Pernod Ricard has agreed to sell its Imperial Blue whisky brand to Tilaknagar Industries for €412.6 million (US$486 million), a strategic move to accelerate premiumization in India, its key growth market. Announced on July 23, 2025, the deal includes a €28 million deferred payment due in four years and covers two owned production units and co-manufacturing bottling services across India. The transaction, pending approval from the Competition Commission of India, is expected to close in the coming months.
Launched in 1997, Imperial Blue blends Indian grain spirits with imported Scotch malts and holds an 8.6% share of India’s whisky market, making it the country’s third-largest whisky brand. It sold 22.2 million 9-liter cases in 2024, but volumes have declined by 4% over the past five years amid India’s growing premiumization trend. Acquired by Pernod Ricard through its 2002 purchase of Seagram’s India business, the brand no longer aligns with the company’s focus on high-margin labels. Pernod Ricard views India as its second-largest market after the United States. According to Reuters citing CRISIL data, India’s alcohol market is projected to exceed US$61.35 billion in the 2025–26 fiscal year, making it a key growth engine for both global and domestic players.
The sale enables Pernod Ricard to exit the lower-margin Admix Value segment and channel resources into premium brands like Royal Stag, which exceeds 30 million cases annually, Blenders Pride, and global labels such as Chivas, Jameson, Absolut, and Ballantine’s. “This strategic move sharpens our focus on more profitable and faster-growing brands in India, fueling our ambition to succeed further in one of our top markets,” said Alexandre Ricard, Pernod Ricard’s Chairman and CEO. Jean Touboul, CEO of Pernod Ricard India, added, “This disposal unlocks profitable growth and allows us to drive bold innovations tailored for the evolving Indian consumer.”
Subscribe to our newsletter
For Tilaknagar Industries, the acquisition marks a transformative step into India’s largest Indian-made foreign liquor (IMFL) category—whisky. A leading brandy player with its Mansion House brand, Tilaknagar operates 21 manufacturing units across 12 states and boasts a portfolio including Courrier Napoleon, Mansion House Whisky, Madiraa Rum, and Blue Lagoon Gin. “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,” said Amit Dahanukar, Tilaknagar’s Chairman and Managing Director. The addition of Imperial Blue, a trusted brand, strengthens Tilaknagar’s position as a pan-India player.
Pernod Ricard’s broader portfolio streamlining includes divesting brands like Minttu, Clan Campbell, and Becherovka in recent years. It is expected to boost Pernod Ricard India’s operating margin and net sales growth immediately upon closing. Meanwhile, Tilaknagar’s entry into whisky capitalizes on India’s growing demand for the category, positioning it to compete with rivals like Diageo’s McDowell’s No.1. As global spirits giants recalibrate for long-term resilience, India’s whisky market—fast-growing yet price-sensitive—emerges as a pivotal battleground where strategic clarity outweighs sheer volume.
