India's ongoing structural reforms geared towards unlocking market potential and deepening competition says FM
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Economic Times
26 minutes ago
- Economic Times
Tilaknagar Industries to complete Imperial Blue acquisition by Dec ‘25, awaits CCI nod
Brandy giant Tilaknagar Industries is all set to acquire Imperial Blue which is expected to be completed by December this year as the company awaits regulatory approval from Competition Commission of India (CCI).'Our acquisition of the Imperial Blue business division from Pernod Ricard India is subject to CCI approval, which we expect to receive by (the) end of calendar year 2025,' Amit Dahanukar, Chairman & Managing Director, Tilaknagar Industries, said. The company will enter into a Transition Manufacturing and Services Agreement (TSMA) with PRI to ensure a smooth transition. Tilaknagar Ind. signed an agreement to acquire the whiskey brand Imperial Blue for about Rs 4,150 crore from Pernord Richard. "With the acquisition, the company will become one of the leading players in brandy and whiskey, the two largest IMFL categories. Imperial Blue shall serve as a base for the company's premium portfolio strategy. This acquisition would also strengthen the distribution network of the company," Tilaknagar Industries said in a statement earlier. The company has signed definitive agreements for the acquisition of Imperial Blue division of France's Pernod Ricard, marking the largest transaction in the Indian alcoholic beverage space by an Indian transaction includes normalized working capital of Rs 700 cr and deferred consideration of Rs 282 cr to be paid after 4 years from the transaction closing date, i.e., in FY30. Tilaknagar Industries intends to finance the deal with a mix of equity and debt. On July 29, the company announced that it will raise Rs 2,296 crore through preferential issue of securities to fund acquisition of Imperial Blue business division and general corporate purpose. 'This equity issue, along with the proposed debt fundraise, will ensure an optimal financing mix for the acquisition of IB,' Tilaknagar Industries said in a FTA is expected to be a major tailwind leading to potentially expanded EBITDA margins for the Imperial Blue business division, the company said. The deal covers trademarks of Imperial Blue and related assets that also include 'Imperial Black' and 'Imperial Red' brands globally. The company will enter into a trademark license agreement for the use of 'Seagram's' in connection with Imperial Blue for a short transition period. Tilaknagar Industries will also sign a long-term supply agreement with Chivas Brothers for CAB (Concentrated Alcoholic Beverage), an essential raw material for manufacturing IB products, as mentioned in the company's investor presentation.'Procurement arrangement can be extended with mutual discussions between the parties, ensuring no disruption in business,' it added. To meet the growing capacity requirements, Tilaknagar Ind. recently announced a six-fold capacity addition in its bottling unit - Prag Distillery in Andhra Pradesh. The company is set to invest Rs 59 crore to increase the capacity from 6 lakh to 36 lakh cases annually. 'We would also like to announce that the Board has approved investment of INR 59 crore, including the license fees and interest payments of around INR 34 crore for expansion at Prag Distillery, increasing the capacity from 6 lakh to 36 lakh cases p.a.,' the chairman said in a expansion enables us to safeguard supply in one of the fastest growing IMFL markets in India, the company Board of Directors approved an additional capital expenditure of Rs 25 crores for the above expansion of its existing bottling capacity. Tilaknagar Industries has a strong portfolio across multiple India Made Foreign Liquor (IMFL) categories with two 'Millionaire' brandy brands - Mansion House and Courrier Napoleon. Along with this, the company has a strong presence in whisky, rum, and gin through Mansion House Whisky, Madiraa Rum and Blue Lagoon Gin. Recently, it also expanded into the luxury segment with Monarch Legacy Edition Brandy.
The Hindu
8 hours ago
- The Hindu
Is the new Income Tax law more accessible?
