The project is expected to be completed by Q3 FY28, with the investment to be funded through additional capital contribution or financial assistance, including external debt supported by a corporate guarantee through appropriate banking channels, as deemed necessary.
The Management Committee of the Board of Directors approved the investment at its meeting held today. The company said the proposed investment is aligned with its long-term strategic vision of expanding and strengthening its premium spirits portfolio through entry into the provenance-led Single Malt Whisky segment.
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Separately, the Management Committee approved an additional capital contribution or financial assistance of up to ₹10 crore to Minakshi Agro Industries LLP to meet cost overruns in previously approved projects.
The ongoing projects include a bottling unit and distillery, with the bottling project expected to be completed by Q3 FY27 and the distillery by Q3 FY28.
The additional ₹10 crore investment is required to meet cost overruns arising primarily from higher prices of key metals and the marginal expansion of the bottling hall and mezzanine area to accommodate longer automated bottling lines.
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Back in July this year, Allied Blenders and Distillers (ABD) said it expects growth to pick up in the remainder of FY27 despite a challenging start to the year, as the company banks on premium brands, backward integration and lower input costs to improve profitability.
Managing Director Amar Sinha said the company is targeting mid-teen volume growth and around 18% revenue growth in FY27. He also expects EBITDA margins to remain in the mid-teens this year before expanding further over the next two years.
The company had earlier guided for a 17% EBITDA margin by FY28, but Sinha now believes it can do better. In the April–June quarter (Q1FY27), Allied Blenders and Distillers reported revenue of ₹978 crore, a profit after tax of ₹45 crore, and a margin of 11.8%.
ALSO READ | Allied Blenders Q2 Results | Net profit jumps 35% to ₹64 crore on strong premiumisation, margin gains
Shares of Allied Blenders and Distillers Ltd ended at ₹631.85, up by ₹20.45, or 3.34%, on the BSE.
