115.5 crore from Rs 111.6 crore a year earlier.
However, the increase in operating profit came alongside a marginal contraction in profitability. The EBITDA margin stood at 11.8% during the quarter, compared with 12.1% in the same period last year.
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