The story so far: The Income Tax Bill 2025, which seeks to replace the Income Tax Act of 1961, was passed by Parliament in the ongoing monsoon session. The Bill is significantly shorter, more concise, and has clearer legislation. However, it also incorporates some new elements that could be problematic. Why was a new law needed? The Income Tax Act, 1961 is outdated, and over the years has been amended numerous times, leading to income tax legislation in India being convoluted and difficult for an average citizen to understand. It also provided tax officials ample scope for harassment due to the discretion the law afforded them. In the new Bill, the number of chapters has been brought down to 23 from 47 in the Income Tax Act, 1961, and the number of Sections to 536 from 819. Moreover, in order to provide greater clarity, the new Bill has increased the number of tables to 57 from 18 and the number of formulae to 46 from six. Most importantly, the language has been greatly simplified. Jargon has been removed as much as possible, and examples have been provided where needed. Why was a second version of the Bill needed? The original version of the Income Tax Bill 2025 was introduced in Parliament in February this year. However, given the importance of the legislation and the ambitious nature of what it was trying to do, it was decided to refer it to a Select Committee. The committee was headed by Baijayant Panda and comprised Members of Parliament from across political parties. The Select Committee submitted its report in July this year. It was a mammoth report, and while it retained much of the language in the new Bill, it also recommended several changes. On August 8, 2025, the government withdrew the Bill to incorporate the suggestions made by the committee. The reason for the withdrawal was to avoid confusion through multiple versions of the Bill and to provide a clear and updated version with all the changes incorporated. That new version was introduced in the Lok Sabha on August 11, 2025 and was passed the same day without debate. What has changed in the new Bill? Finance Minister Nirmala Sitharaman was clear from the outset that the purpose of the new legislation was to simplify and rationalise the existing law, not to change the rates or slabs through it. Those changes are made periodically by the government, such as in Budget 2025, when the income tax slabs and rates were substantially changed. Most of the changes will not impact the average income tax payer, and are more technical in nature. For example, the provisions of Minimum Alternate Tax (MAT) and Alternate Minimum Tax (AMT) have been separated into two sub-sections. However, the new law has codified some taxpayer-friendly features. For example, taxpayers can now update their income tax returns up to four years from the end of the relevant assessment year. This means mistakes can be rectified without any penalty or tax incidence. Notably, the period for which assessments could be reopened has been reduced to five years. Are all the changes positive? No. The provisions relating to searches by income tax officials have been tweaked to include some concerning features. The original Income Tax Act 1961 required anybody found to be in control or possession of any documents in electronic form to provide the authorised officer 'the necessary facility to inspect such books of account or other documents'. It also authorised the tax official to 'break open the lock of any door, box, locker, safe, almirah or other receptacle' in case their keys were not available. The new law takes these concepts a step further. It now says that anybody in possession or control of electronic documents or information must not only provide the tax officer 'reasonable technical and other assistance', but also share passwords. As the law sets no limits on what electronic information the tax officer may need to assess, this means the assessee must also share passwords of social media and personal emails, if required. Further, the law also empowers the tax official to 'override the access code to any computer system' if the password is not provided. What is the justification? While a few members of the committee called for the dilution of these sections in their dissent notes, the Select Committee as a whole accepted the government's argument that a lot of relevant financial information is shared over messaging services or stored in personal emails, and so recommended that these sections be included.
Time of India
9 hours ago
- Time of India
"No agreements that would go against the farmers": Shivraj Singh Chouhan on US's demand amid tariff talks
Live Events New Delhi: Union Agriculture Minister Shivraj Singh Chouhan on Friday firmly stated that India will not enter into any agreements that could harm the interests of its farmers, emphasising the paramount importance of safeguarding their rights amidst ongoing trade talks with the US, especially regarding the tariff issues in the country's agricultural and dairy a gathering of farmers in the national capital, the Union Minister noted that there were global voices that had shown concern about India's rapid progress, especially in the context of trade agreements and acknowledged that while India seeks to maintain friendly relations and create fair trade agreements with countries across the world, the spirit of these agreements must be grounded in fairness and equality."In our country, the right of the farmer is paramount, and the right of the citizen is paramount. You know, there are many people in the world who are jealous of our progress. 'What if India makes great progress? Make an agreement with them.' We do make agreements because we see the world as one family. But the spirit of agreement is based on fairness, on equality," he highlighted the agreement made with the UK, where Indian agricultural products would be allowed to enter the UK without tariffs, benefiting Indian farmers . However, he was cautious about any potential trade deals that could jeopardise Indian agriculture."We made an agreement with the UK on equal terms so that the produce of our farmers can go to England without any tax. Many agricultural products will now reach England without tax. But if someone suggests an agreement that allows another country's goods to flood our markets, we cannot compete with them," he Union Minister pointed out the disparity in the scale of farming between India and many foreign countries, stating, "Their farms are massive--10,000, 15,000, or even 20,000 hectares--while our farmers often have just one or two acres, or maybe up to five acres, which is rare. There is no comparison."He also warned that an agreement that allows foreign agricultural products to flood Indian markets could severely harm domestic farmers, driving down prices and depriving them of fair returns."If such an agreement happens, it would kill Indian farmers. Cheap foreign produce will flood the market. If we sell our produce at lower prices, farmers will not get a fair return," he a strong reaffirmation of India's stance, Chouhan echoed the words of Prime Minister Narendra Modi , asserting that no agreement would be signed at the expense of Indian farmers."But PM Modi said there will be no agreements that would go against the farmers. Their rights will be paramount," he Prime Minister Narendra Modi while addressing the nation on the 79th Independence Day, reaffirmed his support to protect farmers, saying that he is "standing tall like a wall against policies which are against farmer interest.""If any policy is against India's farmers, fishermen, cattle rearers, Modi is standing like a wall," PM Modi about standing his ground in the era of 'economic selfishness,' he added, "I say this with great experience. Kisi doosre ki lakeer chhoti karne ke liye, apni oorja hamein nahi khaphai. Hamein poori oorja ke saath hamari lakeer ko lamba karna hai. If we do that, the world will admit our strength."These remarks come during a time when India is actively involved in the discussions on the Bilateral Trade Agreement with the US, which the two sides could not conclude due to the American demand to get comprehensive access to the Indian agriculture and dairy US is pressuring India to open its agricultural market and subsequently imposing a 25 per cent additional tariff, with Washington calling it a 'penalty' for buying Russian oil. (ANI)
